Working on Your Next Light Rail Project? Here’s What OEMs Need to Know

July 18, 2023 by Liberty Electronics

The global light rail industry is forecasted to reach $4.97 billion by 2026, growing at an annual rate of 9.8%. While Europe continues to maintain the highest market growth, the recent rise in light rail passengers across major U.S. cities has led to approvals for light rail extension projects throughout the country — expecting to drive market growth even further. Light rail vehicles produced by companies like Bombardier, Siemens, Kawasaki, Hitachi, Alstom, Ansaldo, and others are expanding across the nation due to advancements in areas like noise reduction, comfort and safety.

With this in mind, OEMs serving the light rail industry have a unique opportunity to penetrate the light rail market. Purchasing managers within the light rail industry select projects based on 3 key factors — all of which OEMs should deliver on in order to effectively win the project during the bidding process:

Value-based pricing (evaluations based on overall benefits perceived by customers, rather than simply according to competitors or historical prices)
Superior customer service
Investments in quality control and technology

By employing strategic sourcing and strategic purchasing practices, OEMs can effectively design, produce, and deliver safe and efficient systems to light rail transportation customers.

Value-Based Pricing: The Case for a Strategic Approach

OEMs should plan to implement strategic sourcing techniques to appeal to light rail suppliers. Strategic sourcing plans can facilitate transportation suppliers forming multi-year contracts with third-party vendors, which allows the OEMs to dedicate more resources to marketing, product design, and integration while specialists assemble the nuts and bolts of their products.

Bringing in strategic suppliers to handle sub-assembly production also allows OEMs to focus on the best new practices and customer-specific goals. Strategic procurement strategies benefit the bottom line. Because third-party manufacturers have lower cost structures, cutting-edge manufacturing technologies, commodity-specific expertise, and also serve multiple clients, each individual assembly they make typically costs far less compared to parts assembled in-house. When factoring in life-cycle costs such as overhead support and warranty returns, the savings are even greater.

Meeting Demands for Superior Customer Service

Light rail OEMs depend on suppliers not just for reliable manufacturing services, but also to effectively manage their supply chain. This is where superior customer service and technology service start to blend: many OEMs are looking for suppliers whose processes and IT systems can create a seamless, end-to-end supply chain management system.

In addition to this technology, the following customer service factors are critical:

Timely status reports
Fast, accurate solutions to inquiries
Creative and collaborative problem solving
Nimble and rigorous configuration management, including audit and compliance support

Supporting Complex Systems with Quality Control & New Technology

An influx of funding in public transit has spurred innovation in the light rail industry and the technologies it uses. Cloud-based systems such as the Internet of Things (IoT) allow rail companies to gather data from smart sensors, and machine-to-machine (M2M) learning provides more efficient response times. With more timely information, intelligent apps increase customer satisfaction by providing real-time and accurate views of delays or changes to scheduling, making rail transit a more viable option for urban commuters. Suppliers that successfully compete in the rail industry implement the following while demonstrating a command over the complex systems described above:

Integrate with the latest advances in production, including automation, Six Sigma methodology and lean manufacturing processes
Comply with the most stringent standards and requirements (ISO 9001, AS9100 and NADCAP AC)
IT systems that are easily customizable to accommodate evolving requirements

Improve Your Supply Chain Network with Liberty Electronics

Liberty Electronics has developed cutting-edge electronic solutions for OEMs working with the transit industry for decades. Our high-quality electrical cable assemblies, wire harnesses, and box builds have appeared in cities across the country and around the world, and our dedicated team of technicians and professionals will work with you to help design and build the assemblies that you need.

At Liberty Electronics, we’re wired for your success. If you would like to know more about what Liberty Electronics has to offer for the light-rail industry, contact us today and sign up for our informative newsletter.

How OEMs Can Tap Suppliers To Scale Up Production

July 4, 2023 by Liberty Electronics

Industry predictions indicate that manufacturing will grow faster than the general economy*. Growth in areas such as global aircraft manufacturing is projected to spike from the less than 4% rise seen from 2013-2017 to nearly 9.5% from 2017 until 2021. These high manufacturing expectations are bound to cause an increase in production needs for OEMs. But how do you best scale up production without falling victim to overspending on inventory or finding yourself unable to fill orders due to long lead-times and or lack of capacity?

Share forecast data with suppliers

Although upcoming demand is never entirely predictable, ordering and building to a forecast rather than an immediate need can prepare OEMs for scaling up production while avoiding fulfillment pitfalls. Use of estimated annual usages (EAU’s) based on forecasts can also lower costs by allowing suppliers to achieve volume driven cost reductions.

