Fastener TCO and the 15/85 rule
You may be familiar with the concept of TCO (Total Cost of Ownership), but did you know you can apply a TCO model to fasteners? Savvy decision makers apply TCO to analyze the hidden cost of equipment or services beyond the initial purchase price. You can also apply this model to reveal the direct and indirect cost of fastening in your manufacturing.
Bossard’s 15/85 rule is a concept used to estimate the total cost of ownership (TCO) of fasteners. The rule suggests that the cost of the fastener itself accounts for only 15% of the total cost, while the remaining 85% is due to indirect costs associated with the fastener.
The Rule of 15/85 Explained
The 15% cost includes the purchase price of the fastener, transportation costs, and any other direct costs associated with the acquisition of the fastener.
The remaining 85% of the cost includes indirect costs such as assembly time, installation costs, quality control, engineering, internal handling, and inventory management costs. These indirect costs are often hidden or overlooked, but they can have a significant impact on the overall cost of your assembly.
By taking into account both the direct and indirect costs, Bossard’s 15/85 rule highlights the importance of selecting fasteners not only on purchase price but also functionality (the ability to simplify a bolted-joint problem), high quality and reliability, ease of installation in assembly, and partnering with a value-add partner such as Bossard to help you tackle your indirect cost to reduce the overall cost of ownership.
Bossard’s Full-Service Solution
At Bossard, we take a holistic, full-service approach to helping our customers find the right fastening solution and improve productivity, all the while helping you to reduce your fastener TCO. The following range of Assembly Technology Expert and Smart Factory Logistics services can help you tackle that hidden 85%.
- Development and Design: Bossard’s Expert Design Service helps customers at the forefront of new product design and development by providing critical consulting and engineering insight into the ideal fastening solution.
- Procurement: Having the right fastener at the right time reduces inventory counts and costs. Our customers rely upon the Bossard team to help identify the right fastening solution from a rolling inventory of over 200,000 different product SKUs.
- Logistics and Handling: Bossard’s Smart Factory Logistics help companies manage their inventory in real-time with Smart Bins and Smart Labels in the warehouse and at point-of-use. Helping you minimize waste, lower excessive inventory counts, and reduce downtime.
- Ordering and Storage: Our interactive supply chain platform (ARIMS) improves customer supply chain efficiency and predictability with real-time analytics, metrics, and data. Bring demand planning to your C-parts and have inventory when you need it.
- Quality Assurance / Testing: Bossard can support your Quality Assurance and Design Engineers through its worldwide network of Bossard ISO/IEC 17025-accredited test laboratories. Every state-of-the-art Bossard test laboratory has the most accurate measuring and testing equipment to assure customers are meeting standards and specifications.
- Kitting and Assembly: Bossard offers light assembly, labeling and kitting services that help manufacturers speed up and optimize assembly.
Partner with Bossard to tackle the visible and invisible cost of fasteners in your manufacturing through supply chain optimization, engineering, expert test services, and global reach and reduce your TCO in fastening.
If you need help reducing your TCO or need some expert guidance on fastening solutions, contact us now.The Hidden Cost of Fasteners by Bossard