Electronic Manufacturing Services

One of the most critical, and least understood, elements of the modern electronics supply chain is electronic contract manufacturing (ECM). This knowledge can be invaluable, particularly when you're a startup working on your first hardware product or an established company trying to scale production.

In this post, we'll explore the 5 key points to consider before entering into a relationship with an electronic contract manufacturer, including how it works, and what set's a successful partnership from just a bad one to a bad one for the customer.

Electronic Contract Manufacturing: What is it?

Outsourcing of design, assembly, and manufacturing of electronic components or devices to a third-party manufacturer is known as electronic contract manufacturing. Instead of purchasing their own factories and manufacturing equipment, companies, called original equipment manufacturers (OEMs), contract out production with other companies (contract manufacturers, or CMs).

Typical services that the CM offers are over the entire production cycle, such as printed circuit board (PCB) assembly, component sourcing, testing, and sometimes product design. The OEM is responsible for the product design and IP, and the CM is responsible for the infrastructure and know-how to manufacture the product.

It is widely adopted in many fields, such as consumer electronics, Medical Industry, Aerospace, Telecommunications, and automotive manufacturing among others.

1.Electronic Contract Manufacturers provide a variety of services

Not all electronic contract manufacturers are the same. Some have a specific niche in the production process, others provide end-to-end production solutions from prototype to full-scale production and logistics services.

Typical services that may be provided by an ECM are:

The design and layout of the PCB

Purchase and supply of components and parts

Surface mount technology (SMT) assembly:

Through-hole assembly

Ensure the aircraft is functional and that quality is assured

Product packaging and fulfilment

It is essential to compare the services offered by a CM with your needs when examining a CM. The needs for a startup that makes a product for the consumer IoT market will be very different from those for a company working on a complicated medical device. A manufacturer that can perform all of the necessary steps for your product can save you from expensive rework in the future.

2. Sourcing of components is not as straightforward as it appears

Component sourcing is one of the underrated factors of electronics contract manufacturing. Getting the parts to assemble your product is not an easy task in a world where there are a lot of disruptions in the supply chain, and those are the duties of ECMs.

Volatile supply chain, shortages in components and counterfeit parts are constant problems for electronics. A good CM should have established trusting relationships with authorised distributors and have implemented stringent verification measures to verify the authenticity of the components.

If you're considering a potential partner, find out what their sourcing process is. Are they dependent on one source or do they have more than one source? What strategies do they employ to deal with component obsolescence? A CM that can show they are moving forward in their supply chain is far more secure than a CM that scrambles when there is a shortage.

3. Quality Standards and Certifications are of Great Significance

In electronics manufacturing, quality is a must and the certifications a CM has should be a good indicator of their dedication to quality. Some standards may be required for particular industries.

Some of the key certifications to consider are:

A popular standard for acceptance of electronic assemblies is IPC-A-610

The ISO 9001 standard is widely recognized as a general quality management system standard

This standard is required for the manufacturing companies operating in the medical device industry, such as ISO 13485

AS9100: The standard for aerospace & defense electronics

IATF 16949: applicable to automotive electronics suppliers

In addition to certifications, inquire about a CM's quality control system. How do they carry out their incoming inspection? What tests are they run prior to shipment? Can they provide good traceability from production through? These are the types of questions that can give you a lot of insight into the manufacturer's interest in quality.

4. Communication and Transparency is the foundation of a successful Partnership

While the technical skills are important, the communication of a CM is also important. Many original equipment manufacturers (OEMs) who have had bad experiences with contract manufacturers cite the same problem – lack of communication. Even well-funded projects can go awry as a result of late updates, ambiguous timelines, and unclear cost breakdowns.

A good CM partner will provide:

Production updates that are regular and particularly important in the early production runs.

Clear and itemised pricing – no nasty surprises at invoice time!

Engineering support available to respond to design problems when they arise

Optimistic lead time estimates, which slip

When considering signing a contract, review the CM's communication system. How fast does it take them to answer questions? Do they have a specific point of contact that you are assigned to? Others use a lot of money to build tools around the customer that enable OEMs to view the production status in real time, which is a major benefit for businesses with fast deadlines.

