Posts Tagged ‘Shield Works’
Electrical Assembly In China: 5 Things You Should Need To Know
If you’re looking to assemble your products in China and want to do it as cost-effectively as possible, then it’s important to find the right assembly partner before you get started. Doing so will help you stay on track and keep your costs low without sacrificing quality or speed of delivery.
However, how do you find the right assembly partner? How can you be sure they have all the equipment they need? What should you pay attention to when interviewing them? Keep reading to learn 5 things that you need to know when finding the right assembly partner in China.
1) Get Ready – What Information Do You Need?
Before you begin your search for a reliable assembly partner, there are a few things you’ll need to prepare.
If you don’t know what kind of electrical assemblies your company needs, you won’t be able to find a viable assembly partner. So, make sure what electronical assembly service you will need for your products.
Typically, there are 5 electronical assembly techniques:
- Wiring
- Wiring harnesses
- Connectors
- Clamps
- Switches
If you know exactly what you want your supplier to do and how much it will cost per piece, then you should have no problem finding a great Chinese assembly supplier.
2) Where Do I Start – How Can I Approach Vendors?
When seeking out an assembly partner in China – something that may seem easy on paper – you’ll face many obstacles along your way.
As you may know, they’re a lot of fraud factories in China. When a factory knows it will be completely shutting down, its owner will take back the case without noticing their foreign clients. Because they know you are far away from them and you can not check their account.
So try to work with those who are searchable online. Click to their websites and social platforms and read about their reviews and case studies.
You can also go to some online forums to ask someone that has worked with a good electronical assembly company for more information.
Before diving into your hunt, there are 5 questions you should ask:
- Wha’s your budget?
- What type of product do you want to be made?
- What material do you want to use?
- How much time do you have before production begins?
- How large of a batch will you need to produce?
3) What to Look for – How Can I Evaluate Vendors?
A good electrical assembly vendor will have an assembly facility that can assemble your items with precision and quality.
However, if a vendor claims that they have a team of professional engineers and skilled workers to charge more, you should be careful with that. Some vendors in China may not even have factories, and they outsource all of their orders.
So, when you evaluate a vendor, it’s better to visit their facility in person. In this case, you will have a better understanding of such elements:
- Physical environment: size, layout, equipment and manufacturing capabilities
- Working condition: workplace safety and mode
- Culture: departments and working hours, certifications
Plant tours are one of the most valuable activities you should do before partnering with a potential assembly vendor, especially if you want to work on large-scale projects with them.
4) Prepare Yourself – Can You Manage the Process?
Before going through with an electronical assembly company, you will have to make sure that you are capable of managing your supplier.
What does that mean?
If you are a business owner and you are not familiar with all aspects of electrical assembly, it will be quite hard for you to learn everything step by step. In this case, it is a good idea to contact a professional agency or experienced consultant who can help guide and educate you on what goes into setting up an electrical assembly operation.
And understanding that there are language barriers when working with your supplier is inevitable since most factory owners do not speak English well. So try to keep your requirements simple to be understood for both sides.
Also, maintaining relationships with your product assembly company is essential in China. Earning your supplier’s trust and involving them in your project from the earliest stages ensure they become a strategic partner, which is vested in the project’s success.
5) What Next – After I’ve Signed an Agreement?
Now that you have compared some potential suppliers and you are about to finalise a perfect one for you, what’s next?
At this stage, you should learn more about the agreement.
If you have an IP right on your product, make sure that your supplier has a non-disclosure agreement to safeguard your trademarks or logos.
Let Shield Works Be Your IP Protective Manufacturing Partner
Our assembly service at Shield Works is a combination of reliability, cost-efficiency, and punctuality.
With our British ownership and management background, we have full capacity to help our overseas clients to assemble their products without IP rights risks.
Our product assembly team is so skilled and experienced that we can guarantee 100% satisfaction. Contact us to discuss your project today.
Manufacturing In China: How To Protect Your Intellectual Property?
It is not surprising that China has developed to become a major manufacturing superpower and more and more overseas companies have moved their production to China. However, some of them are having issues with IP protection while manufacturing in China.
