TPi May 2016

Competitive edge through total cost analysis

join the best: worldwide

Southeast A S I A

Voss Fluid GmbH is a provider of hydraulic coupling technology. Its product range includes tube couplings for stationary and mobile hydraulics, including cutting ring couplings, tube forming systems, and flange couplings. When selecting new system suppliers it is important to take varying influencing factors into consideration and to calculate the realistic total costs for a solution on this basis. Voss Fluid compiled the decisive factors on the market for hydraulic connection technology and deduced that assembly errors cause additional costs of up to 9 per cent of the original procurement volume. According to the company’s calculation, these could be reduced by at least 3 per cent by taking the right measures. The pure procurement costs are not congruent with the total operating costs of a system since, from assembly to maintenance, many additional factors enter into the economic appraisal. A sample calculation by Voss Fluid demonstrates that it pays to calculate all cost points for the C-parts of the hydraulic connection technology. Based on a general observation of the market, the company assumes an average reliability of assembly of 97 per cent. If three of 100 assemblies are faulty, at an assumed procurement volume of €500,000 for 100,000 connection points, that already adds up to 3,000 leaking points that represent a cost and safety risk. The model calculation by Voss Fluid comes to the conclusion that the faulty assemblies cause additional costs of around €45,000. That corresponds to 9 per cent of the original procurement volume. When ascertaining this key factor, the company takes into account that half of all leaks are rectified during the assembly phase; 35 per cent are noticed in the test area before commissioning; and 15 per cent only after delivery to the final customer. In the various phases, rework generates costs of varying degrees that result from the individual expenditures and the skills of the personnel. In Voss Fluid’s view, by selecting the right system partner, additional costs for rework can be reduced from 9 per cent to 3 per cent of the original procurement volume. That simultaneously optimises a significant factor of the total operating costs for hydraulic connection technology. As additional influencing factors, the company identifies assembly time, process reliability, procurement costs, ease of maintaining the system, consulting and training level, along with long-term corrosion protection. At Voss Fluid, the product standard starts with the selection of the unfinished material, which is obtained solely from audited partners. From unfinished material, production and surface coating up to the logistics, quality and customer benefit are the focal point.

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Messe Düsseldorf GmbH P.O. Box 101006

40001 Düsseldorf_Germany Tel. +49(0)211/4560-01 Fax +49(0)211/4560-668 www.messe-duesseldorf.de

Voss Fluid GmbH – Germany www.voss-fluid.de

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