6. Dealing With Scaling with Contract Manufacturing: Forward Planning is Key

The most significant benefit of incorporating a CM is that you can increase production without having to establish your own manufacturing capability. Which is not a given but needs to be carefully planned on both sides.

Production quantity has a significant impact on the unit manufacturing cost, lead time and component prices. If you are ready for 50,000 units, but your CM can only produce 500, it may not be the best choice for you. Speak the truth about your future growth plans before entering into a long-term relationship and inquire how the CM will meet your growing demands.

It's also important to be familiar with the CM's process for design changes in production. Products change and a good manufacturing partner should be able to handle engineering change orders (ECOs) without causing significant production changes. Flexibility in the manufacturing process and clarity and documentation of the process are key to a manufacturer's ability to deal with change.

Conclusion

The electronic contract manufacturing industry is big and diverse. While obtaining a price quote is a start, it is important to consider a CM's technical capabilities, quality systems, supply chain, communication culture, and capability to scale. A fine option to pick is Optima Technology.

Smart component sourcing, Design for Manufacturability (DFM), automation, lean manufacturing, and close supplier collaboration are some of the best cost-saving strategies for electronic manufacturing service (EMS). Combined, these strategies have the potential to reduce production costs by 15-30% without compromising on product quality.

So, it's no wonder that running an electronics manufacturing business isn't budget-friendly! In the ever-changing landscape of component costs, labor, and the relentless need to provide top-quality products with very strict deadlines, every dollar matters. The good news? While there are many ways to remain cost-conscious, there are also many ways to offer outstanding electronics.

The strategies below can have an impact on your business's bottom line, whether you're a startup launching your first product or an established business scaling up production. I've taken them step by step so you can get started saving today. Ready to dive in? Let's go!

What is the best approach for electronic manufacturing service to reduce costs?

There is no one-size-fits-all short-cut to cutting costs overnight. But the greatest savings are achieved by implementing multiple smart strategies. These are the ones that make the biggest impact.

What can be done to lower manufacturing costs by smart component sourcing?

The components can often be the bulk of your manufacturing costs, and it's an excellent place to save!

To achieve miracles, here are some tips:

Purchase in bulk: Purchasing in bulk means that the price per component is usually lower. If the demand is predictable, secure Volume Discounts.

Don't only buy from one supplier - it can be a risky and expensive option. When you compare quotes, you ensure that your suppliers stay competitive and you're not vulnerable to shortages.

Look for alternatives: Occasionally it's the same function for a lower price. Just be sure that any replacement is of the same quality and performance!

Monitor the market: Prices of components vary. Smart shopping can result in some surprising savings, when you plan your purchases around good deals.

So, what is design for manufacturability (DFM)?

There is one thing that a lot of new players don't realize that the majority of your expenses are set in the design stage. Design for Manufacturability (DFM) is where it comes in.

DFM is making the product as easy and efficient to make as possible. A good board can save time in assembly, prevent assembly mistakes and reduce the rework cost.

There are a few DFM victories that you may have:

Where possible, keep the layout of the circuit board as simple as possible.

Minimize the variety of components used.

Create standardized parts for multiple products.

Design for automated assembly; not manual!

Believe me; it's worth it to spend time on good design at the beginning; it's going to save you thousands of dollars down the road!

What are the ways in which automation reduces production costs?

Initially, investing in automation seems like a considerable undertaking, but it is worth the investment in the long run. Automated pick and place machines, soldering systems, and testing equipment operate faster and more reliably than human beings.

The advantages are tremendous:

More output per hour is achieved by faster production speeds.

Reduces human error and waste/rework.

You are ensuring that your customers are happy because of consistent quality.

Automation, even in part, for just the most repetitive tasks can provide significant savings. Practice small and build up, as volume increases!

Lean manufacturing is the process of eliminating waste, and how does it accomplish this?

The essence of lean manufacturing is that there is no waste in any form, from waste time to waste materials to waste movement. The aim is straightforward: to work with less, produce more!

Examples of lean practices include:

Just in time Inventory: Maintain only the inventory required, when it is required. This will provide immediate funds and decrease storage expenses.

Efficient processes: Optimize your production line so that materials and products flow smoothly, without having to backtrack.

Continue to improve: Make your team look and propose small improvements on a regular basis. These add up fast!

