outsourcing Archives - Means Engineering, Inc.

Wastes of Lean Manufacturing

May 10, 2019 By meiadmin

In the manufacturing industry, waste refers to any action or step that does not add value to the customer. These are all of the little extras within a process that the customer does not want to pay for. The goal of lean manufacturing is to remove waste from the manufacturing process.

Taiichi Ohno, father of the Toyota Production System (TPS) identified the original seven wastes of manufacturing. An eighth waste was added in the 1990s when TPS was adopted by the western world. The 8 wastes of lean manufacturing include:

Transportation
Inventory
Motion
Waiting
Over-production
Over-processing
Defects
Skills

It’s important that manufacturers learn all they can about wastes in the manufacturing process.

Transportation

Waste in transportation occurs when people, tools, inventory, equipment, or products must be moved further than reasonably necessary. Manufacturers can eliminate transportation waste by ensuring workers have everything they need to complete each project close at hand. This includes, but is not limited to, all necessary people, equipment, tools, and materials.

Inventory

Excessive inventory can cause problems for manufacturers. Having too much inventory can lead to damaged materials, greater lead times, and inefficient allocation of capital. Problems such as over-purchasing and over-production often result in extra inventory. In order to combat waste, manufacturers should purchase raw materials only when they need them, reduce buffers between production steps, and create a queue system to prevent over-production.

Motion

Waste in motion includes any extra movement required to complete a task. This includes having to walk to fetch tools or materials and spending excessive amounts of time searching through inventory. Keeping work spaces organized, materials close at hand, and reducing inventory can help eliminate waste caused by motion.

Waiting

Waste occurs when staff must wait for materials or equipment, email responses, and computer programs to load. Using standardized work instructions and utilizing multi-skilled workers who are better equipped to adjust to changing demands is the best way to eliminate waste caused by waiting.

Over-Production

Producing more products than required can create a lot of waste. Manufacturers should take care to only produce as many products as required.

Over-Processing

Over-processing occurs when staff performs more steps or adds more components than required to complete the project. Before starting any project, its important staff fully understands what the customer wants. This sets the standard for what needs to be done.

Defects

An obvious cause of waste, defects require scrapping and reworking of products. The best way to prevent waste caused by defects is to fully test all components throughout production.

Skills

Although not part of the original seven wastes, most manufacturers recognize the waste caused by not utilizing employee skills and talents. Manufacturers can prevent waste by allowing staff members to provide input and throughout the manufacturing process.

Is Outsourcing Right For You?

December 14, 2018 By meiadmin

Outsourcing is an excellent way to reduce production costs. However, it might not be the perfect solution for every business. Sometimes outsourcing works for certain circumstances and not others. Organizations must consider a number of factors before deciding whether outsourcing is the right choice for their business and/or situation.

Overhead Costs

It takes a lot of resources to produce products. You need the right space, people, equipment, tools, and machinery. Businesses need to consider whether the costs of acquiring these things makes sense for their current situation. Small or newer companies can benefit from outsourcing as they build up the capital needed to handle production in-house.

Companies looking to expand their offerings can also benefit from outsourcing. This allows them to test new markets without the additional expense or hassle involved with purchasing new machinery or locating and hiring experienced staff.

Outsourcing allows organizations to produce a wide range of high quality products using the very best equipment and technology. It also provides access to experienced and knowledgeable individuals. Contract manufacturers often have years of experience working with numerous industries.

You Find it Difficult to Manage Periods of High Demand

Some companies find that they only need to outsource to fill periods of high demand. A contract manufacturer can help ensure that your customers receive their products on-time, without putting additional burden on your staff. This is one of the top reasons companies utilize the help of contract manufacturers.

Lack of New Ideas

In order to stay competitive, companies must continuously develop new ideas. Organizations that are finding it difficult to come up with new ideas might benefit from a fresh perspective. Contract manufacturers assist with all parts of production from design to testing. They know what works and what does not.

Your Company is Better Equipped to Distribute and Sell Your Products

Many companies find that they put more focus on marketing and distribution than they do on creating the actual product. Some organizations simply do not want to deal with the hassle of managing the complexity of the manufacturing process.

Outsourcing allows you to eliminate the costs and hassles involved with production so that you can focus on selling your product. This can significantly improve your marketing, increasing your company’s reputation and the chance of success.

Improving ROI

April 13, 2018 By meiadmin

Improving ROI

Outsourcing is an excellent way to improve operational performance and increase shareholder value. Manufacturing companies that choose to outsource some or all of their design, production, and testing experience numerous benefits including improved ROI.

Outsourcing Increases the Quality and Value of Products Produced

Manufacturers often use a contract manufacturer to produce parts or all of a product. Sometimes, only help with design and testing is required. Other times, all of an organization’s production is outsourced. Whatever the case, companies around the world use outsourcing to increase quality and efficiency, while reducing costs.