If you are planning to manufacture your products in China, make sure you do everything possible to protect your intellectual property rights. Read on to learn more about the strategies you can use to avoid patent infringement issues in the Chinese market.
What Is IP?
Before you outsource your production to China, it is important to understand what happens to your intellectual property rights (IPR) once you outsource to a Chinese manufacturer.
Intellectual property is a broad term that can include anything from a new fashion trend to a specific software algorithm to an entirely new product design.
The World Intellectual Property Organization (WIPO) makes a definition of IP as “creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.”
No matter what type of intellectual property you have, there are some things you should know before starting manufacturing in China to ensure your intellectual property rights are protected.
Each Country Has Its IP Laws
Whether you are a small business or a large corporation, you have to consider how you’ll protect your intellectual property.
The first thing you should do is have a basic understanding of Chinese IP laws.
For example, patents for inventions can be protected for up to 20 years in China. Also, China protects utility models (for up to 10 years) and design patents (for up to 15 years). Utility models are sometimes called “mini-patents” and require a lower level of inventiveness. Design patents protect the look of products.
All patent rights in China are subject to the payment of annual fees after they’ve been granted.
The National IPR Organizations You Should Know In China
In China, the government plays a substantial role in promoting and protecting intellectual property rights (IPRs).
Several governmental departments are responsible for IPRs matters. Keep in mind the differences and functions of these organizations.
China National Intellectual Property Administration (CNIPA)
China National Intellectual Property Administration (CNIPA) was formerly known as the State Intellectual Property Office (SIPO). It was renamed in 1980.
The department is responsible for the patent work and comprehensively coordinating the foreign-related affairs in the field of intellectual property throughout the country.
If you want your patent registered in China, make sure you check these common questions that you will need to know:
Trademark Office of China National Intellectual Property Administration
When it comes to handling matters of trademark disputes, you should reach the Trademark Office of the China National Intellectual Property Administration.
It’s responsible for the registration and administration of trademarks throughout the country.
However, the website does not provide an English option, so it would be hard for foreigners to research and apply for a trademark online. Therefore, you can click on the CNIPA website to search for trademark-related information. Or you may go to the local trademark office to make an enquiry in person.
National Copyright Administration of the People’s Republic of China (NCAC)
If you want any copyright information, the National Copyright Administration of the People’s Republic of China website is a good option for you.
It accepts and examines copyrights applications in accordance with the law.
Keep in mind to check the copyright regulations and laws in China before you register your copyright.
IP Protection Agreement
When partnering with a manufacturing company, make sure you have a well-drafted and properly executed manufacturing agreement that will help you protect your IP, and provide you with relief if the manufacturer breaches the agreement.
The IP agreement should list all relevant details, including IP ownership, confidentiality, non-competition and non-circumvention and more.
Let Shield Works Be Your IP Protective Manufacturing Partner
With our British ownership background, we know how to help our overseas clients to protect their IPs without excessive costs and time.
Shield Works partners with Innopat a leading Zhuhai based IP industry expert to provide you with clear no-nonsense advice and IP protection services.
Our IP protective system safeguards your production line in our innovative facility.
We are ready to accommodate your needs. Contact us today.
What’s Included In a Product Assembly Service?
Are you a startup or an already established company debating if you need to use an assembly service to meet your client’s demands? Have you thought about working with an overseas company, but you aren’t sure what to expect?
There are many different vendors that you could use who are local to you. Do they have the right materials you need to meet the demands of your clients? Like you, many product-focused companies and entrepreneurs take advantage of using oversea companies to meet their needs.
If you are in the looking stage of comparing product assembly services and you need more information on finding the right distribution company, you came to the right place. In this brief product assembly service guide, we will cover how to find the right manufacturer and who you can contact for more information.
What Are Product Assembly Services?
Product assembly services or product assembly companies create your product, and they ship them either to you or your customers. Doing this process on your own can quickly become expensive. It is best to partner with a reputable assembly service company to save you more time and money.