If every member of your staff thinks "lean," the savings can be phenomenal.

What value do good relationships with suppliers provide?

The value of a wonderful supplier relationship cannot be underestimated! When suppliers trust and value you, they are more inclined to provide better pricing and terms and prioritize your products during shortages.

How to foster those connections:

Be open and honest, and make timely payments.

Make long term contracts where appropriate.

Treat suppliers as partners, not vendors.

The power of a little good will goes a long way—and sometimes right to the bottom line.

Should you outsource to an EMS provider?

One of the best ways to save money is for many businesses to work with a trusted electronic manufacturing services company. Local emergency service companies already have equipment, know-how, and buying power to make electronics efficiently.

Outsourcing makes the most sense if:

You don't want to purchase your own equipment (which can be costly).

Your production volumes are changing and you require flexibility.

You prefer to spend more time on design and marketing than management in the factory.

At the same time, it may be more efficient to produce in-house if you require a high level of control over production or need to work on highly sensitive designs. Carefully consider your priorities!

Conclusion

Reducing cost in electronic manufacturing service doesn't equal cutting corners. With smart sourcing, careful design, automation, lean production and good supplier relationships, you can have a leaner and more profitable operation without compromising quality.

My best advice? Avoid doing too much at once. Select one or two strategies that work for you, implement them and assess the outcome. When the money really starts to add up, you'll be encouraged to continue!

Modern electronics manufacturing involves a global network of suppliers, components and assembly processes. The loss of any one component can bring an entire production chain to a standstill. The COVID-19 pandemic has shown just how vulnerable these production networks are. Now manufacturers are seeking ways to ensure they are better prepared for unexpected jolt and long-term disruption. That's where quality electronic manufacturing services (EMS) come in. The right EMS partner is more than just a circuit board assembler. A strong manufacturing partner is a critical buffer against component shortages, transportation bottlenecks and geopolitical risks. They offer the resources and know-how to survive the storm that would close a business down.

In this write-up, we will look at how leading electronic manufacturing services solutions tackle supply chain resilience. We'll examine how these companies ensure their work. In the end, you will learn how to select a manufacturing partner that takes action to keep your business on track and your customers happy.

The Cost of Supply Chain Disruption

Disruptions to the supply chain are costly. While waiting for a key microchip or connector, production grinds to a halt. This in turn causes delays, order cancellations and unhappy customers. This is especially true for the electronics industry where a single printed circuit board can contain hundreds of different components from dozens of countries.

Lack of resilience also harms your reputation. Consumers demand product availability. If you can't keep up with your competitors, you could lose customers forever. This has led original equipment manufacturers (OEMs) to change their business models. These companies no longer worry solely about the cost per unit. Instead, they know they need reliability, flexibility and risk mitigation.

Why Reliable EMS Providers Build Your Network

A trusted electronic manufacturing services (EMS) provider prioritizes resiliency in their operations. They have proactive strategies to ensure component delivery and plant schedules are not disrupted.

Advanced Inventory Management

Good EMS partners don't just hope to receive their parts. They employ advanced inventory management strategies to manage risk. These techniques include maintaining buffer stock for items with long lead times or special components. They can forecast potential stock-outs by reviewing past consumption patterns and market signals. They ensure you have the required materials well ahead of time, so your production doesn't stall because of a sudden shortage.

Diversified Sourcing Strategies

Being dependent on a sole supplier for an essential part is a big gamble. Reputable electronic manufacturing services don't risk this exposure by building a diverse network of approved distributors and manufacturers. If a factory in one country shuts down, the EMS company can switch purchasing from that factory to another in a different country. This is a key element of supply chain resilience.

Design for Supply Chain (DFSC)

Resilience begins at the design stage. Quality electronic manufacturing services or EMS experts provide important engineering services, particularly Design for Supply Chain (DFSC). This involves manufacturing engineers examining your product's bill of materials (BOM). If the product includes a microchip that is notorious for its availability problems, engineering will recommend the use of more readily available alternatives that provide the same functionality. By developing the product with multiple options for components, the manufacturer ensures a much less interrupted production run in the future.

The Power of Technology and Visibility

The electronic manufacturing industry is highly data-driven. Good EMS providers have significant investments in enterprise resource planning (ERP) and supply chain management systems. These systems offer end-to-end tracking of production.

