In New Zealand (the land of the Long White Cloud and short runs) we notice most companies don’t seem to pay much attention to non-cut times, apart from in the cycle time. They are then forced to look at the cost of the tools to try and be more competitive, and not looking correctly at reducing labour costs. We call this chasing Small Money.
Tooling is 3% of your total cost. Labour (machine time) is 26%, and that’s nearly eight times more. So which is better: a 10% saving on $1000 or a 20% saving on $10?
Our advice is to chase the Big Money. Try this approach with your tooling supplier:
“The cost of your tooling is irrelevant compared to the cost of production.”
Look at the typical time usage for a CNC machine on the graph below. Whether the machine is running or not, you still have the same on-going costs of labour, finance, and overheads.
Chase the Big Money with these production solutions:
There is only one Tooling Supplier in New Zealand that helps you chase the Big Money, by reducing labour costs, reducing cycle time, reducing set-up and downtime, and managing your tools. Leave chasing the small change to your competition.