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ManageMent www.us- tech.com


How to Choose the Right Subassembly Supplier


By Ed Sullivan


more technologically advanced, OEMs are becoming increasingly de- pendent on sourcing subassemblies to third-party suppliers. At the same time, subassemblies are critical to an OEM’s finished product and must be sourced carefully to achieve consis- tent quality, timely turnaround and competitive pricing. In many cases, contracting with suppliers that offer access to global manufacturing facili- ties and in-house engineering sup- port can be instrumental to the suc- cess of an OEM. One of the most significant chal-


W


lenges is locating reliable suppliers who can meet these qualifications with pricing that can improve prof- itability. Some of the more successful OEMs point to a few uncomplicated strategies that help strengthen sub- assembly sourcing, achieving faster turnaround, ensuring product quality and functionality, and increasing added profitability.


ith touchscreens, flex cir- cuits, keypads, and mem- brane switches becoming


Access to Global Resources Selecting a domestic subassem-


bly supplier with global manufactur- ing resources can provide OEMs with significant economic advantages — provided that the manufacturing pro - cesses are managed by the supplier. For example, many OEMs that


contract directly with offshore sup- pliers experience communication dif- ficulties that can lead to errors with subassembly materials or dimen- sions, avoidable logistical difficulties, or even cost miscalculations. Howev- er, some OEM suppliers have no problem in providing high-quality products through relationships with offshore fabricators that work seam- lessly with the domestic supplier’s engineering and management team. “We have found that offshore


fabricators can be effective partners in manufacturing for North Ameri- can subassembly suppliers, provided that the proper communications and management controls are in place,” says Hector Macias, director of Northpoint Technologies, located in


El Paso, Texas. Macias adds that such fabrication partnerships can al- so be financially beneficial to OEM customers by providing savings on cost and eliminating the need for capital investments. Northpoint Technologies is a


manufacturer of components and subassemblies for electronic devices used in the medical, automotive, de- fense, telecommunications, industri- al, and consumer markets. The com- pany’s expertise includes silicon and


A domestic subassembly supplier with global


manufacturing resources can provide OEMs with significant advantages.


membrane switches, flexible PCBs and assemblies, touchscreens and wire harnesses. When Justin Blush was in


search of a silicon membrane for a microscope control switch, he found Northpoint Technology. Blush, lead technician at Prescott’s, Inc., a re- manufacturer of surgical micro- scopes, says his company’s own mold- ing and machine shop was unable to fabricate the membrane, which was incorporated into a switch that en- abled a microscope to zoom in and out on a subject. “I was happy just to have a supplier and expected the fab- rication and shipping process to take at least six to eight weeks, as with our traditional suppliers,” Blush ex- plains. “I was amazed to learn that the membrane required only a two- week turnaround, and at a fraction of the price I expected.”


Fast Functional Prototypes The timely delivery of proto-


types and quick turnaround of revi- sions are vital to expediting the man- ufacturing process. When subassem- bly suppliers with offshore manufac- turing facilities can produce proto- types in-house with quick turn- around times, the process is much more efficient. Due to those factors, prototyp-


ing is one of the functions that suc- cessful suppliers seldom outsource. Macias considers prototyping a criti- cal step in product development. These are produced using aluminum or “soft” molds, and are of such qual- ity that they are usually considered to be product samples or the equiva- lent of first article production pieces. “The prototypes we require are


real, functional samples that we send to customers to inspect and test,” says Terry Swick, president and co- founder of Swick-White, a manufac- turer of electric enclosures, control panels, membrane switches, and graphic overlays. “Assuming they meet specifications, they can install


them as finished subassemblies in products and ship them out to cus- tomers with confidence.” At other times OEMs will have


requirements that are beyond the usual request. Suppliers who have the in-house capabilities produce complex items domestically can sat- isfy the extra demand by producing additional functional prototypes that have been approved for production.


Volume Flexibility Whether subassemblies or indi-


vidual parts are fabricated domesti- cally or overseas, minimum volume requirements can force OEMs to pur- chase more parts than they require. However, a few subassembly suppli- ers are moving away from volume re- quirements to better serve the OEM. When Steve Stoehr, engineer-


ing manager at GS Global Resources (GSGR) was sourcing a keypad as part of switch and control panels in- stalled for heavy-duty equipment like agricultural machinery and fire trucks, he expected to make a sizable volume commitment to the keypad manufacturer. Based in Mukwonago, Wisconsin, GSGR develops and im- plements a broad range of electronic and hydraulic control systems for various OEMs. “Most of our suppliers want high-volume orders, just like other industries,” explains Stoehr. “Five or six years ago we found Northpoint Technologies, which has been very good about taking on even low-volume projects. That’s a real plus for us and our customers.”


Adding Value Finally, many OEMs are find-


ing suppliers that provide significant value-added services, with offerings ranging from engineering assistance to recommendations for streamlining the manufacturing process. In some cases, graphic design assistance, such as special icons or other sym- bols on keypads and other controls, can provide important safety or secu- rity features. In another example, Stoehr found


that subassembly suppliers could bring important value added through the kitting of loose parts. He arranged with Northpoint to have special kits, containing 20 loose keypad buttons, to be packaged in order to expedite as- sembly on the production line. “Getting great value-added serv-


ices through a single source is impor- tant to GSGR,” Stoehr says. “It is not only more convenient, but when you couple that with consistent quality, quick turnaround and competitive prices, it helps us provide better serv-


ice to our customers, as well.” Contact: Northpoint Technolo-


gies, Inc., 13321 Tobacco Road, El Paso, TX % 915-591-6300 E-mail: sales@northpoint.com Web: www.northpointech.com r


December, 2016


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