AFS Birmingham Chapter Presentation'. 1st Febuary 2010

Synchro32 had the distinct honor and privilege of being invited by the American Foundry Society Birmingham Alabama USA Chapter to give a presentation on February 1st 2010. The presentation was based in large part on an article that appeared in the August 2009 issue of Modern Casting titled “Estimating and Costing: From Start to Finish” by Chris Collins, Managing Director/CEO, and Shane Allen, North American Operations, of Synchro32.

Simon Adlington, Synchro32 Worldwide Implementation Manager, and Shane Allen highlighted the important points of what factors should be considered in developing a costing and estimating model. One factor that was honed in upon was the need to monitor scrap rates and ultimately reduce the scrap rate and subsequently the PPM, parts per million. “Scrap improvement directly impacts the bottom line and has a significant impact upon a costing and estimating model” was a statement made by Shane. Additional important points were made with relation to honing the factors and getting the best numbers possible in order to arrive at the best cost model possible. “The cost model is only as good as the numbers that go into it and if the numbers are guesses or are wrong, then the cost model is flawed” was a remark made by Shane.

An interesting statement and question from the audience concerned cost reductions which is an industry leading topic these days – methods by which to reduce costs. Often times, metalcasters focus on the “bottom line” with regards to materials and the cheapest material is used. However, this can lead to a vicious cycle of increasing scrap whereas using better materials to start with, the scrap would not have increased. Additionally, in order to reduce costs – the metalcaster must know what the costs are to start with. Closing comments made by Shane echoed the need for a metalcaster to be constantly vigilant with regards to cost and estimating models, as “cost” creep can become a factor, especially in the area of SG&A. “At the end of the day, the battle over profit and loss is won or lost on the shop floor and not in the office. You’ve got to know your costs and understand the processes and verify the processes.” There were approximately seventy people in attendance at the AFS February Birmingham Chapter meeting. The presentation was well received by the crowd and Simon and Shane were presented with cast bells in token of the chapter’s appreciation.