Product Assembly Services in China
The best way to save time and money is to outsource your product assembly tasks to a third-party company to build your items. Many companies outsource their work to China because of the cost-saving benefit. A company saves a large percentage in production and distribution costs when they partner with a reputable assembly service company.
Choosing the Right Product Assembly Company
When choosing the right product assembly company, make sure that you look for a company with certified professionals. High-quality 3rd party assembly companies typically have favorable testimonials from the past experience, which consistently demonstrate their ability to provide products that meet client requirements.
Review Their Expertise
Even if a company’s professionals have the required certifications, you should check out their previous work. As you compare different companies that offer assembly and inspection services, ask about their internal quality control process and methodology.
Does your inspector use statistical models? Does this company use random sampling?
Are all your assemblers certified quality assurance inspectors? Don’t be afraid to ask your distribution company questions about their process and timelines.
Look at Other Reviews
When speaking to a prospective company, it would be best to look at their reviews. You can use third-party review websites to see what clients did or did not like about working with them.
Although reviews are a great place to start, the only way to gauge a company is to call them and speak with them. One company’s expectation requirements will be different than yours, so what you may not like, someone else may have loved.
When speaking with your assembly company see how they respond to your requests. Do they handle requests on time?
Do they have excellent client service? Partnering with a distribution company is a long-lasting relationship, so make sure to work with a company that has top-tier customer service.
Available Assembly Capabilities
Not all assembly companies are the same. Some specialize in product assembly of all kinds, whereas others may only focus on producing products made with a specific material. The most common types of general product assembly use composites, carbon fiber, plastics, metals, and textiles.
Other types of assembly services:
- Prepackaging
- Food packaging
- Product re-assembly
- Assembly testing
- Powder and liquid filling
When comparing different companies, ask if they have the right items and materials to complete the job. You can also ask if they have experience making products like yours.
Intellectual Property Protection
All countries have their own sets of rules and regulations when it comes to privacy and the protection of intellectual property. It is a company’s worst nightmare to have its product specifications compromised after years of development. If your distribution company sends products to your clients, you want to make sure that their data is also safeguarded.
Before you partner with any company, be sure to look into their country’s intellectual property laws and their track record with other clients. If their track record is not good, even in the slightest, you should look elsewhere. There is no margin for error when it comes to protecting the rights of your products.
Software Information
An additional step in securing your intellectual property information is to look into the type of software your distribution company uses. Is their technology well-known for privacy features?
Does it mimic the same safety measures you set for your own business? If they are not willing to share that information with you, they may be hiding something.
Product Timelines
As you start interviewing different companies, you should inquire about their product project timelines. The amount of time it takes them to create and ship your orders can hugely impact how long it takes for you to deliver your product to your clients.
Of course, you want to partner with a company that can produce high-quality items without taking too much time, but you also don’t want to rush the process if they don’t have the capabilities to deliver high-quality items quickly.
When speaking about timelines, don’t just focus on how long it takes for them to create the product. Make sure to ask how they handle natural disaster situations and other weather-related delays. When these types of moments happen, you also will want to have a primary point of contact to reach out to for the next steps.
Product Assembly Process
The first step of the assembly process is to find the right company. Once you find them, you will want to send in a request. The right company will suggest scheduling time to speak with you about your product over the phone. This way, they can gauge what type of materials they will need, how much they will need, and more to make sure your product comes out just as you need it.
During the first few stages, you and the company should clearly understand what to expect of the product. You should receive a rendering of your product and a physical model in your hands before you ok the rest of production. Each company has its own processes, so make sure that you are aware of all steps during their production process.
Advantages of Oversea Manufacturing
As mentioned earlier, many companies like to outsource their products to cut down on their costs. Another major reason is because of a particular concentration.
For example, many corporations use China for their production needs because of their concentration on electronic products. They are also well known for creating plastic products and other mainstream items like clothes.
High-Volume Capabilities
One of the most significant advantages of partnering with a manufacturing company overseas is their production capacity. Most manufacturing companies can produce huge quantities of your items within a short time frame.
