Contract manufacturing

Contract manufacturing

The manufacturing of goods and products by one company under the label or brand of another. Contract manufacturing is a process in which one company outsources part or the entire manufacturing production to another company for such benefits as cost savings, improved quality, increased ROI, reduced safety risks, enhanced business focus, and faster speed.

Industry: Manufacturing

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Contract manufacturing

first-pass yield (FPY)

Manufacturing; Contract manufacturing

The percentage of product tested that passed inspection on first attempt.

high-mix, low-volume

Manufacturing; Contract manufacturing

A contract manufacturing environment where the products being assembled vary in application, lot size and production processes. Contract manufacturers that are equipped for high-mix, low-volume ...

intellectual property (IP)

Manufacturing; Contract manufacturing

Any product of the human intellect that is unique, novel and unobvious, and has some value in the marketplace. It includes ideas, inventions, business methods and manufacturing processes.

joint design manufacturer (JDM)

Manufacturing; Contract manufacturing

A company that helps design products for OEM customers. However, distinction on who owns the intellectual property is murky and can surface as licensing problems.

joint service agreement (JSA)

Manufacturing; Contract manufacturing

A document used in conjunction with a contract to define the processes, performance targets and expectations of both an OEM and a contract manufacturer. The joint service agreement should be specific ...

low-mix, high-volume

Manufacturing; Contract manufacturing

A contract manufacturing environment where there are a few number of assemblies produced in large quantities. High-volume production may last for weeks or months using the same setup. Changeover is ...

manufacturing and supply agreement (MSA)

Manufacturing; Contract manufacturing

A contract that defines responsibilities and bridges the relationship between an OEM and a contract manufacturer. It outlines what the EMS provider is required to do for the OEM and at what "cost" to ...