CMC's proprietary contract manufacturing cost model is a result of extensive cost model design work with a global electronics manufacturing service company and continued improvement with ongoing client work and application. It is used to reliably estimate costs and fair pricing for client's products from contract manufacturers worldwide. Our global cost benchmarking model represents best practices in manufactuirng cost model development. It is activity-based and incorporates virtually all production processes and infrastructure costs (including clean-room costs for optoelectronics) for low volume, mid-volume and high volume electronic and electro-mechanical products production. Location-specific labor, occupancy, overhead and other data is collected and verified for purposes of global cost benchmarking from many key electronics manufacturing countries including the USA, Mexico, China, Taiwan, Singapore, Malaysia, Thailand, Philippines and India.

Global cost benchmarking 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 in "should-cost" analysis to assess the reasonableness and sustainability of supplier proposals to our client's RFQ and RFP.

CMC resolved client’s “Latin America or Asia?” issue by using PCM to estimate annual cost of PCB assemblies and finished products from selected countries, and to estimate production cost of a key competitor.

After review of out global cost benchmarking model assumptions, this electronics contract manufacturer re-quoted, saving our medical equipment client now over $5 million annually on this and other PCB assemblies.