Together with Btwin, minding Total Cost of Ownership

Date : 04/25/16

The concept of Total Cost of Ownership, or TCO for friends, has been around for a while in the industry. But do you actually make use of it? Take a look at how we did in collaboration with Btwin.

Headed for savings

Total Cost of Ownership is the sum of all costs incurred during a product lifecycle: from part manufacturing cost to recycling cost, through maintenance cost and assembly cost, to name only a few. In a word, we are talking about actual purchasing cost (<20% of total price) plus all invisible costs (>80%).

Without surprise, reducing it is all about smart savings on various fronts. For us, it begins as early as product design.

Hand in hand with Btwin (world leader Designer and Manufacturer of bikes and other similar Products), we decided to find new innovative ways to improve their bike TCO, applying alternative fastening solutions.

“Let’s design rapidity”

Apart from the initial purchasing part, how can we significantly reduce the operational cost? When designing bike fasteners with TCO in mind, ARaymond Industrial* engineers went straight for ease of assembly. To replace both the screw and the plastic cap guiding cables by the fork, they came up with a clever one-part plastic clip.

ARaymond Industrial - Btwin - Total cost of ownership

Small part, big savings

Unsurprisingly, the single no-tool-needed piece wins on all counts over its predecessor. Let’s take a look:

  • acquisition price is lower (10% saving)
  • assembly time is decreased, thanks to the clipping system (50% faster)
  • no-tool-needed leads to suppression of costs of purchase, energy costs and maintenance of electric screwdrivers
  • number of parts is decreased while standardized references lead to smaller administration costs (50% savings)
  • picking and storing time are lower (17% faster)
  • cable releasing time for maintenance is decreased (75% faster)

 

Quicker is not just quicker

When designing with TCO in mind, it is important to look at the bigger picture. The idea is to aim not only at increasing quantitative added value, but to bring qualitative differences to the table as well. By “qualitative” we mean variables that don’t yield exact figures so easily, but that still have a clear impact on TCO.

In the case of the Btwin fastening clip for instance, extra benefits included significant decrease in the training costs, higher level of ergonomics, reduction of accidents, better customer perception and marketing value – only to list a few.

Hand in hand only

It is only through collaboration that such good results could happen. ARaymond** brought 150 years of experience to the table, while Btwin came with great bike design and mounting expertise. For us, TCO optimization took the collaborative shape of a merge of expertise to reach overall decrease of cost and bring innovation to the final Customer product. What shape will it take for you?

If you are interested in knowing more about what ARaymond Industrial can do you for, please visit us at www.araymond-industrial.com or send us an email by clicking here. 

ARaymond - Btwin - Total cost of ownership

* *“ARaymond Industrial” refers, in this Article, to ARaymond Industrial S.L., RM Barcelona Tomo 43761 Folio 163 Hoja B437597 NIF B66012691 Ctra. de Manresa Berga Km 0,5 08272 SantFruitos De Bages, Spain, which is the editor of this Article and is responsible for this Article and is a member of ARaymond Network
**“ARaymond” and “ARaymond Network” mean a network of companies
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