Providing Custom Solutions to Increase Efficiency for a Chemical Dispensing OEM

CHALLENGE

A global OEM of chemical dispensing systems for janitorial sanitation stations and was under pressure to decrease costs of their Quattro cabinet dispensing units. In order to stay competitive in the market and retain a strategic contract, the OEM identified areas to decrease costs, or risk losing the contract. They needed a contract manufacturer that could collaborate with their team to analyze the cost drivers of their Quattro cabinet and decrease costs. The contract manufacturer would need to provide creative manufacturing solutions for the cabinet parts that, in turn, decreased the price of the dispensing units. The OEM was also looking for a company that could provide additional incremental improvements that could make a big impact and result in additional cost savings for this high-volume part.

SOLUTION

Based on the OEM’s past relationship and experiences with The Metalworking Group (MWG), they knew that MWG was up to the task. The OEM and MWG had over thirty years of experience collaborating on various manufacturing projects together. This longstanding relationship gave the OEM confidence that MWG could work with their team and provide solutions to cut costs and retain the big contract. In the past, the OEM appreciated MWG’s ability to provide design optimization and superior engineering support, no matter the project at hand. The experienced MWG project managers kept the project on track, allowing the OEM to focus on other priorities. “MWG had become a true extension of our team, which is why we chose to work together for this high-priority project,” stated the chemical dispensing OEM’s Vice President of Operations.

APPROACH

MWG started by analyzing the OEM’s current process to review all of the cost drivers. This included everything from the manufacturing process, packaging, delivery and more. MWG then designed custom tooling and fabrication fixtures for the project. In the past, MWG used stamping dies to build the cabinet doors. After the analysis, the decision was made to laser cut the parts utilizing their fiberoptic laser, reducing time and cost. The MWG team also developed a custom spot-welding procedure which allowed for a high-quality, high-volume output on a consistent basis. Additionally, MWG developed a forming tool that replaced the forming operations, helping to decrease cost and increase efficiency. MWG’s internal custom carts also helped reduce time and cost by rotating the parts specific for each station throughout the manufacturing process. Lastly, MWG collaborated with the OEM to design sustainable packaging, helping decrease costs and increase efficiency. Originally, the parts were wrapped and shipped in various materials, creating a long process with a lot of waste. MWG collaborated with the OEM to design a returnable packaging system so the packaging could be reused, eliminating plastic and foam usage.

RESULTS

In the end, the OEM and MWG successfully collaborated to decrease costs for their chemical dispensing units. This resulted in a reduced price of 11% and saved the customer waste and over $50,000, allowing the customer to retain a strategic contract. MWG collaborated with the OEM to deliver various cost saving services such as:

• Custom Tooling and Fabrication Fixtures
• Custom & Sustainable Packaging
• Custom Spot Welding Process
• Developed Form Tool to Replace Forming Operations
• Design Assistance & Design Optimization for Manufacturing

The Vice President of Operations stated “It’s always a pleasure doing business with MWG. They aren’t afraid to get their hands dirty and work hard to do whatever it takes to help their customers.” The OEM and MWG look forward to continuing to collaborate on projects in the future.