Methods for Indian Casting Manufacturers to Overcome Fluctuating Raw material price
Introduction:
Raw material price fluctuation has become great burden for foundries across globe. With these fluctuating trends, it become more difficult for Casting manufacturers and their suppliers as one can’t be able to forecast price of produced casting and foundries are taking big gamble for it. For many castings, material represents 50% or more of the cost. This creates financial pressure for foundry and their supplier too.
As final cost of product is more dependent on raw material price and considering current scenario of rise and fluctuating raw material prices, foundries are looking to adopt methods to reduce raw material wastage and reduce OPEX cost.
How can Foundries make an Impact and Reduce Cost?
There are some immediate steps to reduce raw material wastage in foundries are:
- By taking up VA/VE activities to reduce raw materials used to produce casting. This can be achieved by working on
- Reducing number of casting trials by pouring validated gating design
- Yield improvement activities for already production components.
- By forecasting requirement of raw material for future and secure with material supplier by fixing price reasonable and warranted.
- By identifying and substituting lower cost material wherever it is possible.
- By offering quick payment for raw material supplier for lower price.
- Group up with same grade material foundries and bulk purchase of material to get reasonable discount of price.
- Offering warehouse and distribution services for raw material supplier and work in co-ordination.
How Casting Simulation Software Can Help:
Most effective method of reducing raw material wastage is by using tool – Casting simulation. By effective use of casting simulation, foundrymen can reduce number of casting trials by validating Methoding design well before casting trials and can focus on VA/VE activities such as Yield improvement thus reducing utilization of raw materials saving cost, time and manpower of foundry.
How Design Engineers Can Use Simulation Software to Lower Material Cost:
For New RFQ Projects:
- Feasibility analysis can be performed by casting simulation software that gives foundrymen an idea about whether part to be produced and casting process is feasible for their foundry.
- After feasibility study, hot spot analysis of component is performed so that design engineer has prior ideas about natural solidification behavior of component and this analysis gives an idea design engineer about best orientation of component and gating design.
- After designing multiple gating designs, engineer can run simulations with these different gating designs at a time and check results of all designs. Casting simulation helps to take decision on best gating design where more yield and good sound casting can be produced.
- Decision making for design and management team is made easy thus avoiding conventional trials method and saving raw material cost, time, manpower cost and energy saving for foundries.
VA/VE Activities for already existing components:
- Design team to identify parts which are already in production stage and can rework on improvement of casting quality and yield improvement.
- Once project is identified, design team can work with initial hot spot analysis and check natural solidification behavior of component and probable location of hot spots in component and redesign Methoding system with different options.
- By Validating of different Methoding design and can decide best Methoding design with more yield and good quality of castings are obtained.
Redefining process parameters:
- Methoding with different process parameters such as pouring temperature, pouring time, die temperature can be performed virtually in casting simulation software and foundry team can understand effect of these parameters with quality of casting obtained and decide best process parameters to be followed to obtain sound castings. As entire activity is worked on a virtual environment, avoiding conventional trials method and saving raw material cost, time, manpower cost and energy saving for foundries.
Conclusion:
As foundries have no control on raw material fluctuating price, Indian foundries can minimize effect of raw material fluctuating cost trend by implementing methods such as VA/VE activities and reducing usage of raw material in foundries with assistance of virtual casting simulation software. Effective utilization of Casting simulation software will help foundries to reduce utilization of raw material by reducing number of casting trials, reducing lead time for development and yield improvement methods saving cost includes raw material cost, energy cost, man power cost and improves quality of casting produced within less time