Reducing tool inventory costs by switching to head exchangeable tools
Solid drills require resharpening or recoating processes. Considering the lead time on such processes, extra inventory must be maintained.
Head exchangeable drills can remove these resharpening processes and reduce investments on tools as well as improve cash flow.
Example of monthly tool investment
【Assumptions for calculation】
Monthly production | 20,000(parts/month) |
---|---|
Tool life | 1,000(parts/drill) |
Used drill | ø10 3XD drill |
In the case of solid drills with resharpening operation
Stock
(pcs) |
Price
(USD/pcs) |
Investment
(USD) |
|
---|---|---|---|
Required stock QTY for production | 20 | 60 | 1,200 |
Required stock QTY for resharpening | 20 | 1,200 | |
Safety stock QTY | 5 | 300 | |
Total requierd stock QTY | 45 | 2,700 |
In the case of head exchangeable drills
Head stock
(pcs) |
Unit price of a head
(USD/pcs) |
Tool body stock
(pcs) |
Unit pirce of a body
(USD/pcs) |
Investment
(USD) |
|
---|---|---|---|---|---|
Required stock QTY for production | 20 | 40 | 1 | 200 | 1,000 |
Required stock QTY for resharpening | No need | No need | 0 | ||
Safety stock QTY | 5 | 1 | 400 | ||
Total requierd stock QTY | 25 | 2 | 1,400 |
Comparison of total investment between solid drill and head changeble drill
Total investment for solid drill | 2,700 USD |
---|---|
Total investment for head exchangeable drill | 1,400 USD |
By switching to a replaceable head drill, it is possible to reduce the amount of inventory by about 50% and improve cash flow!