Real-time tracking allows a manufacturer to track exactly where the incoming components are and know immediately if the shipment is running late. This helps them react accordingly. They could rush another shipment, reschedule the production line to manufacture a different product, or urgently source the part from a back-up supplier, for example. Complete visibility takes the uncertainty out of manufacturing and provides data-driven insights.

And good EMS providers extend this visibility to their customers. Open dialogue and reporting ensures that you are always aware of the progress of your product. This partnership model fosters trust and allows both the OEM and the EMS partner to be on the same page.

Conclusion

To build a successful electronics brand, it takes more than innovative product design. It must include a resilient and agile manufacturing strategy to cope with the complexities of global trade. Quality electronic manufacturing services can offer the skills, supplier relationships and technology to manage your supply chain.

Every electronic device is a highly integrated assembly of tiny interconnected parts that work together without a hitch. A fault in any one causes the whole thing to break down so end-users are left frustrated and manufacturers face pricey warranty claims. When seeking the right electronic manufacturing service (EMS) partner, examine closely how they source and select these crucial components. Quality electronic manufacturing services are key!

A faulty resistor or microchip can result in product recalls, launch delays, and brand damage. Hardware creators typically spend months polishing their circuit board designs, only to run into unforeseen hurdles once they reach the assembly stage. Such attacks can almost always be traced back to procurement practices and part verification.

The key role of component choice in quality electronic manufacturing is covered in this guide. Instead, you will see exactly how third-party manufacturers screen components, manage supply chain risk and give your final product the rigorous testing required to meet exacting performance demands. Knowing how to recognize the process will help you make wiser choices when launching your next hardware.

Component Selection - Quality Electronic Manufacturing Services

Selection involves an art and science period that is a delicate balance of engineering knowledge, market surveillance, and rigorous quality control. A top-tier EMS provider views part selection as a strategic edge, not just an ordering decision.

The Importance of Having a Fine Bill of Materials

The Bill of Materials (BOM) is the foundational recipe for your electronic device. It contains an enumeration of every resistor, capacitor, integrated circuit and connector necessary to complete assembly. The best manufacturing partners will begin with a thorough BOM health check. They do a review of the list to find parts that are legacy, end-of-lifecycle or come from high-risk suppliers.

If we scrub the BOM earlier in our process, engineers can propose alternatives that are more available or better performance. This paves the way to production lines not halting six months down the line because one microchip isn’t available.

The Impact of Counterfeit Parts

The industry loses billions of dollars each year to counterfeit electronic components. However, nefarious entities insert counterfeit or refurbished components into the international supply chain and pass them off as new products from trusted brands. These elements typically fail during normal operating conditions, or create catastrophic short circuits.

A trusted EMS partner has extensive test and traceability systems to confirm authenticity on a per batch basis. Quality electronic manufacturing services keep fake parts out of your supply chain by working solely with franchised distributors and original equipment manufacturers (OEMs). They use advanced inspection techniques to verify the internal structure of suspicious chips — including X-ray imaging and decapsulation.

Visibility Within Supply Chain and Lead Times

It shows the necessity for solid supply chain management, as global component shortages regularly wreak havoc on the hardware trade. For example, experienced manufacturing partners keep an eye on the market, anticipating shortages before they impact production. They use their buying power and relationships with the industry to capture critical inventory early.

If primary selections experience long lead times, your manufacturing partner will immediately seek out suitable alternatives for form-fit-function. This flexibility keeps your assembly lines up and running, allowing you to deliver on time to your customers and safeguarding your revenue streams from delays.

Matching Components to Design Specifications

Choosing a component is more than simply looking up a part number in a database. Engineers need to consider voltage ratings, thermal tolerances and performance specifications. A component that functions perfectly in a climate-controlled office may quickly fail in a hot and humid industrial environment.

Top notch electronic manufacturing services will break your design down piece by piece to make sure everything matches up with the environment in which your product is going to operate. They consider heat dissipation, power consumption and signal integrity. If there is a potential underperforming component, your expert EMS partner will suggest an appropriate substitute which enhances the viable market lifetime of your product and delivers superior overall reliability.

