Abstract: A method of calculating the cost saving for producing a metallic component by the use of a powder metal process is provided. The method includes the steps of analyzing the current production method of the component, usually machining, to determine the current unit cost. The customer would agree to purchase an agreed supply of components for an agreed period of time. The production of the component utilizing powder metal process is then analyzed to determine the powder metal unit cost. The savings for production of the component utilizing the powder metal process is then presented to the customer. The customer would, then agree to purchase an agreed supply of components.

Abstract: A method of calculating the cost saving for producing a metallic component by the use of a powder metal process is provided. The method includes the steps of analyzing the current production method of the component, usually machining, to determine the current unit cost. The customer would agree to purchase an agreed supply of components for an agreed period of time for the components that could be supplied with an agreed cost savings. The production of the component utilizing powder metal process is then analyzed to determine the powder metal unit cost. The savings for production of the component utilizing the powder metal process is then presented to the customer. The customer could agree to purchase the agreed supply of components for an agreed period of time. If agreed, the test production of the component utilizing a powder metal process is then performed. If successful, a final tooling and production quotation for the production of the component is then provided to the customer.