Use of a Pull System or a VMI (vendor-managed inventory) approach can be a cost-effective, scalable way to manage demand variations. OEMs can avoid the bullwhip effect by placing buffer inventory at the outsourcing level. With VMI, inventory can be ordered and shipped to a 3PL (third-party logistics) provider. They then maintain the inventory in either an on-site or neighboring warehouse, and the ownership of these parts falls to the outsourcer until the inventory is consumed.

When OEMs pair with vendors who already practice an effective long-term inventory strategy using buffer stock, production can be scaled up smoothly and successfully. These partnerships can have a positive impact as long as vendors are aligned with expectations and resources OEMs need.

Have the Supplier “Move Up the Bill of Material”

One of the fastest ways to increase both production and procurement capacity is to outsource more value-added work to suppliers. Instead of buying several cable assemblies for example, consider buying the entire assembly that the cables go into. This can mean buying and managing one part number instead of potentially dozens or more. Not only are production and overhead hours freed up to provide additional capacity for the OEM, an immediate cost reduction is often realized as a result of the supplier’s lower cost structure.

Find the right supplier partner

The key to a successful partnership is finding the right supplier that can help set you up for scaling success.

Scaling up production means you need a supplier who practices zero defect lean manufacturing and has both the equipment and expertise to maximize the potential of automation. OEMs should look for a supplier who can automate processes such as cutting, stripping, and crimping, as assembly aids and 3D fixtures that perform these tasks reduce build times and ensure consistent quality. Cross-sectioning equipment and software such as Crimp Micrograph Systems enable manufacturers to guarantee accuracy and speed.

Another quality an ideal outsourcing partner should have is the capability to produce work through multiple shifts. Suppliers that offer a variety of shift work for their employees allows for increased production levels to support demand and shifting deadlines.

This flexibility, along with robust quality processes and the redundancy of key equipment and facilities, allow suppliers to scale production to assist OEMs while saving them both time and money. The right outsourcing partner will be willing to stock inventory so that OEMs can build to a forecast and can automate the manufacturing process to support fluctuations without missing deadlines.

For more information on how you can scale up production while avoiding the pitfalls, contact Liberty Electronics today.

*https://mapifoundation.org/economic/2018/3/4/marked-strengthening-in-the-us-manufacturing-outlook

Why Are Leading OEMs Choosing Turnkey Manufacturing?

June 20, 2023 by Liberty Electronics

Understanding Turnkey Manufacturing

Turnkey manufacturing solutions are a common outsourcing practice. The term refers to outsourcing production to a single manufacturing partner who controls the process from beginning to end. Companies choose this model because it eliminates the hassle of managing relationships with multiple vendors, making it is as simple as “turning a key” to complete a project.

As businesses strive to remain competitive, there is a need to focus on their core competencies. Fully outsourced contract manufacturing lets them concentrate on other areas of their business with less risk and overhead expense. ThomasNet data shows that as of September 2018, sourcing activity was up 33% month-over-month for aerospace contract manufacturing.

Shortcomings of Staying In-House

There are many benefits of turnkey manufacturing for OEMs as opposed to keeping the manufacturing process in-house. The outsourced manufacturer takes over the responsibility of much of the life cycle of the product, including everything from design input and acquiring materials to product testing and warranties. Managing production in-house would require a facility, equipment, and labor, which all add overhead and liability.

You can implement turnkey manufacturing services quickly and efficiently, saving the OEM time, money, and resources. While it may seem like you have to give up a certain amount of control to use a turnkey model, the right partner will become an extension of your team. This allows the company to access a partner’s state-of-the-art technologies, processes, and expertise, and to focus on its core competencies, giving you a significant competitive edge.

Why Turnkey Is Working

Today’s turnkey manufacturing models are thriving because of improved communication. Turnkey manufacturers can offer advice related to part design, financial savings, and material options for the project. Communication is a key factor as you work to make sure a part meets the necessary specifications.

A breakdown in communications can hinder the design flexibility and production and significantly increase lead times. A competent turnkey manufacturing partner ensures open communication and eliminates the need to coordinate components between multiple suppliers. This means a smooth transition from prototype to production and fewer invoices. In the end, the improved communication leads to increased efficiency, saving you both time and money.

Checklist to Find a Successful Turnkey Manufacturer

Do your research before selecting a manufacturer. A poorly chosen partner can derail the entire project, increasing costs and reducing your efficiency. Avoid selecting someone simply because they offer the lowest price or the fastest turnaround.

