Ramp to Revenue

One of the age-old challenges in engineering is how to address workload with a fixed number of resources. How does design engineering not become the bottleneck to manufacturing, shipment of products, and ultimate collection of revenue? Vee Technologies has the answer – an outsourcing model which provides the availability of the right skills, additional capacity, reasonable cost and the ability to flex capacity as needed.

A client of Vee Technologies had a problem – it was challenged with 100 new designs a year and 80 designs in backlog. Their current staffing was able to produce only 75 designs per annum. With this shortfall in design capacity, the client was overwhelmed with many challenges including:

  • Missed revenue recognition due to late designs entering manufacturing
  • Constant changes in design priorities due to customer schedule complaints
  • Inability to address design backlog which continued to grow
  • Quality deficiencies as design packages were not complete
  • Engineers working excessive overtime, ultimately costing more for designs
  • Inability to hire new engineers due to cost objectives

Vee Technologies was able to resolve the client’s problems through a consultative approach. We reviewed the entire aggregate of design work, resource skills needed, engineering budgets, required revenue targets, and overall design timelines. Through this analysis, we were able to map the required engineering design output, along with manufacturing cycle times, to the timeline of revenue collection.

We added variable design resources at a fixed cost as our end solution. These design resources supplemented key process points in the overall design process which enabled our client to accelerate completion of designs with more capacity. This additional capacity would remove the bottleneck between design and manufacturing and ultimately enable revenue recognition earlier.

Our design resources were onboarded in phases to ensure proper training and not be disruptive to our client. The Phase I ramp team of engineers was able to produce two designs per week; this initial team was in place for two months.

Engineers-Teams

The Phase II ramp team of engineers was able to produce five designs per week for a total of 250 designs per year.

Engineers-Teams

By outsourcing, our client was able to, not only work current designs, but also eliminate the backlog. Our teams are still in place today supporting current designs and have become a trusted partner to our client. Improved design production and savings of resource costs were significant as seen below.

Annual Design Production

Byron James

Meet the Author

Byron James - Senior Director Engineering Services

Byron currently serves as the Senior Director of Engineering Services for Vee Technologies.

Ramp to Revenue