Assembly Cost Reduction

Company

A Global Utility Vehicles OEM

Utility Vehicles OEM
Industries
1 + Employees
Size
Germany / China
region
The Challenge

As part of a company wide cost reduction program, our client asked us to investigate the wheel-loader counterweight assembly process in their German manufacturing facility. High union labor costs, excess material movements to and from the external paint shop as well as frequent defects accumulated to completely unacceptable costs per unit. If those costs could not be drastically reduced, the client would shut down the counterweight assembly at their German site and supply preassembled units from Japan.

The Final Impact

Annual labor cost savings >$0.6 M

Annual freight savings >$0.2 M