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The Real Cost of Fixture Change Orders


Changes may be costing you more than you think. Making modifications to fixture orders after the fixtures are in production is a common practice, but expensive for both manufacturers and fixture buyers. Even changes made late in the development phase can have far-reaching consequences during production.

Why does it cost so much to change?

Making changes late in the game forces manufacturers to redo work that they've already completed; reorder materials, usually with less lead time; and reschedule production time and labor. These are all additional expenses to fixture manufacturers, who already operate on slim profit margins. Every change, however small, can affect:

Re-Engineering-Engineers must carefully review each change to make sure it does not negatively impact the final product. They must also make sure the original objectives of the fixture are still being met. Will it still hold the weight and capacity needed? Will it meet seismic requirements? Will changes affect the safety of the fixture? Will the fixture still meet merchandising needs? Even a seemingly minor change can have major implications, according to Jerry Wengert, senior vice president of sales for Universal Display & Fixtures Co., a Lewisville, TX-based manufacturer of P-O-P displays, store fixtures, and beverage racks.

Estimating-Changes in design may require more expensive materials or more labor-intensive procedures. Even if they don't, the project will still have to take another trip through the estimating department, requiring time and attention.

Purchasing-Changes that affect dimensions or materials may require the purchase of new materials, components, and hardware.

Inventory-Materials that have already been purchased or ordered must be replaced with new stock, which may or may not be available in the time needed. If an expedited delivery is required, the costs increase even more.

Re-Tooling-Depending upon the type of change, machine tooling may have to be adapted or re-created, a very expensive and time-consuming process.

Lead Time & Scheduling-If the job is delayed by the procurement of new tooling and materials, meeting deadlines may require overtime or double time for manufacturing employees to make up for lost days. In addition, fixture manufacturers can't afford to have production lines at a standstill while waiting for an approval or for new materials to arrive, so most shops will schedule other jobs into a production time slot when a job is delayed due to customer changes.

It doesn't have to be this way

There may be times when a late change is unavoidable, but communication and the early involvement of all parties with design input can minimize the need for late and expensive changes. Involve your fixture manufacturer as early as possible.

"Partnering with manufacturers even as early as the budgeting phase helps us save our customers time and money in the long run," explains Wengert. "We can help balance the designer's creative vision with realistic and affordable engineering." Value engineering suggestions from the manufacturer early in the development process can help you reassess your priorities based on realistic designs and costs. And don't forget to get approvals and sign-offs from everyone who needs to approve the design-while it's still early enough to incorporate their suggestions.


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