Archive: Mar 2021

What is Contract Assembly in Manufacturing?

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Contract Assembly in ManufacturingWhat is Manufacturing?

 Manufacturing encompasses the process of turning raw materials into a finished product, with broad capabilities providing products to nearly every industry.  Consumer products cover a wide range of items from razors, to tools, household items and more.  Some companies manufacture consumer electronics such as smartphones, tablets and  computers, while large original equipment manufacturers (OEMs) manufacture automobiles, airplanes, large construction equipment and more. Manufacturing is the backbone of industry, providing a solution to deliver products from ideas to fruition, through product and process development.

What is Assembly?

Assembly encompasses combining components or partial units into an assembled product, either for further final assembly or consumer sale.  Some small parts contract assemblers will provide processes to connect specified components that may need to be delivered back to the OEM for further assembly or installation into a final product.  Assembly complements many manufacturing processes in which individual components or parts are assembled in a sequential manner to achieve a final assembled product, per customer specifications.

Contract Assembly

Contract Assembly operates in a niche market for the manufacturing industry. These companies work on a project to project basis. Outsourcing assembly work to a contract assembly house can be a profitable opportunity for manufacturers, allowing them to keep their own production and labor costs down while farming out work that an assembly house can do quicker and with a higher level of quality and expertise as that is their niche.

Contract assembly services add value to OEMs through efficient and cost-effective assembly and kitting services.

Building Long-Term Customer Relationships

OEMs that establish long-term relationships with contract assembly houses stand to gain the most benefit.  Peoria Production Shop acts as an extension of your team with high-quality assembly work provided with reliable consistency.  We offer continual support for current and new projects, always ready to evaluate the best solution to provide the most cost-effective assembly work possible.  We conduct continual improvement exercises and practice value stream mapping exercises to ensure the most efficient operations, passing cost savings onto our customers.  Long term relationships benefit both the OEM and contract assembly house, a valuable part of major supply chains.

Contract Assembly for Caterpillar 

Peoria Production Shop has been providing solutions to Caterpillar, Inc. for more than 30 years, since the 1980s.  The Fortune 100 construction machinery and mobile equipment industry leader has come to rely on our quick and high-quality service for a wide variety of contract operations.  We provide reliable secondary operations such as contract assembly, kitting, packaging, palletizing, sewing and more.

Peoria Production Shop has been providing valuable contract assembly services for more than 80 years.  We are dedicated to a high level of quality as part of our ISO9001:2015 certification and a commitment to excellence.  Contact us for all your contract assembly needs.

How Kitting In Manufacturing Increases the Bottom Line

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Kitting and assembly improves operational efficiencies, reducing bottlenecks, wasted time and space to improve productivity and profitability for manufacturers or order fulfillment companies.  Kitting in manufacturing entails assembling various products and components together into one unit for ease in further assembly or to develop a final product for sale.

Peoria Production Shop has vast experience in kitting for manufacturing products or consumer goods such as tool box kits. Companies like Milwaukee Tool can let PPS kit and assemble various screwdrivers, wrenches, hammers, and other tools together in one box for sale. Kitting in manufacturing improves the efficient flow of goods and provides many additional benefits.

Kitting Operational Advantages

Saves Space

Outsourcing kitting helps manufacturers to save space in a warehouse. Likewise, outsourcing allows for the cost to only account for the space used for the production of the kits.

Reduce Shipping costs

Kitting allows for the sale of many single components to be consolidated into one order which ultimately lowers shipping costs.

Savings on label products

Consolidating products into one kit makes the use of multiple labels unnecessary, one label can represent an assembled kit.

Conserve Time and Money

Kits save time and labor because all of the products are in one place. This reduces the need to search for inventory.

Amplify the Bottom Line 

Kitting services allow for manufacturers to boost sales. For example, original manufacturers can include one expensive wrench with less expensive products for an increase of sales of a kitted tool box. Likewise, manufacturers can combine products that might not do as well on their own. This tactic allows for manufacturers to gain increased product awareness for a specific product at a lower cost.

Kitting Advantages for Businesses 

Kitting products can help a company stand out because they provide the customer for an all-in-one option. This strategy helps a business to stay competitive and increase brand awareness.

A company can analyze customer purchases to combine kits for frequently purchased products. For instance, if the sales analysis shows that customers are purchasing a tape measure, hammer, and nails all sold separately, a manufacturer can create a kit that includes all of these components in one kit. This improves customer convenience and overall satisfaction.

