Contract manufacturing (CM) is a process in which one company outsources a job to another company, typically for the creation of a specific part, equipment or machine build. There are many benefits to outsourcing on a contract manufacturing basis. And you do not have to outsource out of state or even overseas to gain economies of scale. In fact using local sources is typically far more beneficial. Considering that 50% of the United States population lives within a 500 mile radius of Ohio, it stands to reason that most of the countries’ parts and equipment manufacturing is within a few hundred miles. Manufacturing and management benefits abound when sending all or part of a product’s production to a local or regional contract manufacturing company. These relationships provide cost benefits, quality benefits, ROI benefits, safety benefits, business focus benefits, and speed benefits, to name several examples. There are also ‘outside’ benefits such as:
Topics: Contract manufacturing in Ohio
For decades, OEM’s have wrestled with the decision whether to off-shore or in-shore their manufacturing operations. And over the years, many have in fact sent their production to foreign manufacturers only to find themselves dissatisfied with issues like quality, lead times, inventory management and logistics. They often run into issues related to the lack of control of their product.
From medical equipment components and material handling equipment to automation systems, nearly all major OEM companies rely on contract manufacturers across a variety of industries to increase ROI. For most OEMs, developing mutually beneficial long-term strategic supplier relationships is critical to improving performance across the supply chain; generating greater cost efficiencies and enabling the business to broaden its own capabilities and product offerings.
Outsourcing full build assembly typically involves taking a product from concept to design. Whether it’s specialized machine building or individual components that are part of a OEMs product, the contract manufacturer is an integral partner to the customer. Within the industrial OEM marketplace a third party contract manufacturer can also be sourced for the total assembly of their finished product. In recent times, this trend in using third parties for total assembly is expanding rapidly in industrial markets. This post is intended to provide insight for industrial OEM’s on how they can increase their production, while at the same time reduce their overall costs using outsourced third party contract manufacturers.
For many OEM’s, VMI (vendor managed inventory), is often misunderstood as it relates to the power and leverage it can provide to day-to-day operations. This post is designed to help OEMs and general manufacturing businesses understand the power of a properly organized VMI program. Properly organized VMI programs will drive efficiencies throughout the plant floor while reducing costs in the long run.
This post is intended to provide guidance on the importance and relevance of conducting product quality audits. As a contract manufacturer, we are constantly focused on product quality audits to ensure that the parts and equipment we produce meet the exacting specifications of our customers. Poorly conducted product quality audits can lead to significant production downtime and severe revenue loss.
The creative process of developing and manufacturing products and equipment from concept to market can be challenging. That is why many OEMs use contract manufacturers to help in development and manufacturing of their products.
According to Modern Machine Shop high speed machining typically refers to making light milling passes at high spindle speed and feed rate to achieve a high metal removal rate. This practice can be effective for machining intricate core and cavity geometries in mold machining, and for quickly machining large, complex aircraft components out of solid blocks of aluminum.
When subcontracting a product or a complete machine build it is important to look to suppliers who can carry your project through the entire process, from concept and design to finished product. In the case of contract manufacturing, product lifecycle management (PLM) is a key process of managing the entire lifecycle of a product from engineering design through manufacturing and final inspection.
Identifying and establishing a solid relationship with a new supplier takes time. It is critical to ask the right questions and be able to develop a precise plan of action to move forward.