Reduce Costs & Increase Efficiency By Outsourcing
(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)
Sigma Design Co.
200 Pond Ave
Middlesex, NJ, 08846
Press release date: January 7, 2009
Engineered Product Manufacturers and New Venture Start Ups Can Benefit from Outsourcing
Sigma offers specialty design/build, assemble, build services for electronic manufacturers.
Springfield, NJ - January 7, 2009 - Despite decreases in commodity prices, recession and fierce international competition cause concern for many American manufacturers entering 2009. The Institute for Supply Management's (ISM) manufacturing index shows both decreased orders and increased unemployment for the fifth consecutive month. Luckily, there are opportunities to succeed. Manufacturers who team with skilled design firms can optimize their supply chains to increase revenue and reduce costs.
Who uses design & build outsourcing? Three different manufacturers turn to Sigma to manage manages high end, high-quality build projects. Typically these projects require higher engineering focus than simple machine shop items. Four years ago, a spectrometer manufacturing company turned to Sigma to manufacture a motor drive slide assembly originally costing $22,000. Their goal was to reduce costs of manufacture over two years. After Sigma built the first two units, each cost was reviewed and the product was value engineered. By the next purchase of two units the price was 10% less than originally. In the third round of orders, Sigma was able to cut costs another 10%. Now for quantities of ten units, the cost of supply from Sigma to the customer is 45% less than original costs.
How did this work? By working closely with the client's project engineer, Sigma was allowed to control the design and work with its own suppliers. Through structural FEA analysis Sigma made less obvious design changes to reduce parts, reduce weight and reduce costs making it easier to assemble and test the new product. The finished product was delivered from Sigma as a fully packaged assembly.
This client's commitment has allowed Sigma to order larger quantities of parts to maximize economies of scale and further lower costs. In accordance with the client's Lean KANBAN stock levels, Sigma now keeps one unit of the product in stock ready to fill orders of two as needed. It's as simple as that.
To better serve manufacturing clients, Sigma Design has recently renovated its assembly area. New capabilities include reverse engineering services, 3-D rapid prototyping and electronic assembly. The installation of a faro arm allows for the capturing of geometric measurements for precise assembly and analysis. With in-house design engineers, manufacturers, and project managers, Sigma can ensure that project goals are met on time and on budget. Manufacturers looking to cut costs and expedite the path to production can turn to Sigma for both design and build needs.
Despite the weak economy, manufacturers can still improve profits in 2009. When you need a reliable design and build partner completely involved in your product's development process, one-size-fits all assembly mentality won't work. Turn to a small specialized design firm to get the engagement and enthusiasm necessary for high-end commercial success. With the right tools and experience, design and build teams can be the difference helping manufacturers to maximize profit and reduce costs. Here's to a successful 2009.