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

medium-mix, medium-volume

Manufacturing; Contract manufacturing

A contract manufacturing environment where production volumes remain relatively stable for an extended period of time. Medium-volume production may last for days or weeks using the same setup.

new product introduction (NPI)

Manufacturing; Contract manufacturing

A set of integrated processes used to convert a product design into a manufacturing-ready product while meeting cost, quality and time-to-market objectives.

nonrecurring expense (NRE)

Manufacturing; Contract manufacturing

Items and activities required by an EMS provider specific to a particular OEM’s product program, such as setup, tooling and programming. These one-time charges are separate from the product cost.

original design manufacturer (ODM)

Manufacturing; Contract manufacturing

A company that manufactures products of its own designs, which are then sold under an OEM’s brand name. Typically, the ODM determines what products to build and the OEM simply purchases the items ...

original equipment manufacturer (OEM)

Manufacturing; Contract manufacturing

A company that designs and specifies products under its own company name and brand. Traditionally, OEMs design products, purchase components from suppliers, operate their own manufacturing plants, ...

outsourcing

Manufacturing; Contract manufacturing

The process of subcontracting a process, such as product design or manufacturing, to a third-party company. Outsourcing to EMS providers has traditionally appealed to makers of computers, ...

plants, property and equipment (PP&E)

Manufacturing; Contract manufacturing

Key elements of a fixed-asset manufacturing model. Plants include factories and warehouses. Property includes land and leasing. Equipment includes production tools and automated assembly machines.