February 2022 Volume 4

OPERATIONS & MANAGEMENT

cost fluctuates monthly, or when steel is received. The EAU from the customer is just that, an estimate, whereas to receive the quoted price the EAU should be consumed on a yearly basis. Raw material is the highest cost driver of a forging estimate. Occasionally, the material called out on a customer supplied finish machine print or forging drawing does not indicate what the customer is looking for. Get it in writing! The following are keys for raw material assurance as well as pricing. This needs to be verified by the customer and noted on a quotation. If there are exceptions, let the customer know it doesn’t match the print. This will provide documentation for quality purposes later, should an issue arise due to material or specifications. Verify material and specification requirements: • Confirmmaterial type. • Confirmmaterial specifications. • Ask the question! Are there any additional chemistry requirements? • Send out RFQ info to material sources. • Confirm rawmaterial lead-time. • Confirm current surcharges. • Confirm freight included or separate frommaterial source. • Confirmmaterial shape and stock size. Ø or RCS. • Sawed or sheared? When you’re ready to send out the RFQ to the material suppliers, never rely on one source for quotation unless the customer requires it. Pick the right material supplier; look for the best price and best lead- time to acquire the material that will meet the customer’s timing. Raw material is typically the bottleneck when it comes to delivery. If a customer needs parts sooner than quoted, sometimes warehouse material is an option if they want to pay the premium. When a quote is received from a warehouse, it is usually an all-in price, including surcharges and freight, but it is wise to confirm. Sawing vs. shearing is also a cost driver. Shearing is the way to go if it’s a CSQ, (Cold Shear Quality) material, as it’s faster and cheaper. Sawing is slower and more expensive. Pick the best and correct process! Quality and Packaging Requirements Moving on to quality requirements which also affect pricing and delivery. This is one area that needs to be as accurate as possible, or you could end up with major problems. The following should be taken into consideration for accurate numbers and the best quality forging produced. Secondary processes and quality requirements: • Are there any post forge heat treat requirements? • Send out the RFQ to heat treat sources or in-house if capable. • Is mechanical testing required?

• Are there mag particle inspection requirements? • What are the packaging and shipping requirements? • Verify if there are any other certifications required. Always confirm if there are heat treat requirements or subsequent processes post-forge. Some examples of standard processes are, normalize, quench & temper, anneal, etc. These, or other processes, may be needed for machine capabilities and are further cost drivers if needed depending on the end application. Additionally, some heat treat processes require shot blast cleaning before heat treat and a customer may require the forgings cleaned before shipping, where double cleaning should be captured. Some customers may not want parts cleaned at all. Mechanical testing and PPAP if required will also be a cost driver and the cost should be captured. Mag particle isn’t cheap so keep an eye on that. Shipping and packaging should be reviewed to capture freight, cardboard vs. wooden or returnable dunnage. Conclusion In summary, there are many factors to review and verify when it comes to quoting a forging. Customers are looking for the best price, on time delivery and superior quality forgings. With that said, it is critical to accurately capture as much detail that will drive the cost to produce a forging in order to obtain the job. Forging companies are in business to make money, and customers are looking for the same. These are just some tips in my eyes to make for a smoother process and effective forging estimations.

Bill Scott is an experienced professional with 33+ years of broad forging knowledge from operating forge presses to engineering management and director technical sales and estimating departments. Bill can be contacted at scott.bill@icloud.com.

• What are the PPAP or first article requirements? • Are the parts to be supplied shot blast cleaned?

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