Environmental and Regulatory Compliance

A wide range of strict international standard need to be complied for electronic devices. Chemical content in manufactured goods is controlled by regulations such as RoHS (Restriction of Hazardous Substances) and REACH. Failure to comply with these standards can lead to steep fines and exclusion from major global markets.”

Choosing compliant parts right off the bat saves cost of redrawing a board and legal issues down the track. Your manufacturing partner needs to have full compliance documentation for every single part on your BOM. This exacting record-maintaining lays the groundwork for a streamlined, predictable certification process of the final product when it comes before regulatory agencies.

Conclusion

Selection of a component serves as the cornerstone of any functioning electronic equipment. Quality electronic manufacturing services will guarantee your products are created using proven, authentic and approved parts.

Whilst we might not comprehend it, EMS is assisting us all the time. From small common gadgets to big electronic device, we could not feasibly think about our life without electronics. These can’t be carried out without the assistance of EMS services. In the present, these services have turned out greatly general & convenient. A lot of new firms have come into being & the increased competition has led to a decrease in common prices. Nevertheless, with a lot of competitors, fresher and more enhanced tools are developing each single day. Electronic fabrication is, as a result, a big reason why individuals are discovering technology so eagerly.

There is a lot of ways electronic manufacturing services assist us in our everyday lives. They make each day tasks convenient & simple for us. Here are a few of these ways:

Generally used electronics – Around us, there is a good deal of electronic devices. Many of these are very generally utilized which we never discontinue to consider their usefulness. Substantiation is that of smart phones. Nearly everybody utilizes these convenient gadgets. Nevertheless, do we ever discontinue to think how simple they have created our everyday lives? Smart phones have offered huge convenience and enhancement in the globe of communication. Whilst many of us don’t comprehend this, these inventions are made feasible owing to EMS services.

ECM or electronic contract fabrication – Electronic manufacturing services don’t assist help people. To the matter of fact, they also offer a big range of services for businesses. Nearly every business takes the services of contract fabrication firm for its fabrication department. This is in view of the fact that each factory requires enhanced machinery so as to be able to manufacture goods. To ensure that the finest and the most enhanced machinery are offered, businesses are more often than not on the search for ECM services. These firms, as the name indicates, are hired over contractual basis. This implies that you could utilize numerous resourceful packages. This manner, you could get a lot of services in an extremely low cost.

The electronics market is one of the most cutthroats in the business globe nowadays. No doubt, new electronic gadgets, and machines are released over a yearly or semi-yearly basis. These new items have also created a fresh standard in the market which creates manufacturing services essential for SME owners who wish to be on the summit of the competition.

The fabrication of electronic machines is a precious method. Therefore, this distinguishes why a good deal of firms have selected to take the services of an electronics manufacturing services provider which could manage the task for them. To the matter of fact, there are a few firms which provide tailor-made services to cater to the particular requirements of the firm. After saying this, it is significant to adequately communicate your particular set of needs to the service provider to make sure that they could design something to meet up your standards.

In case you have already selected one among a lot of electronic manufacturing services which you have presented for the job, it’s significant to learn how you could avail their service to the fullest. This would facilitate you to make the best of your investment in order your business could relish the rewards later on. You should be capable to offer what the service provider requires from you. In case you had been engaged in product design as well as fabrication earlier, then you should be attentive that there are numerous traits comprised here comprising testing, item packaging, quality as well as inventory management, product support.

To create the whole contract work out as easily as feasible, you should recognize what are the things which your EMS provider requires from you. You are required to begin by recognizing important traits of running your business, for instance, inventory procedure, turnkey, consignment as well as consignment. You should moreover offer significant details throughout the fabrication procedure which comprise sample board assembly, printed circuit board drawings, fabrication, release quantities, as well as test needs or methods (which are developed to meet the needs of the intended market). The more info you could offer, the better it’s for the service provider to precisely render the quality of service you wish from them.

The value of EMS services or electronic manufacturing services could be understood by the fact that there is a good deal of electronic devices which have now turned out an indispensible part of our everyday lives. Smartphones, for instance, are hugely relied over by individuals in all walks of life. To the matter of fact, many of our daily tasks will be left unfinished in case these devices were taken out from our lives. Electronic manufacturing services, as a result, happen to be one of the most vital industrial procedures operating these days.

