Product Line Transfer for Cost Reduction
A privately held company needed to yield cost reduction on a hand held patient monitor to remain competitive in their market. The manufacturer of the product, a finger pulse oximeter, was looking to transfer production to an Asian factory in order to achieve a desired cost savings.
Sanbor Medical Requirements:
- Work with the customer prior to transfer to ensure smooth transition of the best practice assembly operations.
- Transfer raw materials, assembly process equipment, and test fixturing from the current manufacturing location.
- Transfer plastics molding tooling from the existing molder.
- The U.S. based Project Manager traveled to the customer site and spent a week on their assembly line documenting the work instructions, fixturing, and test equipment and processes.
- Plastics tooling was transferred to the factory, modified for use on Sanbor Medical molding lines, and First Article components were molded and sent to the customer for approval prior to regular production.
- Duplicated sets of production fixtures were produced in China from the supplied drawings and other documentation.
- A supply of raw materials was shipped from the customer to the factory for the initial production runs.
- The Project Manager traveled to China to oversee First Article production and ensure a smooth transfer of all documentation.
The product transfer was completed in less than 8 weeks from the start of the program, with full production capacity reached shortly thereafter. The customer yielded a 16% decrease in unit cost through outsourcing the assembly.