Streamlining Manufacturing Processes for Cost-Efficient Production and Timely Delivery
Our client, facing internal labor constraints and a tight timeline for a critical project, sought a solution to outsource the full assembly of a complex product. The project involved laser cutting, forming, welding, paint, and assembly operations. The product needed to be ready for shipping within 8 weeks and maintain a consistent output over the following 6 months, with peak shipping demands during certain months. Freight costs were a significant concern due to the size of the product.
Problem Statement
Methodology
- Utilized the Prototype division to produce the initial components promptly
- Implemented a streamlined welding process, completing the first unit within 2 weeks for on-site trials
- Developed customized weld fixtures and established assembly cells to support high volume production.
- Engaged a team of 20 skilled welders and assemblers, ensuring a rapid transition to full production within 8 weeks
- Offered 20,000 square feet of warehousing space and direct shipping to the end customer from our facility.
Objectives
Outsourcing
High Quality
Costs
Analysis
The implementation of our methodology resulted in the following outcomes:
Rapid Prototyping and Trial Phase
Utilized the Prototype division to create initial components in a matter of days. The weld team completed the first unit in just 2 weeks, allowing the client to conduct on-site trials promptly.
Efficient Production Scaling
Built custom weld fixtures and set up assembly cells, enabling the team to achieve full production within the 8-week timeframe.
Cost Reduction and Logistics Optimization
Offered 20,000 square feet of warehousing space, eliminating the need for the client to secure additional storage. Implemented a direct shipping strategy, resulting in a substantial cost reduction of over $80,000 in freight expenses.
Recommendations
- Leveraging prototype divisions for quick iterations and trials.
- Implementing custom fixture design for efficient and scalable production.
- Exploring in-house warehousing solutions to optimize logistics and reduce freight costs.
Conclusion
Through a strategic combination of rapid prototyping, efficient production scaling, and logistics optimization, we successfully met our client’s tight timeline and cost constraints. The lessons learned from this case study underscore the value of a comprehensive approach to outsourcing, emphasizing both speed and cost-effectiveness.
