One unique element of our services is in the area of production cost modeling. Over the past 12 years CMC has developed a powerful "should cost" production cost model used for reliable price benchmarking of global electronic manufacturing services. It is activity-based and similar to what major global EMS companies themselves use for costing and pricing of individual products - but perhaps more advanced in cost allocation concepts and in versatility e.g. instantly determining cost/pricing impact of product, volume, site location, customer support staffing changes. Use of this world-class cost model can have significant bottom-line impact for advanced technology companies. It can provide important insight and advantage during pricing negotiations with even the largest EMS companies - Foxconn, Celestica, Flextronics or to reliably estimate production cost of a new product if built in Shenzhen, Penang, Guadalajara.

CMC’s EMS cost model represents best practices in manufactuirng cost model development. It incorporates virtually all production processes and infrastructure costs for low, medium and high volume electronic and electro-mechanical production, including cleanroom infrastructure costs for optoelectronics and other contamination sensitive products. Numerous process models include PCB assembly (e.g. SMT and PTH automated and manual work), in-process test and inspection (e.g. AOI, ICT, X-ray), materials management (e.g. incoming receipt, stocking, kitting), board-level functional test, debug/repair, higher-level custom mechanical assembly and test.

The EMS cost model can support up to 120 assemblies for each CM site location that is modeled. Customer-specific test and assembly processes are supported. Degree of Difficulty (DOD) is determined for each client product and together with special certifications (e.g., IPC3, Belcore) is included as cost drivers.

Occupational labor and burden rates, occupancy costs and other location-specific data is gathered and maintained for key electronics contract manufacturing locations in North America, Latin America, Asia and Eastern Europe. This information is collected and cross-checked from multiple sources including periodic verification by occupational wage survey of contractor manufacturers in countries of interest.

Total landed cost calculations include product costs from production cost model analysis, plus freight and logistics (air, sea container, truck) under multiple scenarios, staffing and other costs related to managing the outsourcing relationship.

CMC’s powerful EMS cost model is just one example of analytics and industry now-how that sets us apart from other less specialized consulting and research firms.