MSC.SuperForge: Simulating for Profitability

Controlling costs in the industry

Today’s forging simulation software may be more valuable to the forging company’s finance department than to its design group.

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Table of Contents

The Incredible Shrinking Margin

Firing for Effect

Cliché du Jour : Time is Money

Cleaning Out the Attic

Putting Your on a Diet

Don’t Use an Elephant Gun to Shoot a Butterfly

Doing the ROI Math

How Do You Catch a Cloud and Pin It Down?

The Bottom Line Might Be the Top Line

regulation, “negatively impact the viability The Incredible Shrinking Margin of several domestic forging operations…”4

The margin pressures on forging Like gravity itself, a universal truth operations are not limited to North in all operations is the America. A survey of the economic constant and unrelenting downward conditions in several European countries pressure on prices, and, by extension, predicts forging selling prices will fall margins. Unfortunately, the forging between 1% and 3.5% in most European industry is no exception. Even in good nations5. At the same time, energy costs times, price pressure seems as much a are expected to rise upwards of 80% in part of the industry landscape as a 500- Europe, while forging labor costs continue ton press, but market realities both to increase as much as 8% in the coming within and external to the forging industry quarters.6 are accelerating that pressure. Custom forging shipments from North American Even experienced managers might suppliers decreased between 7% and 8% view these storm clouds as strong reason between 1998 and 1999 - the first time to consider substantial decreases in that’s occurred since the early 1990s1. capital investment, drafting retrenchment Further, an impending end to the nearly plans to weather the coming storm. The unprecedented economic expansion of opposite view, however, may be more the 90’s2, higher oil prices, and other fitting when viewed with an open mind and factors have the potential to exacerbate longer horizon. It’s true that the typical that trend in the coming quarters. forging business is unable to affect the Meanwhile, operational and personnel global market factors that dictate prices costs continue to rise, as the price for an and demand for forging products. On the ever-shrinking skilled labor pool other hand, controlling internal costs, increases3. Even pro-active efforts by the increasing the operation’s differentiation US Government may contribute to the through time-to-market and manufacturing cost pressure on America’s forging flexibility, and improving the utilization of companies, as OSHA’s proposed expensive equipment are all very much Ergonomics Program Standard would, in within the control sphere of each forging the words of the Forging Industry company. Moreover, the increases in Association’s reply to the proposed maturity and user-friendliness of state-of- the-art computer simulation software products render them a highly attractive investment option. Forging operations 1 Forging Industry Association press release; May that have made those investments in 19, 2000; “1999 Annual Forging Industry Sales simulation software are reporting Released by Forging Industry Association.”. 2 As this paper was written, for example, Ford Motor unambiguous reductions in operational Company announced an earnings shortfall and plans costs, decreases in time to market and to cut production in 2001. (CBS Marketwatch, December 22, 2000). 3 Respondents to the Forging Magazine 1999 4 Forging Magazine; Jan/Feb 2000; Page 30. Business Outlook Survey ranked the cost of medical 5 Exceptions to this prediction are the Czech Republic insurance, foreign competition, and the “general and Belgium where forging selling prices are labor shortage” as the top three problems expected to rise 2% and 1.5%, respectively. forging operations in the coming quarters. 6 Euroforge Economic Report, October 2000. improved operational flexibility and “firing for effect”, or aiming directly at the competitiveness. target with the most potent shells. At times, it seems like the process of From an advanced technology developing the and tooling for a new perspective, few doubt that simulation forged part can be equally as iterative, software will be a key element in the often requiring the initial die design to be modernization of forging industry reworked 2 and even 3 or 4 times before operations in years to come, but the the final production die is finalized. industry has yet to fully embrace the Needless to say, eliminating any of those compelling story of computer simulation iterations can not only save cost, but also software’s financial value in the forging greatly improve time to market, and with it industry, especially in light of its never- the competitive advantage of a superior ending battle to control costs and maintain forging operation. its margins. As of late 1999, for example, only about 1/3 of the respondents to German forger Otto Fuchs Forging Magazine’s Annual Business discovered that the use of state-of-the-art Outlook used computer simulation simulation software could not only reduce software, while, the second most common and die iterations, but literally reason for not deploying simulation eliminate them. Using MSC.SuperForge, software was “cost concern”.7 In this they’ve reduced the number of new die paper, we’ll discuss the tangible, iterations from 3 to 1 for certain parts, quantifiable benefits forging operations saving precious resources and time on can achieve when deploying computer expensive presses. In a recent Forging simulation software packages like Magazine interview, Otto Fuchs head of MSC.Software’s MSC.SuperForge design Jorg Ihne explained: product, and we’ll base those benefits on the real-world experiences of forging “In 3 weeks we can do the operations using such products today. In simulation for three different this discussion, the reader will find that geometries of a complex part, state-of-the-art simulation packages are optimizing the final geometry. And no longer expensive toys used by a select by using the same die design for group of designers, but rather key production, development time can elements of the forging “toolbox”, as be reduced by a factor of three critical and potentially financially beneficial times, because the die doesn’t have to a successful operation in the coming to be changed three times and years as a hydraulic press. doesn’t have to be set up on the forging machine three times.”8

