Arrow Sphere Corporation

1. As the batch quantity decreases, the set up time adds significantly more to the part cost.

2. Higher Batch quantities cover up process problems.

3. The press SPM has a significant effect on part cost, and a high SPM will cover up process problems, but only until maintenance costs begin to soar and part quality deteriorate.

1. Reduce the batch count

This is required due to low sales volume. The batch count will be at least 50% of what it was in 1985 and with the diversification in the product line a realistic estimate will be in the range of 25% of the 1985 value.

2. Increase the reliability of equipment, personnel, tooling, etc.

3. High SPM

At any batch count a high SPM will decrease the part cost significantly, but the savings will be more pronounced at the lower batch counts.  It should go without saying that as the SPM of the equipment is increased, so is the wear and possibilities of damage to tooling and equipment.

4. Reduced set up time

A reduction in set up time will reduce the part cost significantly with low batch count requirements.

5. Reduce the process problems.  This item becomes significant with increases in SPM.

1. Increase the batch quantity

The costs to carry the inventory add a significant cost to the part. These costs normally would outweigh any process improvements that would increase time that parts are kept in inventory.

2. Increase the number of operations accomplished in the press

This can be accomplished with transfer presses, progressive dies, multiple operators, larger presses, etc.

3. Increase the SPM of the press

Increase the reliability of the personnel, equipment, and tooling.

Decrease the complexity of the part (Design for manufacturing).

4. Increase sales

5. Increase the cycle time (5 years for a car design vs 3 years)

Three years is typically required for customer satisfaction and to compete with other manufacturers.

Arrow Sphere Corporation

Lapeer, MI 48446