“Near Net”

Case study # 1

Our customer has a 6063 aluminum turned part for the office machine industry.

The finished part weight is 19.7 grams.

The weight of bar stock to make the part is 108 grams. The current cost of this much bar stock is US$0.39 per part .

The annual quantity is 450,000 parts so his annual material consumption was US$175,500.

The customer must buy cutters and electricity and pay for the labor and machine costs to machine 39.8 tones of material off the bars to make this part from bar stock.

EIC provided him with a “Near Net” shape pre-form at a cost 30% lower than buying the bar. This smart decision saved him US$52,650 in materials and he had 24.8 tones LESS material to machine off creating more savings on cutters, coolants, machines, labor and electricity. He was able to accept another job with the extra capacity and current staff without the need to buy additional machines.

He kept his customer that he was going to lose because of a lower quote from a competitor. And he actually increased his profits after he gave his customer a  required cost down. A smart businessman wins.