Firing for Effect A Japanese forging company using MSC.SuperForge for nearly 4 years has enjoyed similar reductions in design Old artillerymen and fighter pilots iterations and their associated costs. understand the notion of sighting in a strike by firing around the target and adjusting their aim appropriately before

7 Forging Magazine: Nov/Dec 1999; Page 39. 8 Forging Magazine: July/Aug 2000; Page 51. Table 1: Conventional Tooling Development Cost Estimates for Three MSC.SuperForge Customers (man-hours)

Development Southeast US European European Phase MSC.Software MSC.Software MSC.Software Customer10 Customer I11 Customer II12 Tool Design13 120 ($3,221) 192 ($5,153) 240 ($6,442) Machining14 80 ($1,527) 2,000 ($38,184) 120 ($2,291) Set-Up/Test15 16 ($304) 400 ($7,616) 32 ($608) Total 216 ($5,052) 2,592 ($50,953) 392 ($9,341)

Although one project leader respectively; their estimates provide useful estimated that they typically conduct only outer bounds for typical forging industry one or two tooling cycles for new designs, tooling costs. Their tooling man-hour he has seen that process stretch up to estimates are shown in Table 1, along seven iterations at times. After deploying with translations to dollar figures based on MSC.SuperForge, he describes their industry average salaries in the United revision expenses as being reduced States. “considerably”, with an accompanying improvement in product quality.9 In the case of the US forging operation, typical rework costs for the Certainly no one would argue with initial die cut are an incremental 40% of the assertion that elimination of die the initial cost, or an additional $2,000 per process steps is desirable, and a quick new tool design. The European I forging analysis of potential real savings company highlighted above, however, achievable by eliminating tool/die finds that they typically require two rework iterations demonstrates how compelling iterations for a new tool the quantitative benefits can be. Using generalized estimates for “typical” tool development from three MSC.SuperForge 10 Interview with MSC.SuperForge customer on customers interviewed for this white December 13, 2000. 11 paper, Table 1 provides a window into the Interview with MSC.SuperForge customer on range of man-hours required to develop December 18, 2000. 12 Interveiw with MSC.SuperForge customer on tooling for new forging projects. The December 20, 2000. forging companies noted in Table 1, one 13 Low-end Mechanical Engineer II salary from in the US and two located in Europe, www.salary.com used ($55,832); 2,080 work hours per year assumed. turbine blades for jet engines (US), blades 14 for land turbines (Europe I), and primarily Low-end III salary from www.salary.com used ($39,712); 2,080 work hours automotive parts (Europe II) per year assumed. 15 Bureau of Labor and Statisics; Annual median salary for “Forging Machine Setters and Set-Up 9 1/25/01 email interview with MSC.SuperForge Operators, Metals and Plastic”; ($39,600); 2,080 Japanese customer. work hours per year assumed. $3,000,000 $2,500,000 $2,000,000 $1,500,000

