Your design has been in production for a while, and now it’s time to look into cost savings. Fasteners are such a small fraction of the total design cost, is it worth looking for savings in this area?
While it’s true that the cost of the fastener may be small, there are many hidden costs that are often overlooked when purchasing hardware. We call this Total Cost of Ownership, or TCO.
To better explain the TCO model in fastening, we use the iceberg model.
Total Cost of Fastener Ownership
On average, the fastener itself makes up only around 15% of the total costs. The remaining 85% of the costs come from development, procurement, testing, inventories, assembly, and logistics. This chain of events is adding costs to the entire fastening ecosystem.
Let’s look at an example from the Bossard Cost Savings Calculator.