Automotive Supplier: 28% Cost Reduction with Casting Optimization
An automotive supplier reduced part costs by 28% through casting design optimization and reduced post-machining requirements.
Key Results
28%
Cost Reduction
Part cost reduced from $85 to $61 per unit
33%
Lead Time
Production time reduced from 6 weeks to 4 weeks
83%
Scrap Reduction
Scrap rate reduced from 12% to 2%
80%
Quality Improvement
Defects reduced by 80%
The Challenge
Complex casting design with tight tolerances required extensive post-machining, increasing costs and quality risks
Our Solution
Redesigned part geometry to optimize casting process and reduce machining requirements by 60%
Services Provided
Design Optimization
CNC Machining
Quality Management
Cost Reduction
Impact & Benefits
# Automotive Supplier: 28% Cost Reduction with Casting Optimization
## Client Overview A Tier-1 automotive supplier was facing cost pressures from OEM customers. Their complex casting design required extensive post-machining, increasing costs and quality risks.
## The Challenge The original casting design had several issues:
Tight tolerances requiring extensive machining
Complex geometry requiring multiple setups
High scrap rate due to casting defects
Long lead times for casting and machining
Quality inconsistencies
Impact:
Part cost: $85 per unit
Lead time: 6 weeks
Scrap rate: 12%
Quality issues: Frequent customer complaints
## Our Solution We optimized the casting design and manufacturing process:
Design Optimization
Redesigned casting geometry for manufacturability
Reduced machining requirements by 60%
Optimized draft angles and wall thickness
Improved casting yield
Standardized features
Manufacturing Process
Developed optimized CNC programs
Reduced setups from 4 to 2
Implemented high-speed machining
Established quality controls
Improved tooling strategy
Quality Improvements
Implemented incoming inspection
Established SPC monitoring
Created corrective action procedures
Improved process capability
## Results
Cost Reduction
Part cost: $61 per unit (28% reduction)
Casting cost reduction: 8%
Machining cost reduction: 15%
Quality cost reduction: 5%
Lead Time Improvement
Lead time: 4 weeks (33% reduction)
Faster casting production
Simplified machining
Reduced inspection time
Quality Enhancement
Scrap rate: 2% (83% reduction)
Improved casting quality
Reduced machining defects
Enhanced reliability
Business Impact
Improved profitability
Enhanced customer satisfaction
Increased competitiveness
Enabled new business opportunities
## Key Learnings 1. Casting design significantly impacts total cost 2. Collaboration with casting suppliers is important 3. Machining optimization reduces costs 4. Quality improvements reduce scrap and rework 5. Continuous improvement drives success
## Client Testimonial “TYNEEN’s expertise in casting optimization helped us reduce costs significantly while improving quality. Their systematic approach and manufacturing knowledge were invaluable.”
— Supply Chain Manager, Automotive Supplier
Client Testimonial
""TYNEEN's expertise in casting optimization helped us reduce costs significantly while improving quality. Their systematic approach and manufacturing knowledge were invaluable.""
— Automotive Supplier
Client Information
Company
Automotive Supplier
Industry
Automotive & Transportation
Company Size
200-500 employees
Project Date
2023/4/20
Quick Stats
28%
Cost Reduction
33%
Lead Time
83%
Scrap Reduction