Process Engineering - Cost Reduction

Problem Statement

• Need to reduce piece part cost in wheel loader transmission components
  

Solution

• Reviewed part for design modifications based on manufacturing method chosen:
  • Modified CAD model(s) for geometry changes
  • Overlay modified part on existing assembly to ensure continued fit and function
  • Perform FEA analysis as confirmation of continued or enhanced product performance based on geometry modifications & manufacturing method
• Evaluated cost benefits of alternate manufacturing process:
  • Part costs of cost reduction concept vs. current part cost & manufacturing methodology
  • ROI of initial capital costs based on part cost savings percentage

Results (examples)

• Part 1:
  • ROI of 31 weeks on capital investment (tooling) to alternate process - ROI target <52 weeks
  • Net savings of 72% in piece part price without loss of part integrity or functionality
• Part 2:
  • ROI of 37 weeks on capital investment (tooling) to alternate process - ROI target <52 weeks
  • Net savings of 75% in piece part price without loss of part integrity or functionality