Andrew R. Pfeifer, Business Manager, Corrosion Protection North America
The cornerstone of manufacturing is providing a high quality product at an affordable price. Although these seem to be conflicting goals, some OEMs have developed the ability to balance these attributes. The method used to achieve this balance depends on the corporate culture of the OEM.
The following case studies will explore how two OEMs used different paths and succeeded in reducing non-value added cost. One OEM preferred to use the highest quality materials. This approach resulted in a product that provides extended durability, therefore reducing warranty costs. Another OEM opted to reduce process steps and the associated waste by utilizing the most efficient processes available.