Savings $1,000,000 $500,000

Potential Annual Cost $0 10 20 30 40 50 60 New Parts Per Year

$2,000 Savings Per Design $10,000 $25,000 $50,000

Figure 1: Potential New Tooling Design Iteration Cost Savings Achievable Using Advanced Forging Simulation Software

before it is production ready, and their investment in computer simulation costs for each additional iteration run software. approximately 50% of the previous design. Thus, the European land turbine forger The four lines in Figure 1 plot the annual would spend an additional $25,476 on the savings a forging operation might achieve second cut of the new tool, and another depending on a per-part tooling savings $12,738 for the final version in a typical bounded by our three MSC.SuperForge design cycle, or over $38,214 to rework customers discussed above. The Figure the initial tool and die. European II’s underscores the powerful cost savings rework results were similar to both the US that can be achieved if tooling iterations customer and European I, but they also can be reduced. Indeed, Figure 1 shows emphasized that tooling engineers and that if only $10,000 per part savings is technicians typically represent their most achieved by eliminating iterations, experienced and skilled employees, $200,000 can be saved annually if the underscoring the importance of minimizing forging operation develops only 20 new the burden on their time. Using designs each year. As the number of new MSC.SuperForge, European I has parts produced annually increases, and as eliminated one or both of the iterations in the per-part savings does as well, the many of their new designs, saving tens of annual cost savings for the forging thousands of dollars each time operation can be measured in the millions MSC.SuperForge is applied successfully of dollars. to a new design. Using the experience of these three companies, Figure 1 illustrates how these per part tooling iteration savings can add up to hundreds of thousands of dollars annually in return on the company’s

MSC. Typical Typical Total Number Total SuperForge Prototype Prototype Press of New Annual Customer Press Iterations Downtime Designs Downtime Downtime (Per Part) (Per Part) Annually (Per Part)

SouthEast 2 Days 2 4 Days Data Not Data Not

US Forger Available Available

European 5 Days 3 15 Days 20-30 300-450 Forger I Machine- Days

European 1 Day 3 3 Days 200 600 Forger II Machine-

Days

Table 2: Typical Press Downtime for Prototype Testing – 3 Examples kind of press, size and complexity of the part, and a number of other factors, but few would disagree that downtimes are Cliché du Jour : Time is Money measured in days, not hours, for each new prototype. Table 2 presents some general estimates provided by Without question, removing tooling MSC.SuperForge customers that iteration steps from the design process is participated in the development of this desirable. As we discussed above, labor white paper. savings is achieved in all three phases of the tool’s development, and the delivery Translating the cost of ostl press schedule also shrinks, rendering the time can encompass everything from operation more competitive, and spare parts to the opportunity cost of not customers more satisfied. But overlooked producing margin-generating products.. in the analysis to this point is the reduction One MSC.SuperForge customer, for in press off-line time, or the non- example, estimates that it costs between production time that results from fewer tool $200/hour and $1,300/hour to run its prototype iterations. Forging operators hydraulic presses ranging in capacity from don’t need to read a white paper to 800 to 30,000 tons. A more generic, understand that every day a press is off- conservative estimate is provided in line directly translates into lost revenue, Figure 2 below, however. The chart but the degree to which computer provides an approximation of the cost per simulation software can reduce that loss day to own an operating press, accounting might not be so obvious. for maintenance and depreciation costs only. Not taken into How long a press is tied up in prototype testing clearly depends on the

$20,000

$15,000 10-Year Dep. 15-Year Dep $10,000 20-Year Dep. $5,000

Daily Operations Cost $0

$1,000,000 $2,500,000 $5,000,000 $7,500,000 $10,000,000$15,000,000$20,000,000$30,000,000 Equipment Purchase Price

Figure 2: Estimated Cost Per Day to Own and Operate Forging Presses

Assumptions: · Equipment depreciated over 10, 15, and 20-year periods. · Annual maintenance costs equal to 10% of equipment purchase price. · Equipment available 6 days per week, 52 weeks per year. · Equipment available 24 hours/day.

