When you purchase a product, you may not think about what it takes to get it to you. From a toaster or coffee pot to a car, truck, or heavy machinery, the process is complex with multiple parties and steps.
Frequently, the company that designs the product doesn’t make it all on its own. In most cases, the raw materials and components are supplied by several companies and in different forms, then the final product is manufactured.
In the case of a simple, ordinary toaster, one company designs it, another company may manufacture the prototype, and still another test the prototype before it’s brought to market. The various components may also be supplied by other contract manufacturing companies. Once the prototype is tested successfully, the toaster is mass-produced for sale.
Contract manufacturing makes the process more efficient and allows companies to make better products that are competitively priced by utilizing economies of scale.
Outsourcing manufacturing
For the company that designs, adding manufacturing to their capabilities could be costly, and difficult, and still cannot produce the products they design. The answer is to put the manufacturing phase into the hands of a company that can handle the design company’s manufacturing needs.
Contract manufacturing allows companies to outsource all or part of their manufacturing and fabrication needs. The manufacturing company has the knowledge, equipment, and expertise to produce products and parts to exact specifications.
The company engages with a third party to produce either the components of a product or an entire product such as the aforementioned toaster, rather than producing the entire product in-house. This allows a company to:
- Focus on their core competencies instead of adding manufacturing to their business
- Utilizing the contract manufacturer’s equipment and skills for a lower capital investment
- Avoid the expenses of additional capital outlay for equipment, personnel, and facilities for manufacturing
Contract manufacturing allows companies to go from design development to production within a short period, and launch their products faster. Additionally, contract manufacturing companies understand and keep abreast of current market trends. This can also allow a business to enter the market earlier than the competition and grow its market share.
Computer Numerical Control (CNC) Milling
In CNC milling, machines are driven by specifically programmed software to work on numerical control. Once the parameters are set and added to the software, the machine operates on its own and without human involvement. CNC means that the margin for error is much lower as long as the software is programmed correctly.
Laser cutting, hole punching, water jet cutters, and ultrasonic welding are just some of the tools that are used for CNC milling and manufacturing. CNC can make highly detailed cuts in metal pieces and parts for industrial and other applications. Because CNC is programmed and automated, the process happens quickly.
OEM (Original Equipment Manufacturer) Contract Manufacturing
For many of the same reasons, companies can also license out the manufacture of parts for their products, especially in industries like automotive.
In OEM contract manufacturing, the OEM brand is responsible for the design and engineering of the part, providing detailed specifications, drawings, and assembly instructions. This ensures that the vision and requirements are communicated.
The contract manufacturer then takes on the critical role of executing the tooling and production process based on the provided documentation. By focusing on manufacturing excellence, they bring the OEM’s designs to life while maintaining high standards of quality and efficiency.
Whether you need help fabricating a single component, a subassembly, or manufacturing a complete product, Brown Industries offers contract manufacturing for your company’s production needs.
