 Problem
A pioneer computer peripheral
manufacturer was faced with a high-salaried,
veteran workforce, slow order turnaround and
aggressive competition. The company realized that
outsourcing its substantial manufacturing
requirements to four suppliers was not working.
It was taking significant management attention,
without providing the cost and time savings the
company had anticipated.
This Mid-Atlantic company had successfully
used DA-TECH CORPORATION for many
projects including PCB, module, and equipment
assembly. It brought its bigger challenge to DA-TECH’s Ivyland, PA
headquarters.
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Solution
DA-TECH
dedicated an entire facility to this
company’s products, adding new people and
new equipment, and integrated the company’s
order entry-to-shipment computing systems. Together,
the two looked at each of the company’s
board-and system-level products; seeking out way
to reduce costs, and to simplify and standardize
the manufacturing process, while responding to
competition’s short turnaround.
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Profit
from Our Experience
The results speak for themselves:
Inventory turns grew from 10 to 32 times a year.
Management overhead was reduced by a factor of
five. Orders were shipped within 12 hours of
their receipt at the company’s office.
Direct labor cost fell substantially. Profit
margins improved.So successful was the
off-site, dedicated facility that after five
years of operation by DA-TECH,
the peripherals company took over the facility
and assumed responsibility once again for the
manufacture of its products.
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