Quick Query
Quick Query

Agile Manufacturing for High-Mix, Low-Volume (HMLV) Product Variance

Increasing partner and customer satisfaction via agility and flexibility in manufacturing 

SUMMARY

A world-leading provider of vision systems, software, sensors and industrial barcode readers used in manufacturing automation faced constant challenges in high-mix, low-volume (HMLV) wide product variance and demand-forecast fluctuations. By leveraging our agile and flexible manufacturing capability and supply chain management, they were able to meet unpredictable market demands—where they continue to deliver higher level of customer satisfaction through meeting their customers’ unique product requirements.

THE CHALLENGE: HMLV PRODUCT VARIANCE AND UNPREDICTABLE DEMAND FORECAST FLUCTUATIONS

HMLV is a common challenge amongst Original Equipment Manufacturers (OEMs) bringing frequent production change-over between assemblies and processes. As product model mix increases and production volume decreases, EMS providers are now discovering that proven manufacturing methodologies no longer apply and a more agile, flexible and effective manufacturing supply chain management must be put in place to address this.

A leading OEM in vision systems, software, sensors and industrial barcode readers faced constant challenges in HMLV product variance from customers’ unique product requirements. As a result, inaccuracy and fluctuations in demand-forecast fluctuations were common and a solution was required to address these challenges.

The Solution: Agile and flexible assembly and logistics

With PCI’s agility and flexibility, we expeditiously deployed committed resources to help tackle our partner’s challenges. Addressing both challenges in wide product variance and demand-forecast fluctuations, we promptly converted our lines to different assemblies and adjusted our operational processes to meet the partner’s requirements which includes implementing cellular manufacturing to shorten cycle times and changeover times.

THE RESULT: INCREASED LEVEL OF CUSTOMER SATISFACTION

Opportunities for error increases when batch size decreases. Using Lean principles and our expertise in manufacturing supply chain management, we managed to eliminate waste and streamline processes and material flows to achieve effective costs control where the benefits are passed on to our partner. The products were produced and delivered on schedule without compromising time-to-market and our partner was able to continue to provide products that are built to their customers’ unique requirements, achieving customer satisfaction as a result.

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