Algoryx did a material replacement case study for a customer. The material supplier was “obsoleting” the plastic compound the customer was then using. The customer had to find a replacement material. Algoryx evaluated the replacement material from the original supplier A as well as from a different (new) supplier B.
The replacement material from supplier A had the same Operating Range (OR) as the old material from supplier A. The Upper and Lower Operating Limits were different for the two materials from supplier A. Consequently, the Operating Targets were different for the two materials. This difference contradicted supplier’s A statement that the material was of the same class and would have the same molding characteristics. Determining the new Operating Target was, in its own right, very useful information.
The supplier A replacement material price per pound was the same as the old supplier A material price per pound.
The replacement material from candidate new supplier B had a larger OR than the replacement material from supplier A. Further, the price of the material from supplier B was lower than the price from supplier A.
The Algoryx customer, of course, selected the material from supplier B. As a result of the Algoryx Mold Characterization study, the customer got a higher Opk/Cpks at a lower cost!
The end result was the Algoryx customer saved $1,000 per month in material costs and got higher quality parts at the same time.
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"We lost a $40 million per year line of business because of schedule delays and cost overruns. We would have kept this customer if we had..."
Global Tooling Manager, Tier 1 Automotive Supplier