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Production Relocation

50% savings per wing in 18 months.

Pricing pressure created the need to dramatically reduce the cost of this large business jet wing by moving the location of manufacture from a unionized site in the US to a South Korean manufacturer that had never produced wings before. The South Korean workforce were trained in all aspects of wing assembly at the US source facility before commencing wing final assembly in South Korea, initially being fed sub-assemblies by the US source site. Sub-assembly manufacture was then relocated to South Korea and the total transition time to get the South Korean facility from producing zero to rate three wings per month was 18 months, yielding a total cost reduction per wing of 50%.

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Site Planning and Relocation