Assembly: to outsource or not to outsource, that is the question?

“Competitive lead times and golden Czech hands”

Do it yourself or outsource? Companies in the Western European manufacturing industry are asking themselves this question on a regular basis. After all, the labour costs for manual assembly processes and/or installation are a strong cost factor. As such, companies are looking closely at the relocation of their assembly processes. And the Czech Republic, where the hourly wage of professionals is lower than that of their Western European colleagues, is one such consideration. Lead times and quality play a role in the decision whether or not to outsource. Iman Landheer (Sales manager), Tomáš Benda (Assembly Manager) and Karel Bartasék (Technology Manager) explain what SixPointTwo can offer in the field of assembly.

Meetings with companies that are considering outsourcing take place at the SixPointTwo offices in Weert. “Naturally, companies want to know a lot about us. Can SixPointTwo deliver? What about lead time? How can the quality requirements be guaranteed? And does it actually save costs?” says Iman Landheer. “After we have answered these questions, the company have all the information they need to make a good decision. If you want to visit Humpolec (Czech Republic) or if a feasibility study is required, we can take care of that as well of course.”

Communication is crucial
The assembly process from start to finish is Tomáš’s domain. “I am responsible, along with my team, for all the new assemblies that we carry out in Humpolec. We ensure we have received all the necessary information before and during the assembly process so we can achieve an optimal end result. If there are any questions, we contact the team in Weert first. We then check with the customer to see if any changes are required, or we propose an improvement.”

The start of a new assembly process
SixPointTwo will receive the required information about setting up and starting the assembly process from the customer. In principle, this can be done in three ways. “The first option is the customer makes some 3D Data available along with a prototype of the product. We can derive the production process from that.” The second option: “The customer provides us with the data and then comes to Humpolec as we run the assembly process for the first time. The customer then provides instructions on site to enable us to carry out the work independently.” The third option: “We receive 3D data, drawings and instructions. If we have any questions about following the instructions or clarification of the specifications, we will ask. We then have all the information we need to begin the assembly process.”

Flexibility and craftsmanship
SixPointTwo can take care of a wide range of products and as an example, these include frames for cable reels, complete housings for many machine types, as well various sub-assemblies that customers can then install into their end product. “We are quite flexible: we have laser cutting, welding, bending, component manufacture and assembly in-house,” says Karel. “We can also take care of any processes involving sheet products prior to assembly,” notes Iman. “The Czech rates for these processes, just like assembly, are lower than those of comparable suppliers in Western Europe.” Karel adds that various surface treatment requirements can also be applied, such as powder coating (in-house process), electroplating and KTL lacquering.” And then there is another important factor: “The craftsmanship of our people. People often speak of golden Czech hands, and for good reason.”

Lead time
As stated previously: lead time is another factor that counts. “Lead time depends on, for example, the complexity of the assembly process,” says Tomáš. “And some components used for the product to be assembled can have a long delivery time. For more simple operations, a lead time of 5-6 weeks can be expected.” “Our lead times are without doubt competitive, and we make agreements about this with the customer,” says Iman.

Quality assured
Tomáš and Karel are involved in the assembly process from start to finish. “Working with the team, we carry out both the full First Article Inspection and the Final Inspection. The customer receives a report from both. We do everything we can to ensure the products fully meet the customer’s requirements and specifications for both the first series and the subsequent series.”

The Netherlands and the Czech Republic: the best of both worlds

Do you want to do business? We speak your language!

“Praat Nederlands met me”, sings Kenny B in his number 1 hit Parijs in which he sings about how nice it is to meet someone that speaks his native language. After all, it’s best to talk about important matters in your native language. And with someone who understands exactly what you mean. One such interlocutor is SixPointTwo. Customers of SixPointTwo can get the best of both worlds: the Dutch production and process control method, and the Czech work ethic.

A fruitful business relationship starts with good communication. Our sales office in Weert (the Netherlands) plays a central role in this. The people who work here can talk to you in your own language. Our employees not only speak Dutch (their mother tongue), but also fluent German and English.

A contact person
Rapid contact is crucial for all our clients. This is why we keep the lines of communication short. As a SixPointTwo customer, you will have one fixed contact person to deal with from the start. He/she will translate your requirements and wishes to our colleagues in the Czech Republic. And something else important to know: your contact person is in direct contact with the Dutch management in the Czech Republic. This means you have a direct point of contact for every phase of the project: someone who always has the latest up-to-date information about your project, and someone you can always turn to.