Here is a checklist of factors to consider when choosing a turnkey manufacturer:

Vet their experience and technical capabilities—this is especially helpful in the design stage when you need a strong project management team.
Make sure their commitment to quality matches your expectations. Liberty Electronics has a reputation for efficiency without sacrificing quality.
Going offshore may secure a lower purchase price, but it comes with quality, delivery and communication risks that can result in a higher total cost than a domestic turnkey partner.
Ensure they have environmental compliance practices in place.
Look for a company that is agile with sufficient change management processes and infrastructure.

A Strategic Supply Partner

Liberty Electronics works with OEMs across a variety of industries to provide turnkey manufacturing solutions for electrical cable assemblies, wiring harnesses, and other products. We have extensive experience in the commercial, defense and aerospace industries and understand the strict requirements for robotics, missiles, weapons systems, aircraft electronics, and other military products.

The Benefits of a Custom IT Strategy [VIDEO]

June 6, 2023 by Liberty Electronics

In today’s manufacturing environment, IT is an increasingly powerful tool for addressing a range of issues from cybersecurity to production and operation efficiencies.

In this episode of Wired Success, Mark Cessar and Troy Funte discuss the value and benefits of remaining nimble in a constantly evolving tech landscape and utilizing catered solutions to quickly resolve issues.

Mark:

Welcome back for another episode of “Wired for Success” presented by Liberty Electronics. My name is Mark Cessar and I’m here with Troy Fonte, he is an IT manager and has been with the company for 20 years. I’m just going to open it up and let you talk a little bit about the benefits of a custom IT strategy. Talk about maybe the history here at Liberty Electronics and in the industry?

Troy:

All right. Thanks, Mark it’s good to be here and I’ve been the IT manager here for a number of years and been employed here for 20 years. And in that time I was hired to help us adapt to a system that was actually not compliant with Y2K. It was a mainframe system back in the 80s and unfortunately that caused our system to basically blow up and reset our orders to 1970 starting on January 1st. Not a good thing. So what we did was we went and searched for a can solution that would cover our needs for ERP, materials, planning, and things like that. So we went out and shopped, and we came up with a very expensive system that was supposed to do everything we wanted. Unfortunately, it was not flexible and when it came to things we really had to have and we paid extra for those, now when a new upgrade came suddenly those customizations didn’t work and we had to repay for those to be upgraded. So a couple years later, we totally changed course and we came up with a product that allowed us to be very flexible and customized kind of a sweet spot

Mark:

Can you talk a little bit about this sweet spot and where you replace the current system?

Troy:

Sure the product we obtained allowed us to make customizations within the product ourselves and so instead of paying somebody to do it, we were able to have the tools to make adjustments. That way as we did upgrades, as windows upgraded their operating system, we could make our changes and they would keep working through the upgrades.

Mark:

Can you give an example of a system that you’ve replaced here at Liberty?

Troy:

Sure. there are several out-of-the-box products that we were using, but they didn’t really integrate into– they cost a lot of extra work for our users– because they would take the one system and then they would have to then put the information into our system. So one good example of this is our time-and-attendance system. So we had a product that we bought and we’re paying $30,000a year maintenance. Plus, if we ever needed to upgrade it, it would cost us another $150,000 and then there would be new features and everything that we had done had to be relearned basically. So one of our on-staff programmers was able to in a matter of eight months, I believe– which was well below just the annual cost of the previous product– was able to not only rewrite our time-and-attendance system, but to do it in a way that integrated with the system that we currently have. So for instance, if a person was working on a specific job for a certain amount of time, we could match that with the time that they were here in attendance and could actually produce efficiency numbers and allow us to see how effective that person was being with their time. We also added biometric readers to our time-and-attendance so that it was more secure and we were able to allow HR to have their own rules for rounding time, and keeping in attendance and things like that. So not only did it save us those upgrade costs every year, but it did more for us, and saved people time. In fact it eliminated a whole full-time person’s job of having to manually enter a lot of data every day. So it was really helpful in so many ways and now we don’t have to pay that annual maintenance fee.

Mark:

Do you have maybe another example of how you’ve responded to a government regulation?

Troy:

Well yes. A huge new regulation that came just about two years ago was called NIST 800-171 and because we work for the Department of Defense, the government is requiring us to handle that classified data. They don’t want it to get into the hands of our enemies. and rightly so. And so they’re implementing security requirements, but these requirements are 125 pages with 110 different specific rules and in our system for instance, dual-factor authentication, encryption, making sure only the people that handle those files have access to it, privileges, logins, things like that. And we interviewed a few companies asking them about this and one company spent 250,000 to implement these rules in their company and fortunately we were able to do that for under $100, not counting our time, in actual costs and the maintenance for that is again under $100 a year. So these customizations will having a dedicated IT staff with programmers and expertise has allowed us to quickly shift and comply with this in a way that allows Liberty to succeed without really having causing us to raise our prices to our customers

Mark:

And finally, do you have an example, maybe of a new capability or an improvement that you’ve made to the system here at Liberty?

