Reduce Costs & Increase Efficiency By Outsourcing
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.
