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What Is a Multi-Echelon Inventory System?

What Is a Multi-Echelon Inventory System?

November 25, 2022

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What Is a Multi-Echelon Inventory System?

Blog ➔ Supply Chain ➔ MEIO

What Is a Multi-Echelon Inventory System

Supply chain management is a cornerstone of every business. Even if a business doesn’t handle physical goods, they still rely on a well-functioning supply chain.

By now, we’ve all experienced the impact of interruptions in the global supply chain. Some of the interruptions are outside of everyone’s control, but other times interruptions can be avoided or minimized with good inventory management.
The primary goal of inventory management and supply chain management is to always have the right materials and products in the right place, at the right time. As you might imagine, that can be a complicated task.

There are different methods and strategies to help businesses maintain their inventory and fulfill orders in the most efficient way possible.

One inventory management strategy is called multi-echelon inventory management (MEIO). This article will explain what MEIO is and how it benefits companies.

Multi-Echelon Inventory Optimization (MEIO)

Multi-echelon inventory optimization is the process of aligning supply and demand across multiple levels of the supply chain. This differs from single level inventory optimization, which focuses on the inventory at one location or point in the supply chain.

Using a real-world example makes this easier to understand. Imagine your local Chevrolet dealership. Their goal is to have the ideal amount of vehicles on their lot to meet customer demands. They need enough of the cars, trucks, and SUVs on their lot to sell to people. If they have too few trucks, customers will go to another dealership that has what they want. If they have too many trucks on the lot, they can sit there for too long and probably end up selling at a lower price.

A multi-echelon approach focuses on the entire supply chain, instead of that one dealership. The goal is to optimize the inventory at other car dealerships, the distributor shipping cars to the dealership, and the manufacturers that are making the vehicle parts. The dealership might have sufficient supply right now, but if the manufacturer is running low on transmission parts, the inventory interruption will eventually reach the individual dealership.

Supply chains come in all different sizes. 

Some supply chains only involve a supplier and a customer. Like a farmer selling eggs at a farmer’s market. Other supply chains have tons of moving parts. A raw material supplier, manufacturers, logistics providers, wholesalers, distribution centers, and local stores.

Multi-echelon inventory optimization increases visibility that reduces cost across the supply chain, helps with demand planning,  and streamlines operations.

Single level vs Multi Echelon Inventory Optimization
Single-Level vs Multi-Echelon Inventory Optimization

Benefits of Multi-Echelon Inventory Optimization

1. More cost-efficient

When businesses have a good inventory management strategy, they’re able to maintain the ideal stock levels throughout their supply chain. Having excess inventory, and not enough inventory hurts profitability. Holding too much stock ties up working capital, adds carrying costs, and eventually leads to dead stock. The excess stock is either sold at a lower price, or thrown away. Not having enough stock to meet demand causes companies to lose sales to competitors. MEIO helps companies make better use of their capital, and maintain optimal inventory throughout the supply chain.

2. Better lead times

When there are multiple stages in the supply chain, providing fast and accurate lead times can be challenging. A manufacturer knows how long it takes to complete an order, but if they’re waiting for the supplier to send more raw materials, the estimated lead time can be wrong. Multi-echelon inventory optimization gives companies a more accurate estimate of stock throughout the supply chain. And when a customer places an order and the inventory is optimized everywhere, the order can be fulfilled much faster.

3. Better volatility management

Volatility in the supply chain is never 100% unavoidable. Since the different stages of the supply chain are intertwined, volatility at one stage has a ripple effect that’s felt everywhere. MEIO helps companies maintain optimal levels of stock throughout their supply chain. Having enough stock at each point of the distribution networks boosts agility and lessens the impact of volatility. And having an accurate view of inventory at every stage helps them provide accurate lead times when there are unexpected delays.

4. Improved return on investment

Maintaining an efficient supply chain is a big part of a company’s profitability. Access to more accurate info allows companies to make decisions based on real-time data and current conditions. One study from Geodis found that 57% of companies view supply chain efficiency as a competitive advantage, but only 6% of companies have full visibility of their supply chain. 7/10 companies also describe their supply chain as very or extremely complex. Having a multi-echelon view of inventory enables businesses to increase efficiency and profitability.

5. Improved customer service

A lack of proper inventory management causes products to run out of stock. The supply can’t meet the current customer demands. When a customer can’t get what they need quickly, they get frustrated and start looking around for other options. This starts upstream in the supply chain. When you go to a grocery store and your favorite cereal is out of stock, it could be because the store didn’t order enough. It could also be that the distributor didn’t have enough. Or the manufacturer didn’t produce enough. Or the grain supplier didn’t have enough raw materials. When companies use multi-echelon inventory optimization, they can successfully forecast optimal levels of stock throughout the supply chain network—meeting demand and keeping customers happy.

If you’re looking for a reliable supply chain management solution, reach out to our team to learn more about how we can help as a manufacturing partner.

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Measuring Supply Chain Performance With 7 KPIs

Measuring Supply Chain Performance With 7 KPIs

November 17, 2022

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Measuring Supply Chain Performance With 7 KPIs

Blog ➔ Supply Chain ➔ MTO vs MTS

Measuring Supply Chain Performance

Supply chains are an essential part of every business. Even businesses that don’t deal with physical products have resources and supply chains.

