As many startup businesses evolve, they follow a common pattern. An entrepreneur is inspired by an idea or market opportunity and “starts in a garage” or a basement (or their parents’ spare room). That entrepreneur at the beginning “does it all”, from product design, to marketing and sales, to customer support to manufacturing and shipment or in person delivery.
Jan 4, 2019 4:15:00 PM
Oct 14, 2016 6:50:27 PM
Read Time: 4 Minutes
As an industrial original equipment manufacturer (OEM), your goal is to produce high-quality, relevant products for your customers that provide the most efficiency in today’s manufacturing marketplace. This efficiency can be achieved by rebalancing your production floor to achieve Product Line Simplification (PLS) with the 80/20 Rule.
When applying the 80/20 rule for product simplification, you liberate your in-house resources required to produce 80% of the products that are only returning 20% of your revenue. At this percentage ratio, the true cost of manufacturing products that are non-core becomes clear. Although lean manufacturing efforts work to create operational efficiencies that also reduce overall costs, the product line simplification process significantly enhances the impact of a lean plant floor. There’s little benefit to applying lean principles to your products that are creating complexity and hidden costs.
Apr 8, 2016 10:25:57 AM
Read Time: 3 Minutes
The decision to outsource product assembly and manufacturing is not black and white.
For many Original Equipment Manufacturer (OEM) companies, outsourcing manufacturing and product development includes many grey areas where various advantages and disadvantages need to be weighed. Especially when it comes to comparing different contract manufacturers against one another, the differences aren’t always clear – meaning your final decision isn’t always an easy one.
To help you distinguish reliable outsourced product assembly partners from those that aren’t a good fit for your OEM, here are the top four facts you need to know:
Apr 21, 2015 6:57:00 PM
Quality products. Low prices. On-time deliveries. As an original equipment manufacturer (OEM), you’ve likely heard that you can only offer two of these qualities out of three to the market. Clients are becoming more demanding, markets are now more customized, and product life cycles are getting shorter. However, applying lean principles will give you the competitive advantage required to have all these qualities, without excess strain on your employees or budget. No longer an optional methodology, lean manufacturing is now an essential component to keeping up with the changes in the industry.
Lean thinking is about removing waste in the organization to generate real, tangible benefits for the manufacturer. According to Rob McCann, Vice President of Operations of the Illinois Manufacturing Excellence Center (IMEC), “Lean manufacturing is the systematic approach to identify and eliminate waste from processes whiles educating and improving the skills and environment of workflow”. This increases the value for the customer and improves your company’s bottom line.
Apr 10, 2015 7:09:00 PM
As a manufacturing professional, you are well are aware of utilizing Google to get quick answers to questions you may have instantaneously. What if there was a way for manufacturing professionals to quickly get answers and insight from trusted peers in the industry almost as quickly? Kent Gladish, Senior Marketing and Sales Director of TMA (Technology Manufacturing Aligned) posed this question years ago and promptly developed a solution: CMS-SIG, an email distribution list for TMA Members. The list is operated on an opt-in basis and each member can send messages to the list for distribution to all subscribers. Since it’s inception, the list has grown to over 500 manufacturing professionals, and emails are generated daily.
Mar 6, 2015 3:31:00 PM
As a contract manufacturer (CM), you’re focused on producing products, managing inventories, winning new business, and other critical activities that generate revenue. While these areas of focus are essential, CMs who effectively manage accounting activities are able to increase their manufacturing cash flow. Successfully increasing manufacturing cash flow is the key component that will allow you to invest in R&D, buy capital equipment, offer competitive prices, and take other important steps toward growth.
Jan 9, 2015 6:51:00 PM
As an Original Equipment Manufacturer (OEM), the goals of outsourcing work to a contract manufacturer (CM) are twofold: create a high-quality product and maximize your spend. Both of these goals can be successfully accomplished if your CM holds Engineering Release Meetings.
Nov 11, 2014 7:09:00 AM
Your inventory is the backbone of your business. Without parts and products at the correct place and time, your Original Equipment Manufacturing (OEM) company would be in disarray. Yet, many OEM companies don’t manage their inventory in the most efficient way possible.
Fortunately, there’s an easy fix for making sure your inventory doesn’t arrive too late (or too early) to your factory floor: a just in time inventory strategy (or JIT). Just in time inventory is a strategy closely related to Vendor Managed Inventory (VMI) that reduces your storage and downtime costs by receiving parts exactly (and only) when they are needed.
How does a just in time strategy benefit your OEM company’s bottom line? Here are 9 distinct ways:
Oct 8, 2014 2:20:19 PM
The world of contract manufacturing is riddled with myths and beliefs about the manufacturing or product development process that simply aren’t true.
Unfortunately, many Original Equipment Manufacturers (OEMs) believe these myths – often to the detriment of their businesses and their bottom lines. If you want to see success in your contract manufacturing efforts, you need to leave these falsehoods behind.
Here are the seven most common myths about contract manufacturing and why they need to be busted:
Oct 2, 2014 12:41:00 PM
It’s a common myth among Original Equipment Manufacturers (OEMs): You don’t need to involve your contract manufacturer during the product development process. Simply hand off your newly developed product and the contract manufacturer does the rest.
Unfortunately, too many OEM leaders don’t know that this manufacturing myth is false. As a result, newly developed products are passed off to your contract manufacturer without properly communication – or cost containment.
What Goes Wrong With Most Product Development Hand-Offs
When your OEM product development team designs a new product or piece of equipment, they plan for factors like quality, cost reduction and essential features. Once the design is complete, the pre-production phase begins, which bridges the gap between the end of product development and the beginning of new product manufacturing.
During the pre-production phase, your product development team works with your contract manufacturer to ensure the product is created in a fast, efficient and cost-effective manner. However, involving your contract manufacturer this late in the process hurts your new product in the following ways:
Differences between the product plan and production capabilities increase manufacturing costs and decrease your profits.
Higher prices mean more costs are passed along to your customers, reducing their overall satisfaction.
Bringing your contract manufacturer on board after product design is already complete slows down the transition from planning to production, increasing your time-to-market considerably.