Maximizing material yield through machine design & lineal optimization

Quantifying the value of going from 70 to 95% material yield

Establishing a partnership with your OEM to continually improve material yield requires work and diligence. But it can be a lucrative strategy for your company.

To see exactly how lucrative, let’s narrow in on a hypothetical example of a residential fenestration company manufacturing vinyl windows.

We need to make a few assumptions for this lineal material cost analysis:

  • 500 windows are produced per shift in batches of 40
  • They rely on a “heavy-people-dependent” process
  • There are more than 12 custom sizes
  • 16-foot lineals are used as both frame and sash material; Both frame and sash material cost $1.50 per foot
  • They are currently operating at 70% material yield; 25% of scrap material cost is recovered through recycling
  • There are 250 working days for their facility per year

The key takeaway: For every 1% increase in material yield, you’ll see $27,000 in annual savings. And by making the jump from 70 to 90%, you’ll save $841,000 a year. Going to 95% will be hard work — but it’s worth almost a million a year.

For larger facilities, the savings are even bigger. A large residential fenestration client of ours reports that even a 0.1% increase in material yield is a gamechanger for them.

Let’s get to 90% together

What could your company do with an extra $800,000 a year? Work with us to find out. And then let’s get to 95%.