Connectors Unlimited, a first-tier supplier to GE Healthcare was asked to establish a local for local production site in China to support GE healthcare’s local demands. Connectors Unlimited at that time, had no plans nor capability to set up a remote satellite. The below case describes how we established a partnership approach to realize a fully controlled manufacturing location to supply GE Healthcare sites in China and the rest of the world.
Phase ICost Saving Initiatives
Customer Challenge
Develop highly stable and reliable sourcing options in China whilst maintaining first class delivery performance and of course, achieve cost savings.
Our Approach
Solution
After creating a full strategy encompassing three phases of development, we agreed on the following initial actions.
Identify
Identify innovative production processes such as M.I.M as potential process capabilities.
Catalog Suppliers
Catalog all special material vendors available in China and complete price list for hard to find materials. Mainly for injection molding purposes.
Price Comparison
Price comparison to ensure cost advantage of switching from U.S. to China. Transfer set up fixtures for high volume production batches to ensure optimal production time.
Our Expertize
Engineering
In-house engineers conducted full technical analysis on transfer risks and production feasibility. Special attention was paid to imperial material thickness to metric standards. We suggest alternate production processes to optimize cost and production yield.
Specialized Sourcing Something here
With over 20 years of experience and a large network of manufacturers in virtually all industries, SPG was able to source the best-fitting manufacturers while maximizing effectiveness.
Results
Phase 2Design & Cost Engineering
Customer Challenge
Develop new products to be sourced and supplied in China, maintaining high quality and delivery standards and improve development lead time.
Our Approach
Solution - Co-Engineering
Add value with production engineering support to design engineers on the U.S. side.
Analyze
Material properties and functional analysis.
Identify
Identify high-cost features.
Suggest
Base on Form Fit and Function, suggest alternate production processes.
Compare
Compare cost-effectiveness.
Our Expertize
Engineering
Our engineering team worked together with the customer’s design team at an early stage. We helped to optimize the design by suggesting production processes, standard tolerances, material, and manufacturability. We optimized the product design phase and greatly improved the time to market by connecting manufacturing and design engineering from the get-go.
Sourcing
With our experience in developing sources for highly specific alloys and material compositions we were able to support the required functionality.
Results
- Significantly shorten design to release lead time.
- Realized cost savings from the first production sets
Phase 3Set up Shop - Fast & Reliable
Customer Challenge
Set up a manufacturing base in China under the strict requirements for supply to GE Healthcare.
Our Approach
Solution - Join forces, create a JV
Based on a trust relationship that was established between the two companies, it was decided that a Joint Venture would bring together the best of both worlds. Creating entrepreneurial momentum, whilst assuring the control of ownership.
Our Expertize
Manufacturing
With over a decade of hands-on experience with manufacturers in various industries and the knowledge of establishing production and quality control to achieve optimal results. We got off to a flying start.
Co-Engineering
Production and technical know-how were transferred successfully between Connector’s Unlimited and the newly established SCT.
Results
- Successfuly set up local country corporation
- Customer received innovative supplier of the year award
