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Client: OEM -Hydraulics Industry

Topic: “Near Shoring” of covers re-design from Europe to the USA

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Situation
Our client:

Needed to reduce the lead-time to produce, and deliver individual component parts; quickly launch re-design of a family of covers to take advantage of after market changes.

Selected GEM because of our ability to work with them to find solutions to their technology, process, quality, costs, and inventory needs. Our ability to provide a turn-key experience.

Challenges
The challenges facing GEM included:

  • Launch family of 24 covers to market within a 3 month window
  • Tight critical/significant characteristic flatness tolerance 0.0004, on 5.500″ x 4.000″ face – Cpk of 1.67
  • Meet customer’s uneven demand requirements.

Actions
The actions we took to address these challenges included:

  • Worked closely with our supply base on tooling technologies to hold finishes and tolerances to meet the print
  • Added capacity in horizontals to keep up with growth in demand
  • Worked with supply base on an inventory program at supplier, as well as, installed an Inventory system of raw stock on hand at GEM to produce cover sizes in quick turn around in quantities and part sequences.

Results
Our actions resulted in:

  • Improved the lead time from 19 weeks to 3 weeks to produce and deliver
  • Added in Kanban inventory system to smooth out the spikes in our customer’s demand.
  • Successful product to market in 3 months, allowing the customer to gain market share in cover aftermarket

Frequently Asked Questions

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