SCT Industries Case Study

From Sourcing to Manufacturing

Connectors Unlimited, a first-tier supplier to GE Healthcare was asked to establish a local for local production site in China to support GE healthcare’s local demands. Connectors Unlimited at that time, had no plans nor capability to set up a remote satellite. The below case describes how we established a partnership approach to realize a fully controlled manufacturing location to supply GE Healthcare sites in China and the rest of the world.

Phase 1 - Cost Saving Initiatives

Customer Challenge

Develop highly stable and reliable sourcing options in China whilst maintaining first class delivery performance and of course, achieve cost savings.

Our Approach

Solution

After creating a full strategy encompassing three phases of development, we agreed on the following initial actions.

Identify

Identify innovative production processes such as M.I.M as potential process capabilities.

Catalog Suppliers

Catalog all special material vendors available in China and complete price list for hard to find materials. Mainly for injection molding purposes.

Price Comparison

Price comparison to ensure cost advantage of switching from U.S. to China. Transfer set up fixtures for high volume production batches to ensure optimal production time.

Our Expertize

Engineering

Technical Analysis

In-house engineers conducted full technical analysis on transfer risks and production feasibility. Special attention was paid to imperial material thickness to metric standards. We suggest alternate production processes to optimize cost and production yield.

Specialized Sourcing

Maximizing Effectiveness

With over 20 years of experience and a large network of manufacturers in virtually all industries, SPG was able to source the best-fitting manufacturers while maximizing effectiveness.

Results

25% Cost Savings

100% On-Time Delivery

100% Quality Rate

Phase 2 - Design & Cost Engineering

Customer Challenge

Develop new products to be sourced and supplied in China, maintaining high quality and delivery standards and improve development lead time.

Our Approach

Solution - Co-Engineering

Add value with production engineering support to design engineers on the U.S. side.

Analyze

Material properties and functional analysis.

Identify

Identify high-cost features.

Suggest

Base on Form Fit and Function, suggest alternate production processes.

Compare

Compare cost-effectiveness.

Our Expertize

Engineering

Optimized Product Design

Our engineering team worked together with the customer’s design team at an early stage. We helped to optimize the design by suggesting production processes, standard tolerances, material, and manufacturability. We optimized the product design phase and greatly improved the time to market by connecting manufacturing and design engineering from the get-go.

Sourcing

Developed Sources for Specific Alloys

With our experience in developing sources for highly specific alloys and material compositions we were able to support the required functionality.

Results

Significantly shorten design to release lead time.

Realized cost savings from the first production sets

Phase 3 - Set up Shop - Fast & Reliable

Customer Challenge

Set up a manufacturing base in China under the strict requirements for supply to GE Healthcare.

Our Approach

Solution - Join forces, create a JV

Based on a trust relationship that was established between the two companies, it was decided that a Joint Venture would bring together the best of both worlds. Creating entrepreneurial momentum, whilst assuring the control of ownership.

Our Expertize

Manufacturing

Achieve Optimal Results

With over a decade of hands-on experience with manufacturers in various industries and the knowledge of establishing production and quality control to achieve optimal results. We got off to a flying start.

Co-Engineering

Production & Technical Know-How

Production and technical know-how were transferred successfully between Connector’s Unlimited and the newly established SCT.

Results

25% Cost Savings

20% Reduction in design to release lead time

100% On time delivery rate

100% Quality rate

Successfuly set up local country corporation

Customer received innovative supplier of the year award