Reducing Vendors to Improve Quality
Services used: Plastic molding and CNC machining assembly
Challenge: Eight vendors supplying 16 different parts for a valve assembly resulted in both quality and delivery problems for a suspension system manufacturer. Dimensional issues and overlapping tolerances between metal and plastic components were creating a high scrap rate, disrupting scheduling, and delaying shipments.
Solution: Garner Industries proposed a solution that would eliminate quality problems and reduce the scrap rate by supplying the completely assembled valve dock to stock. By single-sourcing the fully-assembled valve to the manufacturer, Garner was able to reduce the number of vendors the customer was working with from eight down to one. Plus, instead of managing 16 different part numbers, the customer simply had to deal with one finished assembly.
Results: This helped to eliminate quality problems, reduce scrap, and cut the overall cost of the assembly by 57%. The customer was able to reduce their valve assembly inventory, optimize inventory turns, and improve order fulfillment to 99.6%. This significantly simplified the work that needed to be done by the customer’s purchasing and engineering staff.