Early Supplier Integration

Keltech based in Waterford, Ireland is a contract manufacturing partner supplying blue chip OEM customers throughout Europe and North America. Keltech adheres to a focused operating strategy in 4 main business divisions, namely: Reservoir Tanks, Acoustic Enclosures, Over Head Guards & Cabins and Complex Fabrications. This focused approach has fostered a culture of recognised excellence in our chosen streams.

The Keltech ESI model; what is it? Early Supplier Integration is a vertical collaboration between Keltech and our OEM customer which in short is Keltech involvement at the design and innovation stage of new product development of a Reservoir Tank, Acoustic Enclosure, Overhead Guard/Cabin or Complex Fabrication.

In recent years our OEM customers have tended to adopt a MAU (Multi-Assembly Unit) business model says Seamus Lawlor (Keltech Business Development Manager). Briefly explained that is that OEMs are choosing to fully sub-contract the different piece part assemblies (Reservoir Tanks, Cabins, etc) and bring these finished assemblies to their plant for a final full build of their machine. “this practice has lead to a major streamlining in our customers operations Seamus explains as instead of having to control large bills of materials say related to a reservoir tank and also having to have a dedicated area within their plant for the fit out of the reservoir tank our customers now rely on Keltech to supply an integrated offering which is supplied under a 1 line item order that can be delivered line side in a plug and play state.

Seamus continues “our customers having adopted MAU have derived many positive efficiencies; Lower stock levels & management, more available production space as the need for sub assembly cells have been removed, labour capacities are focused only on final machine build now meaning production planning accuracy has been increased, etc etc” However with this change of approach has come a shift in the knowledge base. Keltech’s back office technical support has increased 2 fold in recent times to keep pace with the added demands of now supplying fully integrated products. In conjunction with this our customers technical focus is now almost exclusively based on final machine assembly and hence there has been a transfer of Knowledge with regards to the “best practice DFM (design for manufacture)” on the assemblies which have been fully sub-contracted (Reservoir Tanks, Acoustic Enclosures, Over Head Guards & Cabins and Complex Fabrications).

Spotting this role reversal Keltech have developed their ESI model (Early Supplier Integration). This service is available to all Keltech existing customers; Pat Power (Keltech Engineering Manager) explains. “the first step is to provide the customer with a scoping document which lays out some simple guidelines for manufacturing design. Here we present the customer with details such as Base Material Consideration’s, Folding & Welding Considerations, Drain Port Location and Size (Tank cleanliness),etc.” Pat continues “from recent experience we are seeing customers whom are not paying the required attention to this finer detail. Investment in expensive tooling when other options are available, paying increased premiums for milled and turned parts when with a little guidance from Keltech more common and widely used options can be used for a fraction of the cost, etc all of these things add to both the initial and long-term cost of the part.”

True that the Keltech ESI model as evidenced above can produce some commercial benefits but more over Keltech bring an innovative approach to the overall design of components that can improve quality and performance also. “Keltech are now globally one of the largest manufacturers of Reservoir Tanks for the off-highway sector and Acoustic Enclosures for the power generation and industrial pump sectors” Seamus comments. With this over time comes a huge understanding of the finer details that may be lost when dealing with a more general supplier” continues Seamus.

“Keltech are not a general fabrications supplier whom happens to make reservoir tanks; we are a reservoir tank manufacturer. For example Keltech are now considering areas such as fluid dynamics; Baffle orientation and design to ensure efficient flow and heat dissipation of hydraulic oil, correct reservoir tank sizing taking into account machine operating conditions and so on”

Seamus concludes “ We here at Keltech firmly believe that the ESI model we have developed will vertically align our business offerings to our customers needs and ensure that our reputation is maintained and enhanced as the true market leaders in our chosen fields”

Why not take a look at some of our Integrated Reservoir Tanks that we manufacture at our Waterford base:

Enjoyed reading this post or want to find out more? Contact me on seamus.lawlor@keltech.ie or 00353864681333



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