Outsourcing aspects of a project is the most cost-effective option for most Original Equipment Manufacturers. This means the OEM doesn’t have to purchase equipment, set up production protocols and hire more staff to complete production.
Turning over the specialized parts of production to different specialized contract manufacturing companies is commonplace today as few OEMs complete all parts and components in-house. Choosing the right service provider, particularly when it comes to electronic contract manufacturing needs, needs to go beyond just looking at prices.
Quality Assurance is Critical
With electronic contract manufacturing, quality control and quality assurance for each part or component produced is essential. The top manufacturing contractors will always be ISO 9001 registered, but many companies also have ISO 13485 (medical devices) certification as well as a number of industry-specific certifications. These additional specific certifications include requirements for aerospace and defense production.
As many OEMs will export to other countries, RoHS compliant production lines as well as certifications and compliance with OSHA, REACH, EPA and ITAR may also be important factors to consider.
Production Scalability and Responsiveness
Most OEMs will start with minimal types of production runs for parts and components to get their products into their key markets. Once demand increases, it will be essential for the electronic contract manufacturing to be able to respond quickly and scale up production to meet the requirements.
Unfortunately, some OEMs select an electronic contract manufacturer on price and fail to consider these two other important factors. If the contractor has challenges with quality, delivery or the ability to scale up to meet production demand any cost savings that may have been realized will quickly be eliminated.
By taking the time to evaluate the services offered by the electronic contract manufacturing company and comparing costs only after the other essential factors are in place, OEMs can be assured of a production partnership without problems and issues.
