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Original Date: 08/30/2004
Revision Date: 01/18/2007
Information : Repeat Job Toolbox
RB Tool & Manufacturing Company established a process to identify key products that would be cost effective to justify the allocation of space to store set-up software, fixtures, and tooling. This process enables RB Tool & Manufacturing Company to strike a balance between efficient use of space and resources, while delivering repeat products at a lower price with a reduction in lead times.
As a low-volume producer of metal fabrication spare parts and prototypes, RB Tool & Manufacturing Company (RB Tool) has a mixture of one-time-only business and irregular repeat business. Historically, RB Tool managed its order processing order-by-order. A customer would accept a proposal, RB Tool would perform a complete set-up for the parts, program the Computer Numerically Controlled (CNC) machines, assemble the necessary tooling (ordering it if necessary), and make any required fixtures. This process was followed whether the part had been made in the past, might be made again in the future, or if it was a new part.
Analyzing seven years of customer data, RB Tool found there was a class of products for which there was evidence of repeat business. Determining that products with a history of repeat business were worth an investment, the company created a Repeat Job Tool Box if one of the following criteria was met:
Consistent orders for more than 50 pieces per year
Product required a special fixture (e.g., parts made from castings)
Part was sufficiently complex that it made sense to save the CNC program (typically for parts priced more than $500)
The Repeat Job Toolbox consists of the CNC program, special fixtures and tooling, and any special gauges for these products. If special tooling is needed, a reorder point is established to ensure that tooling is reordered in time to support the next order.
Because of the nature of its business, space, and financial considerations, RB Tool realized that it would not be feasible to create a toolbox for all products. However, by striking a balance, RB Tool reduced set-up costs by 40% for the most frequently ordered products without exceeding the space allocated for the Toolboxes. The benefits to RB Tool’s customers are at least a 5% price reduction and a 23% reduction in lead times.
For more information see the
Point of Contact for this survey.
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