We’ve all experienced the frustrations of unexpected delays in global and local supply chains. You ordered a new couch, only to find out you’re going to be waiting 9 months for it to be delivered. What you thought would take a few weeks turns into nearly a year.

Some supply chain delays are caused by outside circumstances that are out of everyone’s control. Other times, companies can optimize their supply chain and increase efficiency. They can take steps towards a more robust supply chain and avoid delays and setbacks.

Building a robust supply chain begins with understanding the state of your supply chain. This will help you find what’s working well, and where there’s room for improvement. 

This can be complex, so we’re going to share seven metrics, or key performance indicators (KPIs) that will help you measure supply chain performance.

7 Important KPIs of supply chain management

1. Cash to Cash Cycle (C2C)

Cash-to-cash cycle, also known as cash conversion, measures the time between a company paying suppliers and when receiving cash from customers in exchange for those supplies.

For example, if our machine shop buys aluminum bar stock from a supplier, the C2C cycle begins. Then, we machine the aluminum parts and ship them to our customers. The C2C cycle ends when our customer pays us for the parts.

Some studies have found the best companies tend to have a cash conversion cycle of 30-45 days, regardless of industry. With a shorter C2C cycle, the company has access to more working capital. 

This study of more than 22,000 publicly-traded companies showed a direct correlation between shorter C2C cycles and greater profitability in 75% of cases.

Here is the formula to calculate your cash-to-cash cycle:

Days Sales Outstanding (DSO) + Days Inventory Outstanding (DIO) – Days Payable Outstanding (DPO) = Cash to Cash Cycle Time

2. Inventory levels

The next important supply chain metric is inventory levels. Inventory-carrying costs can increase the total costs significantly, so it’s essential to not have too much inventory sitting around. It’s also essential to have sufficient inventory to meet customer needs quickly. 

Keeping track of inventory levels helps find the balance of maintaining enough inventory while also reducing carrying costs when possible.

In a supply chain system, inventory can be divided into four categories.

  • Raw materials: unfinished goods that are used to create a product.
  • Work-in-progress: a semi-finished product that’s in-between raw material and a finished good.
  • Components: similar to works-in-progress. They’ve been worked on at one manufacturer, but are sent somewhere else to be assembled or worked on more before reaching the end consumer.
  • Finished goods: products that are ready for the end consumer to purchase and utilize.

3. Inventory turnover

Inventory turnover is the number of times your entire inventory is sold within a specific time period. A lower inventory turnover shows that a company is carrying excess inventory, which is costing them money. An inventory turnover rate that’s too high can also lead to goods going out of stock.

This supply chain KPI is typically measured in times per year. For example, a company buys 300 copper fittings and 40 steel housings on January 1st. By February, the 300 fittings were sold, and the 40 housings were sold by March 31st. If those numbers are the same all year, the company has an inventory turnover rate of 4. Even though the copper fittings sell every 2 months, the entire inventory is sold 4 times per year.

A higher number is usually a signal of good sales and revenue, while a lower number shows weak sales. However, the inventory turnover rate depends on the nature of the business. For example, the inventory turnover rate at a grocery store will be much higher than a car dealership.

Comparing your inventory turnover rate with direct competitors can give valuable insights into the supply chain’s overall performance and help improve your supply chain.

4. Perfect order rate

Perfect order rate is a composite metric. Perfect orders from every stage are multiplied to give an overall performance indicator. 

A perfect order checks these 5 boxes:

  • The order left the warehouse on time
  • The order is received by the customer on time
  • The order contains the correct quantity and quality of items
  • There are no payment issues
  • No returns are made

Measuring perfect order rate can be slightly misleading. Even if four stages are at 99%, when multiplied together the entire process has a 96% error-free rate.

You calculate your perfect order rate by multiplying the percentages of each stage.

Left the warehouse on time: 100%
Received on time: 99%
Correct quantity and quality: 100%
No payment issues: 98%
No returns: 97%

1 x .99 x 1 x .98 x .97 = 94% Perfect Order Rate

The perfect order rate is a great benchmark for overall supply chain performance. Knowing this can help companies pinpoint and fix issues. The index can then be assessed over time to measure process improvement progress.

5. Supply chain cycle time

The supply chain cycle time measures how long it takes to complete a customer order when all inventory levels are zero when the order is placed. This metric gives you the longest possible lead times for every stage of the supply chain—it’s like a stress test for your supply chain.

Cycle time is also called the lead time. For supply chains, cycle time can be defined as the business processes of interest, supply chain process, and the order-to-delivery process. In the cycle time, there are two lead times.

  • Supply chain lead time
  • Order-to-delivery lead time

The supply chain lead time measures the time from the customer placing an order and the supplier or manufacturer having the order ready to ship. This doesn’t include the delivery time.

The order-to-delivery lead time is the time from when the order is placed by the customer to the delivery of order.

