Automation & Motion Control

When Does a Custom Assembly Make Sense?

< Previous Page 2 / 2
View Comments: Newest First|Oldest First|Threaded View
Cabe Atwell
User Rank
Re: Cost and IP
Cabe Atwell   1/20/2014 5:38:30 PM
Could these definitions apply to fast prototyping as well in order to get the product mass produced?

User Rank
Re: Cost and IP
notarboca   11/30/2013 8:27:28 PM
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
Re: Cost and IP
Nancy Golden   11/24/2013 6:06:45 PM
"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
Cost and IP
Greg M. Jung   11/16/2013 8:00:39 PM
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
Check out these gifts that will make you the hero of your Secret Santa party.
Voting has closed on our 2015 Gadget Freak of the Year contest, but it is not game over yet for two competing projects.
Independent science safety company Underwriters Laboratories is providing new guidance for manufacturers about how to follow the latest IEC standards for implementing safety features in programmable logic controllers.
Automakers are adding greater digital capabilities to their design and engineering activities to promote collaboration among staff and suppliers, input consumer feedback, shorten product development cycles, and meet evolving end-use needs.
Design News caught up recently with Punya Prakash, the 2013 recipient of our Rising Engineering Star award. What has she been up to?
Design News Webinar Series
11/10/2015 11:00 a.m. California / 2:00 p.m. New York
10/29/2015 11:00 a.m. California / 2:00 p.m. New York
10/20/2015 8:00 a.m. California / 11:00 a.m. New York
12/2/2015 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.
Jul 6 - 10, Building Raspberry Pi Controllers with Python
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.
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