Case Study: Client #4

Highly Engineered Powder Metal Custom Components

This manufacturer wanted to transition from a job shop (over 250 parts) to producing a select group of high-margin, high-volume, quality-critical custom-engineered components (30 to 50 parts).

Stage 1: Exploration

PMT was meeting with an account on another matter when it was asked to look at some metal part drawings in the early design stage. The account wanted to know whether the parts could be made from powder metal. PMT said they could, gave a range of budgetary prices, and performed a rudimentary design for manufacture (DFM) on the spot.

Stage 2: Prospecting

At the same time, PMT knew one of its clients, a powder metal manufacturer, was looking to engineer custom parts for the PM process. PMT’s extensive networking and information-gathering often puts it in a position where it can match a manufacturer with an unexpected opportunity quickly, before either company is aware a business relationship makes sense.

Stage 3: Mining

PMT identified two parts that would be viable and helped select the material from MPIF Standard 35: Materials Standards for PM Structural Parts. It went back and forth between the two companies to finalize the design, develop a prototype, test with two different materials, and negotiate pricing that worked for both partners.

Results

At this writing, the manufacturer is at the cusp of serial production on the two parts, which would bring it additional business of $5 million per year. The length of program is anticipated at five years, translating to total program value of $25 million.

Are you interested in how PMT helped other powder metal manufacturers bring in new customers, solve powder metallurgy business challenges, and increase sales? Read more case studies here. Or return to the Gallery.