August 7, 2018 by Bob Wilson
Companies are always looking for new ways to boost profits and decrease spending. More importantly, they want to save money without compromising the quality or integrity of the final product.
Sheet metal is a common material that manufacturers use to create durable parts — from single prototypes to high-volume production runs. Since major construction projects can take up significant time, a lack of careful planning can throw your budget and project into a tailspin.
Finding a reliable steel fabricator in Edmonton is one way to ensure the stable supply of metal parts at your facility, meet lead times, and keep costs low. But more than just trusting us with your steel fabrication needs, we’ve prepared a guide on how you can save time and money on your next project:
Adopt a Cost Avoidance Approach in Sourcing
When it comes to sourcing metal parts, some customers use a cost reduction approach. This involves adopting short-term solutions like comparing different metal fabrication vendors, negotiating the cost per part, and calculating transportation costs then choosing the most affordable option. This could, however, lead businesses to miss out on processes with high upfront costs that could result in lower production costs in the long run.
A cost avoidance approach to sourcing, on the other hand, does more than cut costs. Strategic sourcing can contribute to long-term cost and risk management. An example of this would be investing in metal parts re-engineering to reduce material and production costs. Another would be to prioritize inventory management to keep up with manufacturing demand.
Apply a Value Engineering Method
Value engineering (VE) is a set of disciplined procedures that focuses on developing optimum value for initial and long-term investments. While the concept of value engineering started off in manufacturing, it has become widely used in the construction industry for many years.
VE is a creative, organized effort that involves analyzing project requirements to achieve essential functions at the lowest possible expense. After conducting a group investigation, team members study different design concepts, materials, and methods without compromising the final product as well as the client’s objectives.
The result: VE helps you keep costs static while increasing the value of the final product.
Proper Project Planning
The planning that goes into a construction project is one of the most cost-effective ways to decrease costs. With strategic planning and engineering, your company will end up using fewer components and labor. Rushing through projects can, after all, lead to missed cost savings.
Prior to construction, teams should come together to develop a clear plan for the project. With every member on the same page, it’s easier to discuss cost reduction strategies proactively.
Boost Efficiency with Off-site Fabrication
Traditional construction requires measuring, cutting, and fitting materials on-site. Pre-engineering and fabrication on-site could, however, add significant time to project deadlines especially when errors occur. Companies can, for instance, manufacture parts off-site then deliver them to the job site, ready for installation. Off-site manufacturing, installation, and fabrication usually require less manpower, which can help companies cut production time and save money. Advantage Manufacturing Ltd. is your one-stop shop for steel fabrication and manufacturing; we also do custom steel products at large scale. Contact us today to request a free quote.