
Small Company Situation OVERVIEW - A chemical equipment manufacturer produced one standard control panel. They experimented with out-sourcing its production to OEM Panels. The change has been very successful because of eliminated production delays and reduced cost. Let’s start with the facts.
PRODUCTION DATA - Minimum order is (1) unit. Standard delivery is (4-6) weeks with annual shipments between (15) and (20) units per year. They offer (1) standard equipment configuration.
ORIGINAL PROBLEM - The manufacturer was experiencing unit shipment delays caused by control panel production problems.
Small Company Problems PRODUCTION The manufacturer was optimistic about production and they built control panels as needed. Their production schedule didn’t include allowances for control panel production problems. As a result, any control panel problem delayed final production, testing and shipment.
ENGINEERING - There was limited engineering support for control panel production and no one actively directed control panel production or development.
Small Company Solutions
ENGINEERING REDESIGN - OEM Panels redesigned their standard control panel allowing them to provide a better product at a lower cost in less time.
Small Company Results
FIRST THINGS FIRST - The manufacturer originally wanted to eliminate shipment delays caused by control panel production problems. This was achieved.
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