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How Ball and Roller Bearing Manufacturers Can Strategically Approach Cost Management

March 30, 2015 / , , , , , , , , , , , , , ,


Cost is and always will be a top concern for every manufacturer, no matter how great their efficiency efforts. The reality is that everything that happens in a manufacturing operation carries a cost, regardless of whether or not it has a price tag attached to it. This is why so many industry leaders now approach cost strategically. Instead of looking for short-term savings, today’s managers are making cost decisions based on big-picture goals and long-term benefits.

For example, in a high-production metal-cutting environment, it is tempting to run circular saw blades as fast as possible to increase productivity and meet a tight deadline. However, according to the white paper, The Top Five Operating Challenges Ball and Roller Bearing Manufacturers Face in Industrial Metal Cutting, the true value of a saw blade goes far beyond its cutting time or price tag. This is especially true in a high-production operation, where there is no time to constantly change out blades. To get the best return on investment, metal-cutting leaders know that it pays for operators to focus on prolonging blade life. By running blades at proper speed and feed settings, as well as maintaining adequate lubrication during the cutting process, manufacturers can get the most out of their blades and, in turn, save on tooling costs, maintenance costs, and the cost of unexpected downtime.

Like any strategic endeavor, cost management can be used as a competitive advantage. In an article recently published by IndustryWeek, Bill Moore, a senior vice president at ball and roller bearing manufacturer SKF USA Inc., echoes this sentiment and states that executives can use parts and components de-costing programs to make their factories more competitive. When done strategically, Moore says that parts and components de-costing can yield strong results, with measureable improvements seen within 90 days and major savings within 24 to 36 months.

Here are two of Moore’s strategies:

Moore’s methods suggest that successful cost management in today’s marketplace requires managers to look at cost from a high level before making any decisions. In other words, gone are the days of “quick fixes.” By taking the time to approach cost strategically, ball and roller bearing manufacturers can make improvements that have a long-term—and more importantly, sustainable—impact on the bottom line.