

Establishment of a production branch
Location: China
Project: Establishment of a production facility
Industry: Traditional wooden toys
Products: Hand puppets and bendable puppets
Project duration: 14 months
Number of employees: 120
Departments: Assembly, Sewing, Warehouse, Shipping, Cutting, Purchasing
Background:
At the start of this project, these products were manufactured exclusively by hand in China. The cost of raw materials rose periodically, and the goal was to keep prices stable on the European market. It was also important to maintain high quality. Consequently, a large number of production steps were to be carried out in-house. The wooden components, as well as the fabrics and accessories, were purchased on the local market. Three key aspects had to be considered during production:
1. Cycle time: Cycle time was crucial to avoid unnecessary inventory both on the assembly line and in the warehouse.
2. Machinery: Machinery (e.g., for shaping) had to be developed to save time
3. Waste: In addition to cycle time and machinery development, the goal was to eliminate or reduce waste
Result: Within 14 months, a semi-automated production facility with a total of 120 employees was established. Prices were stabilized. They were not much lower than those on the Chinese market, but high quality could be guaranteed for the finished product. Furthermore, the company was independent of Chinese manufacturers and could better balance production volumes.