Efficiency is a key driver of profitability, especially in manufacturing operations where time is money. Kitting is proven to improve efficiency, thus increasing profitability, in many manufacturing applications. Having the parts required delivered to a certain production station at the time they are needed saves operators from hunting for parts that they need and supports lean, continual production operations.
Kitting Saves Time, Time is Money
The cost of each component produced, whether a small part or a large automobile, is dependent upon a few different factors, including the raw materials going into the product, the cost of labor, and the time it takes to produce each unit. Reducing the “cycle time” of each product produced is one area where manufacturers have some control and try to improve, thus reducing each component’s cost. If time is shaved even in seconds off of a production cycle, that’s seconds that are opened up to produce more parts. Time reductions also provide more production for the same labor expenses in most cases, thus making labor more efficient.
Lean Manufacturing with Kitting
Reducing time where possible is one key aspect of lean manufacturing. Reducing the time it takes to produce products and the time that parts are stored in inventory, whether raw materials or finished goods, improves efficient operations. This is especially true in assembly operations where a production line must have the parts they need, as shutting down a major assembly line is not an option in many operations. Just shutting down one production line at an automotive OEM plant can cost tens of thousands of dollars in a matter of hours.
Kitting Improves Efficiency and Inventory Reductions
Storing products costs money in terms of taking up space in addition to the cost of the purchase. This is why many manufacturers practice lean manufacturing, which emphasizes waste reduction and optimized flow of goods, usually with just-in-time (JIT) deliveries of required materials. This also helps to prevent items from becoming obsolete while in storage.
By reducing the amount of inventory, companies can improve their inventory turnover ratio, which indicates efficient inventory management, improving balance sheet ratios and cash flow. Kitting is an excellent way to improve efficiency when assembling components and to help reduce product cycle times and inventory storage. Kitting requires careful planning and logistics considerations to receive the right parts at the right time but is well worth the improvement in efficiency when assembling components.
PPS Supports Lean Manufacturing with Kitting for Assembly
Peoria Production Solutions, PPS, understands the importance of lean manufacturing and on-time delivery as an ISO9001:2015 registered kitting provider with more than 80 years of experience. We provide kitting solutions for companies of all sizes, including some of the largest Fortune 100 companies in the U.S., as well as small to midsize businesses.
We practice value stream mapping (VSM) in our own operations to optimize kitting and assembly processes. This ensures the most efficient process to meet your production requirements with a focus on high quality and timely delivery. Our staff is unique in that we enjoy a dedicated team that enjoys coming to work and enjoys working together thus cross training, and fulfilling lean production processes are simpler when all team members are focused on providing an exceptional material flow.
PPS utilizes automated equipment combined with a trained, skilled staff in addition to quality control and lean manufacturing best practices. We offer a large, modern facility with the capacity to dedicate customized kitting and assembly stations to meet customer needs. Contact us to learn more about improving your assembly operations from an ISO9001:2015 certified kitting and assembly provider.