Fluting Speed versus Diamond Wheel Life
As a diamond wheel manufacturer, we are constantly asked by customers to reduce their wheel costs or increase the life of the wheel. In the following example we simulated a business’s costs and potential production to see how increasing the life of a wheel or decreasing the cost of a wheel would affect the net income of the business.
Then we offered a different alternative that we may be able to offer (depending on the process and the machines used). The numbers can be eye opening.
|Solid Carbide Fluted Bit Retail||$25|
|Typical fluting time||3 minutes|
|Cost of Hybrid Fluting Wheel||$500.00|
Let’s look at two scenarios where Customer A receives a discounted wheel at 15% markdown and Customer B would like a wheel to last 30% longer.
Revenue Breakdown – Typical Production:A machine will produce a part every 8 minutes, assuming we are looking at 7 hours per day that would be 52 parts per day. Revenue is $1,300/day. There are 220 working days in a year that is equal to 9240 fluted bits. When breaking down the revenue for that single machine, which is 11,440 bits multiplied by the retail price of $25, the revenue for the year, based on a single machine is $286,000
Hypothetically, let’s say the wheel only would last 30 days (in reality this is a huge underestimate of the life of a hybrid wheel manufacturing only 52 parts per day, but remember this is purely for illustration purposes) 220 days in a year / 30 days = 7.33 wheels used per year
Customer A:Customer A would like us to save them some money and ask us to make a wheel that is 10% cheaper. If we reduce the cost of the wheel by 10%, they will save $50, making the diamond wheel $450. This will result in the following savings – 7.33 wheels per year x $50 = $366.00in savings.
Customer B:Customer B asks for a wheel that will last 20% longer. The wheel will last 36 days instead of 30 days. 220 days / 36 = 6.11 wheels used. Customer B uses 1.22 less wheels, compared to customer A. 1.22 less wheels per year, multiplied by the cost of the diamond wheel ($500), yields an annual saving of $610. Note: It is likely that, due to the harder bond, the wheel will not be able to run as fast as it was, so production could also decrease.
The Alternative. Customer C:Customer C decided he would take a different route. Rather than looking at making the wheels cheaper or last longer, he asked us if we could design a wheel to allow him to grind faster, ideally cut the fluting time in half (from 3 minutes to 1:30 seconds). When we reduce the fluting time by ½, we gain an additional 78 minutes of manufacturing time which is equivalent to an additional 9 bits.
The original 52 bits per day now becomes 61. 61 bits is a daily manufacturing revenue of $1525 Looking at the revenue over a year $1525/day x 220 working days is equal to $305,000. Revenue was $286,000 and has increased to $305,000.
Again, for illustration purposes. Let’s say due to the wheel being more aggressive, it only lasted last half as long, so the wheel usage went from 7.33 wheels to 15 wheels per year. The additional 7 wheels will cost $3,500.
For Customer C, revenue increased from $286,000 / year to $305,000 / year, but costs of wheels only increased by $3,500 a next gain of $15,500 /per year – and that is only for one machine and one wheel, Imagine if we could improve the performance of each wheel used on the wheel pack.
Trust the experts
When you’re ready to try the best in the grinding industry, contact the experts at Eagle Superabrasives. We are able to manufacture aggressive wheels that will increase your manufacturing rates. Contact us today!