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For Global OEMs

Complexity is a part of being a Global OEM. From manufacturing in multiple regions, to modifying products to comply with local regulations or preferences, the trend is toward more and more complexity. And with complexity comes challenges to best utilize assets, increase throughput as demand increases, and find cost reduction to maintain a competitive offering. World Class Industries (WCI) and our Virtual Assembly Factory solution is uniquely formed to solve these issues. Thirty plus years of experience working with Fortune 100 companies globally uniquely positions us. Using integrated procurement, data-rich assembly, customized order fulfillment, and dedicated project management, WCI is able to offer a compelling solution—a solution that reduces complexity, increases throughput, reduces assets, and reduces cost.

Learn more about how the Virtual Assembly Factory can benefit your company.

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Burning Platform

Optimizing a production system is challenging and difficult. The Virtual Assembly Factory solution is tailored to solve the three most vexing problems.

For Global OEMs, those issues are Throughput, Asset Utilization, and Cost Savings.

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Throughput. Investment in fixed assets is significant for Global OEMs, making the ability to produce one additional unit incrementally more profitable than the previous unit. For large, complex, and costly products, that incremental profit can reach hundreds of thousands of dollars. Layered on to this fact pattern is often demand that is cyclical, seasonal, and subject to sudden increases.

Using WCI’s Virtual Assembly Factory, Global OEMs are able to solve this puzzle. Outsourcing modules and sub-assemblies with high content reduces final assembly time and thus increases throughput while at the same time greatly reducing complexity.

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Asset Utilization. Closely related to throughput is asset utilization. To maintain profitability at all stages of the demand curve, Global OEMs are very measured in their investment dollars. Typically, OEMs choose to deploy capital to its highest, best use. Seasonality and changing demand are also important to investment considerations.

Virtual Assembly Factories help increase utilization by aggregating demand among varied and diverse products across industries. In this way, investment dollars can be directed to new product programs and technology.

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Cost Savings. The competitive landscape in many end-markets is aggressive with new entrants, constant innovation, and a focus on value.

WCI is a partner in cost saving projects and value improvement projects. With years of experience and detailed expertise, WCI delivers results.

Virtual Assembly Factory Compared to Adjacent Solutions

World Class Industries isn’t the only company involved in these types of solutions, but we believe for highly complex, supply chain driven assemblies, our Virtual Assembly Factory provides the best total cost solution. Other options are likely present in your supply base but are frequently over utilized. Specifically:

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Contract Manufacturers. At the core or exterior of many products is a part made of metal or plastic. With high levels of content, engineering capability, and competence it seems logical to look to Contract Manufacturers to put together final products or modules. However, if the assembly content is significant on a product, the Virtual Assembly Factory model is more competitive. Using pricing models that are activity-based and not overhead-based, the most efficient assembly processes, and a system that is set-up for assembly, Virtual Assembly Factories deliver cost effectiveness and capacity without sacrificing quality.

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3PLs/Distributors. Another common approach to product assembly is to work with a logistics partner or even a distributor of hardware items. These suppliers are often integrated into the business, willing to expand their scope, and located in proximity. For complex assembly projects, we have seen this approach fail more than succeed. It is easy to underestimate the amount of industrial engineering work required to bring a project into production and easier to forget the required supply management processes to perform advanced quality planning and procurement tasks.

World Class IndustriesContract Manufacturer3PL Distributor

Complex Assembly

Metal Fab Concentrated /

Injection Mold Concentrated

Kits / Simple Assembly

Precision Pricing

Overhead-Pased Pricing

Menu Pricing

Professional Assemblers

Skilled Operators

Low-Cost Labor

Smart Tools / PLC / Data Rich

Operator-Dependent

Operator-Dependent

API / Connected Supply Chain

Manual Order Processes

Manual Order Processes

In-House Factory Automation

OEM provided / Off-The-Shelf Tools

OEM Provided / Off-The-Shelf Tools

Thinking About Outsourcing?

Assemblies come in all shapes and sizes, but there are three key characteristics to keep in mind when evaluating whether WCI’s VAF solution is the best solution for your project. Keep in mind:

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The more labor content, the more favorable WCI’s Virtual Assembly Factory will be when compared to OEMs self-performing the work.
 

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The more diversified the bill-of-materials, the more favorable WCI’s Virtual Assembly Factory solution will be when compared to Contract Manufacturers performing the work.
 

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The more efficiency gained from factory automation tools the more favorable WCI’s Virtual Assembly Factory solution will be when compared to 3PLs and Distributors quoting the project.

 

Where do we add the most value?

There are numerous applications for WCI’s Virtual Assembly Factory as witnessed by the hundreds of assembly cells and thousands of assembly part numbers supplied to customers annually. A couple of examples:

  • Glass Doors
  • Serialized Components
  • Drive Assemblies

Glass Doors

Glass Doors min

  • Demand aggregated across multiple customers
  • Proprietary assembly fixtures and glue application process

 

Serialized Components

Serialized Comp min

  • Process controlled by custom PLC software
  • Key component serial numbers recorded and provided to customers

 

Drive Assemblies

Drive Assy min

  • 30 data points recorded for each serialized assembly
  • Multiple technologies including presses, torque tools, and leak testers integrated into one system. 

Glass DoorsSerialized ComponentsDrive Assemblies

Glass Doors min

Serialized Comp min

Drive Assy min

  • Demand aggregated across multiple customers
  • Proprietary assembly fixtures and glue application process
  • Process controlled by custom PLC software
  • Key component serial numbers recorded and provided to customers
  • 30 data points recorded for each serialized assembly
  • Multiple technologies including presses, torque tools, and leak testers integrated into one system.

Performance Matters

World Class Industries is honored to have received the highest levels of recognition through our customers’ supplier programs including:

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2-time Hall of Fame Supplier, John Deere Agriculture & Turf Division
 

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25-time Partner Supplier award, John Deere Agriculture & Turf Division
 

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15-time Partner Supplier award, John Deere Power Systems Division
 

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10-time Supplier Quality Excellence Program certified supplier, Caterpillar