How to get more value from a machine builder
Purchasing's smartest negotiators move from conflict to collaboration fast. Match your wits against these pros. Guess their strategy. Then, read what they really did at purchasing.com/negotiations.
By Purchasing Staff -- Purchasing, 3/12/2009 2:00:00 AM
A major metal forming company needed a new computer numerical control (CNC) mac
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hine. Its existing machines were outdated. They required long cycle times and heavy cutting. Plus it took three machines to produce what one five-axis machine could produce. Purchasing ran a reverse auction for the new CNC machine, including the specs the machine would have to meet. The specifications allowed for some flexibility in choice of machine platform. After the auction, purchasing chose a new five-axis machine. The auction had reduced the expected cost from $200,000 for the machine to $180,000, including training and FOB shop floor.
Problem: The machine worked but the long cycle times remained as did a problem with machine deflection that led to poor part quality. The machine operators were using outdated processes and not taking full advantage of the new machine's capabilities. Plant management wanted purchasing to send the machine back to the supplier. For their answer, see www.purchasing.com.
Solution: Stephen Brochetti, supply chain leader, convinced the supplier of the new machine to send its CNC programmers to the manufacturer’s site at no charge to write programming improvements to solve the cycle time, process and part-quality problems. He appealed to the machine supplier’s interest in maintaining a good image.
Are you a black belt negotiator? Tell us about one of your negotiation successes, and we'll print it so others can learn from your experience. Send it topteague@reedbusiness.com.
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