Value analysis and value engineering are strategic and organized approaches utilized to accomplish one more of the following for new product and existing product development: cost improvement or containment, design for assembly, design for manufacturing, quality performance improvements, and supply chain improvements.
Commercial / Industrial Customer Success Story
Challenge
One of Fastener Tool & Supply’s strategic commercial customers had growth in their new product line of 25% year over year for four years in a row.
The customer challenged our engineering and customer service teams with a 15% cost savings target for a specific bill of materials. These products were a mix of standard components, semi-specials, and blueprint specials.
Solution
Our team was able to utilize the increased volume, and forecasted growth volume to validate our value engineering process for the blueprint specials.
Our team developed new supply chain options with frozen process controls through the change of manufacturing methods for these items. The progression from new product development, to rapid prototyping, to smaller production volumes, to increased growth enabled products to be converted from traditional screw machining volumes to cold forming with secondary operations.
Results
FTS supplied pre-production manufacturing runs for the customer. Component reviews and product evaluations were approved to change manufacturing methods through our new supply chain partners. Products were converted to the cold forming process with FTS secondary operations to ensure critical features were maintained.
Quality consistency improved and lead times decreased through increased manufacturing throughput. The processes were frozen, and FTS continues to monitor the capability of the process. The customer saved approximately 20% through these changes and is leveraging this win to other product lines.
