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: Oldest First|Newest First|Threaded View
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.

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.


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.

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?

Partner Zone
Latest Analysis
As part of a new DARPA project, Jan Scheuermann, a quadriplegic woman, was able to use neural implants to control a F-35 fighter jet in a simulator.
An app for your Android phone finds lighter materials for your design and even tells you how much each will save (or cost) you.
Italian robot maker Comau Robotics has introduced the small, quick Racer999 robot for assembly and packaging.
Using wireless chips and accessories, engineers can now extract data from the unlikeliest of places -- pumps, motors, bridges, conveyors, refineries, cooling towers, parking garages, down-hole drills and just about anything else that can benefit from monitoring.
With strong marketplace demand for qualified engineers across the board that currently outstrips the available supply, there may never be a better time for engineers and project managers to advance their careers and salaries. Whether those moves are successful in the short-term and long-term is likely to depend on how the transition from one job to the next is handled.
More:Blogs|News
Design News Webinar Series
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
12/10/2014 8:00 a.m. California / 11:00 a.m. New York
11/19/2014 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.
Mar 9 - 13, Implementing Motor Control Designs with MCUs and FPGAs: An Introduction and Update
SEMESTERS: 1  |  2  |  3  |  4  |  5  |  67


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.
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