Electronics Contract Manufacturer Selection

Avoid Product Outsourcing Pitfalls with Fact-Based Analysis

Selecting a contract manufacturer for printed circuit board assembly, mechanical sub-assemblies and complete finished products is not just another supplier decision.  It is a key strategic decision which will directly impact the original equipment manufacturer’s cost position, time-to-market and industry reputation.  There are many good outsourcing relationships; however, there is also considerable trial and error in selecting suitable contract manufacturers.

This presentation will show common pitfalls challenging OEM's in selecting outsourcing partners and how fact-based analysis can lead to better decision making.   I will begin by describing the underlying causes for poor or sub-optimal decision making and the importance of establishing a comprehensive decision-making framework upfront in the assessment process.  Examples of fact-based analysis will include quality benchmark comparisons of major EMS sites in Mexico and Asia, business insolvency risk assessments, due-diligence methods for measuring and comparing service levels.  To illustrate, I will use examples from recent outsourcing strategy engagement work (disguised names) for telecom PCBA’s, medical diagnostic systems and cellular telephones.

Bullet of presentation topics

·         Outsourcing Pitfalls

·         Search & Selection Issues

·         Contract Manufacturer Assessment Framework

·         Cost Modeling & Landed Cost Analysis

·         On-Site Survey Dashboard

·         Quality Benchmarking of EMS Sites

·         Business Risk Assessment