The Pazmac Challenge: How an OEM Transformed Challenge into Opportunity with Strategic Outsourcing

Every Original Equipment Manufacturer (OEM) faces unique challenges when designing innovative products. Some find it cost-prohibitive to manufacture precision parts in-house due to expenses associated with recruiting and retaining skilled trades personnel. This is closely followed by acquiring and maintaining the latest technology to manufacture these parts. That’s when outsourcing becomes a strategic option.

There are many factors to consider when searching for a trusted manufacturing partner for outsourcing precision parts. Some of the key factors include assessing their processing capabilities, quality standards, ancillary value add skills, reputation, available capacity, and financial stability.

But is this enough? Depending on the complexity of the part being manufactured, working with a partner who can help OEMs navigate challenging times so they can grow and win in their marketplace can be hard to find. 

Outsourcing Complex Components Challenge
One of our existing OEM customers was restructuring their operations to respond to downward market changes and focus on core business requirements. Prior to a slow down in their sales, they had a fully functional CNC machine shop. Bringing the machine shop back online after each successive market recession was proving more challenging with each iteration – it was a significant financial burden.

The OEM customer needed a solution that did not compromise their core mandate to develop new products and provide the service and support that their clients demanded. They made a strategic decision to close their machine shop and outsource.

Pazmac was an existing supplier to this OEM along with a few other select parts manufacturers. The customer’s primary concern was delivering proprietary parts that had only been processed in their shop. Pazmac was selected to produce these components based on our working history with the client. We consistently demonstrated that our team could operate seamlessly for our customer acting as an extension of their business – a true collaborative partnership. 

Key Considerations in Partner Selection
In selecting a precision parts manufacturer and expecting more from a partnership, several critical factors need to be considered:

  • Quality Assurance – evaluate supplier quality control processes, advanced inspection equipment, and precision-focused approach for consistent high-quality components. 
  • Technical Expertise – assess supplier’s ability to bridge design and manufacturing, offering design feedback and addressing technical challenges.
  • Material Sourcing – verify supplier’s capability to sourcing materials meeting specifications, manage traceability, delivery, and offset cash flow requirements. 
  • Cost and Pricing – ensure supplier provides transparent pricing structure, aligned with maintaining a competitive and profitable market position. Consider lead times and production schedules to meet project deadlines and develop contingency plans.
  • Communication and collaboration – confirm supplier’s commitment to open, transparent communication for effective problem-solving for complex parts. 
  • Risk management – both parties identify and address potential supply chain risks, developing mitigation strategies.
  • Continuous improvement – implement regular audits and feedback mechanisms to ensure compliance with quality standards and process enhancements. 

Getting it right the first time requires a team that consistently delivers exceptional customer satisfaction. It’s not easy to find a precision parts manufacturing partner who can bridge precision engineered components to adaptive manufacturing solutions with dedicated manufacturing engineering capabilities. 

What Pazmac offered the OEM went well beyond the standard selection requirements. They optimized the Design for Manufacturability (DFM) process, improving quality, production schedules, and identifying areas for continuous improvement that met or exceeded their product requirements.

Expect More
Choosing Pazmac as their collaborative partner allowed the OEM to overcome manufacturing challenges, control costs, and maintain high precision part and quality standards. Pazmac’s precision-focused approach and commitment to problem-solving made them the ideal trusted partner for producing difficult precision components.

Why should you expect more from your manufacturing partner? The real question is why shouldn’t you? Pazmac invites you to come and see them to talk about how to expect more in precision parts manufacturing.

Let Pazmac be your collaborative partner and help drive your success. 

Seeing is believing! We encourage you to visit our facility in Langley, BC. See what makes Pazmac different from other precision parts manufacturers. There is simply no comparison.

Book an onsite visit by contacting us, emailing [email protected] or calling 604-857-8838.

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