Troy:

Yes. We get requests as you might expect from our users every day wanting, “hey can you do this?” Now that they know that we can make changes to fields and even how things look, but our management was really wanting to have a better visibility in our job system. Our job system is the the data that a user working on a product needs to see the work instructions, and then they need to follow the steps to make our product, and management wants to see how long did each step take? And in the past, that was done on a piece of paper, and they would sign the paper, saying that they’d done things and then they would look at a piece of paper to see what to do next. And we developed an electronic router system that allows every user in our company– we’ve Implemented it company-wide– that now, they can click on the screen when they start a step, it tells them what to do right there on their screen when they’re finished, they hit stop, go to the next step. And not only does that save them time from having to find their papers, and make sure they don’t use the wrong piece of paper, it also gives our management real-time labor-tracking data with an understanding of work in process, where the assembly is in the process. So we have all this now live in our system. Every manufacturing user has a computer in front of them with this information at their fingertips. And just last week we were asked by an engineer, “can we include video instructions to the user,” and we said “yes” and in the next week or two, we should be able to not only have written instructions, but a video showing them more complicated steps in the manufacturing process.

Mark:

Wow it’s impressive.

Troy:

It’s been fun and It’s rewarding to see the users be able to get what they need and be able to do their jobs better.

Mark:

Thank you Troy, and thank you for joining us for another episode of “Wired for Success” presented by Liberty Electronics. My name is Mark Cessar and this is Troy Fonte. Thanks again.

How the Right Contract Manufacturer Benefits OEMs [Video]

May 23, 2023 by Liberty Electronics

Choosing the right Contract Manufacturer is integral to business success, whether taking a strategic outsourcing approach, or a tactical one. In this episode of Wired Success, Mark Cessar talks with Liberty’s Director of Business Development, Scott Anderson about how the right Contract Manufacturer can benefit your business, and how that can depend on whether the business takes a strategic approach or a tactical approach to outsourcing the work.

Mark:
Hi my name is Mark Cessar and I’m joined today with Scott Anderson. He is the Director of Business Development at Liberty Electronics. He has worked here for 20 years and has almost 40 years in the industry. Our topic for today is “how the right contract manufacturer can benefit your business.” So Scott, will just start right in so how can the right contract manufacturer help an OEM improve their bottom line?

Scott:
Well thanks Mark, it’s good to be here with you today. What we find it really depends on the approach that the customer takes. If they’re taking a strategic approach, it’s one answer. If they’re taking a tactical approach, it’s another but either way, they can expect to achieve some cost reductions, lead time reductions, capacity increases, and quality and reliability improvements

Mark:
Can you elaborate or provide any examples of tactical versus strategic outsourcing?

Scott:
Sure. On the strategic side, it’s more involved but there is a greater up-side. And so we find that customers are looking at focusing on their core competencies. And so they’re looking at final integration and test and looking really for Liberty to become an extension of their factory to manage this commodity for them. And so this allows them to reassign personnel to more value-added work, reallocate facilities to more value-added work, and at the same time taking advantage of Liberty’s lower rate structure and specialized technology that they might not possess.

Mark:
Well, is there anything else you’d like to add?

Scott:
Well, there are some additional benefits on the strategic side that are worth mentioning particularly on the design side. When companies can integrate more tightly, share information, it results in some significant improvements at the front end. And in addition, strategic agreements are another piece of this that we find helpful. It allows Liberty to build to a forecast and then we can stock raw material, we can stock finished goods, and it takes an assembly that might otherwise be a twenty-six week lead time and convert it to about two days, allowing us to support pull systems and VMI 3PO fulfillment Systems.

Mark:
Well thank you Scott that’s all I have today and thank you for tuning in to another discussion on Wired Success presented by Liberty Electronics.

EMS Outsourcing Infographic

April 11, 2023 by Liberty Electronics

In developing standardized procurement processes, operations and purchasing decision-makers should consider strategic sourcing as a part of their procurement best practices. However, they should keep in mind that strategic sourcing is not a single project but rather a key continuous process.

For those companies sincere about establishing control over their supply chains, incorporating strategic sourcing principles should be evaluated. Decision makers must ask: Do we control our supply chain, or does our supply chain control us?

Implementing strategic sourcing as a best practice can certainly increase the company’s profit margins if approached correctly. Even if your company has only recently added a procurement or supply chain manager, then the company is ready to begin exploring strategic sourcing.

