3 Ways to Reduce Your Manufacturing Costs

In today’s competitive environment, OEMs are looking for opportunities to reduce costs while maintaining product quality. While there are a number of factors that contribute to manufacturing costs, we will focus on 3 key ways to reduce cost: efficient product design, process automation, and consolidation of suppliers.

Efficient Design

In order to save production costs, companies need to ensure the product is as easy to manufacture as possible. This will result in more efficient production, better quality, and lower cycle times. Below are two best practices that will help you reduce cost. Click here for additional tips on how to consider Design For Manufacturability (DFM) for electronics.

  • Simplify the Product: certain design features significantly impact part cost such as tight tolerances and engraving. These drive up cost and directionally reduce production efficiency. OEMs should work with their manufacturing partner to look at design alternatives and should ensure any complex or intricate features are “must-haves”.
  • Minimize material: look for opportunities to reduce raw materials such as replacing solid part sections with more hollow sections, without sacrificing quality or integrity. These design adjustments may seem like a small reduction in material but when multiplied over many production runs the result can be a significant decrease in manufacturing costs. Additionally, devices that weigh less are cheaper to transport and store, further reducing manufacturing costs.

Leveraging Automation

Automation, and the efficiency it brings, has become a vital component in manufacturing. Automation can occur during the design phase all the way through secondary operations. Companies should work with their manufacturing partner to design with automation in mind. For example, products that are smooth are more suitable for automated assembly processes. Also, OEMs should be mindful of assembly order and ensure part orientation is consistent. These design considerations help ensure automated processes downstream are optimized and efficient.

One form of automation is robotic work cells. These robots deliver speed and accuracy, resulting in lower cycle times and higher product quality. With an automated production line, personnel no longer have to execute the repetitive, time-consuming tasks – reducing the risk of human error and allowing personnel to focus on more value-added responsibilities. Additionally, highly-automated processes can be controlled by as little as one operator, further reducing labor and manufacturing costs.

Looking for a manufacturing partner that offers a complete manufacturing solution?

Contact the team at RIS to see how we can strengthen your supply chain – today.

Supplier Consolidation

The only constant in the manufacturing world is change. Over time, OEMs often find they have acquired a large supply chain that can be challenging and time-consuming to manage. One cost-cutting measure is to consolidate your supply base to one or two strategic partners. When working with a proven manufacturing partner, like RiverSide Integrated Solutions (RIS), customers receive a complete manufacturing solution that strengthens their supply chain. As your one-stop-shop, RIS have the capabilities, capacity, quality assurance standards, and resources to support all of your manufacturing needs. Additionally, since every step in the manufacturing process builds upon the next, it is cost-effective to team up with a manufacturing partner that can start and end the project with you – from the concept and design phase through production and secondary operations. There are many benefits to supplier consolidation including:

  • More purchasing power: by consolidating your supply chain, you will gain purchasing power. This can be in the form of negotiating lower manufacturing and transport rates due to higher annual spend, or lower raw material expenses due to more volume purchased.
  • Improved communications: by consolidating your suppliers, your points of contact are greatly reduced, possibly down to a single point of contact at your key manufacturer. This allows for a central, more customized level of support. This will also inevitably improve and simplify your supply chain communications, resulting in a better final product.
  • Easier to manage: a smaller supplier base is simply easier. There are less suppliers to setup and manage within internal systems, and the relationship is easier to manage.

RIS – Your Trusted Manufacturing Partner

RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly, electromechanical & mechanical assembly, kitting, supply chain management, fulfillment, and distribution. We employ more than 300 people and provide services to OEM’s across the world. We operate 3 state-of-the-art manufacturing facilities within the U.S, and as your one-stop-shop we have the capabilities, capacity, quality assurance standards, and resources to provide you with support for all of your manufacturing needs. Our size makes us flexible and allows for customized solutions and quick response to our customer’s ever-changing needs. We offer various services including:

  • Product Assembly: providing solutions that include building sub-assemblies that are delivered to factories across the world to building products start-to-finish.
  • PCB Assembly: reliable, seamlessly-assembled printed circuit board systems built with extreme precision utilizing our skill engineers, technicians, and assemblers.
  • Kitting Solutions: complete turnkey vendor solutions with package design, kit assembly, warehousing, and distribution services.

Quality, commitment, integrity, continuous improvement, and adaptability are at the heart of RIS’ core values. They keep us aligned and help us make decisions about everything we do. Our customers, coworkers, community, and environment are our stakeholders – and we consider them in every decision we make.

Contact us today at (507) 523-3220 to see how we can help reduce your manufacturing costs, or click here for a quote.

3 Ways to Reduce Your Manufacturing Costs
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3 Ways to Reduce Your Manufacturing Costs
3 ways to reduce your manufacturing costs: consolidate your suppliers, optimize your product design, and leverage process automation.
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RiverSide Integrated Solutions
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