Wire Harness Design Software & Support

Calculating the Real Cost of Rework

Calculating the Real Cost of Rework

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We’ve all heard the saying ‘time is money’.  But it never ceases to amaze me just how many wire harness manufacturers ignore the effect of unscheduled rework on their profitability.

As a wire harness manufacturer I’m sure you know how much, precisely, it costs to manufacture each wire harness including labour and materials. But have you put a value on getting it wrong first time? There is no doubt that producing prototypes or pre-production samples is a complicated yet essential step to final production so getting these steps right first time is going to give you a smooth transition into full production. Why then, would you risk getting it wrong?

So, regardless of the actual extra material costs incurred as a result of rework, how do you put a value on the knock-on effect on delaying the next project, or the impact on your reputation in failing to meet customer delivery deadlines? If you aren’t using smart software tools that help you verify the design and layout from the outset before a single wire is cut, the following scenario may sound familiar:

Example

  • You have an order for Customer A worth $10,000 and pre-production samples are due this week and full production is planned for four weeks’ time.
  • You already have back-to-back orders for Customers B & C worth $50,000 waiting for their prototypes every week for the next month. 
  • First prototypes for Customer A don’t meet the required specification and need to be reworked
    • Now you have a choice…. Do you delay the orders for Customers B & C or do you carry on with the rework for Customer A?

Now this example is a bit extreme, but you get the idea. Reworking the wire harness impacts your profitability by incurring unnecessary material costs. However, the greater impact is the damage to your reputation caused through delays to your customer’s projects.

If you put yourself in your customer’s shoes for a moment, wouldn’t you rather purchase from a supplier that has invested in their business and uses the very latest design and verification tools that will make the process more reliable and efficient?

By investing a comparatively small amount in the very latest tools you can be secure in the knowledge that you will have improved quality, increased the efficiency of your manufacturing team, raised your profitability and most importantly cemented your reputation as a forward-looking supplier.  Taking the “time” to find out how you can improve your business’ design systems will save you more than “money” in the long run.

Get in touch with the Centricity team if this scenario resonates with your business.

 

 

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Centricity Consulting is a UK-based company specialising in software tools and services for the design, analysis and manufacture of wire harnesses and flexible materials. Talk to us today about your engineering needs.

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Caston
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