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SPECIAL FEATURE MANUFACTURING & FABRICATION


Bolting for


the bolts Keeping up with the shorter time to market


As rapid IoT-boosted industrial progress drives demand, Steve Marshall, managing director of Offshore Electronics, offers some timely advice to OEMs on how to stay afloat


T


he growing popularity of IoT connectivity, and other Industry 4.0 technologies in a wide range of industries, has major implications for the original equipment manufacturers (OEMs) supplying them with electronic products. OEMs must gear up quickly to take advantage of this trend, or risk losing business. In the automotive industry, for example, more objects and devices are connecting and communicating with each other via industrial IoT. It offers a wealth of applications in the control and functionality of things like electric and hybrid vehicles, autonomous vehicles and mobility as a service (MaaS). Importantly, connected technology applies not only to end products, but to the equipment used in making them. Increased automation and data exchange in manufacturing processes is being achieved through the digital interaction of Industry 4.0 elements.


TIME IS OF THE ESSENCE With this prioritisation of Industry 4.0, it can be seen how industrial customers are looking for help in this rapidly changing business landscape; OEMs have to be agile in responding to industrial customers’ needs. This quest for speed and agility used


to be a defining characteristic of the consumer market, with its ephemeral trends and fickle buyers. But now, it applies equally to many business customers. The arrival of 5G wireless services, for instance, is likely to have greater significance for IoT devices than for smartphone users.


26 JUNE 2019 | ELECTRONICS


REDUCE TIME TO MARKET Every new product demanded by customers has a limited selling lifetime, after which buyers’ interest moves on to something new. By arriving late, the OEM misses a large part of that period and its potential for sales, leaving it to other competitors to take the top spot. At this time of fast change, there is a stronger case than ever for getting to the market on time. To compete successfully in this arena, OEMs must design products faster, while maintaining their quality, reliability and performance. No OEM wants to be seen as the supplier who held up its customer’s production, through late delivery or product defects. One of the most effective ways of improving efficiency and shortening time to market is to outsource some parts of their supply chain. By focusing on the core activities in which they are best skilled and equipped, whilst concurrently finding outsourced suppliers who are specialised in handling certain other aspects, they make better use of their capabilities.


OUTSOURCE TO A CEM A good example of a non-core manufacturing activity is the production of printed circuit board (PCB) assemblies and electronic equipment. This can easily be outsourced to contract electronics manufacturing (CEM) companies. Outsourcing to a CEM spares OEMs


The production of PCBs is a classic circumstance in which to utilise the services of a CEM


the expense of investing in specialised electronics manufacturing equipment and upgrades. A good CEM will have the latest advanced systems, so OEMs can expect higher quality and productivity. There may also be significant savings on component and material prices, as CEMs enjoy economies of scale and strong buying power. This is part of the CEM’s specialism and it creates a more efficient and resilient supply chain. The best CEMs offer a comprehensive new product introduction (NPI) service, starting from design advice, through to prototyping, validating, testing and full- scale production. Their flexible approach allows for continued modification and improvement, through a product’s lifecycle and adjustment of volumes to meet market fluctuations. Having carefully selected a CEM with


the necessary credentials, capabilities, attitudes and swift responsiveness, the OEM should involve that partner from an early stage in product development. This will maximise the benefit of the CEM’s expertise and ensure a smooth process, leading to the on-time delivery which is so vital today.


Offshore Electronics www.offshore-electronics.co.uk / ELECTRONICS


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