Through further analysis, a company might discover that these product combos deliver a better return on investment. Testing out new products in kits helps to further specify the supply and demand of specific products.

Why Should Businesses Manufacture Kits? 

Kitting has proved to be a successful strategy for increasing profits and lowering operational costs. Kitting in manufacturing also helps to increase those sales exponentially. When choosing to put together various components into one kit, the speed of production increases and the company is able to push out products at a faster rate.

A contract manufacturer can effectively organize products for an efficient kitting process. Kitting ultimately allows for getting the job done faster with less costs directed towards operations. Kitting improves the bottom line for a successful business. 

Peoria Production Shop has over 80 years of experience in kitting and assembly for some of the largest manufacturers in the world.  We utilize the strengths of our employees, our modern, state-of-the-art facility and vast resources to provide efficient, cost-effective kitting and assembly.  Contact us for all your kitting in manufacturing solutions.

 

How to Choose the Best Kitting Company To Meet Your Needs

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Kitting Company Peoria ProductionMost manufacturers and companies recognize the value in outsourcing  kitting operations, freeing up their own space and focusing on their core operations rather than secondary kitting or assembly work that can be done more efficiently at an assembly house. It is important to understand what businesses should look for when finding the kitting company that fits best with their products and goals.

  1. How fast is the turnaround?
  2. Is customer supplied material safe and protected?
  3. Does the company offer volume discounts?
  4. Will the company provide samples of the products or references?
  5. Does the kitting company offer subscription box services?

Why Choose Peoria Production Shop for Kitting

Every day companies face critical problems that Peoria Production Shop has been solving for nearly 80 years. PPS is an ISO 9001:2015 certified company for 15 years and is a gold-level quality supplier for a global Fortune 100 manufacturer and other clients who put their confidence in PPS year after year.

PPS is fast, reliable, and meets rigorous performance standards set by clients. For a streamlined process, PPS is the perfect solution for your kitting and assembly services. PPS is here for the customers. We are 100-percent self-funded and a non-profit, meaning pricing is straightforward, transparent, and extremely competitive.  Located conveniently in the Midwest, Peoria Production Shop can provide solutions to the following problems:

  • Overflow or lack of storage
  • Substandard mechanical assembly
  • Urgent deadlines
  • Ineffective JIT sorting
  • Repackaging and shipping
  • Inconsistent or poor sewing
  • Inadequate bagging, wrapping or packaging

Peoria Production Shop has the capabilities to order components from suppliers, coordinate routes and schedules, ensure quality by performing incoming, in-process and final inspections, all while meeting customers requirements. Additionally, clients have access to a sophisticated and secure program that allows customers to monitor orders and receive alerts along the way.

Peoria Production Shop offers a highly dedicated, well-trained, and highly productive group of employees that are here to serve the client at every point in the production process.  Contact us to learn how to improve your productivity and profitability with PPS, a leader among kitting companies.

Meet Jessica Rosenbaum

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– Employee Highlight

At three months old, Jessica Rosenbohm began to have a seizure disorder which caused some brain damage and developmental delays. In 1980, at eleven months old, her doctor, Robert Hart, introduced Jessica and her family to Easter Seals.

The non-profit organization has served as an indispensable resource for individuals with disabilities and their families. The Rosenbohm Family has been a part of Easter Seals even after Jessica completed their therapy program when she was in 5th grade.

The baby of four siblings and Hanna City native, Jessica was asked to be in a local style show during the Easter Seals Telethon when she was first a client there. Through the years, Jessica’s parents helped backstage at the Telethon, separating and sorting pledges.

In 2015, Jessica began a letter writing campaign to obtain funds during the Telethon and continues to do so. Since starting that fundraiser, Jessica has raised $48,000 for Easter Seals. Each year, Easter Seals presents her with a check in front of tv cameras. Jessica is called an Easter Seals Ambassador.

Easter Seals helped Jessica get her current job at Peoria Production Shop (PPS). Jessica began working at PPS fourteen years ago. Currently, Jessica is in the labeling and packaging departments. She is responsible for labeling thousands of boxes to prepare for packaging the products. In addition to labeling, her favorite project to work on is packaging spark plugs. Jessica describes PPS as family oriented, friendly, and a place filled with fun, hard working individuals.

While not on the shop floor, Jessica enjoys spending time with her family, especially eating out or going on vacations.  She is an active member of the St. John Lutheran Church and is on the Heart of Illinois Special Recreation Association (HISRA) Special Olympic golf team.  Jessica loves shopping and her favorite stores are Kohl’s and Target.