QIP Providing Manufacturing Cost Audits1 Mar, 2005
QIP Providing Manufacturing Cost Audits
Quality Imaging Products announced a new program to help rechargers determine their true costs to remanufacture cartridges.
“Since 1990, QIP has been helping rechargers with their outsourced cartridge requirements,” says Martin Stein, Quality Imaging Products President. Stein adds, “According to Recharger Magazine, approximately half of all rechargers outsource some or all of their production. Rechargers outsource for the following five reasons: 1) To keep up with new product development, 2) To reduce working capital needs, 3) To improve quality, 4) To focus on growth, and 5) To reduce Costs. Of these issues, the most important is that outsourcing can lower costs due to economies of scale.”
“QIP will come into a recharger’s business and conduct an extensive manufacturing cost audit to help decide whether or not outsourcing can reduce their manufacturing costs,” comments Gary Whitlock, QIP Senior Account Executive. Whitlock adds, “Through the audit, QIP can determine the true material costs, overhead costs, and labor costs for the remanufacturer. Frequently, local remanufacturers are not familiar with their actual costs. We do the audit over several on-site meetings and follow-up with an in-depth review of the results. On average, QIP has been able to save our outsourcing partners 20% from the true costs of doing business. The audit has been a serious eye opener for some of our customers. One of our customers initially told us they had less than a 1% rework rate for work in progress. Through the audit we discovered they had never accounted for cores that were scrapped during the production process and in fact had an excess of useless cores in their inventory that had been picked for parts only. Rechargers that have signed up for our audit have been extremely satisfied with our conclusions and have improved their business model as a result.”
For more information contact Quality Imaging Products at (800) 423-8600 or visit www.qip.net.