Outsourcing can generate savings and provide significant economic value for corporations of all shapes and sizes. However, the actual value of outsourcing depends greatly on the quality of products being produced. Working with an inexperienced contract manufacturer can result in lost reputation and low ROI.

Producing products in-house is generally far more expensive than outsourcing. The space, equipment, people, and technology required for production can cost a significant amount of money. Using a contract manufacturer not only eliminates the upfront investment in assets and business processes, it also improves rate-of-return.

Before working with a contract manufacturer, it’s important that everyone in the organization is clear about his or her goals.

Benefits of Outsourcing

Outsourcing is often used to increase the quality of products produced. A qualified contract manufacturer will review design plans to locate areas that could benefit from improvement. This reduces the costs of production and increases the quality of finished products.

Depending on an organization’s goals, there are many ways to increase ROI. Returns might include increased profits or reduced expenses. ROI might also come from the improvement of operational efficiencies, reputation, and brand recognition. All of this and more are possible with the right contract manufacturer.

ROI helps quantify project value, increase stakeholder support, and can lead to project prioritization. In order to realize the benefits of outsourcing, manufacturing companies need to find a contract manufacturer they can trust.

Means Engineering, Inc. has experience working with a number of industries. Our team of engineers and technicians works directly with each of our clients to design, produce, and test a variety of products. We are an AS9100 and ISO 9001 certified contract manufacturer.

Benefits of Outsourcing Your Production

December 29, 2017 By meiadmin

Benefits of Outsourcing Your Production

Businesses of all shapes and sizes in a wide range of industries struggle to fill orders. New product production and periods of high demand can present a challenge to even large corporations. Many businesses simply do not have the manpower, space or machinery to keep up with orders.

Outsourcing your production to a contract manufacturer can help you keep up with demand. Outsourcing allows you to create new products without having to purchase new equipment or increase your workforce. Working with a dependable contract manufacturer makes it possible to improve the quality of products produced. This increases customer satisfaction and builds trust in your brand.

Reduce the Costs Associated With Production

Outsourcing is one of the best ways to reduce the costs of production. Contract manufacturers can typically produce products at a much lower cost than producing them in house.

Outsourcing saves you money on equipment, employees and technology. In addition to these savings, an experienced contract manufacturer can analyze your design plans to find unique ways to reduce the cost of production. These changes often improve the quality of the finished product while increasing the efficiency of its production.

Preparing For Unexpected Events

Sometimes businesses experience unexpected accidents or events that leave them unable to continue production. It’s important that companies prepare for this type of situation in advance. Having a reliable contract manufacturer on your side can help ensure that your business operations continue in the event of a disaster. A contract manufacturer can help you produce products until you are able to get back on your feet.

Choosing a Contract Manufacturer to Work With

The contract manufacturer you work with will have a big impact on the quality of products produced. It’s important to choose a company with a reputation for quality and consistency. They should have strict policies in place for quality control. For the best results, select an AS 9100 and ISO 9001 certified contract manufacturer.

There are many contract manufacturers to choose from. Select a company that has experience with multiple industries. The contract manufacturer you work with should be able to produce a wide range of products in a timely and cost-effective manner.

Avoiding Problems Associated With Outsourcing

November 10, 2017 By meiadmin

Avoiding Problems Associated With Outsourcing

Most electronics manufacturers simply would not survive without the help of a contract manufacturer (CM). Outsourcing allows electronics companies to create more products, improve quality, save money and reduce time-to-market. Despite the numerous benefits, many OEMs have problems with outsourcing. It’s important to avoid the following pitfalls if you want your CM partnership to be a success.

Choosing the wrong contract manufacturer to work with

Whenever you outsource, you give up control of the manufacturing process. The biggest issues with outsourcing occur when you choose the wrong contract manufacturer. Working with the wrong CM can lead to a number of problems for your business. It’s extremely important that you hire a company you can trust. The right contract manufacturer will become a reliable partner that you can work with for years to come.

Before hiring a company, you need to find out as much as you can about their business. Consider all factors that could affect your relationship with them such as geographic location, technical capabilities, experience, quality control practices as well as strategic and financial fit.

Make sure that the company you choose is able to handle your needs. They should be up-to-date with the latest technologies and techniques. They should be able to handle a wide variety of projects. Experience with multiple industries ensures diverse capabilities.

Spend some time developing a clear set of criteria for your contract manufacturer. A well-developed plan and a methodical process can go a long way towards a successful relationship with your CM.

Inadequate NPI Product Management

New product introductions (NPI) are a crucial part of the OEM/CM relationship. NPI is a complex process, involving multiple steps. In order to successfully create and launch new products, you need the right contract manufacturer on your side.

A CM can help design, produce and test new products. They provide a second set of eyes for your project. They are well positioned to catch flaws in design that could affect performance. The right contract manufacturer will point out ways to reduce costs and time of production.

The right contract manufacturer can help you produce high quality, reliable electronics. This increases public trust in your brand.