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SUCCESSFUL CASE

Contract Manufacturing Management for Commercial Equipment Assembly

Client

A U.S.-based commercial equipment company producing modular storage and transport systems for laboratories and healthcare facilities.

 

Project Summary

The client needed to develop and scale production of a custom modular utility cart system, combining a welded steel chassis, precision-formed metal panels, and a set of injection-molded plastic trays with tight dimensional tolerances. The project required a reliable, scalable manufacturing partner capable of ensuring consistent fit between metal and plastic components.

1. The Challenge
 

The client faced multiple issues with its previous supplier setup:

  1. Engineering Variation
    The steel frame and plastic tray dimensions were inconsistent across batches, leading to poor assembly fit and increased field complaints.

  2. Supply Chain Fragmentation
    Metal components and plastic parts were sourced from suppliers in different regions, resulting in long lead times, misaligned production cycles, and higher logistics costs.

  3. Cost Escalation & Slow Ramp-Up
    Rising material costs and low automation levels created price pressure, while limited capacity made it difficult to meet growing customer demand.

The client needed a partner who could stabilize quality, improve cost competitiveness, and deliver an integrated manufacturing solution.

2. Our Approach

 

A. Technical Review & Re-Engineering

We partnered with two vetted manufacturers in China and performed a joint engineering audit.
Key steps included:

  • Reworking tolerance stack-ups for the metal frame and plastic trays

  • Standardizing critical weld locations

  • Adjusting the mold gate design to reduce warping in large plastic parts

  • Using finite element analysis (FEA) to strengthen load-bearing joints

This ensured consistent dimensional alignment between metal and plastic components.

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B. Integrated Manufacturing Cluster

We created a coordinated supply chain using two facilities within 30 km of each other:

  • Metal fabrication factory:

    • Laser cutting

    • CNC bending

    • Robotic and manual welding

    • Powder-coating line

  • Plastic injection molding factory:

    • 450–900 ton injection machines

    • In-house mold production and maintenance

    • Ultrasonic welding and padding for plastic subassemblies

Part flows were synchronized so assemblies could be pre-fitted before shipment.

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C. U.S.-Based Program Management

From California, we handled:

  • Engineering translation and drawing updates

  • Weekly production reviews

  • Pre-production sample evaluation

  • On-site quality audits via our local QC team

  • Shipping consolidation and delivery planning to U.S. warehouses

This structure reduced communication friction and accelerated decision-making.

3. The Results

 

A. 22% Cost Reduction

Design optimization, better tooling, and integrated logistics lowered the total landed cost per unit by 22%.

 

B. Dramatic Quality Improvement

Critical dimension variance decreased from ±2.4 mm to ±0.6 mm, eliminating the customer’s assembly-fit issues.

 

C. Faster Lead Times

Integrated production reduced total lead time from 68 days to 41 days.

 

D. Scalable Capacity

Production capacity increased from 800 to 2,400 units per month to support the client’s expansion.

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The client achieved:

  • A stable, repeatable product with dramatically fewer field complaints

  • Lower production costs and more competitive market pricing

  • A reliable, scalable supply chain under a single point of coordination

  • Higher customer satisfaction across their equipment distribution partners

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