3. What is Contract Manufacturing?
• Making components or
assemblies for others
– Customer’s Design
– Customer’s Finished Specification
– Customer’s Order Quantity & Timing
• Service Menu
– What services do you want to provide?
– What are you willing to do for your
customers?
4. What is Contract Manufacturing?
• Customer’s Design
–Their idea, their drawing
–CM Engineering evaluates
capability
–CM provide evaluation feedback
5. What is Contract Manufacturing?
• Customer’s Finished Specification
– Regularly, specific component/assembly
characteristics are defined by customer
written guidelines or specifications
– Occasionally, customers will allow the
CM to define the outcome characteristics
based on your process capabilities.
6. What is Contract Manufacturing?
• Customer’s Order Quantity & Timing
– Our View, our time is not your own.
• Time is sold first come first served
• Highest rate take priority
–CM purchases inventory as need based on customer
forecast or spot purchase.
–CM builds to order or to agreed inventory (Kanban)
–Delivery quantity is specified by the customer
–Delivery date is agreed to by both parties.
7. What is Contract Manufacturing?
• Menu of Services
– What services do you want to provide?
– What are you willing to do for your customers?
8. What is Contract Manufacturing?
• What services do you want to provide?
– “Precision laser contract manufacturing”
• We use lasers as our tool
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CO2, YAG, Fiber, Disc, Ultra-fast Pulsed to
Drilling holes
Cut 2D shapes
Cut tubes
Weld metal assemblies
9. Lasers In Use
• CO2 – Lasers
– 250-500W Coherent Sealed
– 100-400W Synrad Sealed
– 2500W Rofin-Sinar Slab
– 20W Quantrad Marker
• YAG Lasers
– 50W Lumonics Luxstar welders
– 15W Lasag KLS fine cutters
– 350W Lasag FLS fine cutters
– 50W Lee fine cutters
– Lumonics JK701 400W
– Rofin Starweld
• Fiber Lasers
– 50, 150, 200 and 400 W SPI and IPG
– 20W IPG Marker
• Disk Laser – 100 Watt Prenovatec
• Femto-second Laser - Raydiance
10. What is Contract Manufacturing?
• What are you willing to do for your customers?
– Hold Inventory
– Build to kanban
– Quality Planning
• Validation Efforts
– IQ, OP, PQ, Process characterization studies
• FMEA
• Control Plans
• PPAP submissions
11. What is Contract Manufacturing?
• What are you willing to do for your customers?
– Quality Assurance
• Measurement Development
– Gage R&R
• Non-Conventional Inspection
– Crack check, x-ray, etc.
• Functional Testing
• Limit Testing
12. Laserage’s Mature Quality System
• ISO 9002:1994
–March 1996
• ISO 9001:2008
–November 2006
–Cert # L112006
• ISO 13485
–November 2010
13. What is Contract Manufacturing?
• What are you willing to do for your customers?
– Secondary Processing
• Metal Finishing
– EP, tumbling, micro-blasting, etc.
• Annealing
• Passivation
• De-greasing
• Paint
15. Why would an OEM utilize a CM?
• Project R&D
• Initial Design Verification (pre-production)
• Pilot Production Line
• Volume Production
16. Why would an OEM utilize a CM?
• Project R&D
–Putting a new component into the engineers
hand for feasibility and reality checking
–CM are utilized because they have expertise
in a narrow field with capital equipment in
place
–Costs are for the expert manufacturing knowledge as well as capitol. The
OEM does not need to spend money or time on capital or learning.
–Flexibility is the beauty of the Contract Manufacturer. If an OEM sends a
component to be laser manufactured and the test is not successful, an EDM
will be tried next or potentially a water jet system. If a hole diameter does
not function as desired, iterate the next round of components. There is a cost
in time but not capital.
17. Why would an OEM utilize a CM?
• Initial Design Verification
– Once prototyped does not mean always production ready
– Equipment (laser type) evaluation
– Process optimization trials
– DOE for processes and equipment
– Validation efforts
• Equipment Inputs
• Variable range testing
• Multiply lot Process Execution
• Design for Manufacturability
– Understanding all the Processes
– Effective Process Controls
18. Why would an OEM utilize a CM?
• Pilot Production Line
– Speed
• The CM already runs a manufacturing facility with the capability to produce product.
• No capitol lead-time required
• Training operations personnel is minimal since most likely similar products are already
produced
–Cost
•Manufacturing is in CM’s floor space,
usually lower cost then OEM.
•Technical staff on hand w/ little or no
training needed
19. Why would an OEM utilize a CM?
• Volume Production
– Demand Variations
• Keep an approved CM even if bringing
production in-house. Utilize them for peak
demand offset and equipment down-time.
– Core Competency
• These operations (laser) are what we do well.
Laser uptime is critical to us.
– Cost
• We understand (laser) production processes.