Professional Documents
Culture Documents
Group presentation
Sabri
Lily
Shirlien
Company profile
Our company has product range of over10
different models of washing machines and
refrigerators,
Total international employees of 2200
We have 2 large factories in Poland and retail
outlets in Europe and Australia.
The manufacturer
1. excess, excellent manufacturing capability
2. the sincere cooperation intention
3. to have stronger controls the market direction
Manufacturing defects
1. In the process of production, if the products
dont have good quality, brand enterprises will
suffer great losses, so the brand enterprise during
processing will certainly to strict quality control.
But there is no promises of the quality after the
contract.
The solution
Step 1:
Sample product provided from us
Design Sketch is provided from us
Step 2:
OEM Manufacturer Outsourcing:
Detailed product information and product expectation is delivered to various
outsourcing manufacturers to receive quotes. Integration is performed to achieve
buyer's outsourcing goal if necessary.
Reverse Engineering:
Product structure and parts analysis
Step 3:
Mould Design & Prototyping
Procurer agrees with technician dept.'s proposition of product solution
Step 4: Sample is provided by outsourcing supplier
Step 5: Approval from buyer & Certification Obtaining (CE, UL, RoHS...)
Step 6: Mass Production Starts & Material Quality (Raw Material Procurement) is ensured
Step 7: Technician Onsite Inspection
Step 8: Quality Control : In-Process Inspection
Step 9: Final Inspection
Step 10: Logistic Handling : Pre-Shipment Inspection
Financial Concern
The financial impact of poor change management with our CM is
simple:
either end up with too many of the wrong parts leading to excess and
obsolete (E&O) inventory
not enough of the right parts resulting in shipment delays and potential loss
of revenue
or, even worse, defective products shipped to our customers.
Materials
$780,000
$700,000
Labour
$60,000
$10,000
Finance
$40,000
$10,000
Freight
$40,000
$40,000
Overhead
$80,000
$40,000
EMS Profit
$40,000
Total Cost
$1,000,000
$86,000
From the above comparison of establishing our own factory and outsourcing for OEM, we could see that
the cost of outsourcing for OEM is lower than setting up our own factory, by nearly 15%.
Operational Concern
Key inputs such as geographic location, technical capabilities,
materials management capabilities, quality control, strategic fit, and
financial health are overlooked or discussed too late in the evaluation
process
Cutting corners like this is often justified in a variety of ways:
Logistics Concern
Material Procurement
Based on Customer forecasts, order material to meet anticipated Product
demand and any demand flexibility requirements
Demerits
We do not have direct control of the project in regard to scheduling, cost, quality or
accountability
Note- For small companies, contract manufacturing may not be a good business
strategy.
For large companies that are trying to extend into new markets, contract
manufacturing may be a good choice.