What does the cost of raw materials mean to your foundry? If your foundry business is similar to many, it means approximately 60% or more of your cost of goods sold. As managers, we have several important responsibilities that we concern ourselves with every day:

·         Customer support

·         Facilities maintenance

·         Scrap Reduction

·         Equipment efficiency

·         Labor utilization

·         Strategic planning

·         Project management 

 

The list goes on and on and all of them have their place on the income statement. Shouldn’t you be secure in knowing that the largest cost your business incurs is being managed efficiently as well? The answer is simple: YES. Metal Casting Consulting (MCC) offers a thorough analysis of your melting, alloying, and metal delivery operations from a materials perspective that is designed to ensure that you are getting what you need, and utilizing your materials efficiently. Our experience in electric and cupola operations have resulted in millions of dollars in savings and have uncovered significant levels of previously suppressed margin.

 

We will analyze all aspects of the raw materials cost process including:

·         Material type, cleanliness and appropriate sizing

·         Delivery and packaging

·         Incoming material inspection procedures

·         Melt loss

·         Alloying procedures

·         Base versus final chemistry design

·         Alloy loss

·         Final chemistry specification targets

·         Bill Of Materials (BOM) vs. actual usage

 

There are many ways to get to the final target. Our job as foundry managers is to get there as inexpensively as possible while maintaining the integrity of the customer’s requirements. This analysis will ensure that both needs are met. An overview of the process is outlined below:

 

Part I - Operations Analysis

·         This process takes between 4 and 7+ days depending on the size and complexity of the operation.

·         After working closely with your management and hourly personnel, we will provide the appropriate management with a list of initial recommendations.

 

Part II - Implementation

·         At the customer’s discretion, MCC will manage the sampling, experimentation and implementation of the initial recommendations in conjunction with your key personnel of choice. (to eliminate any confusion, we suggest that we are assigned a lead manager to report to)

·         Your purchasing personnel will be integrated into the implementation process.

·         A baseline materials cost will be established for some or all of your final molten metal products. Daily usage tracking will begin immediately.

·         All sampling and experimentation will be done through your quality procedures.

·         Results of experiments will follow your internal procedures and will be reported to management at a timeframe specified by you.

·         The actual production results of implemented recommendations will be tracks via the daily usage logs.

·         Any additional findings will be reported as suggested future projects.

 

Metal Casting Consulting looks forward to working with you in streamlining your raw material usage control. Our proven success will ensure that your employees learn the fundamentals of material usage and gain knowledge of the right materials management skills for your foundry’s future.