Leading OEM Outsources Welding and Machining

Challenge

Additional Floor Space Needed

This client wanted to put in an entire new product line but lacked the floor space to do so. To free up the space, they decided to hire a vendor to handle the complete assembly of a large, complex part. The vendor would also be responsible for managing all the logistics of getting the parts back to their plant.

Solution

Miller Hired for Part Creation and Delivery

Miller Welding and Machine realized immediately that intense planning was necessary for a smooth transition.

Part of the job required moving one large machine specifically designed for this project from this customer's plant to Miller’s. It would take four weeks to move the machine, so the equipment manufacture stocked up on a bridge quantity so they could keep the production line moving once power was cut.

MWM organized a team of people to answer all the pertinent questions: When would the client stop production and MWM start? How much time should be allotted for the sample pieces to be made and revised if necessary? What internal changes need to be made at MWM so the floor space and personnel would be available?
Weekly conference calls were held between Miller and the customer to troubleshoot every step of the transition.

Results

Client Saves Money, Expands Product Line

This equipment manufacture now gets parts on a just-in-time delivery schedule. Parts are delivered hourly at a fixed cost. This means a cost savings for them since machine upkeep and employee overtime are no longer their concern.

The client was able to put in a new product line so they could produce larger pieces of equipment. Welding and machining are not their core competencies; now they can focus on what they do best.