Managed Contract Manufacturing

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Flexible approach to contract manufacturing

Managed Contract Manufacturing (MCM) is a flexible, scalable way for electronic product OEMs to handle fluctuating demand. 

Electronic product OEMs must choose wisely when selecting a contract electronics manufacturer (CEM) partner. There are many factors to consider: a CEM’s overall process capability; its pricing for a PCB assembly (PCBA) or Box Build; and – crucially – the cost of procuring components and PCBs.

A reputable CEM also needs extensive knowledge of the components market – to navigate the extended lead-times, variable pricing and potential obsolescence across a PCBA’s life cycle. However, allowing a CEM to procure all components can create problems if an OEM’s assembly needs change in the future. If PCBA capacity rises – or falls – the component supply process must react to this without a significant shift in cost.

Using Diamond’s Managed Contract Manufacturing (MCM) service, alongside our Component Kitting Service, an OEM can separate component supply and electronic assembly – for a more agile, scalable supply model. It all relies on our extensive “certified partner” network of CEMs, in both the UK and the Far East.

“Our services support an NPI process or a strategic cost-down programme for volume manufacturing. Working closely with OEM clients – from a product’s inception – we can ensure future manufacturing objectives are met.”

When an OEM orders a complete PCBA or full electronic Box Build through MCM, we select the most appropriate CEM partner for the job.  Our internal group quality and production management works closely with each partner to satisfy a customer’s manufacturing objectives. All outsourced facilities operate BS ISO 9001 quality management systems, work to IPC standards and use high-speed SMT assembly equipment.

Our MCM and kitting teams procure and stock the necessary components and deliver production-ready kits to the appointed CEM. Individual delivery/pricing or technical problems are bound to occur; to overcome these, we proactively research and propose the best supply solution, and manage it within our kitting process.

If an OEM requires additional or alternative PCBA capacity, we can divert component kits to a new provider immediately – with minimal cost or logistical issues. MCM provides OEMs with a new level of agility within the contract manufacturing supply chain. They also benefit from our proactive attitude to both component supply and ongoing assembly costs.

MCM also helps customers to maintain any existing manufacturing partner relationships. Here, we assume management of the component and PCB supply, delivering kitted components to a CEM’s assembly facility in the agreed batch sizes.

Once PCBs have been populated and tested, they are returned to Diamond for delivery to the OEM – via KANBAN, JIT or any other process used at the final assembly plant.

To understand how MCM could benefit your business get in touch via the contact form below. 

 

“After detailed project discussions with an OEM client, we will carefully select an appropriate manufacturing partner or partners based on established key criteria.”

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