Situation: Customer wants to focus
more on core activities
CBM approached a long-time customer regarding value-added assembly work.
The customer mentioned that they were interested in moving non-core
assemblies to contract manufacturers. They
felt this would be a natural fit for CBM because of the history between the
two companies. The assembly
brought to CBM consisted of 26 discreet parts with CBM already providing 7 of
the items.
After evaluating the assembly for a time study and working with the
current vendor base, CBM quoted pricing and manufactured 5 prototypes.
The prototypes were tested over the course of 6 weeks and passed all
aspects of the customer’s testing.
Outsourcing this assembly and supporting test procedures to CBM resulted
in the customer achieving a significant savings in administrative cost due to
the fact that they now order, receive and stock 1 part instead of the 26 that
they had managed in the past. Also,
the customer moved their manufacturing focus to more core activities and
created a modular final assembly and test environment instead of a traditional
manufacturing environment.