Scaling up business while driving down costs
Yes, you really can increase production and boost quality, for less. Here’s how we made it happen for a recent client:
- Integrated quality checks at every stage
- Leveraged proven suppliers for reliability
- Reduced defects by 11%
- Reduced costs by 19%
Solving challenges with precision
Problem: client experiencing exponential growth asked us to help scale production while simultaneously reducing costly defects.
Solution: Deliver a scalable, quality-focused supply chain with enhanced transparency for ongoing improvements and cost-saving opportunities.
Behind the Solution
Strategy
Value Source Global deployed the five-step Define, Measure, Analyze, Improve & Control (DMAIC) methodology to help identify root causes, monetize defects’ impact, and understand the true capacity needed. This process allowed VSG to design and implement a solution to meet the client’s capacity and quality needs with established key performance indicators (KPIs).
Challenge
We needed to rapidly secure reliable, high-capacity suppliers with a proven track record. Expediency was crucial to ensure our client could maximize revenue opportunities without delay.
Logistics / Details
The supplier selection process was swift. A known supplier within the Value Source Global ecosystem had the required quality certifications, capacity, and proven reliability. This partnership allowed the teams to focus on designing and implementing material (component, WIP, and final product), data, and production flows to maximize capacity and provide all necessary quality metrics.
The Results
A post-launch audit confirmed that Value Source Global delivered much-needed capacity as well as an 11% reduction in defects. This outcome eliminated timely and costly rework, and resulted in a 19% reduction in our client’s costs.
In the spirit of continuous improvement, the Value Source Global team was able to identify an opportunity to further automate additional processes, resulting in an overall WIP reduction of nearly 9%. This action reduced working capital needs and resulted in yet more cost savings for our client.
Conclusion
Value Source Global’s expansive network allowed our client to reduce risk and lead time, while enjoying the benefits of a carefully executed transition. The collaboration among VSG, our supply network, and our client resulted in significantly improved product quality, reduced defect rates, expanded capacity, and greater overall customer satisfaction.
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