Strategic Sourcing Leads to Major Improvements
for Power Technology Company
Situation
A current Group O rigid packaging client operating in the Midwest needed help with a big problem. The client is a prominent force in the global manufacturing industry, specializing in the production of diesel and natural gas engines, hybrid engines, and generators, approached Group O with a pressing challenge with their aftertreatment systems.
The client was dealing with issues stemming from weld splatter in their manufacturing process, leading to sensor installation problems, cross-threading, and leaks in their aftertreatment systems.
These challenges not only jeopardized the compliance with emission regulations but also posed a threat to overall product quality and manufacturing efficiency.
The client sought a solution that would address these issues comprehensively.
Action
Group O, functioning as a Business Process Outsourcing (BPO) partner, worked diligently to understand the client's manufacturing intricacies and designed a tailored solution.
The key innovation was the development of customized plugs compatible with seven different coupler sizes. These plugs were strategically designed to counter the issues arising from weld splatter, ensuring proper sensor installation.
Notably, the standardized, engraved pattern on the brass coupler plug allowed the client to seamlessly integrate the solution without altering their existing installation process.
This design not only resolved the sensor installation challenges but also presented a cost-effective approach by eliminating the need for significant changes in tooling or processes.
Results
The implementation of Group O's solution yielded significant bottom-line impact for the client. The annual single-line savings amounted to an impressive $346,440.
These savings were realized through a combination of reduced assembly line downtime, the complete elimination of rework time and costs, and the freeing up of 30,000 square feet of rework area.
Importantly, these improvements were specific to one of the client's three locations, indicating that the actual savings across all locations were likely even higher. The successful resolution of the sensor installation challenges not only enhanced the product quality and manufacturing efficiency but also translated into substantial financial benefits for the client.
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