As supply chain reliability is becoming increasingly important, the cycle time measures a company’s ability to handle supply chain volatility. A shorter cycle time means your supply chain is more agile, flexible, and resilient to sudden changes.

Monitoring your total supply chain cycle time can identify points of weakness in your supply chain, and opportunities to improve and avoid disruptions.

6. Fill rate

Order fulfillment rate, or fill rate, is the percentage of orders that you can ship from your available stock without any lost sales, backorders, or stockouts. This measures your ability to meet customer demand, and the overall effectiveness of your supply chain operations.

Knowing your fill rate is important because it represents the sales you can recover or service better if you improve inventory management. One study found that improving the relationship between a supplier and a retailer resulted in an 80% improvement in fill rate.

7. Customer service

Supply chains always involve multiple businesses. There are companies handling raw materials, suppliers, manufacturers, distributors, customers, and consumers. Customer service is a big part of successful supply chain management. 

There are many factors that influence the level of customer service within the supply chain. Here are four metrics to gauge your performance.

  • Order fill rate: The order fill rate is the portion of customer demands that can be fulfilled from the stock available. For this portion of customer demands, there’s no need to measure the supplier lead time and the manufacturing lead time. The order fill rate could be with respect to a central warehouse or a field warehouse or stock at any level in the system.
  • Stockout rate: The amount of orders lost because of an out-of-stock item.
  • Backorder level: This measures the total number of orders waiting to be filled.
  • Probability of on-time delivery: The percentage of customer orders that are completed on-time.

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Make To Order vs Make To Stock

Make To Order vs Make To Stock

November 3, 2022

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Make To Order vs Make To Stock

Blog ➔ Supply Chain ➔ MTO vs MTS

Make To Order vs Make To Stock

Make to order and make to stock are two inventory processes most commonly used in manufacturing facilities. Both processes are designed to help fulfill inventory needs and optimize the supply chain.

Understanding the key differences and pros and cons of make to order and make to stock can help your business choose the best option. In this article, we’ll discuss what make to order and make to stock look like in real-world situations, and give you a clear understanding of each.

What does Make-to-Order (mto) mean?

Make to order in a process where the manufacturer begins production as an order is placed. MTO is also called pull-type manufacturing, since inventory is “pulled” by customer demand. 

Make to stock example: Company A orders 10,000 copper fittings from a manufacturer. The manufacturer will begin producing the fittings when they’re ordered. Once the parts are made, they’re shipped to the customer and the transaction is completed.

There is also assembly to order, which is similar to MTO. This process involves partially manufacturing parts, while leaving some room for specific customization. This can reduce manufacturing costs and time while allowing room for changes.

Pros and cons of make to order

One of the primary benefits of the make to order process is that it leaves room for design changes and customization. The manufacturer can give the customer exactly what they need. Make to order also eliminates making extra parts that need to be sold at a discount or scrapped due to design changes. Make to order minimizes waste and avoids storing excess inventory, which can be very expensive. 

Since orders aren’t processed until the order is made, you can expect longer production times. Make to order does avoid inventory carrying costs, but overall it tends to be the more expensive option due to increased setup costs. 

What does Make-to-Stock (mts) mean?

Make to stock is an inventory management process where manufacturers have inventory ready to ship based on expected customer needs. The manufacturer will have extra inventory produced and ready to ship before the customer needs it. MTO is referred to as a push-type manufacturing since the inventory is pushed to customers as it’s ordered.

Make to stock example: Company A estimates that they’ll need 10,000 copper fittings every month. The manufacturer will keep 20,000-30,000 fittings on-hand. Every month, the customer will confirm their order and the parts can be shipped immediately.

Pros and cons of make to stock

The primary benefit of make to stock is the instant availability of parts. Since the manufacturer has parts on hand before the customer needs them, the wait time is reduced. We’ve all experienced the frustration of ordering something and waiting months for it to show up. Make to stock can also help lower production costs since the manufacturer can prepare for orders beforehand and optimize their resources.

For example, a machine shop can produce enough parts for 5 or 10 orders and avoid the setup time and costs. A make to order process might require a new setup for each order.

A drawback of make to stock is the fact that it’s based on future estimates. Some customers can’t know exactly how many parts they’ll need next month. Make to stock can also lead to wasted resources if a design changes or parts that have been made are no longer needed. Changing customer needs can lead to holding too much inventory or not having enough inventory.

Which inventory process is right for you?

In short, make to order is based on the customer’s actual needs. While make to stock is based on estimated needs. 

Make to order is the best option when you’re unsure of your needs, or need advanced customization options. This is often used when fewer parts are ordered more sporadically.

Make to stock is a better inventory process when customer needs can be estimated within reason. This process is also ideal when fewer customization or order frequency changes are expected.

Spex uses make to stock inventory management for most of our customers. This allows us to reduce order wait times and optimize manufacturing costs.

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The Best Metals for High Temperature Applications

The Best Metals for High Temperature Applications

October 11, 2022

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The Best Metals for High Temperature Applications

The Best Metals for High Temperature Applications

High temperature environments are one of the harshest for parts, and using the right materials is essential for functionality. When temperatures rise, most materials expand and become weaker. When there are moving parts, this can become a big issue. 

