This lecture examines the difficult strategic and tactical challenges that startups face when outsourcing to contract manufacturers. From estimating the time-to-market to selecting the right supply chain and facility partners, thinking ahead and finding the right manufacturing model for your hardware startup is crucial.

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8 Subjects you need to know about
Contract
Manufacturing
Harvey Coleman
D E C E M B E R 2 0 1 5
# E N T 1 0 1

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• Make or Buy
• MVP
• Design Package
• CerMficaMon
• Packaging
• LogisMcs
• Targets
• Control
ConsideraMons
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2015
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What to “Make or Buy”
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2015
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• What is it?
• Ries/Blank
• CAD
• Rapid prototyping
• Metrics -­‐ Assembly Mme, weight, volume etc
• Crowd funding
• Control
• Designer
Minimum Viable Product
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2015
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• Program Manager
• Freeze
• Design drawings
• Overall dimensions (Size + Weight)
• Tolerances
• Ownership
• CAD/AnimaMon
Design Package
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2015
#ENT101
• ProducMon process
• Component materials
• Duty cycle/MTBF
• Bill Of Materials
• Assembly instrucMons/
Training
• QA/TesMng
• Inventory control

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• Talk with people with manufacturing experience.
• Create a list of 5 to 10 potenMal partners.
• Narrow it down to about 3 partners.
• Create a Design package.
• Visit
• Analyze responses.
• NegoMate.
• Get customer references
• Select a partner
Finding a Manufacturing Partner
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2015
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• InternaMonal
• Electrical
• Mechanical Standards/Health Safety
• Factory – ISO9000, Hazmat etc
CerMficaMon
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2015
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• Purpose
• Design issue
• Languages
• Self assembly/Nest/InstrucMons
• WarranMes/CerMficaMons
• PrinMng/Labels/Lot nos./Serial Nos./Added where
• Checking/Graphic
Packaging
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2015
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• From Factory to User
• Get ALL to the port
• Shipping, duty, VAT etc
• Warehousing/ Inventory control system
• Delivery
• Back Office systems
• RMA system
LogisMcs
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2015
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• Costs
• Lead Mmes
• Terms and CondiMons
– Up front payments
– WIP
Targets
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2015
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• Make – All or part
• Sub contractor(s)
– SelecMon/MulM-­‐source?
– Experienced Project Manager
• Where/Stage
• Local sub-­‐contract
– Own assembly
– Part of process
– Turnkey, but …
• SE Asia
– Organize yourself
– Third party on the ground
Control
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2015
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Get Advice
The Power in
Numbers
hcoleman@marsdd.com
THANK YOU!

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2015
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