Contract Manufacturing Consultants - creative strategies for successful outsourcing

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electronics assembly cost models

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USE OF ECONOMIC MODELS

Industry research Due-diligence Achieving win-win outsourcing relationships Use of economic models

Contract Manufacturing Consultants has developed a cost and pricing model that can be of considerable benefit throughout the engagement. This model can be used to reliably estimate printed circuit board assembly and systems assembly conversion cost and pricing. It is activity-based and utilizes data inputs of the client's own product, process and support requirements. It incorporates individual printed circuit board production processes and infrastructure costs for varying delivery systems, i.e. high mix/low volume, mid-volume and high volume production facilities.

The CMC model can answer a wide variety of what-if questions such as how costs might shift with changes in volume, mix or delivery system. It can also be used to assess the reasonableness of contract manufacturer pricing proposals and longer-term pricing viability. Since the model incorporates labor and other infrastructure costs for key contract manufacturing regions worldwide, it readily provides estimates of comparable conversion costs and likely pricing in countries such as Mexico, Singapore, Malaysia, China and Ireland.

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