How to Choose a Subcontractor Equipment Manufacturer

 in design wile providing better precision, for a lower
As a purchasing manager of a manufacturingprice. Comparing to other technologies, this options
company you ought toanalise the businessrequires lower NRE with lower cost of a single part.
environment in which the company operates and 
identify its relevant needs. On a macro scale theChoosing the best Contract Manufacturer
manufacturing industry can be divided into low techChoosing the contract manufacturer one ought to
industry (food, consumable, home products and asconsider three main parameters – service, quality
such) and high tech industry, that includes electronicsand price:
with its subsidiaries, advanced medical equipment,• Service is the ability of the contract
industrial digital printing, micro-electronics and as such.manufacturer to become a strategic partner, have  
On the micro scale the difference between the two   flexibility in his manufacturing process and
types of industry is prominent in the precision level,shipments. A good partner is able to learn his
finishing quality, reliability, repeatability and general   customer's needs and respond to them.
quality level.• Quality of the sub contractor is defined by his
 compliance with international quality 
Different manufacturing technologies tailor to  standards, repetition of rigorous quality practices,
different needs:utilization of top of the line manufacturing
Milling operation – designed to make high precision  and testing equipment and the employment of
parts, good for medium and small runs due to minimalskilled employees.
NRE (Non-Recurring Expense). Despite that, the• The price variation within the sheet
process is characterized as of high price due tomanufacturing industry can fluctuate within 30% in
prolonged time to manufacture one part andfavor 
extensive material use.  of the small job shops. Nevertheless, on the long
Stamping operation – Designed to producerun the tide favors the bigger suppliers due
relatively small sheet metal parts in high quantity.  to mainly long term pricing policies and the ability to
Even though the NRE can reach between hundredsmaintain higher quality level over longer 
and thousands of dollars, the cost of producing one  time period, and therefore, reducing non
part is relatively small. This technology guaranties highconformances and waist.
quality and repeatability due to the use of dedicated 
tools. In contrast it is very hard to make complexRecently larger sheet metal manufacturers are able
parts and part modifications, during production.to provide higher quality for lower price
Casting – Manufacturing technology for complex• The manufacturing equipment utilized by larger
parts with special design demands that do not requireorganizations tends to be suitable for larger
a high level of precision. This technology allows for  runs and in general more advanced, more precise
manufacturing complex parts with relatively goodand with better repeatability of results.
utilization of raw material. Similar to Stamping, this• A significant advantage of a big company lays
technology requires a significant NRE making thein the availability of support staff such as
technology feasible for mainly large runs. Casting  planning and control, QC, QA and big engineering
usually requires additional operation such as milling todepartments. This in turn facilitates better
bring the part to the required dimensions. Milling is a  quality, more professional solutions and ultimately
significant cost addition. Just like the Stamping, it isbetter service.
almost impossible to make modifications once the• A qualified employee is one of the biggest
production started due to technological limitations.assets of a large contract manufacturer. In large
Polymers – this technology is very high on the  organizations it is more common to employ and
Non-Recurring Expense scale. Its advantages includetrain more professional employees and  
the ability to provide design solutions for very unique  keep them for longer periods of time.  These
and complex problems. This field includes areas suchcompanies are able to provide better working
as blow molding, extrusion, vacuum forming,  conditions and pay for better work force, which
composite materials and others. Composite materialstranslates eventually in better customer
stand out as a unique technology that enables the  service.
manufacture of parts that must be tough, light• Large sheet metal manufacturers tend to
weight, high temperature tolerant and live withinpurchase better quality raw materials from
erosive conditions. It is used mainly in the aviation and  suppliers that conform to international standards.
military market.The price issue usually becomes
Sheet metal fabrication – This technology utilizes  secondary in choosing a raw material supplier. Still,
sheets of metal by cutting and bending, to fabricatemore quantity allows for lower prices
the outer casings and the inner parts of equipment  and at times a big company can purchase better
such as rack cabinets, computer terminals, electronicsraw materials for lower price than a small
and such. This technology is suitable for the high-tech  manufacturer buys a lesser material. Better raw
industry allowing the fabrication of complex elementsmaterials give the customers a higher
with specific finishing requirements. It is optimal for  quality product, with better finishing, strength and
small to medium quantity runs with high flexibility andother visual aspects.
low cost design changes and modifications. ThisThis article was written by Arie Sharvit, Manager of
technology allows the use of special inserts, studsSheet Metal Fabrication Operations at Nepcon
and spot welding which increases further the flexibilityManufacturing Technologies, Yavne, Israel.