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PRODUCTION OF A LAWNMOWER, MULTINATIONAL PROJECT

The case
Produce a steel deck lawnmower with an European engine, by reducing at best the production cost (hyper competitive market).

Solution
Origin of the engine : Tecumseh in Italy
Origin of the steel deck pre assembled with all other components (except the engine) : China
Final assembly line : located in Martin city in Slovakia

The process
There are lawnmowers entirely produced in China, with a Chinese engine, cheaper than an well-known European, American or Japanese engine (Tecumseh, Briggs & Stratton, Honda…). However there is no after sales service network for such Chinese engines; on the contrary, in all European countries, even in all middle size European cities, there is at least one service centre than can repair a Tecumseh engine almost immediately (stock of spare parts).
The hardware centers and smaller garden tools retailers know well this situation and therefore prefer purchasing a lawnmower equipped with a Tecumseh (or B&S, Honda…) engine.

To overcome this situation, AsiaCost have imagined with its Slovakian partner an alternative solution:

1/
Final assembly in Slovakia: very economical solution in Europe.
2/

The Tecumseh engines are ordered in Italy after getting orders from customers ; delivery within 15 days (no necessary stock)

3/
All components except the engine (deck, wheels…) are pre assembled in China (cost reduction on both raw materials and assembly cost) and shipped on 40 feet containers to Slovakia ; moreover, AsiaCost have found an existing steel deck compatible with Tecumseh engine, therefore no need to invest in a mould ; just a few components had to be modified (length of the cables)
4/
The packaging and the owners manual are also printed in China.
5/
The packaging of the mower without engine is the same as the final packaging delivered to the final user ; we had however to add internal reinforcements so that the packaging would not be damaged during transportation because without engine, the height of the packaging was too important and the empty space would have damaged the packaging without these reinforcements.
6/
The only assembly in Slovakia is:
a) open the box coming from China, take the steel deck
b) mount the Tecumseh engine on the deck (three bolts)
c) put all together back into the box.
Done in 15 minutes.

Results
Time to finalize the project : 2 months
Cost : thanks to AsiaCost, the total cost have been reduced by 21% compared to a production fully made in Europe.


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