Tag Archives: Cost Models

EMS manufacturing direct labor checklist in OEM program costs and pricing EMS supplier quotes

By

Key aspects when measuring direct labor performance in EMS manufacturing factories, with links to EMS KPIs and cost reduction and cost modeling OEM contract manufacturing.
Read more »

Estimating true manufacturing cost of goods sold

In an ideal world, raw material inventory is pipelined, scheduled for production and manufacturing functional support staffing, shipping and commit schedules. Its a FIFO system (first in, first out).

Contract manufacturer (internal) cost vs OEM quoted price vs OEM target cost

By

Savvy electronic OEM equipment manufacturers never give contract manufacturers a costed bill-of-materials (BOM). How you determine your lowest product landed cost (target price) is determined by obtaining accurate information about your contract manufacturing solutions provider. This article covers achieving timely …
Read more »

How OEM equipment manufacturers can negotiate contract manufacturing to find hidden profits and reduce annual spend

Access detailed manufacturing cost models to identify PPV and drive down quote pricing and lower annual spend.
Read more »

Look beyond labor and S,G&A for contract manufacturing quote cost models to determine total landed costs

By

Finding manufacturing ‘should cost’ and lowest total cost of ownership (TCO) versus piece part pricing for OEM equipment manufacturers requires intimate knowledge of EMS manufacturing and ODM provider internal costs. Add to this, the various geographies and currency rates while …
Read more »

EMS manufacturing profit center: Production vs inventory costs

By

EMS manufacturers make healthy profit by warehousing raw materials and finished goods inventory (FGI) for OEM customers. Most OEM equipment companies don’t know how to identify these hidden, internal EMS costs (OEM fees) and, EMS providers do not accurately break …
Read more »

How to use contract manufacturing RFQ cost templates

Used properly, manufacturing cost templates can uncover hidden cost for outsource contract manufacturing pricing quotes.
Read more »

EMS sourcing red flags OEMs should look for when outsourcing SMT, PCB assembly and electro-mechanical manufacturing

A couple of red flags electronic OEMs should look for when outsource contract manufacturing and sourcing EMS (electronics manufacturing services). EMS manufacturer explanations for rising receivables are usually inadequate. Its typically bad for electronics EMS providers if receivables are rising …
Read more »

Contract Manufacturing Consulting Services

Reliable consulting with extensive knowledge of best practices in contract manufacturing EMS sourcing strategy of electronics solutions and, global manufacturing supply chain operations supported by fact-based decision-making analysis to help organizations mitigate risk and move toward favorable outcomes. (Read: How …
Read more »

Contract manufacturing spend models – Contract Manufacturing Consultants

Our supply chain manufacturing spend cost models cover labor rates (direct and indirect) adjusted for local labor in each geographic location, per factory factory, and much, much more. Our mini ERP systems with manufacturing quote systems deliver immediate ROE from …
Read more »