HOME  |  NEWS  |  BLOGS  |  MESSAGES  |  FEATURES  |  VIDEOS  |  WEBINARS  |  INDUSTRIES  |  FOCUS ON FUNDAMENTALS
  |  REGISTER  |  LOGIN  |  HELP
Feature
Automation & Motion Control

When Does a Custom Assembly Make Sense?

NO RATINGS
Page 1 / 2 Next >
View Comments: Newest First|Oldest First|Threaded View
Cabe Atwell
User Rank
Blogger
Re: Cost and IP
Cabe Atwell   1/20/2014 5:38:30 PM
NO RATINGS
Could these definitions apply to fast prototyping as well in order to get the product mass produced?

notarboca
User Rank
Gold
Re: Cost and IP
notarboca   11/30/2013 8:27:28 PM
NO RATINGS
From the article: "Next, work on clearly defining the role of the vendor in R&D, Beta start-ups, production, etc., so there is no mystification of roles."  I agree, Nancy, sometimes these definitions are either overlapped or forgotten in the grand scheme of things.

Nancy Golden
User Rank
Platinum
Re: Cost and IP
Nancy Golden   11/24/2013 6:06:45 PM
NO RATINGS
"Minimum order quantities also must be considered because many suppliers will only take on a new custom assembly when  quantities are large enough to work with their business model create a quick payback."

Very good point - When a minimum can't be met but for whatever reason, a custom assembly is required, flat fee-based services may be preferable (or even if the minimum can be met). This would eliminate the need to be concerned about who owns the IP as well. And as the article states - it is a very good idea to define the roles of all participants up front.


Greg M. Jung
User Rank
Platinum
Cost and IP
Greg M. Jung   11/16/2013 8:00:39 PM
NO RATINGS
I do agree that in many cases, partnering with a supplier to produce a custom assembly makes sense (especially in the case of motors).  However, outsourcing custom assemblies also has its own set of unique issues that must be considered.

Agreements have to be worked out up front on who will own the IP (intellectual property).  Otherwise, if the supplier owns that IP, they may continue to raise costs every year (because they know they have a monopoly on this design).  Minimum order quantities also must be considered because many suppliers will only take on a new custom assembly when  quantities are large enough to work with their business model create a quick payback.  High mix/low volume product lines do not easily lend themselves to custom assembly by suppliers.

Partner Zone
Latest Analysis
Tesla Motors Inc. took another big step into the battery market last night, officially unveiling a strategy that would enable it to sell batteries into home and grid storage applications.
At some point in the distant future, we may all be driving electric cars. Until then, however, the debate over their ongoing viability rages on.
Machine vision and video streaming systems are used for a variety of purposes, and each has applications for which it is best suited. This denotes that there are differences between them, and these differences can be categorized as the type of lenses used, the resolution of imaging elements, and the underlying software used to interpret the data.
Comic books long have appealed to kids as a fun way to introduce reading and art without being overly didactic. Now a software engineer and project manager from Oklahoma thinks the medium can be used to get them interested in STEM careers.
Sherlock Ohms highlights stories told by engineers who have used their deductive reasoning and technical prowess to troubleshoot and solve the most perplexing engineering mysteries.
More:Blogs|News
Design News Webinar Series
3/31/2015 11:00 a.m. California / 2:00 p.m. New York
2/25/2015 11:00 a.m. California / 2:00 p.m. New York
12/11/2014 8:00 a.m. California / 11:00 a.m. New York
5/7/2015 11:00 a.m. California / 2:00 p.m. New York
Quick Poll
The Continuing Education Center offers engineers an entirely new way to get the education they need to formulate next-generation solutions.
May 4 - 8, Designing Low Power Systems using Battery and Energy Harvesting Energy Sources
SEMESTERS: 1  |  2  |  3  |  4  |  5  |  6 |  7


Focus on Fundamentals consists of 45-minute on-line classes that cover a host of technologies. You learn without leaving the comfort of your desk. All classes are taught by subject-matter experts and all are archived. So if you can't attend live, attend at your convenience.
Last Archived Class
Sponsored by Proto Labs
Learn More   |   Login   |   Archived Classes
Twitter Feed
Design News Twitter Feed
Like Us on Facebook

Sponsored Content

Technology Marketplace

Copyright © 2015 UBM Canon, A UBM company, All rights reserved. Privacy Policy | Terms of Service