Case StudyAutomotiveOEM OutsourcingSafety Panels

62% Lead Time Reduction & 847 Panels
for a Tier 1 Automotive Supplier

A Tier 1 automotive supplier eliminated their in-house panel shop and reduced average panel lead time from 14 weeks to 5.3 weeks — delivering 847 panels across a 3-year program with zero late shipments and zero change orders.

Client name confidential per NDA · Industry: Tier 1 Automotive Manufacturing

62%

Lead Time Reduction (14 wks → 5.3 wks)

847

Panels Delivered, Zero Late Shipments

3

FTEs Redeployed to Core Engineering

$0

Change Orders on Fixed-Price Program

The Challenge

In-House Panel Shop Blocking Assembly Expansion

The client builds custom robotic assembly systems for Tier 1 automotive OEMs. Every machine requires 3–8 control panels — a mix of main machine panels, safety panels, and remote I/O drops. Their in-house panel shop was a bottleneck on every project: 14-week average lead time, 6,000 sq ft of floor space, and 3 dedicated technicians who were constantly pulled off integration work to build panels.

  • In-house panel shop consuming 6,000 sq ft of production floor space needed for assembly expansion
  • 14-week average panel lead time causing downstream delays in machine build schedules
  • 3 dedicated panel technicians whose time was better spent on machine integration and commissioning
  • UL 508A compliance managed internally — significant administrative overhead for a non-core activity
  • Component procurement managed separately from machine BOM — no consolidated vendor management
The Solution

Dedicated Build-to-Print OEM Program

Outsourced Controls stood up a dedicated production cell for the client's panel product family — 6 panel types across 3 machine platforms. Fixed pricing, dedicated assembly documentation, and a trained build team assigned exclusively to this account.

  • Fixed-price build-to-print program — pricing locked for the 3-year program term
  • Dedicated production cell with 2-shift capacity — 12 panels/week sustained output
  • Allen-Bradley CompactLogix 5380 and 1734 POINT I/O — client's standard platform
  • GuardLogix safety panels with SIL 2 documentation for robotic cell integration
  • Vendor-managed component procurement — consolidated into Outsourced Controls' Rockwell account
  • Signed FAT reports and full UL 508A documentation shipped with every panel
  • EDI integration with client's ERP for automated purchase order processing
The Results

3-Year Program Outcomes

Operational Impact

  • Average panel lead time (before → after)14 wks → 5.3 wks
  • Production floor space recaptured6,000 sq ft
  • FTEs redeployed to machine integration3 FTEs
  • Machine build schedule delays due to panels0

Quality & Delivery

  • Total panels delivered across 3-year program847
  • On-time delivery rate100%
  • UL 508A acceptance rate100%
  • Change orders on fixed-price program0

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