Depending on your production needs and your manufacturer, they may offer you a discount for ordering large volumes of product. When working with certain companies, they may have a minimum purchase order requirement. This helps keeps control costs on both ends. If you need a small order, you can expect high fees and costs.
Skills and Talent
The skill level in other countries is much higher than in the United States, mainly because many Americans don’t work in manufacturing jobs. This creates a skill gap in the US, forcing many companies to seek help overseas.
The most significant need in the United States is for those with computer and digital skills, technical knowledge, and programming expertise. All of these skills are easily found overseas in major manufacturing companies.
Close Proximity to Raw Materials
United States factories have to source their materials from overseas, increasing their costs and time-to-market deadlines. Many manufacturers in China have access to these raw materials already at their plants.
If they don’t, they know someone or some company that has what they need. They also most likely have a relationship or some partnership with those companies.
If you manufacture your product in the United States, you will face delays if your product requires raw materials. Countries that ship to the United States may have to charge you higher shipping costs, and you may experience long wait times due to the impact of COVID. Instead of having them ship you the materials, you can cut costs by having your manufacturer produce the product on your behalf.
Disadvantages of Oversea Manufacturing
Although there are many fantastic advantages to outsourcing, you should keep a few disadvantages in mind. For example, the components and cost of production are usually cheaper, but the shipping costs may not be ideal. If you find that the shipping costs are too much, you can always negotiate better shipping rates, especially if you plan on working with that company long-term.
Longer Lead Times
Even though creating and producing large quantities overseas is cheaper, the lead time can be longer than expected. What this means is that it takes time for your goods to make their way from overseas into the United States. When calculating the time it will reach you; you must consider shipping times, country holidays, and the manufacturer’s demands.
Possible Language Barriers
When working with a manufacturer overseas, you will most likely run into cultural and language barriers. This can cause issues when you try to understand workflows and negotiate pricing and contracts.
You may also need to learn about their culture and what they do and do not value. To make it easier to work with your manufacturer, you may want to partner with a company with a local resident familiar with your language and the language of your manufacturer. This liaison person can speak on your behalf to protect your best interest.
Safety Risks
Environmental and worker safety should always be a top concern for you and your business. Not every country values the environment or employee safety. Hence, it is best to partner with a company that follows good labor practices, takes care of the environment, and implements safety programs.
Local vs. Overseas
When trying to figure out where to manufacture your product, you can choose between using someone overseas or a local company. When you partner with a company local to you, you may have an easier time communicating your needs in your own language. You can also save on expensive custom and shipping fees and have a shorter delivery time.
That may sound ideal, but you may have a limited array of supplier capabilities. Not every manufacturer in the United States has the talent, skills, expertise, or raw material you need to create your product.
If you have a hard time sourcing a manufacturer local to you, you may have to reach out to a reputable company overseas. Of course, before you partner with any company, make sure you communicate with them to gauge if they can meet your demands.
Cut Down Production Costs Now
No matter how great your idea is, you need to have a reputable and high-rated manufacturing company on your side to bring your vision to life. These companies have the skills, experience, capacity, and raw materials to help you meet the demands of your customers.
Making sure that you and your distribution company are on the same page is crucial. The last thing you want, as a business owner, is for the entire operation to fall apart and for you not to be able to hit your quota because of your assembly service.
Contact us now if you are ready to bring your idea to fruition and want to work with a company that values quality and a safe working environment!
3 Tips For Finding The Right Custom Manufacturing Partner In China
When you need to source custom manufacturing services, it can be hard to know where to start.
Finding the right custom manufacturing partner can be challenging.
There are many companies out there with the capabilities to manufacture your product, but finding the right one can be difficult and time-consuming without some guidance.
Thankfully, you don’t have to go at it alone. Here are three tips that will help make finding the right partner much easier.
Tip #1 – Know What You Want
Start by listing your needs and expectations before choosing a custom manufacturer in China.
- What’s your budget?
- Do you have a strict deadline?
- Are your product materials hard to obtain?
- Will you need samples before production begins?
All of these details can help narrow down your list of potential partners.
