Case Study

OEM Computer Electronics Manufacturer

Capacity and Market Share

  • Summary
    • A medium size public OEM custom computer electronics manufacturer had captured additional customers and market share.
    • The major base of business was in the US with about 30% of demand in Europe.
    • A past winner of state and national quality awards.
  • Challenges
    • Demand was outstripping capacity. The US manufacturing facility was unable to expand due to lack of local labor.
    • Due to the product's custom nature, outsourcing significant manufacturing was not acceptable to the customer base.
    • Although a past quality award recipient, product quality had begun to slip.
  • Results
    • A new out of state leased plant site was selected, outfitted, staffed, trained, and qualified by the customer base and was shipping product in 120 days.
    • Quality improvement programs begun for the existing factory yielded a 5X reduction in customer defects and were implemented at the beginning for the new factory.
    • Capacity improvements allowed acceleration of customer introductions and growth of 30% in the current year.