It is important to remember that the goal is not to fixate on daily price and delivery time challenges. Instead, approach strategic sourcing as implementing processes and effective relationships, and the overall advantages realized through an effective relationship to achieve quality, price and delivery goals.

See if outsourcing makes sense for your company here:

The Benefits of Collaborative Design [Video]

March 14, 2023 by Liberty Electronics

In this episode of Wired Success, Sales Engineer, Mark Cessar, talks with George Allman, Liberty Electronics’ Manufacturing Engineering Supervisor to ask some questions about how OEMs can benefit from collaborating with suppliers during the design phase of a project. During their discussion, George shares what suppliers can bring to the table and the overall value this offers OEMs.

Mark Cessar: Hi. My name is Mark Cessar and I’m here with George Allman for another discussion on Wired for Success presented by Liberty Electronics. We are here to talk today about the benefits of collaborative design. George has been working here at Liberty Electronics for twenty-three years as a manufacturing engineer. So we’ll just get started. My first question is “why should an OEM collaborate with a contract manufacturer like Liberty electronics? Are you saying that they don’t know what they’re doing? Are you saying that they don’t know their own design?”

George Allman: Not at all Mark. Our customers, OMS, that we work with are very well-versed in the product design that they’re trying to achieve. However, with Liberty Electronics and our 35 years of experience in manufacturing, we can sometimes bring more to the table that they may not be aware of. Sometimes that’s component selection, sometimes it’s methodologies, sometimes it’s the way that the product will fit together with something else.

MC: You mentioned your unique focus and following expertise. Can you provide some examples of how this could benefit any OEM?

GA: Sure Mark. Again, with their 35 years of experience in this industry, there’s oftentimes when an OEM or customer may suggest a component. However, again with our experience and working in military aerospace at commercial energy sectors, we can oftentimes recommend an alternate, something maybe that’s a little bit more suitable for the intended purpose that the customer may not be aware of.

MC: But won’t this take too much time in an already aggressive product schedule?

GA: Well Mark, it’s been our experience that usually solving issues and situations the earlier in the program that you can, it equates to saving time and money downstream throughout the entire project. And so what we see is the earlier that we can get involved with a project, the earlier that engineering here at Liberty Electronics can get involved in a project, we can oftentimes find solutions quicker, easier, and in a more timely manner and that’s to help the customer.

MC: Well, thank you, George. I appreciate your time. And thank you for tuning into this discussion on Wired Success presented by Liberty Electronics.

How Procurement Professionals Can Prevent Fulfillment Pitfalls

February 28, 2023 by Liberty Electronics

With the news of backlogs at record highs this year, industry OEMs and suppliers are looking for ways to ramp up production to meet demand. Meeting these needs can become challenging when fulfillment issues arise. According to forecast experts like Deloitte, manufacturers in 2019 should be focused on strengthening their supply chains, more effectively managing projects, and leveraging advanced technology to increase efficiency. As OEMs and suppliers both contemplate ways to meet demand, here are a few things all procurement professionals should look for in suppliers to prevent fulfillment pitfalls.

Agile and lean manufacturing

Agile manufacturing is all about setting yourself up for speed, efficiency, and convenience. Customer demands can fluctuate, and when manufacturers are agile they can quickly and nimbly pivot with these adjustments. Lean manufacturing is the sturdy and strong foundation required in order for agility to be possible. Small batches, continuous flow production, and quick changeovers are all key components of lean manufacturing. Agile manufacturing builds on top of lean processes and implements four key elements: modular product design, information technology, corporate partners, and knowledge culture.

Safety Stock

When demand rises but the supply isn’t available to fulfill that demand, the entire manufacturing process comes to a halt. Inventory management is one of the key components of fulfillment success, and one of the ways to stay at the top of your inventory game is to maintain safety (or buffer) stock. Maintaining safety stock of key items can reduce the likelihood of out of stock supplies, but space and budget can both be an issue. The good news is, many reliable suppliers will keep safety stock. Whether they decide to order larger amounts for an OEM in case the order increases or the cost is less to order in bulk, suppliers often strategically maintain safety stock to be prepared for these pitfalls and have the controlled areas to store it.

The right ERP

Reliability, customization, and accuracy are nonnegotiables for OEMs and suppliers when it comes to streamlining fulfillment. Comprehensive Enterprise Resource Planning software can foster clear, concise information across a business as well as manage expectations for a variety of departments. The right ERP can integrate every facet of a project; from product planning and design to manufacturing and marketing. Designated individuals have access to relevant information through each phase of the lifecycle. The ability to cost-effectively customize the software is critical to the support of customer-specific requirements as well as evolving standards and regulations.