account in this assessment is the these considerable downtime savings, opportunity cost mentioned above, and expect to achieve further savings as equipment finance costs, nor are their operations fully integrate substantial refurbishment, rebuilding or MSC.SuperForge. We’ve already cited repair costs included. the example of Germany’s Otto Fuchs Figure 2 clearly illustrates that it is operation reducing tooling iterations from somewhat of an understatement to assert 3 to 2 and sometimes to a single prototype that bringing forging equipment off-line is using MSC.SuperForge. In another an expensive proposition, and thus example, one Central US forging underscores the financial impact of operation has been using reducing the number of tooling iterations MSC.SuperForge for only a few months, and therefore prototype set-up time on and, based on their results thus far, fully critical production equipment. expect to reduce their prototype testing MSC.SuperForge users are enjoying time by 50% when fully operational with the simulation software in the coming

$800,000 $600,000 $400,000 $200,000 $0

Decreased Downtime Annual Cost Savings Due to $1,000,000 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $15,000,000 $20,000,000 $30,000,000 Equipment Purchase Price

20% Savings 30% Savings 50% Savings Figure 3: Potential Annual Cost Savings Resulting From Reductions in Production Line Downtime for Prototype Testing.

Assumptions: · 25 New Tool Designs Per Year · 5 Days for Prototype Press Set -Up and Test Each Iteration · Equipment Depreciation Timetable of 20 Years · Annual maintenance costs equal to 10% of equipment purchase price. · Equipment available 6 days per week, 52 weeks per year. · Equipment available 24 hours/day.

months.16 Figure 3 offers a translation of showed iteration reductions of 2/3 in this simulation-driven prototype savings to certain applications. dollar savings resulting from reductions in press downtime due to prototyping Finally, the inclusion of prototype operations. runs into normal production lines can have other unforeseen financial consequences Figure 3 demonstrates that the as well. In a recent installment of the collective savings resulting from the use of Forging Magazine Column “Ask Jim”, one simulation software to reduce the number writer related a problem his forging of prototype iterations and therefore press operation had with its local power downtime is considerable. Using the company. The company operates conservative assumptions of Figure 3, the mechanical presses off induction heaters, savings can run into the hundreds of and are forced to run their die trials during thousands of dollars if only modest off-peak power times or the power downtime savings of 20% are assumed, a company will charge them a “large very plausible figure in light of the demand fee” for only a few minutes of examples already discussed here that heater time. The resulting question posed to Jim by the forging operation: “What can 16 Interview with MSC.SuperForge customer on you recommend for us to develop our Decemb er 13, 2000. tooling more quickly?”17 As we have seen however, considerable margin can be in this discussion, the forging operations recouped out of mature production parts using simulation software today have with limited investment, and the effect on some ideas as to how best to answer that the company’s bottom line can be question. extraordinary. Figure 4 provides an estimate of the margin gains potentially achievable if - like the European company Cleaning Out the Attic cited above – a single step can be eliminated from the forging process of a production-forged part. Without question, the most common use of forging simulation packages is the optimization of new designs, but forging operations would be wise to consider taking a fresh look at existing production-stage parts to wring additional margin from those products. One European forging operation did just that. After deploying MSC.SuperForge, the company decided to review some of its existing production parts, leveraging the 3-D models that already existed for the bulk of these older forgings. In one particular case, the company used MSC.SuperForge to reduce the number of forging process steps for one of its turbine blade designs from 3 to 2, shaving nearly 1/3 off the total cost to produce the part. Given that turbine blade manufacturing costs can exceed thousands of dollars per copy, this particular European customer was able to save several hundred dollars per part, generating hundreds of thousands of dollars per year in additional product margin.18

Given the effort inherent in the development of forging , it would have been impossible for this forger to re- evaluate their existing designs, especially given the reality that not all simulations will necessarily result in new, more efficient tool designs. With MSC.SuperForge,

