SNAP SWITCH
GENERAL ELECTRIC
BACKGROUND
Shortly after the patent on a popular GE snap switch expired, two Chinese competitors started producing the same switch at half the price. GE's initial attempts to reduce the product cost resulted in a maximum of 15% cost reduction. GE's cost reduction efforts yielded only 15% savings. Two main cost issues identified:
Plastic parts: Multiple mold types increased expenses.
Assembly: Limited space and access lowered productivity, raising costs.
WHAT WE DID
To tackle the challenge, we performed a detailed function analysis and applied the trimming technique that allowed for reducing the material and manufacturing costs significantly.
OUTCOME
45% reduction in product cost (vs. initial 15% savings)
Key improvements:
Reduced material costs
Single mold design instead of two
Simplified assembly process
