Growth – Overcome the commodity price increase of Copper by 250%, making the end product unviable

09/04/2023

Business:

The leading exporter of HVAC electrical motors from India

Challenge:

Overcome the commodity price increase of Copper by 250%, making end product unviable

Actions:

Applied basic principles of Physics and Electrical Engineering to evaluate the use of alternate materials

Overcame skepticism of “industry experts” and formed a core team of engineers to follow through on the self-belief that it could be done

Leveraged six sigma problem-solving techniques to overcome technical challenges related to filling 33% more of the alternate material Aluminium in the same slots designed for Copper

Involved material supplier to develop alternate and robust connection techniques for multi-speed operations

Used Pareto analysis (80-20 rule) to pick key models to implement design and material change in 45 days

Results:

Improved Operating Margin by 10% points from the standard (would have been negative if the original material was used)

Gained, market share at key customers from 60 to 100%, & eliminated competition who were asking for the price increase.

Created a new industry standard that took competition 3 years to adopt…maintained Single source status

Today, aluminum wound motors are 70 % of the market.

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