17 Forging Magazine; May/June 2000; Page 70. 18 Conversation with MSC.SuperForge customer on December 18, 2000. $2,000,000

$1,500,000

$1,000,000

$500,000

Annual Margin Increase $0 $100 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Original Cost Per Part

3 Process Steps 4 Process Steps 5 Process Steps

Figure 4: Margin Gains Resulting From Applying Design Simulation Software Packages to Existing Production Parts

Assumptions: · Annual Production Rate = 2,000 Pieces · Removal of a single process step reduces overall part cost proportionally · Analysis Excludes One-Time Re-Tooling and Analysis Costs

As illustrated in Figure 4, the Putting Your Forgings on a Diet removal of a single step from the forging process can translate into hundreds of thousands of dollars in annual margin It might sound a bit like the cost- savings for forging operations constantly obsessive accountant issuing a memo on fighting the dual challenges of downward price pressure and increasing internal excessive paper clip use in the office, but forging operations that employ extensive costs. Although this limited analysis does use of titanium and nickel-based alloys, for not account for the costs to modify existing example, can realize significant material production lines (and recognizes that cost savings by giving attention to billet process steps can by no means be eliminated from all existing designs), it sizes and tool designs in an effort to reduce scrap. does highlight a latent opportunity for mature forging operations for non-trivial One European MSC.SuperForge bottom line improvements, achievable in customer with a number of clients in the relatively short order by taking advantage aerospace industry reveals that about one of state-of-the-art simulation technology fifth of its parts use titanium. The available off-the-shelf today. company simulates the bulk of its new part designs using MSC.SuperForge, and, among other benefits of simulation, has $200,000

$150,000 $100,000 Savings $50,000

Annual Material Cost $0 5 10 15 20 25 30 35 40 45 50 Part Weight - Kg - (Before Trimming)

Ti-5% Savings Ni-5% Ti-10% Ni-10% Ti-15% Ni-15%

Figure 5: Potential Material Cost Savings Resulting From Improved Forging Designs Developed Using Simulation Software Packages

Assumptions: · Titanium price/kg = $30 · Nickel Alloy price/kg = $50 · Material weight savings = 10% · Number of designs per year = 5 · Average annual part production rate = 100 discovered that it is not uncommon for the total weight of the example production them to save 10% or more in material run discussed here runs about 8,000 kg usage by experimenting with different tool annually (40 kg x 400 parts). A 10% designs using computer simulation. In savings therefore translates into a one example, a tool for a titanium part with potential $32,000 annual cost reduction an annual production rate of 400 pieces for just this one product line. This concept and part weight of approximately is expanded and generalized in Figure 5. 20 kg was developed using MSC.SuperForge. The company was Although not a critical issue for able to estimate a 10% weight savings as forgers employing mostly aluminum and a result of simulation-based tool other inexpensive materials, Figure 5 development. Although at first blush a illustrates how relatively modest material 10% material savings may not appear usage savings can translate into tens and striking, the arithmetic suggests a different even hundreds of thousands of dollars for conclusion. Titanium can run as high as forging companies that commonly use $40 per kg for this company, and expensive metals in their operations. . This same argument would hold for forgers who use relatively inexpensive materials like steel, but in high volume production runs.

Don’t Use an Elephant Gun to Shoot a Butterfly Table 3: Estimated Annual Operational Cost Differences Between Differently Priced Presses

