Selecting Contract Manufacturers 101

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Barbara Jorgensen
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EMS 101
Barbara Jorgensen   9/20/2012 9:26:52 AM
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Are there any niche EMS that specialize only in these tiny products/boards, or is it just not profitable enough? I guess I am surprised that this capacity isn't being used that much as "smaller, faster and less expensive" is the credo for the electronics industry.

Cryptoman
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Request for more info
Cryptoman   9/21/2012 1:48:43 AM
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Michael, this is a very useful post. İt emphasizes the importance of handling tiny components. Do you have more general suggestions for more ordinary manufacturing process? As you know most of the electronic production deals with parts that are larger than those mentioned in the post. What are the important tips to bear in mind when choosing a manufacturer? İ would be grateful if you could provide a few reference links or papers. İf you are able to provide another post that covers more general aspects of electronic manufacturing that would be even better. Regards...

AnuvaJim
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Material cost also a consideration
AnuvaJim   9/21/2012 6:17:49 AM
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We recently did a study for a customer that was considering use of smaller (0201 and 01005) parts when there really wasn't a need to.  For a standard 10K 5% resistor, the 0201s were roughly 150% the cost of the more common 0402 and larger parts and the 01005 was a whopping 1800% more expensive.

If you need them, you need them.  But, if not, why increase cost and process challenges?

Michael Allen
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Re: Material cost also a consideration
Michael Allen   9/22/2012 9:01:09 AM
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We certainly have produced boards that were designed with 0201's for no good reason as there was plenty of room for 0402's.  The difference in cost from $0.004 for a 0402 to $0.006 when placed with our 60,000 part an hour pick n place is $120.  This is not much considering the value of the product produced.

We also see a lot of boards now that contain micro BGA's and lead-less packages with the same feature size as an 0201 so having the equipment and processes to put down 0201's allows us to put them down with a high yield.

Bolaji Ojo
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Other metrics
Bolaji Ojo   9/21/2012 5:29:01 PM
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I wonder what other factors OEMs consider when reviewing a contract manufacturer. You addressed a specific market requirement but I believe this may not be the key factor an OEM would consider when picking a partner.

Michael Allen
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Re: Other metrics
Michael Allen   9/25/2012 11:56:14 AM
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Bolaji, Brad, Himanshugupta - you are correct, there are hundreds or even
thousands of factors that go into selecting and maintaining a relationship
with a contract manufacturer. The post title was probably a little
misleading: this was not meant to be a comprehensive selection guide
(although that might make a good future topic). Rather, for each post I
planned to pick one factor that I have found is often overlooked or not well
understood, and provide a little depth on that factor. You all have pointed
out several additional factors that might make good future topics. Thank
you!

Brad hudon
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Systems and Transparency
Brad hudon   9/22/2012 1:57:22 PM
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Software systems, integration capabilities and process transparency would be high on the list. That would probably apply to any supply chain partner, not only CMs.

Himanshugupta
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Supply Network Guru
which other factors
Himanshugupta   9/24/2012 1:07:07 PM
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Is manufacturing capability only and foremost criteria for selecting a contract manufacturer? I think other characteristics such as expendability, reliability and cost can be other criterias. With outsourcing practices, maybe other factors are also there to consider.



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