1 Total Cost of Ownership Cost of Acquisition Cost of Maintenance Cost of Downtime

2 Total Cost of Ownership QPM delivers value over the life cycle of the product Lowered costs on materials and labor. Reduced times for setup, fastening, rework, and maintenance. Increased quality, productivity, ergonomics, and flexibility. Compared to pneumatic and other DC electric assembly tools, QPM is THE COMPLETE TIGHTENING SOLUTION that delivers lifetime value. QPM Cables minimize downtime and reduce cost Cables are typically the weak point in most DC electric tool systems. But not with the QPM product line, where Stanley engineers have designed a special high-flex cable that offers a dramatic improvement in life expectancy over competitive products on the market. Using Stanleys QPM cable reduces the total life cycle cost of a tool installation by reducing the downtime associated with cable failure as well as the significant investment in replacement cable assemblies required.

3 Total Cost of Ownership Actual Customer … using Atlas Copco Cable Consumption = 27% fail each year 50% of cables replaced and 50% repaired Cable Replacement 450 tools * 27% * 50% * $800 cable cost= $048,600 Cable Repair 450 tools * 27% * 50% * $400 repair fee= $024,300 = $072,900 (1 year) = $364,500 (5 years)

4 Total Cost of Ownership Actual Customer … using Stanley Aggressive Scenario 5% annual cable failure rate 100% replacement of failed cables Cable Replacement 450 tools * 5% * $1000 cable cost=-$022,500 (1 year) =-$112,500 (5 years) =-$364,500 (current state) =-$112,500 (using Stanley) =-$252,000 (savings/plant) Why would you not use Stanley?

5 Total Cost of Ownership QPM Motors and Gears offer maximum power and durability Stanleys modular motor and gearing components help QPM systems deliver lower Total Cost of Ownership. High component durability, predictable life, flexible interfacing, and serviceability reduce life cycle cost by increasing Mean Time Between Failures (MTFB) and reducing Mean Time To Repair (MTTR). Stanleys patented Adaptive Tightening Control technology gives more consistent torque results by automatically adjusting for different joint rates. Pneumatic and other DC electric tools require either operator-dependant parameter selection or additional tools to get consistent torque results. ATC also provides cycle time reductions, extended gear life, and improved ergonomics. Spare parts guaranteed for the life of a program Preventative Maintenance scheduling Preventative Maintenance kit management Full service pickup and delivery Full service onsite system management Maximize cost savings with JIT PM Angle Heads are repairable and require no special tools. New Zerol ® gears will extend bevel gear life even further than before.

6 Total Cost of Ownership Angle Head Maintenance Bevel Gear Sets Stanley EA-series migrating to Zerol ® style Atlas Copco ST-series using Spiral style Compatibility Stanley Zerol® angle heads will accept old style bevels Atlas Copco spiral angle heads will NOT accept old style bevels Major Cost Advantage Atlas Copco brags about their very expensive machine for matching bevel gear sets and adjusting them into alignment. In reality this only renders their bevel gears non-field-repairable by end users in order to FORCE them to buy whole heads.

7 Total Cost of Ownership Real Life Example of Angle Head Costs For tensor spiral angle heads … to repair is to replace … Example: Two tools, same issue; gnarled bevel/pinion set and damaged output shaft: Bevel Gear Set ETV ST $1, EA33LA D111800$ Savings$1, Output Shaft ETV ST $1, EA33LA18-46A4033$ Savings$1, Whole Head ETV ST $1, EA33LA18-46F3825$1, Savings$

8 Total Cost of Ownership Comparison Worksheet Tool #1 … Competitor System Tool #2 … Stanley QPM System Aggressive Assumption #1 … Acquisition cost 2X the competitor tool Aggressive Assumption #2 … Same number of tool repair events Aggressive Assumption #3 … Same parts and labor cost (Assumptions are aggressive because, aside from the fact that QPM is not 2X the competitor in terms of acquisition cost, QPM offers advantages in all maintenance categories) Tool #2 with proactive preventative maintenance All the same assumptions as above, even the same number of repair events, just planned rather than inflicted. In reality, with proactive maintenance adding a little labor, QPM tools will require fewer repair events and consume fewer parts. However, parts are not significant and labor does not even register on the G Chart as the downtime from CABLES ALONE overwhelms them.

9 Total Cost of Ownership

10 Total Cost of Ownership

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