Optimizing forging designs for Original Approximate maximum production efficiency not only Equipment Price Annual Operational means reducing process steps, reducing Difference Cost Difference expensive material scrap, and eliminating $200,000 $30,000 $400,000 $60,000 costly prototype testing iterations, but it $600,000 $90,000 can also include the judicious use of $800,000 $120,000 smaller, less expensive presses in lieu of $1,000,000 $150,000 larger ones. Using simulation software, forging design engineers can easily Thus, if a particular part can be experiment with trial designs that can be manufactured using a smaller press, the run on smaller presses, resulting annual production run savings can be ultimately in lower production costs. many tens of thousands of dollars, enhancing the profitability of the part for The savings resulting from the use the forging operation. The ability to easily of a smaller press is directly applicable to and inexpensively experiment with its cost, and the savings is not always multiple design options and techniques trivial. For example, the difference in provided by simulation software allows deployment price between a 1,000 ton forging designers to truly optimize not only and 3,000 ton might be as the design, but its production methodology 19 much as $500,000 . Assuming that and equipment usage as well. maintenance and depreciation costs are proportional to the original cost of the equipment, and employing the same Doing the ROI Math assumptions used previously in Figure 2 (with a worst-case, 20-year depreciation schedule), Table 3 illustrates the We’ve looked at a number of ways estimated annual operational cost in which the users of simulation software difference between differently priced press have realized cost savings, and even if machines. only one or two of these cost benefits are considered, the return on investment forging companies are realizing can be compelling. Sometimes, the ROI of simulation software deployment can be striking, as in the case of the European forger that used simulation to re-evaluate its manufacturing process for an existing production part. Saving one complete process step in a three-step manufacturing process, the company saved approximately $500 in manufacturing costs per part on a 2,000 19 Conversation with screw press manufacturer on piece-per-year production run. A basic 1/8/01. ROI calculation suggests that forging knowledge and insight comes not from a operation realized an approximately 400% simulation software solution, but rather return on its total investment in simulation from the minds of its most experienced software deployment. engineers and designers. Capturing, preserving, and successfully transferring Although not all forging operation this accumulated knowledge base in the ROIs are that dramatic, they are face of retirements, job changes and other nonetheless often compelling. By workforce disruptions is not only an reducing tooling iterations, another extraordinary challenge, but absolutely European MSC.SuperForge customer is critical to the continued successful saving $25,000 or more each time it operation of the business. develops a new tool design using simulation software. The company It is undeniable that simulation develops about 200 new designs each software’s value is not limited to the year, but only uses simulation software on reduction of prototype iterations, materials the most critical parts, about 20 per year. savings, improved quality, etc., but Even with this limited application, the extended most importantly to capturing company’s return on its investment in and retaining the design knowledge and simulation software was roughly 200% in insight of the organizations most senior its first full year of use. and experienced designers. The competency of a typical forging operation It is obvious from these few depends a great deal on a few, very examples that realized savings will vary in experienced engineers, and it is no quantity and type from forging operation to surprise that those valuable employees forging operation, but the likely return on feel a strong pull from competitive forging the investment in simulation software is operations. Indeed, the Managing clear if only modest improvements in Director of one of the European forging designs and production processes can be operations interviewed for this white paper realized. This reality, coupled with the identified knowledge capture and retention increased top line revenue improvements as the number one reason for the (discussed later) that simulation software deployment of simulation software. can contribute to, yields an outstanding overall return on even a worst-case An manager at one investment in simulation software US forging operation struck a similar deployment. conclusion:

“The forging industry is something of How Do You Catch a Cloud and Pin It a black art. Lots of designs are still Down? done by people with a lot of information and experience. Products like MSC.SuperForge can Ironically, what may be the most capture the knowledge and compelling reason to deploy advanced experience from people…into a simulation software is the most difficult to simulation tool. This allows fewer quantify. Forging company operators, trials, fewer errors…MSC.SuperForge however, will fully appreciate that design captures what we already know and helps forging move from an art to a knowledge, but forging operation mangers science.” undoubtedly know it when they see it.

