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: Threaded|Newest First|Oldest First
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
A bold, gold, open-air coupe may not be the ticket to automotive nirvana for every consumer, but Lexusí LF-C2 concept car certainly turned heads at the recent Los Angeles Auto Show. Whatís more, it may provide a glimpse of the luxury automakerís future.
Perhaps you didn't know that there are a variety of classes, both live and archived, offered via the Design News Continuing Education Center (CEC) sponsored by Digi-Key? The best part Ė they are free!
Engineer comic Don McMillan explains the fun engineers have with team-building exercises. Can you relate?
The complexity of diesel engines means optimizing their performance requires a large amount of experimentation. Computational fluid dynamics (CFD) is a very useful and intuitive tool in this, and cold flow analysis using CFD is an ideal approach to study the flow characteristics without going into the details of chemical reactions occurring during the combustion.
The damage to Sony from the cyber attack seems to have been heightened by failure to follow two basic security rules.
More:Blogs|News
Design News Webinar Series
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
11/6/2014 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.
Jan 12 - 16, Programmable Logic - How do they do that?
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 © 2014 UBM Canon, A UBM company, All rights reserved. Privacy Policy | Terms of Service