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CMC's proprietary Production Cost Model (PCM) is a result of years of experience in cost model design work with leading electronics manufacturing services (EMS) providers and original equipment manufacturers. It is used to reliably estimate costs and fair pricing for client's products from EMS providers worldwide. PCM incorporates all EMS production processes and infrastructure costs (including clean-room costs for optoelectronics) for low volume, mid-volume and high volume production. Location-specific labor, occupancy and overhead data have been collected and verified for modeling EMS costs in many countries in North America, Latin America, Asia and Europe.

PCM is an important element in our service offering. The model is used to help set search criteria for global electronics manufacturing services, negotiate product prices and benchmark internal manufactured cost. It can answer a wide variety of what-if questions such as how costs might shift with changes in volume, mix or delivery system. It is also used to assess the reasonableness and sustainability of EMS provider pricing proposals.


CMC resolved client’s “Latin America or Asia?” issue by using PCM to estimate annual cost of PCBAs and end-products from selected countries, and to estimate production cost of it’s key competitor.


After review of PCM assumptions, this leading contract manufacturer re-quoted, saving the client $2 million annually on this and 6 other PCBAs.

 

    
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