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Red Paper

June 25, 2015

Derek Wilcox

Executive Summary:

The world's leading agricultural and construction OEMs rely on MEC as an integral partner in their supply chain. In fact, MEC manufactures thousands of parts including fenders, hoods, doors, frames, tanks and tubular products such as exhaust, engine components, cooling system components, handrails and full electro-mechanical systems. With one particular client, MEC was asked to simplify the clients supply chain from 36 vendors to 1, reengineer the construction, produce and purchase a total of 2,158 pieces, paint and assemble, and ship the finished product directly to the end user. These are the full service projects that set MEC apart from any other contract manufacturer in the nation.

Project Overview:

engine enclosureThis particular construction was an engine enclosure for a large industrial front end loader. The engine enclosure measured 8’ long and 3.5’ tall and consisted of 305 unique parts. The enclosure houses the machines air cleaners, shunt tank, air intakes, exhaust, and mufflers. In addition, there are several electrical routings, as well as air and liquid tubing. MEC produced 169 fabricated parts for the assembly while handling all purchasing responsibilities for 136 other parts. All of the fabricated parts were painted in house and assembled in Beaver Dam. After the assembly of the engine enclose, the construction is shipped directly to the end user in the field.

Operational Excellence:

MEC’s experienced and knowledgeable design, process, project, weld and quality engineers are the best in the business. Their task of reengineering the existing product design led to increased part quality, while also saving the client money in the manufacturing process. Bent structural tubes were designed to be used in place of sheet metal weldments for main structures. This adjustment produced a higher value part, which was stronger, lighter, and less expensive to produce.

front end loaderThe entire front loader is constructed in the field at the client’s customer location, so due to this MEC constructed the engine enclosure ready for install. On time delivery is of utmost importance for this project and MEC has not wavered on delivery dates. With building the unit in the field, build times are critical. Previously it had taken 45 min to attach the engine enclosure to the main assembly. With some engineering improvement designed by the MEC engineering team, build time was minimized to an astonishing 4 minutes.

Cost Savings:

MEC was able to capture numerous cost savings for the client throughout this ongoing project.

  • By assimilating our engineering team directly with the client’s, we were able to develop several material and construction variations throughout the design to find savings on direct materials.
  • The client was able to utilize the open space in their facility to work on other projects. This also lead to a lower inventory carrying cost by having MEC handle the entire purchasing and assembly process.
  • MEC’s strategic inventory management allows for a quick turn of completed engine enclosures, so the client can quickly meet unforeseen demand increases.
  • In addition, there are soft cost savings in purchase order generation and supplier management that the client no longer has to deal with. The client issues one purchase order and manages one supplier rather than a few dozen.
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