Cost Savings through Process Improvement

The Customer’s Challenge: PVC jacketed cables were shorting out 400 waffle irons due to excessive heat, extreme flexing requirements and incompatibility with vegetable oils. The customer was also seeking a quick disconnect in lieu of a hard wired design.

EM Services: A high temperature, armored ultra flex cable design was assembled with connectors by the Supplier’s Value Added Center. Initial product trials resulted in 3x longer life versus the previous cable assembly. Contract pricing was also negotiated with the cord set manufacturer resulting in additional savings.

· Reduced the number fo change outs = $40,000
· Reduced the number of repairs = $32,500
· Reduced usage = $135,100

  • Time Required to Implement: 4 Months 
  • Cost to Implement: $0 
  • Projected Annual Savings: $207,600

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Cost Savings Though Sourcing Change

Customer: The current denim aprons had to be purchased in large quantity releases due to a custom design. Pricing was volatile and the lead time was 3-4 weeks.

eM Services: The apron was sourced to a new manufacturer who offered lower minimum releases, quicker delivery and 12-month contract pricing.

· Old Price = $7.20 per apron
· New Price = $4.62 per apron

Time Required to Implement: 1 Months 
Cost to Implement: $0 
Projected Annual Savings: $4,768 

Cost Savings Through Standardization

Customer: Several brands of janitorial products were being used across multiple sites. Each plant also had different styles of dispensers and many were in poor condition.

eM Services: Site surveys were conducted to identify the current products and assess need. Based on the results, a “Best Practice” uniform standard was established.

  • Standardized roll towels, toilet paper, tissue, seat protectors, hand soap, air fresheners and dispensers.
  • Replaced dispensers as needed
  • Time Required to Implement: 3 Months 
  • Cost to Implement: $500 
  • Projected Annual Savings: $24,385

Problem Solving by Product Specification

Customer: The plant was currently using a 5,000 PSI hydraulic hose assembly and they were seeking a better overall solution. The annual usage was 384 feet.

eM Services: During the application survey by the Supplier, it was determined that the plant pressure was 1,800 PSI for hydraulics. The current hose assembly far exceeded the maximum pressure required. A substitute product was recommended as a replacement with a rating of 2,750 PSI. This product was also more flexible making it much easier to handle.

  • Annual usage was 384 feet
  • Resulted in a 70% price reduction
  • Time Required to Implement: 2 Months 
  • Cost to Implement: $0 
  • Projected Annual Savings: $6,444