Results
HOW DO I MINIMIZE PRODUCTION COSTS?
Kaizen Approach, Joint Effort Creates 27% Cost Savings
Customer wanted to be the best in both design and total cost on their New Product. The New Product consisted of a sheet-metal assembly with 20 components.
After sitting down with the Customer initially, we decided it would be best to attack this quickly and thoroughly. Within a couple days of that discussion we were in action.
That action was a Kaizen at RMF which consisted of a multifaceted group of individuals from both RMF and the Customer.
- Product Manager
- Supply Chain Manager
- Design Engineer
- RMF Project Engineer
- RMF Manufacturing Engineers
- RMF Metal Fabrication Specialists
These cross-functional team members were selected to give us a full understanding of all elements of design and production for this Product.
To start, the team examined the design and manufacturing of the complete product in question, including all of its components and assembly processes.
We then delved into other steps, including the sub-assembly of components by RMF to simplify the customer’s assembly labor and the optimization of shipping container volume to reduce shipping cost.
After 2 days intensively exploring the issues, we emerged with a plan to reduce the number of individual components and package one complete subassembly shipped to the customer in a finished goods box.
During the Kiazen we were able to reduce overall cost of Product by 27%.
Costs savings changes:
- Combined 3 parts by optimizing design and using RMF unique manufacturing methods
- Eliminated 2 additional parts by adding features on other components
- Kitted components for improved final assembly at Customer’s site
- Optimized packaging by over 24% by special boxing and stacking method. In turn reduced freight costs.