Supply Chain Consolidation

Challenge

The Customer had another supplier assembling and testing a complex instrument from customer supplied parts.  With hundreds of individual parts in the assembly from over 70 different suppliers, the customer’s internal resources to manage this process was huge, in addition the assembly supplier was unreliable with deliveries. They were already an existing customer of ours and they approached us for help.

Solution

The customer provided the specifications, Bill of Material (BOM), drawings and the existing suppliers of the parts. As many of the drawings and BOM’s were quite old and not up to date, we were also supplied a finished unit for us to check each individual drawing against. The changes were noted and drawings and BOM’s modified. Parts that could be manufactured in-house were identified. The project was managed using Critical Chain to meet the aggressive due date and Javelin was populated with the suppliers, lead times and BOM’s. The in-house parts and supplied parts were ordered and manufactured. The piece parts were carefully assembled with a supporting documentation manual created to ensure consistency. The first assemblies all passed the final test.

Benefits

On time delivery of the development stage of the project and reliable on-going delivery of the instruments month-on-month. The overall cost of the instrument was reduced by 10%. The consolidation of the supply chain resulted in internal administration costs for the customer removed to almost zero; just one purchase order.