Finding a company that already has experience with similar projects can make sure that production goes as smoothly as possible since they’ll be familiar with what it takes to meet all your needs and deadlines.
Tip #2 – Understand Your Suppliers
Another thing to take into consideration when you’re looking for a custom manufacturer is to do your research.
Find people who have successfully worked with a company that provides custom manufacturing services.
If someone has had a good experience, you can use them as a reference to find other companies that provide similar services in case their recommendation didn’t work out so well.
Also, you can compile a comparison list of potential options.
After you list all the key factors you need to know beforehand, you’ll be ready to begin contacting them directly.
Tip #3 – Choose A Custom Manufacturer That Fits Into Your Supply Chain
Choosing a custom manufacturer requires an understanding of how they fit into your supply chain.
If you are looking to get started with rapid prototyping, then your supplier must have access to both traditional and 3D printing equipment.
This will allow them to offer you a full range of services including design iteration and custom parts made from advanced materials.
If, on the other hand, you are looking for custom injection molding services, you need a manufacturer that can handle creating tooling and assembling large quantities of products efficiently.
Remember: your final product will only be as good as your supplier’s capabilities!
Let Shield Works Be Your Custom Manufacturing Partner
If you need to customize your product, Shield Works can be your best partner in China.
We are a British owned and managed company providing customized OEM manufacturing and assembly activities.
Your product will be manufactured in one of our state-of-the-art facilities. We are prepared to accommodate your needs; from bulk production through final product finishing. Contact us today.
Why Outsourcing Medical Device Manufacturing to China Benefits You
You’ve come up with an innovative new medical device or equipment, and now you want to get it into the hands of doctors and hospitals across the country. You could just hire someone in your area to build it all by hand, but that would take much longer than you’d like, and you wouldn’t be able to produce as many units as are necessary to meet your demand and get it out there quickly. By outsourcing medical equipment manufacturing to China, you can save both time and money, while ensuring quality production that meets your exact specifications. Check out these tips of outsourcing medical equipment manufacturing to China!
Selecting a Contract Manufacturer in China for Your Medical Device Product
Choosing a contract manufacturer in China for your medical equipment product can be an overwhelming task. Before you begin, it’s important to have a clear idea of what you need and what steps you will take during your search. Once you have a plan, it’s time to find a reputable company with staff that speaks English. Next, arrange meetings and build relationships with potential manufacturers. The next step is choosing which company will produce your medical equipment product.
You might as well as yourself the following questions:
- What type of medical devices do you have experience in?
- What is their track record?
- Do they use raw materials from other companies or do they purchase them themselves?
- Does each manufacturer offer fast turnarounds and great prices?
- How many years has each one been in business?
- Is there consistency among all of their products?
- Are there any customer reviews online about them?
- Can they produce products in compliance with FDA or health and safety regulations in other targeted countries?
If you are going to export to the US, do some digging on the FDA database to identify the certified manufacturing and filter out the bad seeds with track record of practice or products violating regulations. At times like this, this step should be addressed with extra importance as the regulations are always subject to change. Finally, once you’ve chosen a contract manufacturer in China for your medical equipment product, make sure to sign contracts before beginning production.
It’s also important to make sure everything is written down clearly so there are no misunderstandings later on, including the specs required by the health department. If possible, try to get samples made by both companies before making a final decision. This way you can compare quality and price side-by-side before deciding who gets the job. You want to work with someone who not only meets your needs but also exceeds expectations at every level!
Benefits of Manufacturing Your Medical Device Product in China
When you outsource your medical device manufacturing, you gain access to the following elements of production.
Quality control
When you contract with a Chinese manufacturer for your medical equipment, they will send engineers and representatives to oversee production. This means that when it comes time for delivery, your items will be free of defects and exactly as specified in your contract. It also means that any errors made during production will be caught early on so they can be corrected before being shipped out. Having someone overseeing production ensures that nothing slips through the cracks and helps prevent mistakes from occurring later down the line. Also, as we have stressed the importance of adhering to the health and regulations issued by the countries you export to, experienced teams in China should know these rules like the back of their hand and strictly perform compliance checks for you.
