The Line from OCM Manufacturing
Welcome to the Winter 2008 issue of The Line – the electronics manufacturing resource for small- and mid-size companies.
Feature Story
Turnkey Manufacturing for Today's Environment
At OCM Manufacturing, we've seen a rise in the trend toward turnkey manufacturing models, particularly within the small- and mid-size markets we serve. While the "consignment" model was more popular five years ago, a shift is occurring as these companies recognize the many benefits of a turnkey relationship with their contract manufacturers.
"Turnkey" manufacturing is a model in which all manufacturing and supply chain services are provided by the contract manufacturer. Therefore, most of the associated overhead and risk is also assumed by the manufacturing partner. This is in contrast to the consignment model, in which a company maintains some supply chain resources - and material inventory - in house.
While we have always served customers under a consignment model, often transitioning them to full turnkey services down the line, today we find more companies are choosing a turnkey model right from the start. They do so because they recognize that their business model will be driven by innovation, sales and marketing - not by the infrastructure-intensive manufacturing of those products.
Based on our experiences, we have developed a cost calculator that we can use to calculate for you the projected savings of moving from a consigned to a turnkey model in your particular situation. Please contact us for details.
- Michel Jullian, President, OCM Manufacturing
Hot Topic
Designing to Reduce Inventory Costs and Risk
Inventory control represents one of the highest cost areas in the manufacturing supply chain. Whether you are outsourcing the complete supply chain and manufacturing of your product in a turnkey model or using a consignment model, a number of design considerations can help to reduce the hard costs, overhead, and risk of inventory.
This DFM Tip provides some best-design-practices for reducing inventory risk and cost.
Read the tip »
News
OCM Transitions Customer to China
A team from OCM traveled to Shenzhen, China this fall to oversee the transition of a customer's manufacturing to OCM's operations there.
OCM is providing turnkey manufacturing and supply chain services to Terrapin Communications Inc., an Ontario-based manufacturer of water safety devices. All manufacturing and assembly will be handled through the Chinese facility, providing high quality manufacturing, labour cost savings, and scalability to high-volume manufacturing in the future.
"We first engaged OCMT in 2002 to do low-volume manufacturing of 'Turtle Power', a battery pack accessory for our Safety Turtle product," explains Bob Lyons, President, Terrapin. "In February 2004 OCM was contracted to build Safety Turtle receiver boards used in MariTech Industries' [our OEM customer] award-winning Marine Engine Shut Off Systems and Wireless Alarms. In 2006 OCM took the new Safety Turtle wireless gate alarm from pre-production to volume manufacturing. OCM is now Terrapin's turnkey manufacturing partner for all Safety Turtle sub-assemblies and products. Since 2002 OCM has consistently come through as thoroughly professional and trustworthy."
You can learn more about Safety Turtle products for kids and for pets - and how to purchase them - online at www.safetyturtle.com.
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Contents
Turnkey Manufacturing for Today's Environment
Design to Reduce Inventory Costs
OCM Transitions Customer to China
Featured Resource
Consignment vs. Turnkey Manufacturing: Cost Benefit Analysis
Download the PDF »
Archives
Don't forget that you can view past issues of The Line on the OCM website.
Go to past issues »
Good Reading
"Navigating the outsourcing minefield" - OCM and one of its turnkey customers are featured in an article that examines what is necessary to de-risk the overseas outsourcing of electronics manufacturing.
Available to G&M
subscribers »
"Keeping a grip on supply chain management"- in this letter to the editor published in the Ottawa Business Journal, OCM President Michel Jullian comments on the recent rash of recalls on consumer products manufactured in China.
Read the article »
Executive spotlight - OCM's Michel Jullian was featured on the cover of the Ottawa Business Journal in January and in an executive spotlight titled "Work hard, stay frugal, have fun".
Read the spotlight »
Did You Know?
The Chinese New Year is February 7th, 2008.
This is the Year of the Rat.
According to Wikipedia, the Rat was welcomed in ancient times as a protector and bringer of material prosperity
Contact OCM Manufacturing
OCM Manufacturing Inc.
2183 Thurston Drive
Ottawa, Ontario
Canada
K1G 6C9
Phone: 613-736-5665
Toll Free Phone: 800-268-3961
Fax: 613-736-5525
info@ocmmanufacturing.com
www.ocmmanufacturing.com
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