From Waste to Savings: Reducing tool scrap rates and cutting costs

A US Auto Manufacturer was facing high scrap rates using a competitor’s tool. They used a carbide-tipped drill to ream holes after the initial drilling was completed. The tool’s life was extremely short, with only 6,000 holes per tool. This left the customer with no choice but to constantly buy new tools to keep up with production. Annual tool costs quickly grew to $37,830. Additionally, they were facing 14-week lead times with no expedition available and were looking at having to stop production. Their distributor recommended GWS Tool Group as a solution to their problems, so we went to look and find a way to get them back on track.

Current process results

• 6,000 holes per drill
• 65 drills used per year
• $582 per drill
• $37,830 annual tool costs
  

New GWS solution

• Retipping existing tools
• Tool life of 8,000 holes
• 30% reduced cost per hole
• $229 per new GWS Tool Group drill
• $11,175 annual tool costs
• $26,665 cost savings

Conclusion
We immediately realized the need for extended tool life and were able to retip their current tools with a new brazed-on, carbide tip. To prevent a shutdown, we sent out an emergency batch with a short four-day turnaround. This saved immeasurable amounts of time and resources for the manufacturer.

With the newly tipped drills, they were able to extend tool life and reduce scrap rates. Tool life was increased from 6,000 holes produced to 8,000 now and lowering the tool cost by $353 per drill. Total cost savings were now $26,665! The customer was so happy with our solution, they asked us to make them an additional size drill to allow for perfect finishing. As a bonus, we provided them with a consistent four-week lead time, compared to their previous fourteen weeks from our competitor.

Interested in finding out more information about our standard and custom tools? Consider contacting the experts who make Custom Come Standard and let us find the perfect cutting tool for you. Just send us an email at sales@gwstoolgroup.com to get started!