Saved $952K for military technology manufacturerSurface Transport & Logistics

military defense contractor improved efficiencies
Aerospace Defense

A global leader in aerospace and defense technologies, with specialization in advanced defense electronics for next-generation strike weapon systems, missile-warning and aircraft survivability, and special-mission aircraft, seeks to cut costs and improve production efficiencies.

challenge

Years of traditional life cycle management approaches to manufacturing resulted in the loss of technical capability to support the OEM’s core product line. Shrinking margins, customer cost cutting initiatives, and increases in overhead cost created an almost certain exit from this once profitable flagship product line.

solution

Develop a circuit card assembly work cell capable of managing a low volume / high mix in a highly mature and competitive market space. The planning and execution should involve all stakeholders, from production employee, through to the end user.

  • Utilize lean methods to design, justify, implement and maintain a semi-automated circuit card assembly line that would increase labor base absorption, decrease unit cost and improve yield.
  • Regenerate an entrepreneurial environment execute to commitments.
  • A $325,000 capital investment
  • Two months of planning and machine qualification of the CCA Cell

results

Produced the first lot one month ahead of schedule and significantly under budget. The project attained total ROI in under six months and resulted in a $952,000 cost savings on its first production contract. 

  • 66% increase in first pass yield
  • 86% reduction in product travel
  • 18% reduction in Unit Cost

“A vision cannot be realized without the ability to execute.”

Khris K. Bhattan
PresidentPresident, RTG Solutions Group
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