A good way EMS services are aiding us nowadays is by creating everything greatly easy and simple. Computers, for example, are so comprehensively employed that nobody stops to mull over the technicalities comprised in the fabrication procedure. Whilst we view the results on a computer machine in no time, it’s in actual an extremely intriguing procedure. In actual, electric charges are sent via the computer utilizing intricate copper paths. These communicate with various parts of the computer’s circuit board. These parts carry out their individual functions so as to showcase the results over your screen.

These popular devices, nevertheless are not the merely ones offered by EMS providers. There are several other services they provide so as to create technical procedures simpler. Businesses which are creating and selling products such as smart phones, computers & other technological products could take the services of electronic manufacturing service providers to carry out various jobs for them. One of these is developing items. Specialists could be hired to obtain a common idea from you & to create it into a tech design for an electronic item. This is greatly advantageous; because hiring specialists makes sure that your item design adheres to the most recent trends & necessities. Further, taking the services of expert designer implies that you would get a comprehensive array of ideas and, as a result, come up with the most excellent version of your original idea for an item.

For big conglomerates, the management of the manufacturing unit could be specifically tough. The procedure has been further complex owing to the fact that newer technologies are budding each day and, more often than not, it’s not simple to make certain that all the technical jobs are managed with current expertise. So as to ensure that all the technical jobs associated with the fabrication department are handled efficiently, a lot of firms are now taking the services of electronic contract manufacturers. Further, these are service providers that could manage the technical tasks in very inexpensive costs. Typically, they could provide engaging packages for long lasting management.

Whilst it definitely is efficient to take the services of an electronic contract manufacturing firm, the fact is that it is extremely tough to distinguish the dependable providers from scams. Owing to this, it’s very significant to monitor the services being offered and to ensure that you have made the correct choice. In case, nonetheless, you are not acquainted with technical jobs, it could be quite tough to figure out whether the ECM firm you have hired is functioning adequately. Here are a few tips which could assist you in making certain that the work being offered is satisfactory.  

Examine the initiation methods – This is the most significant stage because it could tell you whether you have made the correct choice. Evaluating how a firm starts their work is the key to reviewing their capabilities. It could also assist you with prospective issues, because you could right away terminate a provider that does not begin off their work in a fine way. You should ensure that the hired ECM firm kicks off the work by planning the jobs which need to be finished. This means efficient insight, which is extremely significant for success. Ensure that your service provider comprehends what to carry out before starting to carry out it.

The experience – Whilst checking the work, you should determine whether the workers are specialists. How do they respond to the jobs being offered? How long does it take them to turn up with a strategy? Answering such questions could assist you in figuring out whether the individuals working with you are specialists or novices.

The significance of EMS could be understood by the fact that there are numerous electronic devices which have now turned out an essential part of our everyday lives. Mobile phones, for substantiation, are readily count over by individuals in every aspect of life. To the matter of fact, a lot of daily jobs will be left unfinished in case these gadgets were eradicated from our lives. Electronic manufacturing services or EMS, hence, occur to be one of the most significant industrial procedures operating nowadays.

An awesome manner electronic manufacturing services are assisting is nowadays is by making everything suitably easy and uncomplicated.  Computers, for example, are so comprehensively utilized that nobody stops to consider the technicalities comprised in the fabrication procedure. Whilst we view the results over a computer within secs, it’s really an extremely intricate procedure. To the matter of fact, electric charges are delivered through the computer utilizing intricate copper paths. These communicate with numerous parts of the computer circuit board. These parts carry out their individual functions so as to showcase the results over your screen.

These general devices nonetheless are not the only ones offered by electronic manufacturing services providers. There is a good deal of other services they provide so as to make technical procedures simpler. Businesses which are manufacturing and selling products such as mobile phones, computers and other technological products could employ electronic manufacturing services providers to carry out various tasks for them. One of these is designing items. Specialists could be employed to have a common idea from you & to build it into a tech design for an electronic item. No doubt, this is greatly advantageous, as hiring specialists makes certain that your product design adheres to the most recent trends and needs. Additionally, hiring skilled designers implies that you would get an extensive array of ideas and, hence, come up with the finest edition of your first idea for you an item.