A Fortune 500 manufacturer of electromechanical products previously operated six separate indexing assembly machines, each producing one of a family of products at about 40 parts per minute. The machines frequently sat idle, as demand fluctuated for the various products. Labor expenses were high, since each machine required a dedicated operator.
The problem had reached a point where the manufacturer considered moving the six machines and their entire production offshore to an emerging-market country to reduce labor expenses and save floor space at its European facility.