Industry:Manufacturer of industrial equipment
Department:Production engineering division

Lack of Expertise Barrier to In-House Component Production

Manufacturer troubled by uncooperative supplier until honing machine manufacturer proposes solution.

Background

The manufacturer that is the focus of this case study specializes in autonomous transport equipment, a technology that is experiencing growing global demand due to digital transformation in the logistics sector. The rise in production volumes posed the risk of potential interruptions in the supply of critical components. While the manufacturer had initiated the exploration of establishing its own component production line to address supply shortages, it encountered a significant challenge.

Problem

Supplier Refuses to Share Expertise

For many years, the manufacturer had relied on external suppliers for the majority of its component needs, and therefore did not have any staff with knowledge in component manufacturing. However, when the manufacturer approached its external supplier for advice, it did not get the response it was hoping for. An employee in the production engineering division recalls:

“I think our supplier was scared that if we started producing components in-house, they would lose orders,” said the employee.

The manufacturer decided to put together a team to work on a project to install a machine for producing prototypes that could be used to collect data as well as acquiring skills and expertise in machining.

“The machine used to produce prototype parts needed to offer enough flexibility to enable machining to be performed under a range of conditions. In order to acquire expertise cooperation from machine manufacturers was also important,” explained the employee.

However, when it came time to select a suitable machine, the project team struggled to find a honing machine brand that met its requirements. It could not find a manufacturer that would listen sympathetically to its problems, either. The project team became increasingly anxious.

Summary of the problem

  • The manufacturer lacked the expertise necessary to manufacture its components in-house.

  • The manufacturer’s supplier refused to share its expertise, fearing that it would lose orders.

  • While the manufacturer had decided to install a machine for use in producing prototypes, in order to give the expertise, it could not find a brand or model that fulfilled its requirements.

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