Reduced unit cost with Design for Manufacturing
Situation:
A leading engineered services firm turned to Kormac for assistance in achieving manufacturing readiness and reducing the unit cost of its innovative, category-defining autonomous industrial vehicle.
Actions:
- Provided expert structure and guidance for achieving full manufacturing readiness
- Led Design for Manufacturing (DFM) assessment and strategic sourcing of 858 parts across 145 suppliers for robotics systems, control panels, hydraulics, circuit boards (PCBs), navigation, sensors, and more
- Streamlined complex Bill of Materials
- Selected expert partner and transitioned manufacturing and materials to nearshore production site in Mexico
- Ensured effective layout, flow, and production quality
Results: In addition to labor arbitrage savings, reduced materials cost by $53K per unit through DFM and strategic sourcing. Achieved 33% reduction in total unit cost.
