IBCC Industries

Case Studies

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.