Reexamined BOM’s

Demand-driven material requirements planning (DDMRP) is causing many OEMs and suppliers to take another look at the way they approach and use their Bills of Material (BOM’s). DDMRP relies on examining inventory levels through the lens of existing supply and pending orders, adds buffer stock strategically into the equation, and determines the level of demand and appropriate response. Strategic buffer stock is considered within the BOM based on the frequency with which a particular part is usually used, ever-changing lead times, and the phase at which certain supply could potentially run out of stock. When supplier procurement professionals examine their needed and existing materials through this more expansive lens based on demand, they’re less likely to face unexpected depletion.

Fewer sourcing partners

This might sound counterintuitive, but OEMs wanting to lower the risk of fulfillment pitfalls might want to consider the benefits of partnering with a few key partners or even a single source supplier for manufacturing needs. When you select a long-term partner, a relationship can be built and strengthened from an earned trust. You can also take the time to create the rapport that allows more integrated systems and streamlined communication. Not to mention, trends and habits learned over time spent together can become the foundation for intuitively predicting and anticipating inventory needs.

To learn more about avoiding fulfillment pitfalls, or to speak with an expert about partnering with a trusted supplier, contact Liberty Electronics today.

Overcoming Tribal Knowledge in Outsourcing

February 14, 2023 by Liberty Electronics

Imagine notifying your two largest customers that their lines will be down because you won’t be able to deliver their products for 16 weeks. Imagine the daily conference calls, site visits, audits, and over-time costs while your organization is turned upside down trying to deliver product, all for one simple reason: a key part of the process was never formally documented on an assembly that is newly outsourced, or outsourced from a new supplier.

No matter how well-equipped a manufacturer is, it is often cost-effective and convenient to outsource certain parts to another supplier. Reliability, quality, capacity, and cost are some of the reasons why a manufacturer might choose to outsource an assembly. Outsourcing can be a great strategy, but it can also reveal problems associated with tribal knowledge: key process elements that somehow escaped official documentation.

Usually, a problem with tribal knowledge arises when the previous manufacturer makes a change to a part during manufacturing without proper documentation. These changes include: a difference of settings on tools utilized, alteration of techniques, or the change, addition, or omission of parts. These seemingly small modifications remain hidden throughout the manufacturing process until the assembly is outsourced to another supplier. The assembly is ordered and received, only to find that, while it meets the print, it does not fit into the upper level assembly, or even worse, it fails in service. Now your customer is unhappy because it has taken months to diagnose the problem, get the documentation changed, and have the new, usable assemblies delivered.

Fortunately, there are steps that can be taken to avoid problems that tribal knowledge can cause. Early collaboration between manufacturer and supplier is paramount so that both parties can discuss, witness, and document the manufacturing process. Product and process photography should be employed to ensure that the entire process is captured. Physical “gold standard” assemblies that have been built previously and that are known to be correct are also useful for the new supplier.

It is crucial that manufacturers recognize and avoid unethical suppliers, who often purposely keep information from their customers in order to inhibit them from switching suppliers. And be wary if the supplier also manufactures components for the assemblies–this often provides more opportunities to leverage these practices. Instead, a company should seek suppliers who operate with transparency and integrity. A supplier with such qualities will demonstrate rigorous configuration management and process controls, thereby developing better documentation and products. And if you’re already being held hostage by a supplier, it may become necessary to find a supplier who will re-engineer the designs to lower cost, shorten lead-times, and give the you the option to have another company manufacture the assembly if desired.

Problems associated with tribal knowledge are a common issue in outsourcing, but they are also preventable. By working with ethical suppliers who communicate well and document their processes and products, a manufacturer can avoid the pitfalls of tribal knowledge that lead to products that, while built to the documented specifications, do not meet your form, fit, or function requirements.

Want to learn more? Contact Liberty today!

Reduce Supply Chain Issues With a Relationship-Focused Supplier

January 31, 2023 by Liberty Electronics

Reduce Supply Chain Issues With a Relationship-Focused Supplier

OEMs rely on successful partnerships to improve performance, especially when supply chain issues are top of mind for many businesses. It’s crucial to consider how successful long-term relationships can ease supply chain delays through reduced lead times and expedited problem solving.

Building individualized relationships creates better access to products and helps meet specific needs. Manufacturers can reap the rewards in a complex, constantly evolving environment by working with suppliers who personally know their purchasing, engineering and quality departments.

