OEM margins have been hit hard by supply chain stress, multi-vendor sourcing, rising inventory holding costs, and increased raw material costs.
How can we stop that? Price increases aside, everyone is looking for cost savings. The bigger the better but cutting a cost in half is normally the stuff of dreams.
Well dream on…because we can show you a simple one-component switch that can save any OEM at least 49% of their install costs while increasing productivity by 9.5X.
How Do I Save 49% on One Component?
Here it is.
Stop using nylon wire protection grommet edging and its required adhesive.
Switch to Spring-Fast® M22529 grommet edging. It offers at least 49% savings, a 9.5X productivity gain and it has had no known failures in over 30 years.
Simple!
The savings are significant because Spring-Fast M22529 grommets snap into place without adhesive so there are far fewer steps and techs can immediately complete wire/harness routing so no edge prep, glue prep, fixturing or cure time delays.
In contrast nylon grommets (MS21266) need gluing into place which is a long, slow, and costly process (see below). Avoid it by switching.
How did we come up with 49% & 9.5X?
The analysis in the table below demonstrates how we reached the 49% savings and the 9.5X productivity increase.
We worked with clients to capture the time taken for every step in the grommet installation process. Then the costs were calculated using a $31.70 shop labor rate.
| MS21266 Nylon | Spring-Fast | |||||
|---|---|---|---|---|---|---|
| Operation | Minutes | Costs | Minutes | Costs | ||
| Sub Operation -Set Up | ||||||
| Batch size for amortization & resulting time/costs | 5 | |||||
| Gather safety equipment fans, mask, gloves, glasses etc | 5 | $2.64 | 0 | $0.00 | ||
| Gather components: grommet, glue, abrasive, tape etc | 5 | $2.64 | 2 | $1.06 | ||
| Total Set Up time/$ | 10 | $5.28 | 2 | $1.06 | ||
| Sub operation amortized time/costs | 2 | $1.06 | 0.4 | $0.21 | ||
| OPERATIONAL STEPS | ||||||
| Amortized batch set up costs (sub op above) | 2 | $1.06 | 0.4 | $0.21 | ||
| Measure edge/penetration & cut to fit | 3 | $1.59 | 3 | $1.59 | ||
| Pre-Fit for size and trim as necessary | 1 | $0.53 | 1 | $0.53 | ||
| Deburr the edge with Scotch-brite/sandpaper | 1 | $0.53 | 0.5 | $0.00 | ||
| Clean metal edge with IPA wipe/MEK | 1 | $0.53 | 0.5 | $0.53 | ||
| Cut 8 pieces of tape for fixturing | 3 | $2.11 | 0 | $0.00 | ||
| Apply adhesive to edge/MS21266 | 5 | $2.64 | 0 | $0.00 | ||
| Apply grommet to edge | 2 | $1.06 | 1 | $0.53 | ||
| Apply masking tape for fixturing | 3 | $1.59 | 0 | $0.00 | ||
| Cure time - 45mins/$0 cost (see assumptions) | 45 | $0.00 | 0 | $0.00 | ||
| Remove masking tape, clean up using MEK | 2 | $1.06 | 0 | $0.00 | ||
| Inspect fit and finish | 1 | $0.53 | 1 | $0.53 | ||
| Labor time/cost | 70 | $13.21 | 7.4 | $3.91 | ||
| 9.5X efficiency gain | ||||||
| Unit Grommet cost (12.75" strip) | $0.35 | $3.00 | ||||
| Install cost per grommet | $13.56 | $6.91 | ||||
| 49% $ Savings | ||||||
| WRAP/Shop Labor rate | $31.70 |
Key assumptions are listed below.
Legacy Nylon Grommet Process Issues
- Preparation and application involve a costly, labor-intensive, and multi-step process.
- Multiple items for application & safety have to be gathered in the preparation phase.
- Edge prep is required: light abrasion & cleaning is needed to ensure proper glue adhesion.
- Nylon has no inherent retentive strength so requires an adhesive to keep it on the edge.
- In almost all cases, nylon requires “fixturing” to keep it in place until the adhesive cures.
- Any excess adhesive after curing has to be cleaned with a solvent, cloths, and elbow grease.
- Bonding failure often leads to rework – adding to the cost of poor quality.
- Over time, the nylon and adhesive are more prone to failure after exposure to heat and moisture.
These problems are why OEMs switch.
Why M22529 Is A Better Choice
- It snaps into place with finger pressure. It has proven its performance across many manufacturing sectors.
- The finger-like castles exert a compression force that passes aerospace standards.
- M22529 is an ultra-thin CRES substrate encapsulated in a polymer coating.
Contact the person who reached out to you to find out more.
Key Model Assumptions
Time Taken per Step: Your savings will depend on your shop labor rate & the steps taken in your manufacturing process.
Hourly Charge Rate: A $31.70 shop labor rate was used. Almost all OEMs are significantly above that.
Set Up Time: In a non-production line setting, techs have to gather materials & components. If grommets are installed in batches of 5 then nylon takes ~2 mins & 0.4 mins for Spring-Fast. In a production line the set-up time cost will be zero.
Savings Results: These assumptions yield the 49% savings. If your labor rate is higher than $31.70 you'll see more savings.
Productivity Gain: In the model, nylon takes 70 minutes to install vs 7.4 minutes for Spring-Fast = a 9.5X efficiency gain.
Tech Down Time During Curing: Nylon includes 45 minutes of “labor downtime” to allow the adhesive to cure. Clients tell us the 45 minutes involves techs stopping and referencing new work orders, moving to the new job, doing that work, and then the same in reverse. Note: the 45 mins are costed at zero because the tech time is charged to other tasks.
For a review of all types of grommet see this article
