Value Added Sub-Assembly

Sub-Assembly helps avoid costly production slowdowns by reducing the variables and empowers your line with an enhanced ability to respond quickly to changing delivery demands and requirements. Sub-assembly creates simplified fulfillment flexibility while decreasing operating costs and efforts.

Value-Added Assembly provides benefits that address ongoing needs for manufacturing efficiency. Key advantages include:

Cost Savings on Assembled Items:

Reduces/eliminates OEM component inventory
Lowers labor and overhead costs
Simplifies receiving with one PO and JIT delivery
Eliminates multiple component inspections
Reduces impact of rejected/non-conforming parts

Improved Material Flow:

Sub-assembly as part of the extended supply chain significantly reduces manufacturing complexity while improving efficiency and cycle time.

The process requires only one purchase order for higher-level assemblies, tested for form, fit, and function, and ready to install. This streamlined approach reduces warehousing costs as space and associated labor can be reallocated to higher-value functions.

Components no longer require receiving, staging, and inspection, eliminating inventory carrying costs and payment processing. The managed flow of sub-assembled products for JIT or KANBAN fulfillment allows swift integration into final assembly, ultimately shortening the final build cycle and improving overall operational efficiency.

Increased Flexibility Meeting Customer Demand

By leveraging a sub-contractor's expertise in procurement, assembly and quality compliance, manufacturers are relieved of the burden of time, labor, and material procurement management.

Working together as partners, sub-contractors use MRP software to monitor inventory trends and forecast needs, ensuring appropriate response when inventory flexibility is required.

This partnership helps accommodate unexpected increases in production without maintaining excessive on-hand component inventory. Through close coordination, manufacturers can maintain consistency in dock-to-stock timing of standing orders while dramatically reducing costs and improving speed, quality, and customer satisfaction with last-minute orders or customization requests.

Improved Quality:

Identifies poor quality parts before final assembly
Reduces rework orders
Decreases handling damage
Improves throughput and reduces lead time

Environmental Impact:

Reduces manufacturing waste
Decreases carbon footprint
Minimizes packaging waste
Supports sustainability initiatives

Sub-contracting component assemblies creates cost savings, improves material flow, enhances quality, increases responsiveness to customer demand, and contributes positive environmental effects.

Benefits include reduced labor costs, time savings, overhead containment, fewer defects, and enhanced delivery flexibility.

Exothermic Value Added Sub-Assembly adds up to significant savings for you.

Download our white paper to learn more: “Value Added Sub-Assembly in Manufacturing“

Contact our engineering team to discuss your specific requirements.