Original Equipment Manufacturers (OEMs) face immense pressure to maintain profit margins while accelerating speed-to-market. Among the many costs associated with manufacturing, tooling is often an overlooked and under-optimized factor. When manufacturing expenses are disproportionately high, the profitability of a new product line is quickly affected if the fabrication strategy is flawed.
By assessing how tools are sourced, OEMs can completely transform their production cycles, giving businesses a competitive advantage. Five strategies can reduce tooling expenses while enhancing overall product quality and market responsiveness.
Jump Links
- 1. Embrace Design for Manufacturing from Day One
- 2. Leverage Additive Manufacturing for Agility and Savings
- 3. Select the Optimal Tooling Configuration
- 4. Optimize Your Fabrication Sourcing Strategy
- 5. Focus on Total Cost of Ownership (TCO), Not Just the Price Tag
- Building for Long-Term Resilience
- Frequently Asked Questions
1. Embrace Design for Manufacturing from Day One
The initial design phase marks the most crucial period in reducing tooling costs. Design for Manufacturing (DFM) focuses on creating parts that are inexpensive to produce. Overengineered parts add unnecessary complexity and require equally complex tools, driving up both time and investment. Instead, teams should prioritize manufacturing only the parts needed.
Simplify to Save
Implementing uniform wall thickness and sensible draft angles directly reduces tool complexity. Part consolidation, in which manufacturers combine multiple components into a single fabricated piece, eliminates the need for multiple separate tools. This allows assembly to be notably streamlined, reducing potential failure points in production and lowering overall costs.
Material Selection and Early Collaboration
It is also important that manufacturers select the right steel grades, as they determine how long a tool will last and its maintenance needs.
Collaborating with experienced manufacturing partners during the design phase prevents expensive mid-production changes. A resourceful manufacturer partner provides insights into how a design performs under real-world conditions, unveiling logistical problems before they become a reality.
2. Leverage Additive Manufacturing for Agility and Savings
Traditional subtractive machining simply cannot match the agility of additive manufacturing. By integrating 3D printing, manufacturers can reduce the risks of committing to expensive permanent tooling before a design is fully validated. This technology enables rapid iteration and significant cost savings during the prototyping phase.
Bridge Tooling and Complex Geometries
Bridge tooling utilizes 3D-printed molds for initial low-volume production runs. This gives OEMs an opportunity to test a design’s strength and gauge the market consensus without needing massive up-front steel tooling costs.
Additive manufacturing also enables the fabrication of complex designs, such as conformal cooling channels. These channels closely follow the part shape, reducing cooling times and improving final part quality.
3. Select the Optimal Tooling Configuration
The right tool configuration choice depends on projected demand and part complexity. OEMs must analyze production volume to determine which mold type offers the best return. The goal is to maximize output while minimizing capital tied up in specialized equipment.
Multi-Cavity vs. Family Molds
For mass production, multi-cavity molds produce multiple identical parts per cycle, lowering the per-unit cost. On the other hand, family molds allow a single tool to produce several related parts in a single cycle. This allows for the total investment needed for a specific product line’s launch, providing flexibility for smaller batches.
4. Optimize Your Fabrication Sourcing Strategy
The modern make vs buy calculation has evolved beyond the simple price comparisons. Partnering with a specialized fabricator provides access to low-cost metal fabrication for OEM parts and cutting-edge technology without having to invest in high-level machinery. OEMs allow the focus on core competencies while leveraging external expertise.
An experienced and resourceful partner will offer a complete one-stop shop experience, covering engineering, finishing and everything in between. By choosing a multi-capability partner like PBZ Manufacturing, OEMs can remove layers from their supply chain.
PBZ is equipped to handle everything from design to production and assembly. They also provide order pickup or freight shipping for custom metal fabrications.
5. Focus on Total Cost of Ownership (TCO), Not Just the Price Tag
The full picture of OEM fabrication costs is rarely represented in the first few invoices. It is highly advisable that OEMs consider the Total Cost of Ownership (TCO) as a guide for their budgeting practices. A tool that is inexpensive could feel like an appropriate up-front investment, but has the potential to become a liability if it fails frequently or produces inconsistent parts.
Low-cost tooling often leads to higher TCO in the long run. Poorly constructed tools often require frequent repairs, halting production. Investing in a higher-quality tool from an experienced and established fabricator often ends up being the more cost-effective choice over the product life cycle.
Building for Long-Term Resilience
Reducing tooling costs requires a multifaceted strategy from the design stage to the production life cycle. By embracing DFM, leveraging additive manufacturing and selecting optimal configurations, OEMs can significantly bring down costs. Strategic sourcing with a resourceful partner like PBZ further enhances efficiency and simplifies the supply chain.
Frequently Asked Questions
Who are the best suppliers for cost-effective sheet metal fabrication?
The best suppliers are one-stop shops that can cover the entire process in-house. Choosing partners like PBZ Manufacturing to manage everything from 3D design to final powder coating is the most efficient approach.
How does a one-stop-shop fabricator improve efficiency?
A one-stop shop handles cutting, welding, powder coating, and assembly under one roof. When every notable process can be handled by a single institution, the time spent managing multiple specialized vendors can be redirected to other areas.
Why is TCO more important than initial price?
The initial price only covers the purchase. TCO includes maintenance, scrap rates, and downtime. A higher-quality tool often results in lower TCO by providing a longer lifespan and more consistent output.
