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Case Studies & Application Guides

Cost-Down Redesign for Healthcare Product Cart

Client: Leading OEM Healthcare Product Manufacturer

Project Overview

A prominent healthcare OEM approached NJ Sullivan with an existing cart design they found costly and inefficient to manufacture. The OEM sought a redesign that could reduce material and labor costs without compromising the product’s performance or durability. NJ Sullivan’s team took on the challenge of simplifying the design while enhancing its structural integrity.

Challenge

The OEM’s initial design had a complex bill of materials (BOM), requiring multiple components that increased assembly time, inventory costs, and material usage. The OEM needed a solution that maintained the cart’s functionality and durability while reducing manufacturing complexity and overall costs.

NJ Sullivan’s Approach

1. Design Analysis and BOM Review
NJ Sullivan’s engineers conducted a detailed review of the cart’s existing design and BOM, identifying areas for improvement and assessing which components were contributing most to the cost.

2. Custom Aluminum Extrusion Solution
To address the cart’s structural needs and reduce BOM complexity, NJ Sullivan designed a custom aluminum extrusion. This new component provided greater rigidity and stability, allowing multiple smaller parts to be replaced. The extrusion was specifically engineered for optimal strength and durability, eliminating the need for additional bracing and support elements.

3. Streamlined Assembly and Inventory Reduction
By integrating the custom extrusion, NJ Sullivan reduced the total number of components, which simplified the cart assembly process and decreased inventory requirements. This consolidation of parts led to shorter production times and reduced labor costs for the OEM.

4. Prototyping and Validation
After completing the redesign, NJ Sullivan developed prototypes and worked with the OEM to validate the new cart design. The prototypes met all performance and durability specifications, and the custom extrusion was easily integrated into their production flow.

Outcome

NJ Sullivan’s redesign resulted in a cart that was more structurally sound, easier to assemble, and substantially more cost-effective. The streamlined design delivered material and labor savings, and the reduced BOM complexity allowed for lower inventory holding costs.

Key Takeaways

  • Enhanced Design Efficiency: NJ Sullivan’s custom aluminum extrusion provided greater
    rigidity and stability while reducing the total parts count.
  • Cost Savings for the OEM: Simplifying the BOM and reducing assembly time translated into
    significant cost savings on materials, labor, and inventory.

  • Collaboration and Expertise: Working closely with the OEM, NJ Sullivan was able to deliver a
    more efficient and cost-effective design that supported their goals of reducing production
    costs and streamlining manufacturing.

This project highlighted NJ Sullivan’s expertise in redesigning complex products for greater efficiency and cost-effectiveness, making us a valuable partner for OEMs in the healthcare industry.