Two success factors
SixPointTwo lets you take advantage of the benefits offered by nearshoring. This can be put down to two success factors: the Dutch approach (streamlined processes from preparation to implementation) and the Czech work ethic. Starting with the first success factor: our production site is modern and highly automated. Naturally, we comply with international standards concerning quality management, the environment, and health and safety. Our work processes are efficiently organised and carried out by our excellently trained Czech employees. They are highly motivated and extremely involved. And that’s our second success factor: the work ethic of our people

Tangible Benefits
With the best of both worlds, you benefit from cost savings and exceptionally short lead times. And with product quality as a certainty, we have optimally safeguarded quality within our organisation. Would you like to know more? We would be happy to tell you face to face and in your native language what this means for your company. So don’t hesitate to set up a meeting…

How do you find a reliable second source supplier?

Reverse engineering: “SixPointTwo made it happen!”

A supplier that guarantees constant top quality is worth its weight in gold. But as good as it is, it is never a good idea to simply depend on one supplier. And this is certainly true now delivery times of raw materials and semi-finished products are under pressure, and prices are rising. How does a company today find a reliable second source supplier? Lead engineer of Enclosure Company*, Wessel de Vos, talks about his experiences with SixPointTwo.

“Sound cabinets are an important part of our products. We have used one regular supplier for years and they have always delivered to our full satisfaction. We had been looking for a second source supplier in recent years, but had always been unsuccessful. Recently, when metal prices rose sharply, we made another attempt. Our director knew Iman Landheer so we invited him for a meeting at Enclosure Company. We showed him the sound box and discussed what our expectations were of a second source supplier.”

Challenge: replace the extrusion profile
“Until now, our sound boxes have always used a patented aluminium extrusion profile. Copying this profile was not an option: it is too expensive. We agreed that SixPointTwo would make a replacement metal profile using sheet metal working techniques. SixPointTwo received a CAD model of the sound box from us in order to do this. We also shared information about the materials to be used such as fasteners, locking systems and insulation materials. We were presented with the replacement metal profile six weeks later. The corner pieces were attached with pop rivets. The use of pop rivets was unacceptable to us. The corner pieces are the pillars of the sound box and must be sturdy. And even though they may be strong; they didn’t look strong. Customers expect a robust, heavy cabinet that makes no noise when you hit it with your hand.” Another solution was discussed. “After five minutes or so we had a solution. Working closely together, we decided to make a hole in the profile, weld it full, and then grind it smooth.”

The first two prototypes
Two sound box prototypes were delivered in the final week of August. “Looking at them from a distance, you can’t see any difference with the original cabinet. You don’t notice see the welding spots on the corner pieces at all: they look fantastic!” There were still a few things that needed to be adjusted. “A mistake was made with the metal working of a few of the panels. They were 32.5 mm instead of 34.5 mm.” Another mistake involved a strip that was attached to the outside instead of the inside. “A customer would never notice that.”

Furthermore, on closer inspection we discovered a useful adjustment. “The original cabinets are always fitted with white plastic rings. Because SixPointTwo temporarily couldn’t get hold of white rings, they used black ones. We want to leave it that way now because the advantage of this is that we can see where a cupboard has been made.” Wessel discussed his feedback with Iman. “It would be wonderful if such a process went perfectly in one go. I initially assessed the work as an easy 8, but with the processing of the feedback it can become a 9.5 or a 10. As soon as we achieve that, we will start working with SixPointTwo.”

Short work
The two SixPointTwo prototypes arrived at Enclosure Company four months after the introductory meeting. “An advantage was that SixPointTwo could use our CAD model. The new element they had to think about was the metal profile with the corner pieces. And they had some calculations to do in order to be able to fit the sound box into their production process.” All in all, it went very quickly, says Wessel. “Another big advantage was that we were able to do all of this with a Dutch partner. Things are different with English or Chinese companies, and sometimes there is an intermediary between us and the client. I always had direct contact with Iman, which was handy. A joke that a Dutchman gets straight away can be misunderstood by an Englishman or a German. They may even take it as being strange or as criticism. It is also much easier to call another Dutch person. The conversation can be very short. Didn’t we agree on this and that? Yes!? Okay. Then you know enough and you can move on.”

Wessel knows from experience that things can turn out differently. “You don’t want to be in a position where you look at the product and say: this is not what we asked for. But SixPointTwo lived up to their promise: we can make that sound box.” And now Enclosure Company has already placed an order: SixPointTwo is going to make 65 sound boxes for us.

* (At the company’s request, both the company name and name of the interviewee have been changed.)
Would you like to know more about what SixPointTwo can do for your company in terms of reverse engineering? Contact Iman Landheer, tel: +31 6 4224 3466, e-mail iman.landheer@sixpointtwo.eu.