C-Parts

C-Parts usually accounts for a large number of all part numbers in a bill of material. They are details such as metal or plastic fasteners (screws, bolts, nuts, rivets, pins, washers, etc.), other small metal-, rubber- or plastic parts such as cables, springs and electronic fasteners.

Significant for C-Parts:
– Lower unit cost
– A wide Product variety
– Larger volumes
– Many suppliers within the segment

Volume vs Value

C-Parts are unique in that only a small part of the total cost of the component comes from its purchase price, often as little as 20%. The remaining 80% of the total costs are indirect costs, in the form of:

– Logistics costs (forecasting, planning, ordering; incoming goods handling, inspection; warehousing, stock taking, stock control; internal transports and line feed; freight, especially express freight; capital costs, scrap and obsolescence).

– Sourcing costs (supplier sourcing, evaluation, verification; negotiation; supplier administration; parts administration; phase-out/phase-in costs).

– Quality costs (costs of preventive quality measures, such as SQA, and of corrective quality measures (scrap, rebuild), as well as indirect costs of quality such as line stops, rescheduling).

To top