Outsourcing

[ Home ] [ Up ] [ Outsourcing ] [ Transition Program ]

Outsourcing
with the quality and comfort of insourcing. PCBos.gif (22086 bytes)

In a rapidly moving and competitive economy, the need has never been greater to focus on core competencies to improve productivity, operating margins and to grow earnings per share.

Component packaging, printed circuit board fabrication, assembly and test technologies are keeping pace with the ever-increasing need for smaller, smarter, more reliable and cost-effective printed circuit card assemblies. The cost of ownership of circuit card assembly operations is growing proportionately due to the need for new capital equipment and additional indirect technical support personnel.

Modern models for financial decisionmaking direct companies to focus resources on R&D, end product design, product integration, sales and marketing, service and management of the supply network. Using these models, return-on-investment and profitability calculations favor outsourcing circuit card assemblies.

Many companies have also come to realize that printed circuit card assembly operations do not fit within their core competencies. MRP-II/ERP, internal operating systems and corporate cultures that are geared to end product design and system integration, reduces the nimbleness and adds unacceptable overhead cost to printed circuit card assembly operations, decreasing productivity and end product margins.

The Problem.

The outsourcing transition can have a protracted time frame and be costly at a time when the goal is a greater focus on core competencies and improving operating margins. Some obstacles involved in a typical outsourcing effort are listed below:

	Finding contract manufacturers that are qualified to manufacture your product.
	Finding contract manufacturers for a high mix/low volume product line.
	Using traditional financial matrixes, each circuit card assembly outsourced drives up the burden rate on what remains.
	Personnel responsible for the internal assembly operations will naturally oppose outsourcing programs.
	Manufacturing and test fixtures/programs must be duplicated during the transition period.
	Resources are needed to document the outsourcing requirements for each circuit card assembly to be outsourced.

The Solution.
SM Tampa's Smart Manufacturing Transition Program.

Program Summary. SM Tampa's Smart Manufacturing Transition Program is a cost- and time-effective four-phase program to move your company into an outsourcing environment:

Phase 1.
Evaluation and analysis of internal assembly operations and requirements.

Phase 2.
Development of a Strategic Manufacturing Alliance and detailed transition implementation plan.

Phase 3.
Acquisition of your assembly operations by SM Tampa.

Phase 4.
The transition implementation phase. Based on the the implementation plan developed in Phase 2, a careful reconfiguration of the assembly operation is achieved through the enhancement, implementation and integration of printed circuit board ERP, CAM, CAD and e-commerce systems. Standardization of processes and streamlining of overhead to increase productivity and reduce circuit card assembly cost.

Results:

1. Seamless transition to outsourcing.

Your product is being assembled by the same equipment/personnel using enhanced and streamlined operational systems being managed by a team of experienced senior managers.

2. Reduced cost of circuit card assemblies/increased end product margins.

3. Elimination of the cost of ownership/increased operating margins.

4. Increased flexibility and support/improved time to market.

5. Increased focus on core competencies/increased productivity.

See "Smart Manufacturing Transition Program" for more details.

Request Information

SM Tampa