To outsource or not to outsource the fabrication of OEM parts – that’s the question. As much as OEMs may want to perform the entire manufacturing process in-house, rising competition and challenges in the market has many OEMs considering outsourcing as a cost-effective solution. The following are some of the top advantages of outsourcing your OEM parts fabrication.
The trade war between China and the US began in July 2018 with the US imposing tariffs on Chinese products. Several courses of discussions have taken place between the trade representatives of both nations, without any settlement anticipated soon. The current state of the negotiations is stalled as leaders of both countries do not wish to seem vulnerable and have established “cold war like” camps.
What is an OEM?
The term Original Equipment Manufacturer (OEM) relates to manufacturing, engineering, and sub-assembly of a product. But it can be confusing because an OEM manufacturer does not always produce all the parts in their product. In some cases, OEM manufacturers may make the final product or just components, especially electronics and automotive, that are sold to another OEM. These parts can be assembled and purchased via other manufacturers for their own products. In a nutshell, an OEM can be any manufacturer that makes and sells a part to another company to be used as a part of their product.
As an OEM or Tier 1 supplier, you know that part production is a considerable cost in your manufacturing process. Finding a cost-effective, dependable, and quality-focused Tier 2 supplier to manufacture metal parts is critical to your success and profitability.
OEM stands for original equipment manufacturers. This term is slightly misplaced as OEMs are not companies that originally create the product. They assemble and sell material and parts manufactured by other companies in the supply chain, under their own brand name and warranty. The OEM supply chain is comprised of three tiers. The dynamics between OEMs with its tiers is highly significant, and critical for creating and selling of products to the end user. In this article, we will delve into the different manufacturing stages required for supplying parts to the OEM.
With 2019, we can expect the manufacturing industry to see revolutionary advancements and reach new heights progressing further into the industry 4.0.
There is little doubt that “clean energy in manufacturing” is a hot topic of conversation both nationally and internationally. Manufacturers strive to create and maintain the best energy usage without adding pollution to the environment. In fact, without clean energy advances, American manufacturers may risk losing their competitive edge over foreign competition.
In an increasingly global and technical marketplace, it’s more important than ever for businesses to utilize the best process to thrive and grow. Manufacturers must examine how to make their work process leaner. Lean is about driving a customer-focused culture across businesses, operations and people, to deliver products that meet customer requirements on time, on budget, and with high quality.
Flexible manufacturing is an integrated system of computer-controlled machines, transportation, and handling systems under the control of a larger computer. Flexibility is attained by having an overall system of control that directs the functions of both the computer-controlled equipment and handling systems. These computer systems are designed to be programmed or grouped easily with other devices to allow fast and economical changes in the manufacturing process. This ability aids in enabling quick responses to market changes and enabling mass customization of products. The following information discusses what makes a system flexible and the make-up an entire flexible manufacturing system.
What is Flexible Manufacturing?
Since the 1970s, flexible manufacturing systems have helped companies to create products quickly and more efficiently. It is designed to react and adapt to changes, unexpected issues, or problems with the production process. Today, Flexible manufacturing systems still work to improve the production process and offer two types of flexibility: machine and routing flexibility.
Manufacturing has been the backbone of economic development, supporting organizations that cater to consumer demand. Industry is no longer limited to outdated assembly lines. New tools and solutions, such as 3-D printing, robotics, and big data help factories meet greater demand at a lower cost. To help your manufacturing processing team grow, consider adding these strategies to your line up:
Initiating and then sustaining a Lean Manufacturing strategy can be a daunting task, typically requiring your business to make a cultural and process transformation. If your company is looking to achieve Lean Manufacturing success, here are a few lessons to follow:
In a tight labor market, searching for new workers with a specific skill set to enhance an automated production line is challenging for human resource recruiters. The capabilities of these new workers can be readily applied to new manufacturing technology with proper training and “up-skilling.” In the manufacturing industry, it is imperative that workers take the initiative to learn new skills in preparation for the continued rise of automation if they want to remain relevant in their fields.
Supply chain visibility is crucial to success in manufacturing. However, lack of synchronization in workflow often occurs when the workers can’t fully comprehend the activities one level below or above their place in the supply chain. While it can be a struggle defining supply chain visibility between your departments and workers, the benefits are worth the effort. Start by getting staff talking about what the commonalities in each worker’s definition and grow from there. It is possible to increase visibility and transparency across every stage of the supply chain to help get workers on the same page to understand its importance.