Cost savings
When compared to American companies specializing in contract manufacturing, Chinese companies often offer lower prices due to their lower labor costs. By outsourcing your medical device manufacturing, you’ll have more money available to invest in marketing or research and development. Also, when it comes to manufacturing medical products, sometimes it’s tricky to strike a balance between maintaining required specs and budget control. China’s experience can be of great help in this regard.
Better Time Management
This also allows you to focus on creating your unique product, while allowing a 3rd-party manufacturer develop and produce it for you and help you better manage time, resources and costs; furthermore, because they’re focused on manufacturing one or several products for multiple companies, they’re able to handle much larger volumes than most startup companies can handle. This means that when you partner with them, you won’t have bottlenecks or downtime that could lead to delays in production or delivery.
Flexibility
A lot of contract manufacturers overseas are willing to negotiate terms based on how much work they have at any given time. If there is no work coming up, then they may agree to do a small project for less money than usual. This gives you an opportunity to get additional products made without having to pay full price—something many businesses find useful since cash flow is always tight when starting up new ventures.
Working with overseas manufacturers has its own set of challenges; however, if you approach them carefully and build relationships with them over time, it’s possible that outsourcing could help make your business more successful.
Examples of Medical Device Products That Can Be Manufactured in China
A lot of medical device products are produced in China, including ventilators, cardiac monitors, blood pressure monitors and infusion devices. Sometimes manufacturers can create a better product than your competitors by using specialized suppliers or materials they have on hand. Contracting with a company that specializes in manufacturing medical equipment makes sense since outsourcing allows them to control quality and make sure everything is done within your timeline. You may have not considered outsourcing your medical equipment manufacturing because you don’t think it would be possible; but it is, and you may want to.
To learn more about how to take advantage from the highest quality of medical device products from Chinese manufacturing companies who know all the western industry standards or to speak with experts with this regard, feel free to reach out and get in touch with us here at any time!
How To Choose The Right Product Assembly Supplier In China?
Partnering with a product assembly company in China can help grow your business and save you money by allowing you to order more products without building an in-house assembly line.
However, finding the right product assembly partner isn’t always easy and problems often arise due to business misunderstandings.
To mitigate any issues there are some important things to know before you get started.
Know What You Want From A Product Assembly Supplier
First and foremost, you should have a clear idea of what you want from your suppliers.
Some small companies jump into outsourcing without any clear vision of what they want and what they need at the beginning, which can lead to major problems down the road.
Therefore, make sure you’re very clear about your expectations and standards.
The more details you provide to your assembly supplier, the easier it will be for them to achieve your goal.
Enquiry about expertise in your industry
Before deciding which product assembly supplier is the best for your project, you need to know if they have experienced with similar products in your specific industry.
For example, if you need to get some electronic parts assembled, but you choose a supplier that merely focuses on toys assembly, you may encounter troubles down the line.
Ideally, you want to find an expert within your niche who has several years under their belt and at least one other completed successful product assembly project.
If not, a lack of expertise can often lead to delays and added costs down the road as manufacturers learn on-the-fly rather than preparing beforehand.
If they aren’t willing or able to discuss their background and expertise during early conversations, it’s probably time to look elsewhere.
Finding a partner that fits in both categories is rare, but possible if you do some research and ask around (or bring on an expert yourself).
Ensure Your Intellectual Property Rights Are Protected
Your company’s intellectual property rights are one of your most valuable assets.
Before choosing a Chinese product assembly partner, it’s important to understand how your intellectual property is protected.
With so many companies in China today, it is hard to determine which ones are qualified and care for their customers’ IP. Therefore, it’s also a good idea to check if your supplier has any patent infringement history.
Additionally, it would be better to ask your supplier if they have any experience working on IP issues.
Keep in mind that you should ask your suppliers if they have intellectual property (IP) agreements before cooperation.
Make sure that you have an agreement in place that protects your intellectual property (IP) rights when you transfer technologies to a third-party company. There are many kinds of IP protection agreements available, so choose wisely. You may want to consult with experienced legal counsel.
