Medium Company Situation
OVERVIEW - A filtration equipment manufacturer out-sourced their control panels to a local panel shop and experienced occasional delays and quality problems. They researched other options and out-sourced their panel production to OEM Panels. The change has been very positive because they improved profitability, eliminated production delays, and expanded their flexibility. Let’s start with the facts.

PRODUCTION DATA - The manufacturer’s minimum order is (1) unit. Their standard delivery is (4-6) weeks with annual shipments ranging between (50) and (100) units per year. They offer (3) standard equipment configurations and will customize to order.

ORIGINAL PROBLEMS - The manufacturer was losing money on control panels because of control panel estimating problems and experiencing shipment delays caused by control panel production problems.

Medium Company Problems
SALES – The manufacturer was optimistic about estimating. Their local panel shop couldn’t estimate quickly per specification, so Sales would, regardless of the specification, bid on projects using an arbitrary control panel price in their estimate.

PRODUCTION – The manufacturer was optimistic about production. They were still working out control panel production problems when their equipment was ready for shipment. Their schedule didn’t include allowances for control panel production problems. As a result, any control panel problem delayed final production testing and shipment.

ENGINEERING - The manufacturer had limited engineering support for its control panel production. Their VP of Engineering was heavily involved in the details of control panel specification and production, which was taking him away from his primary function. As a result, he was over worked, control panel development and production has little direction, and supporting documentation was limited.

Medium Company Solutions
BUILDING BLOCKS APPROACH - OEM Panels builds software building blocks to describe each of the manufacturer’s unique control panel requirements, including all standard options. OEM Panels builds a software matrix to describe the manufacturer’s standard configurations, and rules for customization.

SALES INNOVATION – The manufacturer sends each project’s control panel specifications to OEM Panels to estimate and OEM Panels provides the manufacturer with a quote for each project per specification within two days.

ENGINEERING INNOVATION - OEM Panels sends an electronic engineering submittal to the manufacturer for each panel, which the manufacturer submits to the purchaser for review and approval prior to control panel production.

PRODUCTION INNOVATION – The manufacturer receives control panels from OEM Panels one week prior to final production.

Medium Company Results
The relationship the manufacturer enjoys with OEM Panels is a good one. Control panels are no longer a production obstacle.

FIRST THINGS FIRST - The manufacturer wanted to stop losing money on control panels caused by poor estimating and eliminate unit shipment delays caused by control panel production problems. These were achieved.

SALES - The manufacturer is properly estimating control panel costs and sells a flexible product line into a broad market with confidence.

PRODUCTION - The manufacturer provides better control panels with better margins on schedule.

ENGINEERING –The manufacturer provides better control panel documentation, and the VP of Engineering has more time to focus on his primary function.