Dec 27, 2007

Cost savings

The last couple months we managed to cut about 50% of the projected cost of our disposable medical device. How did we manage to do that? We have a very labor intensive device to manufacture, or at least we thought we did, we hadn't spent much time refining production.

Then we hired a part time temp and paid her less than 1/2 the rate of the two full time guys and she was able to out produce them both while working part time with a higher quality of work. Plus she actually read drawings and followed procedures so she discovered some engineering and QC problems with the product which were fixed. I don't know how you consistently hire people like that though.

3 comments:

Anonymous said...

How to consistently hire people like that? Move to China or India.

Anonymous said...

Interesting blog.. I am interested in designing medical devices as well. I am going to put you on my blogroll. :)

Jack said...

That's great that you were able to cut cost.