There are some metals and alloys that perform better in high temperatures.

Some of the best high heat resistant metal alloys include titanium, stainless steel, nickel alloys, and certain steel alloys. Here’s an overview of some of the best metals for high-temperature environments and why they work well.

What do we look for when choosing the right metal alloy?

The most important factor when choosing a heat-resistant alloy is the melting point of the metal. When a metal gets closer to its melting point, it becomes more flexible and loses its tensile strength. This can cause parts to bend, dent, or break.

Metals with the highest melting point include: Tungsten (6188°F), Rhenium (5756°F), Molybdenum (4748°F), Chromium (3464°F), and Titanium (3034°F).

The second important factor is the expansion rate. Nearly every material expands as it gets hotter. Different metal alloys expand at different rates when they’re heated up. The more a part expands and contracts during temperature changes, the faster the structure of the part will weaken. When the parts heat up and cool down, they can develop cracks and weaken over time. Ideally, you want to choose a metal with lower expansion rates so the parts continue to function properly.

Titanium

Titanium is the go-to choice for high-temperature applications. Titanium has one of the highest melting points, and one of the best strength to weight ratios. It’s commonly used for luxury car parts and aerospace components. Titanium alloys also handle extreme temperature changes better than most other metals.

The biggest downside to titanium is the costs. It’s more expensive as a raw material, and more expensive to machine because of the specialized cutting tools required.

Pros and Cons of Titanium

  • Most expensive material and machining
  • More prone to scratches
  • Stronger when temperatures fluctuate
  • Best strength to weight ratio

Stainless Steel

Stainless steel alloys are also highly durable and can handle high temperature environments. Chromium is the primary element that makes stainless steel stainless. And because Chromium has a very high melting point, it makes stainless steel alloys great for high temperature applications. 

There are many different alloys of stainless steel, and some have better temperature resistance. The best stainless steel grades for high heat are 304, 309, 310, and 316. 310 stainless steel can handle working temperatures ~2,000° F. These alloys contain Nickel and Molybdenum which increases the melting point. 400-series alloys can be stronger, but they have a significantly lower temperature limit.

Pros and Cons of Stainless Steel

  • Good resistance to corrosion
  • Excellent temperature resistance
  • Stronger and more resistant to physical wear
  • Heavier than titanium
  • More expensive material and machining

Nickel Alloys

Nickel alloys are also called superalloys. These metals are extremely durable, but also more expensive, so they’re reserved for high-stress working environments.

Hastelloy X is a Nickel alloy with excellent high temperature strength and oxidation resistance. This is most commonly used in gas turbine engines because of its high heat tolerance. 

Inconel is another Nickel-based superalloy that’s highly resistant to temperature. Its chemical makeup is very similar to Hastelloy. Inconel alloys have small amounts (0.5-1%) of Copper and Aluminum that Hastelloy doesn’t have. This helps form a thick oxide layer that protects the surface from damage when the material is heated.

Pros and Cons of Nickel alloys

  • Great resistance to corrosion
  • Excellent temperature and chemical resistance
  • Stronger and more resistant to physical wear
  • More expensive material and machining

High Temperature Steel Alloys

Steel isn’t the best option for high-temperature applications, but some steel alloys are suitable. Steel is also the lowest cost and most widely available material, so it can be a great option for parts that require moderately high temperature resistance.

The best steel alloys for high temperature application are 4000-series alloys, and M-grade steel alloys. 4000-grade alloys have small amounts of Chromium and Molybdenum, which increases strength. M-grade steel alloys (M2, M35, and M42) are often used for broaches and cutting tools. These alloys have higher strength and maintain their strength better when hot.

Most steel alloys can also be heat treated, which increases the hardness and durability of the parts.

Pros and Cons of Steel

  • Strong and resistant to physical wear
  • Poor resistance to corrosion
  • Good temperature resistance
  • Less expensive material and machining

Spex is an ISO 9001:2015 certified company. Organizations use this standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.

We incorporate world-class excellence in every step of the process, in our ongoing efforts to ensure your success.

Reach out to our team to get a quote for precision machined parts for your next project. 

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4130 vs 4140 vs 4340 Steel

4130 vs 4140 vs 4340 Steel

October 6, 2022

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4130 vs 4140 vs 4340 Steel

4130 vs 4140 vs 4340 Steel

4000 grade steels are Molybdenum steel alloys, meaning they have a small amount of Molybdenum (Mo) in them. 

However, most of these alloys only have a very small percentage—a maximum of ~0.5%. Molybdenum has a very high melting point (4,753°F) which makes it useful for aircraft parts, military armor, and engines. It’s commonly used in steel alloys to increase strength, corrosion resistance, and weldability.

4130, 4140, and 4340 steel alloys are very similar, and commonly used for precision machined steel parts. This article will compare the 3 different alloys and help you decide which one is best for your next project.

What are 4000-grade steel alloys used for?

4xxx steel alloys are stronger than many other steel alloys. These alloys are commonly used for gears, tooling, automotive parts, and high-strength pins, nuts, and bolts. The added Molybdenum gives the steel similar strength to titanium, at a much lower cost.

