Case study

Geotek

Removing manufacturing cost from a digital mobile radio

For Geotek (a manufacturer of SMR radios), PA engaged in a cost reduction exercise to remove manufacturing cost from the transmitter board of a digital mobile radio. The process involved a redesign of this section of the radio in order to remove certain high cost components, and most significantly, to provide a more flexible design which could readily meet the production yield targets. By increasing the range of adjustments possible, PA was able to ensure a high yield at the production alignment phase. The process removed over $20 from the overall materials bill, and a similar cash benefit accrued from the improved yield. For a product to be made in the tens of thousands of units, this benefit would clearly justify the initial investment.