The Switch and partner Scanfil, a contract manufacturer and systems supplier for professional electronics, have set up volume production of full-power wind turbine converter cabinets at a facility in Hangzhou, China.
The Switch says collaboration at the production facility focuses on the core capabilities of both partners, allowing shorter lead times and faster reaction times to customer needs. According to The Switch, the facility is now moving into a stabilized production phase with the production of 15 megawatt-class full-power converters every five days in two working shifts.
"Our agreement is different than normal outsourcing because we're operating like two equal partners," says Pertti Kurttila, The Switch's vice president ofÂ supply chain. "Scanfil is handling all operations. The Switch runs the production line's full-power testing and quality assurance at Scanfil's premises.
"What's key is the logistics," Kurttila continues. "When you get the single piece flow right according to Lean practices, a production method aiming to reduce the quantity of resources used, then everything works smoothly."
The model factory concept is part of The Switch's agile positioning business model, which the company says allows it and its partners to be more responsive to market changes.