Similarly, in the previously The Bottom Line Might Be the Top Line referenced December 1999 issue of Forging Magazine, Otto Fuchs’ Joerg Ihne also highlights the knowledge capture We’ve spent the bulk of these benefits of simulation software: pages discussing primarily the cost savings that can be directly attributable to “…the extensive knowledge our the deployment of forging simulation team uses to develop forged parts software, but a more compelling, albeit needs to be documented and made less tangible, benefit may lie in the available throughout our company. considerably increased competitiveness of Our on-site experts have years of the forging operation after deployment of experience with forging processes state-of-the-art simulation tools. Though and have developed detailed not necessarily trivial to quantify directly, knowledge of the ideal material flow there is little doubt that marked needed to manufacture our high improvement in bringing new designs to quality parts. Because developing market on tighter schedules helps retain this understanding takes a long time customers, and attract new ones. and is very difficult, we decided upon Moreover, more creative, higher quality simulation software.” designs do so as well. Simulation software allows designers to experiment So, what does knowledge or the with new and innovative design and loss of it cost? Indeed, this is the $1M forging techniques, all without burdening question, and a difficult one to answer. the production operation with live Certainly the cost of recruiting and training prototype development and testing. new designers is part of the equation. Eventually, the forging operation that fails More importantly, however, the cost of to innovate and continues to deliver poor or non-optimized designs is the most proposals exactly the way all previous persuasive. A poor design can cost a jobs were envisioned will find itself victim company its reputation and customers, to the innovators capturing the attention of while a cleverly designed part can result in their previously loyal customer base. just the opposite. A part designed inefficiently can cost forging companies Forging simulation software also hundreds of thousands of dollars in allows sales and marketing organizations manufacturing costs over the life of the to enhance the competitiveness of their production run, while a well-designed RFP responses. Not only can proposals process can add that same sum to the be submitted more quickly when design company’s margins. simulation software is employed, but the A US Supreme Court justice once proposal can incorporate multiple design said in a famous opinion that he could not options and project a “high-tech” image of define obscenity, but “I know it when I see the proposing company that can serve as it.” In that same vein, it may be difficult to a powerful intangible during close quantify the costs of lost design competitions, or in cases where the prospect is evaluating the forger at least reducing design cycles, improving design partially on the basis of a long term quality and flexibility, capturing and relationship, with the forger’s ability to transferring design “art” knowledge, and “grow with the customer” an element of providing a digital basis for the exchange the decision criteria. of information. From a more practical perspective, The bottom line: greater employing simulation software during the differentiation from competitors, more proposal development process can success in the pursuit of new business, enhance the accuracy with which the and ultimately a higher revenue stream. quote is developed, removing some of the As the substantial cost savings guesswork typically left to the actual detailed in this paper, coupled with the design effort after the project has been not-so- subtle contribution to increased awarded. Thus, in an industry in which competitiveness and revenues becomes gross margins can be as low as 5%, the obvious to the industry as a whole, state- excess cost incorporated into the proposal of-the-art simulation packages will no as a “safety factor” to cover unforeseen longer be a good idea, but rather a forging design issues can often be the difference operation staple as common as a forging between a winning and losing bidding press. effort. Any tool that can increase the confidence with which the proposing About MSC.Software Corporation forging operation can forecast actual design and production costs greatly To find your local MSC.Software office or to learn improves the effectiveness of their more about our company and our products, proposal effort, and state-of-the-art please contact: simulation software might be the best tool Corporate available to fill that bill. MSC.Software Corporation The new e-conomy demands that 2 MacArthur Place businesses do more of their business South Coast Metro, California 92707 USA digitally, leveraging new technology to (714) 540-8900 Fax: (714) 979-2990 easily exchange electronic designs, tooling concepts, and subcontract work Information Center quickly without compromising quality. (800) 642-7437 ext. 2500 (USA) (978) 453-5310 ext. 2500 (International) Further, as discussed above, as the global economy’s relentless appetite for highly Worldwide Web - www.mscsoftware.com skilled workers places more and more On-line Purchases - www.engineering-e.com pressure on the forging industry to retain On-line Simulation - www.simulationcenter.com its veterans and quickly train young MSC is a registered trademark of MSC.Software Corporation. MSC.SuperForge is a trademark of designers, the ability to access and MSC.Software Corporation. All other trademarks are leverage the collective knowledge base of properties of their respective owners. All specifications are the organization as turnover increases is subject to change without notice. also imperative. Today’s state-of-the art ©2001 MSC.Software Corporation design simulation software is helping forward-looking forging operations ZZ*3/2001*Z*Z*Z*LT-WPS-SFORGE enhance their competitiveness by