Views
4 years ago

FALL 2019

  • Text
  • Association
  • Bolts
  • Engineering
  • Distributors
  • Screws
  • Manufacturing
  • Products
  • Industrial
  • Fasteners
  • Fastener
Distributor's Link Magazine Fall 2019 / Vol 42 No4

8 THE DISTRIBUTOR’S

8 THE DISTRIBUTOR’S LINK Laurence Claus Laurence Claus is the President of NNi Training and Consulting, Inc. He has 25 years of experience with a medium sized automotive fastener manufacturer, holding positions including Vice President of Engineering, General Manager, Director of Quality, Director of New Business Development and Applications Engineer. In 2012 he formed NNi offering technical and business training courses as well as technical consulting, expert witness and consultation work. He can be reached at 847-867-7363 or by email: Lclaus@NNiTraining.com. You can learn more about NNi at www.NNiTraining.com. VALUE ENGINEERING ON EXISTING PARTS In 2008 as “The Great Recession” was wreaking havoc on the economy, organizations like the fastener manufacturer I worked for were not just exploring ways to cut costs but were in full out survival mode. We were cutting back on everything and leaving no stones unturned on possible savings. Although this was perhaps the most difficult stretch of its kind our company had ever experienced in its approximate seventy-five year history, it did result in some healthy cutbacks and institutionalizing some good common sense practices. One of these practices was a project that I would spearhead, to assess low margin parts and determine if we had an opportunity to bring them back to health. I don’t believe we gave it any fancy name (although I would later be referred to as the “Dog Catcher”) or any significant fanfare as organizations sometimes do with such things. We just rolled up our sleeves, got to work, and ultimately were successful in salvaging some parts that we might have otherwise “fired” or continued to lose money on. I generally found that parts fell into one of three categories. The first category, and fortunately for us the most common, were parts that had simply been entered into our system incorrectly and carried, in some way inaccurate information which skewed the part cost and triggered artificial reporting values. These were easy fixes as we simply had to correct our system. The second category, parts that were correctly routed but insufficiently priced, normally as a result of a costly secondary operation added after quoting, were the least common of the three categories. This is fortunate, as these were rarely fixable and could be attributed as a class as the biggest losers. Finally the third category consisted of parts that like the previous category had significant or complicated operations and, thus, a TECHNICAL ARTICLE losing cost structure, but could be successfully value engineered to shift them from losers to winners. In part two of this “Value Engineering Series”, we will explore the process one might use in value engineering existing parts. Although some of the same activities will apply, the process of value engineering existing parts is normally different than value engineering new parts. Advantages An organization often engages in value engineering on existing parts because it is threatened or cajoled by its customer to do so. For example, the customer might notify the supplier that they feel the price is too high so that they intend to engage in some sort of resourcing exercise. Just as intended, this often puts a scare into the supplier who wants to keep the part because it is profitable, it is for a key customer they do not want to disappoint, or any number of other reasons. It is important to remember that being the incumbent is a nice advantage. This rarely puts an organization in a position to tell their customer to pound sand, but it does shift the leverage position in favor of the supplier. Companies, like individuals, generally are not highly motivated to seek change. They realize that their suppliers, especially if the part is complicated, possess a level of specific expertise and tribal knowledge that a new supplier would have to completely repeat on their own. For this reason, customer organizations are highly motivated to make a supplier change, even if they seem to be “singing a different tune”. In addition to the expertise that would have to be replaced, revalidation costs and other sunk costs would have to be repeated. These costs can be high, making the overall business case to actually make a change a non-starter. CONTINUED ON PAGE 100

  • Page 6 and 7: in the Fall 2019 issue of 6 DISTRIB
  • Page 8: 6 THE DISTRIBUTOR’S LINK Earnest
  • Page 14: 12 THE DISTRIBUTOR’S LINK Guy Ave
  • Page 18 and 19: INTRODUCTION Computer Insights has
  • Page 20: SELLING - It can take up to a full
  • Page 24: STRATEGIC PARTNERSHIPS WITH THE FAS
  • Page 28: 26 THE DISTRIBUTOR’S LINK FASTENE
  • Page 32: 30 THE DISTRIBUTOR’S LINK Jo Morr
  • Page 38: 34 THE DISTRIBUTOR’S LINK Joe Dys
  • Page 41 and 42: The name “Setko” will sound fam
  • Page 44: 40 THE DISTRIBUTOR’S LINK Robert
  • Page 48 and 49: 44 THE DISTRIBUTOR’S LINK Larry B
  • Page 50 and 51: 46 THE DISTRIBUTOR’S LINK FASTENE
  • Page 52: 48 THE DISTRIBUTOR’S LINK Jim Tru
  • Page 56: 52 THE DISTRIBUTOR’S LINK Nationa
  • Page 59 and 60:

    THE DISTRIBUTOR’S LINK 55

  • Page 61 and 62:

    KEY BELLEVILLES INC. KEY BELLEVILLE

  • Page 63 and 64:

    THE DISTRIBUTOR’S LINK 59

  • Page 66 and 67:

    62 THE DISTRIBUTOR’S LINK 1Shot S

  • Page 68:

    64 THE DISTRIBUTOR’S LINK ROTOR C

  • Page 71 and 72:

    MWFA ANNUAL MIXER ELK GROVE, IL - A

  • Page 74:

    70 THE DISTRIBUTOR’S LINK The Met

  • Page 77 and 78:

    THE DISTRIBUTOR’S LINK 73 INTEGRA

  • Page 79 and 80:

    THE DISTRIBUTOR’S LINK 75 The Ola

  • Page 81 and 82:

    THE DISTRIBUTOR’S LINK 77

  • Page 84 and 85:

    80 THE DISTRIBUTOR’S LINK INTERNA

  • Page 86 and 87:

    82 THE DISTRIBUTOR’S LINK VOLT IN

  • Page 88:

    84 THE DISTRIBUTOR’S LINK NATIONA

  • Page 91 and 92:

    BRIGHTON-BEST INTERNATIONAL COCKTAI

  • Page 93 and 94:

    INTERNATIONAL FASTENERS, INC. NEW W

  • Page 95 and 96:

    NEFDA 31st ANNUAL GOLF OUTING OAK R

  • Page 97 and 98:

    THE DISTRIBUTOR’S LINK 93

  • Page 100 and 101:

    96 THE DISTRIBUTOR’S LINK INTERCO

  • Page 102 and 103:

    INTERNATIONAL FASTENER EXPO MANDALA

  • Page 104:

    100 THE DISTRIBUTOR’S LINK LAUREN

  • Page 107 and 108:

    THE DISTRIBUTOR’S LINK 103

  • Page 109 and 110:

    THE DISTRIBUTOR’S LINK 105 1Shot

  • Page 112 and 113:

    108 THE DISTRIBUTOR’S LINK FASTEN

  • Page 114 and 115:

    110 THE DISTRIBUTOR’S LINK ROB La

  • Page 116 and 117:

    112 THE DISTRIBUTOR’S LINK JO MOR

  • Page 118 and 119:

    114 THE DISTRIBUTOR’S LINK NUTS,

  • Page 120:

    116 THE DISTRIBUTOR’S LINK JOE DY

  • Page 123 and 124:

    THE DISTRIBUTOR’S LINK 119 SALIM

  • Page 126 and 127:

    122 THE DISTRIBUTOR’S LINK LARRY

  • Page 128 and 129:

    124 THE DISTRIBUTOR’S LINK FASTEN

  • Page 130:

    126 THE DISTRIBUTOR’S LINK JIM TR

  • Page 133 and 134:

    THE DISTRIBUTOR’S LINK 129 NCFA 2

  • Page 135 and 136:

    The Agrati Group, a global manufact

  • Page 138 and 139:

    fastenerlinks THE DEFINITIVE WEB DI

  • Page 140 and 141:

    fastenerlinks BRINGING YOU THE FAST

  • Page 142:

    fastenerlinks BRINGING YOU THE FAST

  • Page 145 and 146:

    THE DISTRIBUTOR’S LINK 141

  • Page 147 and 148:

    INTERNATIONAL FASTENER EXPO WELCOME

  • Page 150 and 151:

    146 THE DISTRIBUTOR’S LINK ANTHON

  • Page 152 and 153:

    148 THE DISTRIBUTOR’S LINK SPIROL

  • Page 154 and 155:

    150 THE DISTRIBUTOR’S LINK ABBOTT

  • Page 156:

    152 THE DISTRIBUTOR’S LINK IFE IF

  • Page 159 and 160:

    INTERNATIONAL FASTENER EXPO MANDALA

  • Page 162 and 163:

    158 THE DISTRIBUTOR’S LINK LAUREN

  • Page 164 and 165:

    160 THE DISTRIBUTOR’S LINK RYAN B

  • Page 166 and 167:

    162 THE DISTRIBUTOR’S LINK ROB La

  • Page 168 and 169:

    164 THE DISTRIBUTOR’S LINK JOE DY

  • Page 170:

    166 THE DISTRIBUTOR’S LINK ROBERT

  • Page 173 and 174:

    Innovative Components Inc. is proud

  • Page 176 and 177:

    172 THE DISTRIBUTOR’S LINK RYAN B

  • Page 178 and 179:

    174 THE DISTRIBUTOR’S LINK FASTEN

  • Page 180 and 181:

    176 THE DISTRIBUTOR’S LINK SOUTHW

  • Page 182 and 183:

    178 THE DISTRIBUTOR’S LINK RYAN B

  • Page 184 and 185:

    180 THE DISTRIBUTOR’S LINK FASTEN

  • Page 186 and 187:

    182 THE DISTRIBUTOR’S LINK WOMEN

  • Page 188 and 189:

    184 THE DISTRIBUTOR’S LINK INTERN

  • Page 190 and 191:

    INTERNATIONAL FASTENER EXPO MANDALA

  • Page 192 and 193:

    INTERNATIONAL FASTENER EXPO MANDALA

  • Page 194:

    INTERNATIONAL FASTENER EXPO MANDALA

  • Page 198:

    advertisers index # 3Q, INC. 45 Fla

  • Page 202:

    advertisers index I INDUSTRIAL RIVE

SHARE A PAGE FROM THIS MAGAZINE

OPTION 1: Click on the share tab above, or OPTION 2: Click on the icon (far right of toolbar) and then click on the icon (top right of the page).

Copyright © Distributor's Link, Inc. All Rights Reserved | Privacy Policy