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ESP International provides contract assembly services
to original equipment manufacturers.
Sub-assemblies are costly when assembly line productivity is your focus.
They require additional labor, tooling, inventory, floor space and administrative costs
that reduce your bottom line.
Costly warranty claims can result from the offline or
secondary nature of the sub-assembly process which also reduces your bottom line.
Let's see an example: ACME Engine Incorporated manufactures diesel
engines on an assembly line.
ACME currently builds sub-assemblies that feed their assembly line.
ACME's ROA (Return On Assets) is affected by the sub-assembly operations.
Current Net Profit of $49.28 million and Total Assets of $814.46 million,
gives them an ROA of 6.05%.
ACME builds the fuel pump assembly offline which
consists of 10 components from 8 different suppliers.
ACME holds inventory of fuel pump sub-components, which consumes working capital, warehouse
and production floor space. The assembly line productivity decreases
with the fuel pump sub-assembly operations.
ACME partners with ESP International to increase their ROA
by decreasing costs and increasing productivity.
ESP manages ACME's suppliers and streamlines their supply chain by delivering a single
part number to their assembly line...... Just In Time.
Quality drives ESP's assembly process from PFMEA to PPAP.
Dedicated, specifically engineered, Poka-yoke assembly stations
are developed for each assembly providing in process testing, torque verification, and traceability.
ACME has reduced inventory and freed up warehouse and production floor space.
They have also reduced delivery lead times and cycle times.
After partnering with ESP, ACME's costs and expenses reduce to $551.3 million
and their inventory reduces to $143.44 million,
these changes increased their ROA by 0.11% and saves them $1.24 million.