Lengthy Lead Time
A global supplier of gas compression equipment was approached by IBCC with a
focus on cost reduction, but also with a concerted need to REDUCE lead times.
Given the supply chain length, and challenges of making product on very tight
timelines, IBCC elected to approach the customer with a value stream that
included vendor managed inventory on the longest lead time items and direct
shipment of short lead items.
The end result—with domestic lead times at 16 weeks, and a desired 12 week
goal, IBCC shortened the lead time to less than one week, providing this
customer with the ability to capture more business from its chief rival by
being able to respond in days rather than weeks due to a complete
restructuring of the supply chain and the careful use of VMI—thus
exceeding the capabilities of DOMESTIC, local suppliers.
Cost reductions on this customer’s machined, complex, highly-cored ductile
and grey iron castings were approximately 35%, and quality, through the use
of APQP and improved tooling (an option due to lower costs in China), was
also greatly improved. IBCC acts as your LOCAL global supplier.
Better for Less
A global manufacturer of construction equipment, struggling with
increased revenues, but reduced margins as a result of higher local
market pricing, decided that it needed to break free from the grip
of its current supply chain and take the risk of acquiring grey and
ductile iron castings from Asia. While quality standards had decidedly
increased over the years, legacy tooling and suppliers were still
supplying castings made with chaplets, and other compromises on
internal soundness and casting integrity. IBCC delivered castings
meeting the increased scrutiny soundness criteria on nearly 20
different parts into production within one year. Cost reductions
achieved brought pricing back to levels of over a decade ago. Cost
reduction achieved at full production; $3,000,000.
Best Cost Country
A world class pump manufacturer resisted the move to China
until competition forced its hand into doing so, but after realizing
IBCC's tremendous strengths in pump design, an effort was made to
benchmark the best features from all of its competitors and its own
design to achieve a completely new class of pump. The finished
machined, locally warehoused cost was lower than the domestic material
cost, saving millions of dollars in the process of achieving better
quality and faster deliveries. Estimated annual cost reduction; $2,000,000
A Fresh Start to Improved Quality
A major global heavy truck OEM, faced with an uncertain supply
chain on steel castings, but with extreme caution, finally relented
and decided to explore steel castings made in China for their
higher-end heavy truck suspension castings. The lack of capacity
and resultant higher cost of domestic steel castings made the
opportunity to explore China a reality that reaped a huge reward.
Better castings, the result of superior metallurgy, improved
welding via robotic welding equipment provided by IBCC, and
attention to detail provided the customer with better castings at
lower costs, and a far more reliable supply chain. The four images
in this gallery show the previous welding result from a domestic
US supplier, and how IBCC applied superior robotic welding technology
to deliver what the customer specified but enhanced even further.
Estimated cost reduction; $3,500,000.