A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

PLM and contract manufacturing processes

PLM and contract manufacturing processes
Oleg
Oleg
7 April, 2015 | 3 min for reading

contract-manufacturing-collaboration

Globalization and contract manufacturing are two important trends that shaping modern manufacturing. Companies are using contract manufacturers (CM) for different purposes – design, component supply, assembly, fabrication, etc. In some industries such as electronic, contract manufacturing is an absolutely vital part of your product success. My attention caught by EE Times article: 5 Don’ts and Do’s for Working with a Contract Manufacturer. It is short and sweet – I certainly recommend you to have a read.

Here are my favorite two recommendations – prepare detailed documentation and design for manufacturing.

Prepare Detailed Documentation — I don’t think it’s possible to under-communicate when it comes to providing instructions to a CEM. The more CAD files, schematics and specs you deliver with your design the better, from our perspective. And don’t forget to provide a comprehensive bill of materials with alternate part numbers – or have your CEM do this for you.

Design for Manufacture — DFM essentially means considering how easy and cost-effective it is to manufacture an assembly, and designing to reduce those costs. You need a manufacturing mindset to do this well, so leave room for a DFM review and adjustments in your plans.

Thinking about contract manufacturing processes took me back to my 3 modern BOM management challenges. Bill of Material is an important key element in both – documentation and design for manufacture. Very often contract manufacturing work is focused on processes management by ERP system. However, you need to have solid PLM foundation to start thinking about CM work earlier in the process.

So, what are critical elements of PLM system to support your CM processes:

1- Access to component libraries. To have information about components, availability, cost and other parameters such as regulation is critical. To replicate this information into your PLM system is possible, but not reliable and not scalable. Check how PLM system can access this information online or federate it with ERP system you have.

2- Flexible and granular BOM management. You need to organize bill of materials in the way engineering and CM will be able to access it. By doing that you will allow early access to all parties involved into design and manufacturing to access product information.

3- Change management. Everything is changing. It will happen to your design and manufacturing plan too. Find a tool that allows you to manage traceability of changes alongside to bill of material and manufacturing plans.

4- Security. You need to have right technology in place to isolate information that belonging to different CM and subcontractors. It is important to maintain your business relationships and not to disclose sensitive information.

What is my conclusion? Globalization and cost competition leads companies to find somebody else to produce components and outsource specialized work. In many domains, CM is a way to structure industry (think about fabrication and electronic manufacturing as best examples). It leads to outsourcing, offshore and many other options to make the same work in a different places. Bill of materials (BOM) is a critical element in supporting of contract manufacturing. You need to have an ability to organize BOM in a way that allows to all involved organizations to access and make changes in the controlled way. Just my thoughts…

Best, Oleg

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

Recent Posts

Also on BeyondPLM

4 6
31 July, 2021

I was talking to a manufacturing company earlier this week and they asked me a question – we just purchased...

8 July, 2023

Product development and manufacturing process has come a long way in the last few decades. There is one constant thing...

24 March, 2024

I’m heading to CIMdata Industry and Market Vendor Forum 2024 in Ann Arbor later this week. The annual forum is...

14 January, 2016

I think, most of PLM people are considering the fight about pros and cons of intelligent numbers is only related to...

14 November, 2018

I have a small anniversary today. I started my blogging back in 2008. It happened back at Autodesk University 2008....

15 April, 2019

I was attending COFES 2019 last week. Three engineering software geeks – Brad Holtz, Evan Yares and Joel Orr founded...

21 May, 2009

Yesterday, I had the chance to see two deliveries from Jim Brown related to PLM for mid-size companies. ENOVIA SmarTeam...

18 February, 2025

Have you ever tried playing billiards on a boat? No? Well, let me paint you a picture. Imagine setting up...

23 January, 2021

-Data is fascinating and intriguing. You probably heard it before – data is a new oil. For the last two...

Blogroll

To the top