SHORT RUN ADVANTAGE PROGRAM – S.A.V.E.
WITH MOHAWK, YOU DON’T NEED A LARGE RUN
TO SAVE MONEY
The S.A.V.E. program has been developed for customers requiring relatively small volumes of parts, typically below 250,000 pieces annually, or customers with a tight tooling budget.
HERE’S HOW THE
Mohawk designs, builds and maintains all production tooling in-house. By doing this, Mohawk has highly standardized the basic tooling components. Two types of die elements are required to produce a part to customer specifications; 1) Tooling elements that are unique to a specific part and; 2) Generic elements that are common to all tooling that Mohawk builds. Under the S.A.V.E. program customers need not purchase the common tooling components. Rather, customers pay a usage fee in the form of a higher piece price. Mohawk retains ownership of the common components. Thus, the initial “One-Time Fitting Up Charges” are reduced significantly. In most cases, the typical break-even period for the initial savings compared with the increased piece price is approximately 5 – 10 years based upon the quantity of parts ordered.
A further advantage of this program is that if the yearly quantity requirements grow, the customer can pay, at anytime in the future, the current charge for the remaining tooling elements and reduce the piece price by the usage fee.
The usage fee will be shown each time the job is quoted so the customer will always know the amount of these fees. The remaining tooling charge to buy the common elements, can be quoted at anytime so a return on investment time calculation can be performed quickly and easily. This program allows a customer to reduce the initial tooling price, but always allows for a transition to a lower part cost.