Reducing Costs with Kaizen Events

Unconventional Tooling Design Layout Results in Higher Yield, Lower Material Cost

The Challenge:

High-volume production requires controlled manufacturing processes in order to ensure that
long-running jobs get out the door on time, meet specifications, and are cost-effective.

In a recent project with a large automotive customer, CGR sought to reduce costs while ensuring that production would not be delayed or negatively affected.

When estimating the cost of a new part, it is important to analyze die-cutting capabilities, raw materials, processing methods, and tooling. Because this customer’s part had an annual volume of 3,000,000 pieces and was a mature platform, tooling layout and design did not initially seem like opportunities for cost reductions.

Businessmen are analyzing the data from the report.

The Solution:

CGR formed a Kaizen team to evaluate the manufacturing process, developing several potentially cost-saving ideas with a particular focus on tooling. We were able to re-engineer the tooling configuration from a common layout to a more obscure one; this increased the yield and decreased annual raw material costs by $26,000.

By proactively evaluating costs on an ongoing basis and passing savings directly to our customers, CGR ensures that your business will be successful.

Looking for ways to reduce costs on a future project without jeopardizing streamlined production? Contact our team to learn more about partnering with CGR!

Watch Richard Wilmoth deliver a live presentation of this project’s details at our Open House.