Crucible can help you reduce your production costs and time to market in five simple ways:
1. Make sure you use the most efficient methods
Many products are not made using methods that are suited to their market or – more importantly – their production volumes. One common example is the use of injection mouldings for complex, low volume parts, which rarely repay the high cost of tooling and would be far better suited to processes like RIM or even Vacuum Casting. It also pays to be aware of the new developments taking place in the growing Rapid Manufacturing sector and the exciting innovations in ‘traditional’ processes like sheet metal. Here, new production tools and software are transforming lead times, accuracy, economics and the technical capability of sheet metal components. At Crucible, we make a point of keeping up to date with new developments in manufacturing, and would be happy to advise you on the most efficient manufacturing methods for your products.
2. Use modular construction methods
If you produce a range of products, it is worth considering them as a whole and looking for ways to share parts and assemblies. Such a modular approach can save assembly time, reduce inventory costs, enable economies of scale from your suppliers and minimise expensive repair bills. The potential for taking this approach is not always obvious, particularly when products are developed and updated one at a time. However, if you stand back from your product range you may identify opportunities to adopt a modular approach that could deliver some significant savings – and make your product range more coherent. We would be happy to discuss your range with you and advise you on this in more detail as part of our free initial meeting.
3. Reduce your assembly time
Whether they are made in Guangdong or Guildford, the time taken to assemble your products is often a major contributor to their cost. By looking at every aspect of how your product is assembled, some remarkable savings can be achieved. For example, how long does it take to put the product in its packaging? Are there any parts of the product that the customer could assemble? Could a high volume product be re-designed to be assembled faster, possibly with fewer parts? Why do people actually buy your product, and are there any parts which play no part in the buying decision or function? Are your production tools and jigs as efficient as they could be? Finally, and inevitably, would your product be cheaper if you changed the production location? This is not always as simple as it sounds, as the cost of transport and supervising remote production locations is becoming more significant, but it remains a very attractive option for many – particularly where high assembly costs are a major issue. We would be happy to advise you on some offshore suppliers who can offer low costs and high quality production facilities.
4. Adjust your production volumes
The number of parts or assemblies that you purchase from your suppliers clearly needs to be matched to your sales. However, it is worth talking to your suppliers about the potential cost savings of increasing batch sizes. Some companies have very clear purchasing rules that preclude this, but sometimes it is just a case of ‘custom and practice’ which may date back years. Increasing order quantities, particularly for small parts that carry little or no storage penalty, can make a dramatic difference to your costs. If your current supplier can’t or won’t offer you better prices on larger quantities, get some competitive quotes from companies that have invested in new production tools and software. Again, we can help you find suppliers that are offering cost savings through the use of the latest technology – just let us know what you are looking for.
5. Outsource assemblies
Outsourcing can be a complex issue, particularly in the more specialised industries, but most products have assemblies that could be built more efficiently by a specialised sub-contract supplier. This is often because they are doing a similar job for a range of customers and have acquired the necessary specialist knowledge and equipment (wiring looms, for example). As well as saving time, this approach can also allow you to pass on the responsibility for testing and approvals to the supplier, reducing your risks. An increasing number of primary parts suppliers (sheet metal, plastic mouldings, etc) are offering these types of sub-contract assembly services as a means of broadening their commercial base. It is often worth talking to your suppliers to see if they are interested in taking this approach, particularly if reject rates are a significant issue. For more information, please call us on (01235) 833785 or tell us more about your requirements.
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