What Sets a Relationship-Focused Business Apart

Relationship-based businesses focus on engaging customers through information and resources that connect directly to their audience and provide value. Once you’ve established familiarity, open communication channels lead to a beneficial relationship with tone and language that both parties easily understand.
Knowing the ins and outs of OEMs can lead to quick resolutions and proactive awareness of potential order issues, faster turnaround times and a deeper familiarity with product lines. Liberty’s team caters to your needs to help you and your project succeed, especially when the supply chain is experiencing shortages or long lead times. Here’s a deeper look at those benefits:

More familiarity with product lines: By knowing customer requirements, suppliers don’t have to start from scratch and can plan on meeting certain specifications ahead of time, potentially shortening the turnaround time for initial units.
Reduced lead time: Suppliers could choose to stock components that may have a long lead time, even if there is no current demand. With knowledge of the customer’s product and specifications, suppliers can also plan builds around those requirements to react more quickly.
Quicker resolutions: Suppliers would know exactly who to contact about specific issues or concerns. For example, an order could be flagged if the customer typically orders items as sets, but they only order part of the set. Suppose there are engineering questions or quality concerns. In that case, they could go directly to that person to manage the issue more quickly rather than contacting a buyer and waiting for contact information.

While transactional business models succeed in driving sales, this is also true with relationship-focused business models. However, the benefits from the relationship model are longer term vs. short-term financial gains. Ultimately, a strong relationship with suppliers allows OEMs to create systems to stabilize demand for parts and reduce shortage risks.

A Partner, Not Just a Supplier

From your first interaction with a relationship-based business like Liberty Electronics®, you can tell we operate differently. Our team prioritizes building relationships with customers by learning your specific needs and delivering customizable solutions. By immersing ourselves in our customers’ business, we develop a 360-degree understanding of what success looks like. Ultimately, you’ll feel heard and understand we aren’t just a supplier — we’re your partner.

This type of partnership results in more success, better performance and a higher quality standard for both the customer and supplier. With few signs of improvement in the disrupted supply chain, finding a supplier who focuses on building relationships can strengthen your operations.

With over 35 years of leadership in our field, we specialize in supporting aerospace, defense, rail, transportation and nuclear energy industries by providing products including:

Electronic wiring harnesses
Box builds
Electrical cable assemblies
Electrical cabinet assemblies
Electrical panel assemblies
Electromechanical assemblies

In addition to our dedication to quality, service and on-time delivery, we’re a relationship-based supplier that values cooperation over competition and are based in Franklin, PA. To build a long-lasting relationship, contact us on our website or via email about working together.

Why OEMs Should Consider Outsourcing A Level Up the Bill of Material

January 17, 2023 by Liberty Electronics

The Bill of Material is a critical component of the planning process in manufacturing for any industry. This comprehensive list of components and equipment required to manufacture a product can fluctuate depending on cost, availability, and capacity. For original equipment manufacturers (OEMs), outsourcing a level up the Bill of Materials might prove to be beneficial.

For example, by partnering up with the right contract manufacturer (CM), you might be able to outsource both the cable and harness assemblies and the assemblies themselves. There are a number of advantages for outsourcing at the next level up in assembly.

Increase Capacity

If you need to increase your final assembly, integration, or test capacity, you can immediately increase your capacity by moving the subassembly work to a qualified CM and free up internal personnel to take on this extra workload. Departments such as Planning, Procurement, and Quality can also free up capacity when they only have to manage a few upper-level assemblies rather than a high volume of lower-level assemblies.

Achieve Cost Reductions

Lean CMs often have a lower labor sell rate than the fully burdened hourly labor rate of an OEM. Additionally, a CM can optimize the value stream and sometimes reduce the total required manufacturing hours. By switching upper-level assembly work to a trusted CM, you can take advantage of a reduction in hours plus the lower rate structure, particularly for that overhead personnel needed for production support.

Realize Lead Time and Inventory Reductions

By building to your forecast, CMs can anticipate your needs and stock long lead time components and assemblies. By working with CMs that support Pull Systems and Vendor Managed Inventory Systems (VMI) both with or without third-party logistics providers (3PLs), you can experience further improvements in material availability while reducing lead times and inventory dramatically.

Exploit Improved Designs

When you collaborate with the right CM early enough in the life cycle of a project, they can provide their specialized input on component selections in order to not only reduce cost and lead times but also improve reliability. This level of optimization can continue to drive overall product and process improvement. For example, CMs that have the capability to produce CAD solid models and 3D-printed models can provide faster, less expensive mock-ups that allow for the opportunity to evaluate multiple different design concepts.

It’s important to remember that none of these benefits are possible unless the CM you partner with has a robust and efficient configuration management system in place. Knowing the impact of proposed changes to cost, schedule, stock, work-in-progress and finished goods is critical for effective implementation.

