SBS ebook: Making the case for standardization and consolidation
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SBS ebook: Making the case for standardization and consolidation

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SBS is a leading supplier of c-commodities and an expert in inventory management. One solution recommended by SBS is to take advantage of standardization and consolidation best practices.

SBS is a leading supplier of c-commodities and an expert in inventory management. One solution recommended by SBS is to take advantage of standardization and consolidation best practices.

Read on to understand how SBS can help you implement a standardization and consolidation solution at your company that will minimize the number of different fasteners used, resulting in a reduction of part numbers, controlled inventory, reduced quality issues and overall lower costs for your business.

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SBS ebook: Making the case for standardization and consolidation Presentation Transcript

  • 1. Making theCase forStandardizationandConsolidationA tool for improvingmanufacturing productivity
  • 2. Purpose of this eBookIn a recent survey conducted by SBS, more than 80% ofrespondents indicated they experience difficulties or complications withthe purchasing of their fasteners or c-commodities due to inventoryshortages, quality issues, and excessive inventory, to name a few.SBS is a leading supplier of c-commodities and an expert in inventorymanagement. One solution recommended by SBS is to take advantageof standardization and consolidation best practices.Read on to understand how SBS can help you implement astandardization and consolidation solution at your company that willminimize the number of different fasteners used, resulting in a reductionof part numbers, controlled inventory, reduced quality andobsolescence and overall lower costs for your business.
  • 3. Do you often experience difficulties orcomplications with your fasteners orc-commodities?
  • 4. Table of Contents Why Standardization and Consolidation? What is Standardization and Consolidation? BIG Cost savings potential The Solution A Case Study A large engine manufacturing firmrealizes the results of standardizationand consolidation Contact Us
  • 5. Why standardizationand consolidation?The ProblemThe Results poor joint design excessive product re-work inferior products Increased potential for obsolescence“Any old screw will do...”
  • 6. …ANDThe ResultsExpensiveLong lead timesHard to find specialsAccounting and procurement nightmaresover-engineered fasteners
  • 7. What is Standardization?Process The selection of preferredfastener designs A commitment to convertexisting parts to thepreferred systems Utilization of these sameconcepts in new designs Analysis of all existing partsand conversion of specialfasteners to standard partsResults Shorter lead times Lower per piece costs A reduction of part numbers Lower purchasing andadministrative costs. Reduce obsolescence
  • 8. What is Consolidation?ProcessThe analysis of theindividual fasteners usedin assembly and theevaluation of potentiallyreplacing a troublesome,expensive part with asimilar, less expensive,easy to find part.Results Reduction in thenumber of differentfasteners or partnumbers used Shorter lead times Lower per piece costs Reduce obsolescence
  • 9. BIG Results Eliminate scheduling paperwork Cost of inventory Shipping costs Material movement Storage Inspection (gauging and calibration costs) Annual data input costs Engineering changesCost savings of $5,000 per part per year
  • 10. The SolutionAligning and partnering with afastener expert to standardizeon parts to improve qualityand productivity whilereducing overallfastening costs.
  • 11. Standardization andConsolidation is NOT aclerical functionRequirements Management support Engineering judgment Purchasing know-how Manufacturing knowledge An understanding of manufacturing costrelationships
  • 12. A case studyVendor and PartConsolidation
  • 13. Engine manufacturing firmA leading engine manufacturing firmspent a disproportionate amount oftime managing 50 suppliers of fastenersand c-commodities, and thousands ofdifferent part numbers.Senior management targeted areduction in the supply base forc-commodities from 50 to 1 and anoverall revamp of their fasteners.A CaseStudy
  • 14. The Problem Due to invalid information, the purchasingdepartment could not quote effectively Supplier service issues such as missed quotedeadlines, delayed deliveries, andunresponsive customer service Excessive inventory costs due to unusedinventory Escalating per piece costs due to non-standard, difficult to find partsA CaseStudy
  • 15. The Standardization andConsolidation PlanThe Fastener Survey a complete active part number list a set of prints (or accurate description) for eachactive part A review of each part for possible substitutionA CaseStudySBS assembled a team to develop:
  • 16. The Standardization andConsolidation PlanPart Review included:A CaseStudy Estimated annual usage on all parts Fastener size Fastener lengths Strength-grades-materials Head/drive styles Thread function and pitch Plantings/coatings Other unusual features Estimated annual usage on all parts A where-used list when availableThe Fastener Survey
  • 17. Results Eliminated 20% part discrepancy Lowered PPV while significantly reducing timespent managing fasteners Exceeded target pricing goals Reduced # of part numbers and inventory mixsignificantly Developed transparent flow of informationbetween customer and SBS resulting in improvedcustomer service Improved fastener quality and joint integrityA CaseStudy
  • 18. By eliminating a single partnumber, it is estimated that alarge manufacturer can save$30,000-$50,000 over the lifeof the part in terms ofinventory control, reportingand tracking.Contact us Today!info@specialtybolt.com800-322-7878
  • 19. About SBSSBS is a full-service solutions provider of fasteners,vendor managed inventory (VMI) programs and c-class commodities. We manage the supply chainto lower costs, reduce inventory and streamline thesupply base for our customers worldwide.Contact us Today!info@specialtybolt.com800-322-7878