A Look at TechSolve’s Optimization of the Cost of Supplied Parts for Emerson

Acquisitions are a reason to celebrate. They’re also reason to evaluate. Your company is growing and it’s time to examine products and processes with an eye on streamlining and consolidating. TechSolve can help you use digital manufacturing technologies to improve efficiency, stay competitive, and gain the data necessary to make better decisions during acquisitions and mergers.

With Acquisitions Final, Emerson Looks to Optimize Fast

When Emerson Process Management—  a world-leader in pneumatic, hydraulic, electric, and gas-hydraulic valve automation products and services—acquired several competitive valve manufacturers, it was looking to consolidate products. Knowing that it had to work quickly to maximize the competitive advantage it was shooting for via these acquisitions, the company turned to TechSolve to optimize supplier costs while continuing to meet demand

“Should Cost” Isn’t the Complete Picture

At the product or part level, manufacturers face many profitability challenges: ever-shorter product life cycles, OEM part cost reduction measures, tight design times, introduction of new materials, tooling, and processes. These are known factors—design, materials, production processes, and equipment—but there are always other, unknown factors that ultimately affect the total product cost, making traditional “should cost” estimates imprecise.

Think Like a Machine

For Emerson, TechSolve  went beyond typical “should costs” to establish agreed-upon real costs that would enable Emerson to implement the business and manufacturing changes necessary to make its acquisitions successful.

Our part cost reduction service combines powerful proprietary software and analytics with nationally recognized machining expertise to help companies think like the precision machines in their shops. This involves identifying, prioritizing and implementing improvements for the design, sourcing, and manufacturing of parts to become more cost-effective and competitive. The goals are to:

  • Facilitate decisions about what to make versus what to buy, and help prioritize capital investments—all of which lead to productivity improvements, a competitive advantage, and a healthier bottom line;
  • Enable companies to implement the optimum formula for manufacturing parts at a lower cost while maintaining strict quality specifications; and
  • Empower design and production engineers to identify materials, machining steps and tooling that enable efficient part design, cut lead times, and meet or exceed targets.

Process Efficiency Standards for Every Level of the Supply Chain

TechSolve investigated and established a baseline cost to process the pinion and housing of Emerson’s valve actuator. The baseline included machining information and other operations within Emerson’s process.

TechSolve also considered several alternatives for process optimization above and beyond the baseline, including product groupings and alternative machining options, as well as setting Emerson’s suppliers up for success by:

  • Providing an in-depth understanding of the capital investments that Emerson’s suppliers would need to make;
  • Establishing supplier qualifications to assess their capability to meet cost and demand targets; and
  • Streamlining and justifying Emerson’s supplier selection.

Emerson’s partnership with TechSolve gave it the data it needed to build a business case for improvements to the design, sourcing, and manufacturing of parts, with the promise of significantly diminished lead times and reduced costs.

Sharpen Your Competitive Edge With TechSolve’s Manufacturing Process Optimization

For over 35 years, TechSolve has been empowering manufacturers to use digital technologies to improve efficiency, stay competitive, and gain the data necessary to make better decisions. If your company is going through mergers, acquisitions, or experiencing a period of growth, we can help you make sure it’s not costing your bottom line. Contact us at info@techsolve.org or complete the form below to find out how.