Most 4000 alloy steels can also be easily formed and welded.

41xx steel alloys have added Chromium, which further increases their strength and gives them better corrosion resistance. Chromium is the element added to stainless steel to make the metal rust-resistant, but the amount of Chromium in 4130 and 4140 steels is ~90% less compared to stainless steel alloys.

4130 steel

4130 steel is one of the best options for steel parts that require strength and fatigue resistance. 4130 steel also has an impressive tensile strength of 97200 PSI. It also has great ductility in its annealed state, which makes it easy to draw it into wires.

The difference between 4130 and 4140 steel is the Carbon content. 4130 steel has ~0.3% carbon, while 4140 steel has ~0.4% carbon. That might seem like an insignificant difference, but it has a noticeable impact on the strength, machinability, and weldability of the steel parts.

Because 4130 steel has less carbon, it’s easier to machine and slightly lower tensile strength. 4130 steel also has better weldability. Out of these 3 steel alloys, 4130 has the best machinability and weldability, but the lowest strength.

Common applications:

  • Valve components
  • Automotive parts
  • Aircraft parts

4130 Chemical Composition

Element Percentage
Iron (Fe)
97.03 - 98.22
Chromium (Cr)
0.80 - 1.10
Manganese (Mn)
0.40 - 0.60
Carbon (C)
0.28 - 0.33
Silicon (Si)
0.15 - 0.25
Molybdenum (Mo)
0.15 - 0.25
Sulfur (S)
0 - 0.04
Phosphorus (P)
0 - 0.035

4140 steel

4140 steel is a popular general-purpose alloy. It’s ideal for parts that require high tensile strength and toughness. It has considerable atmospheric corrosion and wear resistance, and doesn’t become brittle. Because of this, 4140 is commonly used for parts that require extra toughness like crankshafts, gears, and high-strength bolts.

4140 steel still has good machinability despite the higher carbon contents, however, extensive welding can be challenging. To improve weldability, the parts should be heat treated. 4140 steel in its annealed state means the parts are in their most stable state.

Common applications:

  • Crankshafts
  • Sprockets
  • Gears
  • Nuts and bolts
  • Pins
  • Pump and valve components

4140 Chemical Composition

Element Percentage
Iron (Fe)
96.93 - 98.12
Chromium (Cr)
0.80 - 1.10
Manganese (Mn)
0.75 - 1.0
Carbon (C)
0.38 - 0.43
Silicon (Si)
0.15 - 0.25
Molybdenum (Mo)
0.15 - 0.25
Sulfur (S)
0 - 0.04
Phosphorus (P)
0 - 0.035

4340 steel

4340 steel is more different from 4130 and 4140. This alloy is a 43xx rather than a 41xx steel, which puts it in a different category—Nickel-chromium-molybdenum steel. 4130 and 4140 alloys are both chromium-molybdenum steel. 

4340 steel has ~1.8% Nickel added to the composition, which isn’t in 41xx steels. 

Because of the added Nickel, 4340 steel is the hardest and more durable alloy compared to the 41xx alloys. 4340 steel has good shock and impact resistance as well as wear and abrasion resistance in the hardened condition. It also offers good ductility in the annealed condition, allowing it to be bent or formed. 4340 is often used in cases where steel alloys don’t have the hardenability to meet the strength requirements.

The added Nickel does make this alloy more expensive as a raw material, and more expensive to machine. The price difference can be offset because of the increased durability, the parts have a longer lifespan.

Common applications:

  • Automotive parts
  • Crankshafts
  • Fasteners
  • Heavy machinery
  • Military aircraft
  • Rotor shafts
  • Transmission components
  • Turbine shafts

4340 Chemical Composition

Element Percentage
Iron (Fe)
95.19 - 96.33
Nickel (Ni)
1.65 - 2.0
Chromium (Cr)
0.70 - 0.90
Manganese (Mn)
060 - 0.80
Carbon (C)
0.37 - 0.43
Molybdenum (Mo)
0.20 - 0.30
Silicon (Si)
0.15 - 0.30
Sulfur (S)
0 - 0.04
Phosphorus (P)
0 - 0.035
4130
Low
4140
Low

Spex is an ISO 9001:2015 certified company. Organizations use this standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.

We incorporate world-class excellence in every step of the process, in our ongoing efforts to ensure your success.

Reach out to our team to get a quote for CNC machined steel parts for your next project. 

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Fill out the form to learn more about our precision CNC steel machining services.

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What is the Best Metal for Aerospace Parts? Aluminum vs Stainless Steel vs Titanium

What is the Best Metal for Aerospace Parts? Aluminum vs Stainless Steel vs Titanium

September 27, 2022

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What is the Best Metal for Aerospace Parts? Aluminum vs Stainless Steel vs Titanium

Blog ➔ Materials ➔ Aerospace Part Materials

 

What is the Best Metal for Aerospace Parts

The aerospace industry has some of the toughest part and material requirements. Aerospace parts need to be extremely strong, lightweight, and highly resistant to environmental changes.

A Boeing 747 has roughly 6 million individual parts. The materials used for the parts vary depending on the use case, but the three primary metals used are aluminum, stainless steel, and titanium.

These alloys have some of the best strength to weight ratios, and corrosion resistant properties. This article will explain different pros and cons of each and help you decide which metal might be the best for your aerospace parts.

Aluminum for Aerospace parts

Aluminum is one of the most-used metals for precision machined parts. It’s relatively inexpensive, lightweight, and has great machinability. Aluminum has been used in the aerospace industry since the very beginning. 

Aluminum also has great corrosion resistance, and it can easily be anodized, painted, and heat treated to increase the resistance in harsh environments. 

In recent years, aluminum parts have been replaced by strong polymers and honeycomb structures to further reduce weight. Aluminum alloys still make up around 20% of aircraft parts, and it will be used for the foreseeable future. 

There are 3 main categories of aluminum alloys used in the aerospace industry. 

2000 series aluminum is a weaker aluminum, so it’s mostly used in decorative parts that don’t require great strength or corrosion resistance. 

6000 and 7000 aluminum alloys have much greater strength and are used for structural parts, and parts that require better corrosion resistance. 7075 aluminum is more expensive, but it’s very easy to machine, and it increases in strength in low temperatures which is ideal for many aircraft parts.

Material Cost Factor: 2/10
Machining Cost Factor: 1/10

Pros and cons of aluminum

  • Lightweight
  • Inexpensive
  • Resistant to corrosion 
  • Less expensive to machine
  • Can be alloyed or treated to increase strength and corrosion resistance
  • Lower strength and temperature resistance

Stainless steel for Aerospace parts

Stainless steel is another metal that’s used for millions of different precision parts in many industries. Stainless steel contains a minimum of 10.5% chromium, and the strength of the alloy can be increased by adding more chromium.

Stainless steel parts are significantly heavier, so they’re more commonly used where greater strength is necessary and heavier parts aren’t a big factor.

Compared to aluminum, stainless steel is much stronger and maintains its strength in wide temperature fluctuations. It is more expensive to machine, but the parts are less prone to physical wear and tear, so the lifetime of stainless steel is longer.

There are many different stainless steel alloys available—each with slightly different physical attributes. The most commonly used alloys for aircraft parts are 303 and 304 stainless steel. Both of these have a lower material cost and lower machining cost, while maintaining strength and corrosion resistance.

Material Cost Factor: 3/10
Machining Cost Factor: 4/10

Pros and cons of stainless steel

  • Higher resistance to corrosion
  • Better temperature resistance
  • Stronger and more resistant to physical wear
  • Heavier than aluminum and titanium
  • More expensive material and machining

Titanium for Aerospace parts

Titanium is a premium metal, but its characteristics make it ideal for many aerospace parts. Titanium has the best strength-to-weight ratio, and it’s stronger than stainless steel in environments where there are extreme temperature changes.

The biggest downside to using titanium is the cost. It’s significantly more expensive as a raw material, and more expensive to machine. That means it’s only used in situations that require a better, more durable material.

Titanium is about 50% as dense as stainless steel, and it provides the same amount of strength as stainless steel at 40% of its weight. Titanium has the benefits of being lightweight like aluminum, without losing the strength that stainless steel offers.

Titanium alloys are roughly 15x more expensive than stainless steel, and cost 2.2x more to machine. However, the benefits that titanium provides can be ideal for aerospace parts that require the combination of strength and weight reduction.

The two most common titanium alloys are Grade 6 and Grade 23. Grade 23 titanium has higher oxygen content resulting in more ductility and fracture resistance than Grade 6, but it’s slightly weaker.

Material Cost Factor: 9/10
Machining Cost Factor: 8/10

Pros and cons of titanium

  • Most expensive material and machining
  • More prone to scratches
  • Stronger when temperatures fluctuate
  • Best strength to weight ratio

Picking the right material for your parts can be challenging, so our team is available to help you choose. We have decades of experience using all sorts of different metal alloys, and we have machined various parts for aerospace projects.

Here are a few general guidelines to help:

Use aluminum when: 

  • Cost is a major factor
  • Weight reduction is important
  • Parts don’t need extreme strength

Use stainless steel when:

  • Strength is more important than weight reduction
  • Parts need to handle greater pressure and high temperatures

Use titanium when:

  • Reducing costs isn’t a big factor
  • Strength and weight reduction are a high priority

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What Are Secondary Machining Processes?

What Are Secondary Machining Processes?

September 26, 2022

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What Are Secondary Machining Processes?

Blog ➔ Secondary Processes

 

What Are Secondary Machining Processes?​

Depending on the type of part being manufactured, there are many steps in the process from raw material to finished part. Parts with various surface features or unique shapes often use multiple machines and machining processes. 

For example, a CNC machine might cut and form the general shape of the part. Then another machine may form threads on the parts. Then a grinder machine durburrs the part. And after that, the parts are washed and engraved.

Modern CNC machines have advanced capabilities, but they can’t do everything.

Secondary machining processes form the features that weren’t done in the initial machining of the part. This includes things like deburring, engraving, sub-assembly, and surface treatments like anodizing, heat treatment, and powder coating.

The secondary processes are less extensive than the initial machining. They’re used to add the specific final touches to the parts and components. 

Here are four examples of common secondary processes that we provide.

Engraving

Parts are engraved for a variety of reasons. One of the most common reasons is to keep track of different lot numbers and help identify parts that look similar. Engraving parts can also help identify different metal alloys since they usually look the same.

After parts are machined, we use in-house CNC engravers and laser engravers to add part numbers, lot numbers, AISI numbers, and more to parts.

Laser engravers are more accurate and can be used for smaller text, or more complex designs like a QR code. The CNC engraver will provide a more durable engraving.

Deburring

Deburring is a secondary process used to remove small imperfections from parts. Deburring isn’t always necessary, but sometimes the machining process creates small burrs on parts—especially when there are small slots, threads, or sharp edges.

During the deburring process, a spinning brush, grinding wheel, or belt is used to remove the burrs and smoothen out the part. 

A burr is a small protrusion on a part and they’re usually sharp. For certain parts, deburring is a necessary process for parts to function properly and ensure safe handling.

Sub-Assembly

Sub-assembly is a process where two or more separate parts are attached together by the manufacturer. The term “sub-assembly” refers to components that are first assembled together and then integrated into a larger assembled unit. So, a sub-assembly isn’t the final product. Some more complex parts or components are machined as separate parts to speed up the production process, and then assembled.

In some cases, the assembled parts are two different materials, like attaching a rubber o-ring to a metal part.

When sub-assembly operations are outsourced to the manufacturer, it saves time and allows the customer to scale their operations.

Surface treatments

Various things can be done to the surface of the part. This includes heat treatment, anodizing, plating, and powder coating. These are usually to add durability to the part.

Different surface treatments are used for different types of parts and use cases. Metals that are more susceptible to rust or scratches are more likely to benefit from surface treatments.

Steel parts are the most common for plating, when a thin layer of zinc, nickel, or chromium is added to the part. Many steel parts are also heat treated, which makes the steel harder and stronger, but also more brittle.

Aluminum parts are often anodized, which adds a thin layer of oxidized aluminum so that its surface is no longer reactive. The layer of oxidation offers protection from scratches and mechanical wear, as well as chemical protection from water and oxygen.

Spex has served as a local manufacturer since 1946. We provide a wide range of manufacturing services. If you want to learn more about our precision machining capabilities or secondary machining services, reach out to one of our team members to get a custom quote.

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Upstream vs. Downstream in Supply Chain Management

Upstream vs. Downstream in Supply Chain Management

September 17, 2022

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Upstream vs. Downstream in Supply Chain Management

Blog ➔ Supply Chain ➔ Upstream vs. Downstream

Upstream vs. Downstream in Supply Chain Management

Supply chains are an essential part of every business. Managing your supply chain well is essential, especially if you want to maintain good relationships with your customers and suppliers. It’s also an essential part of growing a business.

We’ve all experienced the frustrations of supply chain delays and failures. 

Supply chain management is complex, and there are many steps in the process, but it can be broken down into two big activities: Upstream and Downstream.

Understanding each of these will help you understand your company’s supply chain and manage it properly.

A quick overview of the entire supply chain

There are 5 key aspects of the supply chain management process:

  1. Planning
  2. Sourcing
  3. Manufacturing
  4. Delivery
  5. Returns

This process is fairly self-explanatory. You begin with the overall plan of your supply chain. Source the raw materials needed to make your products. Manufacture your products. Deliver them to your customers. And handle any customer returns. 

Of course, when you list it out like that, each of those steps sounds simpler than it is in reality. At each step there are many different moving parts. And you can experience various problems and delays at every step.

To understand this better, you can split the supply chain into two parts.

Read: Tips to build a robust supply chain

What is the upstream supply chain?

The upstream supply chain is the sourcing and manufacturing of products. Most businesses refer to this as their suppliers. These are the businesses that you order the raw materials from, and the businesses that manufacture the products. 

Essentially, the upstream supply chain is the activities happening before you handle your products. 

Managing your upstream supply chain means communicating with suppliers and manufacturers, placing orders so you can fulfill your customer’s orders on time, and paying the suppliers and manufacturers.

The majority of supply chain delays happen upstream, so you want to keep a close eye on these activities.

What is the downstream supply chain?

The downstream activity is what happens after you have your products. Delivery and returns are the two downstream activities. 

As you can see, your business is usually in the middle of the stream. And your customers are downstream. The primary purpose of downstream is to deliver the products to the customer. And be available in the case of returns. 

This part of the supply chain is the most visible to your customers. They don’t typically see what’s happening with your suppliers or manufacturers, they only see you delivering the product to them. 

Downstream also deals with accepting payments from your customers. As you can see, money flows upstream. Moving from your customers, to you, to your suppliers and manufacturers.

Upstream Downstream Supply Chain

Spex has served as a local manufacturer since 1946. If you want to learn more about how we can help optimize your supply chain, and provide a range of manufacturing service, reach out to one of our team members.

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What Is Free Machining Steel?

What Is Free Machining Steel?

September 6, 2022

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What Is Free Machining Steel?

What Is Free Machining Steel

Free machining steel refers to steel alloys that break into small chips during the machining process. This results in better machinability, better surface finishes, and increases the lifetime of the cutting tools. These steel alloys also have sulfur, lead, and/or bismuth, which each act as a dry lubricant when the metal is machined.

The opposite to free machining steels are steel grades that produce long strings of metal as it’s machined. The longer metal shavings can get tangled in the spinning cutting tools causing issues.

List of free machining steel alloys

There are 3 main groups of free machining steel alloys: Leaded, Rephosphorized, and Resulfurized. 

The SAE numbers indicate whether the alloy has added lead, sulfur, or sulfur and phosphorus. The “L” indicates that lead was added to the steel. This is different from the “L” in stainless steel alloys, which indicates low carbon.

The second number in the designation indicates if the alloy was re-sulfurized (1) or re-sulfurized and re-phosphorized (2).

Type AISI Grade
Leaded
11L41
Leaded
12L13
Leaded
12L14
Leaded
41L40
Resulfurized
1117
Resulfurized
1118
Resulfurized
1119
Resulfurized
1137
Rephosphorized & Resulfurized
1211
Rephosphorized & Resulfurized
1212
Rephosphorized & Resulfurized
1213
Rephosphorized & Resulfurized
1215

Advantages of using free machining steel

Free machining steel is the most common choice for precision machined steel parts, or parts with complex features. These alloys are easier to cut and drill, which lowers the machining costs and reduces lead times. Because the steel produces smaller chips, the machines require less human interactions. This makes free machining alloys ideal for high volume machining and Swiss screw machining.

The biggest advantages are:

  • Lower machining costs
  • Faster, more efficient machining
  • Better surface finishes
  • Reduced wear on cutting tools

Disadvantages of using free machining steel

Like any metal alloy, free machining steels have disadvantages as well. Free machining alloys cost more than regular steel alloys. This offsets the lower machining costs. The ductility and impact resistance is also reduced, as these alloys are more brittle.

What are free machining alloys used for?

12L14 steel is the most common steel alloy used for many different precision machined parts. This alloy, and other FMAs are used for parts that require extensive machining, and tight tolerances. 

These alloys are used to make:

  • Pins
  • Shafts
  • Spacers
  • Bushings
  • Nuts and bolts
  • Fittings and Couplings

Free machining steel is more commonly used for smaller parts because the smaller chipping results in better automation. When thousands of identical parts are needed quickly, avoiding machining downtime is essential. 

Free machining alloys are used in industries that require high volumes of precision steel parts, like the automotive, defense, and aerospace industries. For parts that require welding, FMAs aren’t the best choice. 1008 or 1018 steel has lower machinability, but is much better for strong welds.

Spex is an ISO 9001:2015 certified company. Organizations use this standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.

We incorporate world-class excellence in every step of the process, in our ongoing efforts to ensure your success.

Reach out to our team to get a quote for CNC machined steel parts for your next project. 

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Common Stainless Steel Grades Chart

Common Stainless Steel Grades Chart

August 28, 2022

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Common Stainless Steel Grades Chart

Common grades of stainless steel

Stainless steel is one of the best and most commonly used materials for precision machined parts.

Like most materials, there are 100s of different stainless steel alloys, each with slightly different compositions and use cases. But, not every stainless steel alloy is suitable for precision machined parts. Out of the 100s of different alloys, the majority of precision stainless steel parts are made from a few alloys, and a few more are used for specialty parts.

Spex uses about 15 different stainless steel alloys to machine precision parts for a wide variety of industries. The versatility, corrosion resistance, and strength of stainless steel make it the ideal choice for CNC machined parts. 

This chart gives you a brief overview of the most common stainless steel alloys, their costs, and common uses for each.

Common grades of stainless steel

AISI Grade Material Cost Machining Cost Common Uses
303
Low
Low
Nuts, Bolts, Screws, Gears, Shafts, Aerospace Parts
304
Low
Medium-Low
Nuts, Bolts, Screws, Automotive Parts, Aerospace Parts
304L
Low
Medium-Low
* Same as 304, with improved weldability
310
Medium
Medium
Pins, Rivets, Spacers, Shafts, Gears
316
Medium-Low
Medium
Nuts, Bolts, Valve Components, Marine Parts, Lab Equipment
316L
Medium-Low
Medium
* Same as 316, with improved weldability
404
Low
Medium-Low
Gears, Shafts, Nuts, Bolts
410
Low
Low
Nuts, Bolts, Screws, Pump and Valve Parts, Surgical Instruments, Nozzles
416
Low
Low
Nuts, Bolts, Bushings, Fasteners, Turbine Blades, Culinary Tools
430
Low
Low
Injectors, Valves
440C
Medium
Medium
Pins, Bearings, Valve Components, Dental Parts,

Spex is an ISO 9001:2015 certified company. Organizations use this standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.

We incorporate world-class excellence in every step of the process, in our ongoing efforts to ensure your success.

Reach out to our team to get a quote for CNC machined stainless steel parts for your next project. 

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Fill out the form to learn more about our precision CNC stainless steel machining services.

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