To speak with a contract manufacturing expert on how to efficiently and effectively outsource a level up the Bill of Material, contact Liberty Electronics today.

Lean Manufacturing In a Low-Volume High-Mix Environment

January 3, 2023 by Liberty Electronics

Read about how Liberty Electronics has implemented lean manufacturing process to save its customers lead time and cost while delivering high-quality product.

Implementing Lean Manufacturing in a low-volume, high-mix electronic manufacturing services (EMS) company is not a textbook exercise. Frequent customer-driven schedule changes, limited production quantities and frequent setups require some creativity in implementing lean manufacturing. In Liberty Electronics’ experience, there is still waste that can be eliminated throughout the value stream.

In the macro view, organizing into cells and customer satisfaction teams, combined with a profit-sharing incentive plan based on objective performance data, provide a greater sense of ownership and accountability. Implementing a rigorous 5-S program to keep things clean, neat and orderly, and moving to a more visual workplace with clear signage and metrics provide improvement in quality, delivery and labor productivity.

In some cases, one-piece flow is possible along with point-of-use material and tool storage, and a two-bin system, with all of the attendant productivity and quality benefits. In other cases, smaller batch sizes are the answer. The ability to pull material kits and tooling, along with on-demand routers, take both cycle time and cost out of the process. Real-time labor data tracking provides useful labor data to evaluate performance against bids, and helps drive labor efficiency improvement. It also provides instant status visibility for use both internally and in providing timely status reports to customers. This is a good example of the benefit of an in-house IT group that can make custom applications to support lean initiatives.

In a low volume, high mix environment, 3D printing has been invaluable in support of lean processes. Creating custom tool holders that are easy to find, transport, and that are safe and easily accessible have helped considerably. Well thought out and easy to use 3D printed fixturing eliminates waste, driving both productivity and quality improvements.

Training and cross-training of employees have proven key, along with moving to daily, weekly and in some cases hourly takt times to help improve on-time deliveries and labor efficiencies.

In-process validation of both products and tools is a key part of lean manufacturing at Liberty Electronics. Having empowered employees that can stop the flow of product when the customer acceptance criteria is not met is critical. And speaking of employees, having engaged and committed people has been, in our experience, indispensable in generating improvement ideas to eliminate waste.

Lean manufacturing in an EMS provider like Liberty Electronics takes on a unique shape, but it is no less effective in supporting world class manufacturing than in a high volume, low mix environment.

Special Delivery: Boxing and Shipping

December 12, 2018 by Liberty Electronics

Creating a quality product doesn’t just end with the manufacturing phase. Choosing the best packaging and shipping options to meet a client’s needs is also an important step in ensuring a product reaches the client in the same state it left the facility. Components are packaged according to specific standards and or client guidelines, and these may include special instructions or specifications, as well as quality assurance measures taken during the manufacturing and packaging process. A variety of packaging options can be used to achieve this goal, including ESD packaging and 3D-printed covers, as well as other more traditional packing products.

Before the final product is even prepared for shipment, various measures are taken during manufacturing to ensure that the components meet or exceed the client’s specifications. These product validation efforts can be used in support of the packaging process. Articles can be photographed or videotaped in an undamaged state before transit to facilitate root cause corrective action necessitated by shipping damage. It is after these measures are taken that the various packaging options come into play.

ESD protective packaging shields components from external static charge. This is different from standard anti-static foam, which protects the product from static within the package itself. ESD packaging is available in foam sheets or shipping boxes, as well as bubble wrap and metallic film bags. ESD packaging is typical in the industry, meeting the requirements of MIL-STD-3010 4046, EIA 541, EIA 625 and ANSI/ESD S20.20 certifications.

3D-printed covers are a unique way to protect components during shipping. Covers, caps, clips, and other items can be custom-fitted to fragile parts of the assembly, printed in house, and applied to the product during the manufacturing process. This not only ensures the components are protected during shipping, but also during the manufacturing process itself.

Of course, more traditional packing materials–bubble wrap, packing peanuts, and shipping foam–are also used, depending on the requirements of the product and client. As for the shipping process, standard commercial services such as UPS or FedEx are usually adequate to satisfy the contract with a client. Occasionally, common carrier freight lines or special delivery options may be explored, and at times, products may be transferred via a dedicated company vehicle directly to the client to ensure simplicity in the shipping process.

The use of various packing materials, inspections and additive manufacturing all come together to ensure one objective: that customers receive products in the same condition as they left the manufacturing facility. The variety of measures taken toward this end ensures not only the best manufactured product, but the best received product.

Contact Liberty today with any questions that you may have.