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Creating Value Where Others Do Not
In March of 2007, a potential customer came to us with a concept for a new part they were developing. The client had been quoted $35,000.00 in new roll form tooling by one of our competitors, an investment they did not have the cash to make. They were prepared to have the parts made with a brake press. This option was not cost effective either. Although forming the parts this way meant no tooling costs, the labor costs associated with this process would have sent the price per piece sky-rocketing. Also, if the demand for the product increased over time, as they expected, the press braking operation would not be able to keep pace.
As we reviewed the drawings, Steel Forming Systems, Inc. determined that the new tooling would indeed cost almost $35,000.00. So, we decided to take a different approach. At Steel Forming Systems, we went deeper into the function of the part and asked the important questions about how the finished product was utilized. As a joint collaboration, SFS and the client, we were able to make some design changes that allowed SFS to use existing tooling. While some of the tooling is proprietary, we found an existing set of tooling that was not and could be altered slightly to form the part. With the cost of new cut-off die inserts and 16 hours of labor to modify the existing tooling, about $2800.00, we were able to turn a concept into a production part while saving our new customer about 92%. The parts also cost about 40% less per piece than if they were made with press braking. The parts are run efficiently, with consistently high quality, and a production capacity that exceeds our customer’s largest needs.