We help leading electronics OEM's create world-class contract manufacturing strategies and programs. Industries served include medical devices, telecommunication, instrumentation, consumer and computing products. Here are examples of our work.

 Medical Contract Manufacturing - Complete Systems & Components

Assessed feasibility of medical contract manufacturing of finished products to low cost countries for a leading medical device company. Helped develop a global sourcing strategy for component parts, including high precision machining, plastics, stampings, metal fabrication, PCB assembly, cables and harnesses, and other custom / semi-custom components. Bench top and floor standing models weighing over 1,000 lb.

CMC’s global production cost model was used to estimate offshore material cost and value-add cost. Helped identify “first-cut” medical contract manufacturing options for evaluation. Led factory audits and comprehensive due diligence. Facilitated request for quotation (RFQ) process. Determined total landed costs including new costs. Helped prepare economic financial incentive applications related to medical device contract manufacturing for countries of interest in Asia. Created comprehensive net cash flow model for transition. Identified operating risks for contract manufacturing of assembled and tested finished equipment vs. components and sub-assemblies only.

Recommended sourcing framework and created opportunity matrix to show likely parts for practical global sourcing. Identified most suitable medical device suppliers for high precision, clean room assembly.

Supplier Evaluation and Selection - Telecom PCB Assembly

Recommended revised outsourcing strategy and supplier selection criteria for a leading telecommunications equipment company. Evaluated over a dozen of the worlds leading carrier-class telecom PCB assembly sites in the US, Mexico, China, Taiwan, Malaysia and Thailand. Developed an innovative, best practice analysis of process quality and test capability, the comparative results of which showed considerable performance differences between these major contract manufacturers. Guided the request for quotation process, determined landed costs and recommended a new contract manufacturer for significant cost reduction. 

Outsourcing Strategy - Mini-PC (high volume)

Led development of a contract manufacturing strategy for a privately held start-up. Recommended comprehensive supplier selection criteria and decision making framework. Identified potential suppliers in China, Malaysia, Taiwan and Mexico, led factory audits and due diligence. Conducted supplier risk assessment, including financials and business risks. 

Identified requirements and evaluated sub-tier supplier options for special custom parts (e.g. thixomold). Guided creation of RFQ, assessed responses and facilitated corrections by contract manufacturing candidates for their final submission. Facilitated supplier ratings, rankings and final selection process with client multi-functional management. Helped negotiate favorable manufacturing agreements with contract manufacturer and key sub-tier suppliers.

Medical Contract Manufacturing - High Density SMT PCB Assembly

Assessed current suppliers’ risk of business failure. As CMC predicted, a key medical device contract manufacturer and supplier subsequently failed. Identified potential high density SMT PCB assembly providers in lower cost countries with demonstrated expertise and support for medical device contract manufacturing. Guided factory audit process with particular emphasis on degree of traceability and other controls important to medical OEM's.

Created request for quotation (RFQ) package including comprehensive operating and business assumptions, led analysis of incoming proposals. Created the medical equipment contract manufacturing draft agreement for client edit, and advised negotiation resulting in favorable terms for this well-known new venture medical device company. Reduced product unit cost by 17%.

Outsourcing Feasibility (make or buy) - Component Stereo Finished Products

Benchmarked client's true internal costs of manufacturing using our proprietary global benchmarking cost model. Conducted factory audit survey of client manufacturing site to assess cost and quality improvement opportunity. Estimated raw material cost savings through outsourcing and "best-BOM" procurement methods. Recommended organization structure that would be required to manage contract manufacturer relations, annual landed cost and transition investment.

Identified $20 million annual outsourcing net landed cost advantage. Recommended potential electronics contract manufacturing sites in Mexico and Asia with relevant, specialized capabilities. While CMC does not always recommend outsourcing in our make or buy analysis, in this case we showed relatively low risk and favorable operating conditions.

Global Cost Benchmarking - Network Equipment PCB Assembly

Using our cost benchmarking model and representative board samples, assessed our client's internally developed cost model for PCB assembly used to set prices with their top tier-1 contract electronics manufacturers. Estimated our client's program profitability to each contractor and recommended improved cost model implementation strategy. Identified product cost reduction potential of over $50 million annually through price re-negotiation.