The Typical Steel Rule
Die
By Mike Adams
What is the
"typical" steel rule die?
Synonyms of "typical" include: normal, everyday, ordinary,
unexceptional, common, garden-variety, average, commonplace, conventional,
stock, standard.
No one wants to be
called average!
We generally
think of ourselves as above average. Yet most steel rule diemaking companies
passively accept this label every time they get into a competitive bidding
situation. The competitive bid assumes that the item produced is of
"standard quality." Whether it is produced by you or your competitor,
either product will be indistinguishable one from the other. This mind set leads
to what I call commodity pricing. "All things being equal, it makes sense
for the buyer to shop for the lowest price." But in my opinion, this way of
thinking is flawed, because all things are not equal..
Standards
Standards are
necessary for the industry. Standard rule pointage and heights, standard
punches, and standard file interchange formats have all helped the industry
progress; but standards carry with them an inherent danger. Standards are always
a compromise, and standards that remain too long stifle creativity.
Although many standards are used in diemaking, a "typical" or
"standard" steel rule die does not exist. Every steel rule die is a
custom designed tool. Every manufacturer is different. Diemakers use differing
software, equipment, processes, materials, supplies, and personnel. This makes
every die a custom product. But the premise of commodity pricing ignores these
realities, and assumes that tooling produced by differing companies would work
equally well.
Commodity pricing
hurts everyone in the industry
Those who
purchase custom tooling by choosing the lowest competitive bid should consider
the results of such a way of thinking. When commodity pricing is attached to a
product, the overall service and quality declines, and innovation is stifled.
Buyers who are unwilling to try new ideas in tooling are happy with the status
quo, even though there are alternatives. Manufacturers who accept this way
of thinking continue to lower their prices until margins are squeezed to the
point that they cannot invest in new equipment. This prevents them from
competing effectively with more progressive companies. In order to keep
customers they lower prices even more. This practice must be changed! I realize
that it is hard for us to accept change. As James Baldwin said, "Most
of us are about as eager to be changed as we were to be born, and go through our
changes in a similar state of shock." But in order to see significant
improvements in the product, we cannot simply accept the status quo!
"Status quo, you
know, that is Latin for ‘the mess we’re in.’" (Ronald Reagan, 1981)
Value-Added
Products
So what is the
solution to this problem of commodity pricing? Value-Added products! Even within
the confines of a standardized product it is possible to develop a better
product. Within the marketplace there is room for those manufacturers who
choose to provide products that are "typical," and those who choose to
innovate. There will always be those who choose to purchase average tooling, and
those who choose to purchase exceptional tooling. It is the responsibility
of those manufacturers who choose to create better tooling products to convey to
their customers the differences inherent in those products. When diecutting
operations begin to see the benefits of exceptional tooling, they often choose
to purchase the value-added tooling, even though it is usually more expensive.
Perception vs.
Reality
Many
manufacturers try to create the perception that the tooling they produce is
value-added, instead of investing the time and effort into making the reality
true. Marketing gurus have sold us on the idea that perception is more important
than reality. Marketing programs based on this precept are like a house of
cards, destined to come crashing down. It is essential to change the buyer’s
perception in order to halt the downward spiral of commodity pricing. However,
if this perception does not reflect reality, the perception will not long
remain.
Reality AND
perception
It is
important to ensure that reality precedes perception. The only way to combat
commodity pricing is to bite the bullet and first produce a better tool. Then,
marketing is necessary to get the message to the customer that there are
alternatives to ordinary steel rule dies, and that these alternatives can
actually save them money overall.
Value Added
Features
So what
constitutes superior tooling, and how does it differ from ordinary steel rule
dies? If each die is a custom designed tool, it is necessary to explore the
needs of each application with each customer, and to develop a variety of
processes and procedures to meet each of these needs. Superior tooling
reduces make-ready time. It is optimized for the length of run, and for the
material being cut. It allows diecutters to operate their equipment at higher
speeds with less downtime. This implies that each manufacturer must
have individuals in the organization who are capable of problem solving and
creative thinking. But it also implies that the team posses other skills and
abilities, such as diecutting expertise, and unique manufacturing abilities. One
thing is clear. If you want to move away from commodity pricing, you must move
away from the traditional production of steel rule dies and create new types of
tooling that solve problems.
Superior tooling
The value
added manufacturer must also invest in software and equipment that will enable
the organization to produce tooling that is genuinely superior. One
colleague who owns a value-added diemaking company recently shared with me the
solution he provided one of his customers. The customer needed a 20 cavity die
that was particularly intricate. The customer had his own in-house diemaking
department, and had produced this die in the past. When this die was produced
using hand equipment, each cavity required 20 pieces of rule. That totals 400
pieces of rule! Every joint had to be perfect because of the material being cut.
This colleague consulted with his manufacturing team and came up with a superior
tool. He proposed bending the part on his automated bending equipment using 1.5
point rule to get the intricate bends, and to produce the entire cavity in one
piece. This reduced the number of joints to one per cavity! The customer paid a
little more for the die, but make-ready and rejected partswere reduced enough to
pay for the added costs ten times over.
Other superior tooling manufacturers have created unique patented products that
are only available
from them. Many companies are now producing tooling with alternative joining
techniques. These companies are not trapped in the downward spiral of commodity
pricing because their customers recognize the value that is being added, and are
willing to pay more to get it!
Above Average
It is possible
to combat the perception that "All diemakers are the same." But it
takes a commitment to invest in the following:
