Cloud Computing Generates Profits

I recently asked one of my customers what was the biggest contributing factor to his cost per part? He very quickly said; “that’s an easy answer, it’s the cost of the material itself. More than 50% of the cost per part is directly related to the material cost and even more like 75% in the case of stainless or other nickel based alloys.” So how do you control the cost per part over a long contract when the materials market is always fluctuating? He told me; “you need to buy in bulk when the price is low and hope that it does not sit in inventory for too long. It’s really a cat and mouse game.” Conventional Methods What about the material nesting and optimization capabilities? “Yes, this is very important. I often have my programmers spend a little extra time manually optimizing the nests even after the software has completed the automatic nesting cycle. They are able to squeeze a few more parts on the sheet and over a long running job this can pay off in big savings.” Cloud Computing Bystronic has introduced ByOptimizer, a cloud based software that utilizes a “server farm” of high-end non-PC based computers to calculate the best possible sheet optimization of the parts using a patented dynamic cluster technology. The software algorithm automatically clusters parts together onto the sheet, optimizing both material and time. The software boasts an average savings of 15% in cut times due to optimized cut paths while also averaging a 10% increase in material savings over conventional nesting. Material Savings With more than 50% of costs tied directly to the raw material itself, utilizing high-end technology to further increase material savings makes total sense. Cloud based technologies can utilize high-end computing power not found in conventional PC based computers and servers. Algorithms can be more powerful to deliver far better results and in a much shorter time than conventional computing methods. For most companies a 10% savings in material cost represents a large number. Sometimes you don’t realize how large a number it represents until you do the math yourself. By Frank Arteaga, Head of Product Marketing, NAFTA Region Bystronic Inc., Elgin, IL – Voice.bystronic@bystronic.com