Special cutting tools eliminate machining operations for substantial cost reductions.
A several years ago, had the pleasure of attending a CUTTING TOOLS TECHNOLOGY SEMINAR presented by Ingersoll at their facility in Rockford, Illinois. All expenses paid with dining and entertainment. It was outstanding. Just had to get there and back.
They illustrated the significance of cutting tools in a business equation for competitive cnc machining in the USA., and just a few years ago read the same equation stated by the general manager of Tongaloy America in a related LinkedIn discussion.
Both companies stated the same equation with the exact same values. Therefore, decided to share this information in a video for companies in the USA performing cnc machining processes. Please note quotation marks.
Cutting tools 3%
Raw material 22%
Little can be done about raw material costs.
Doubling the tool life while all others remain the same will save the company 1.5%, and reducing the price of the cutting tool will save only 1.5%.
However, optimizing cutting tools can possibly cut cycle time in half thereby cutting manpower and overhead and machinery in half, saving 35%.
This requires a change in mind set. Instead of trying to extend tool life or cut costs on the cutting tools, the manufacturer should look to pushing the limits of the tool rather than focus on saving a couple of dollars on the cutting tool.
This will certainly diminish the competitive advantage off shore companies have due to their low labor cost.”
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Post time: Oct-01-2017