This manufacturing case study showcases how our manufacturing consultants turned around a delayed electronics product launch that threatened the manufacturer's crucial Christmas orders, saving them a huge sum of profit margin and quadrupling their factory output in China in the first year.
The situation as we found it
CMC was employed by Red Crown electronics to examine why a large 6-month delay had accumulated to their new product launch, and to recommend ways to turn it around.
Red Crown, whose expertise was not in manufacturing, had been relying on their Chinese OEM partner to produce the new product.
CMC identified these key issues
- They were 6 months behind on the product launch due to poor follow-up and management at their Chinese OEM
- Sub-supplier components presented severe quality issues that had not been detected by the manufacturer
- The OEM's factory processes were not capable of going into mass production
CMC implemented the following to gain success
- High-level project management to improve production processes
- Consultants placed on the factory floor of the client and some key sub-suppliers to oversee operations
- Tried-and-tested APQP for the successful product launch
- Strict control of their supply chain by improving sub-suppliers' ability to produce the correct quality of components
Positive results gained
- Red Crown's new product was on shelves in time for Christmas that year
- US$9 million in gross margin was saved
- The factory quadrupled their production capacity (from 250 pcs per day to 1,100) in the first year
How you'll benefit from reading this case study
- This in-depth case study is particularly relevant to companies who deal with Chinese suppliers
- You will see the tools and techniques that CMC consultants use to turn around a delayed new product launch, and manage production projects
- You can use this insight to improve your product launches, and manage your Chinese supply chain more efficiently
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