Avoid Common Pitfalls With Product Quality
One more important factor you should keep in mind is how to avoid common pitfalls with product quality.
Poor-quality products will only hurt your business and tarnish your brand.
To avoid problems as best as possible, here are three keys to remember:
1) . Be clear and concise about your product requirements and expectations.
2) Investigate and work with your assembly supplier to ensure your product complies with the regulations of the final market.
3) Follow up throughout production and communicate effectively.
Let Shield Works Take Care of Your Product Assembly
Choosing a product assembly service provider in China is not an easy job, especially when you want to hire someone professional and reliable.
If you’re looking for an outsourcing partner in China, look no further than Shield Works.
Shield Works provides customized OEM manufacturing and assembly activities to meet your business’s needs. Contact us today.
5 Things You Should Know About Lean Manufacturing
In the past decade, Chinese manufacturers have embraced new methodologies and techniques to meet the increasing needs of the world.
Of all the new approaches, lean manufacturing may be one of the most commonly used.
Lean manufacturing helps organizations optimize their business process so they can speed up production to market products, cut costs, and improve quality.
As your company may begin to consider lean manufacturing, this article will explain everything you should understand before you jump into it.
1. What is Lean Manufacturing?
First thing first, what is lean manufacturing?
Lean manufacturing, lean production, or simply “lean” is a systematic methodology designed to minimize waste in a manufacturing operation while productivity remains constant.
In simple terms, lean manufacturing is an approach to managing manufacturing processes that aim to improve flow, eliminate waste and increase efficiency.
2. What Are The 5 Lean Manufacturing Principles?
Lean manufacturing was designed to optimize the use of materials, production lines, production processes and logistics.
There are five principles for lean production.
Identify Value
An accurate understanding of the value assigned to products or services is the first principle.
In this case, you need to keep in mind that:
-What are your needs and expectations?
-When do you need the supplier to finish your order?
-How much will you pay?
Map A Value Stream
As the ultimate goal of lean is to eliminate wastes, removing any wasteful practices by mapping A value stream is important.
Create Flow
Look at every step in your work process and eliminate points of making waste. If there are steps that do not create value as expected, remove them and redesign the flow.
Ensure a smooth process that can be undertaken with minimal delay or waste.
Establish a Pull System
In a pull system, units are produced based on current demand.
It sharply contrasts with a push system, in which items are produced based on forecast demand.
The pull-based system ensures that products will be produced as scheduled in needed quantity.
Seek Perfection
Continuously dig deeper and measure to achieve a perfect lean process.
3. The 8 Types Of Waste
The eight types of waste in lean manufacturing can be acronymized as “DOWNTIME”, which means defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, extra-processing.
Defects
Defects occur when the products are not fit for use.
This typically results in either reworking or scrapping the product. Both results are wasteful as they add additional costs to the operations without delivering any value.
Overproduction
In the paperwork stage, overproduction may involve extra documentation and reports, or too many meetings without action.
In the manufacturing stage, overproduction could include making more products than actual demand.
Waiting
Waiting means the waiting time between processes. It can be included as follow:
- Waiting for the actual operation
- Waiting for the materials or equipment
- The workers wait on the direction between tasks.
Non-Utilized Talent
Non-utilized talent or unused human talent means the waste of human potential.
- Do you train your people accordingly?
- Are your workers in the right positions?
- Are there any possibilities to improve your team in communication and efficiency?
Transportation
The waste in transportation includes the movement of people, tools, inventory, equipment, or products further than necessary.
Inventory
Waste in inventory means making and storing extra materials or products than needed.
Motion
The waste in motion includes any unnecessary movement of people, equipment, or machinery.
Extra-Processing
Extra-processing refers to doing more work, adding more components, or having more steps in a product or service.
4. What Are The Benefits Of Lean Manufacturing?
There are some across-the-board benefits of implementing lean principles. These include:
- Eliminate Waste
- Reduce Costs
- Improve Quality
- Shorten Time
- Improve Overall Efficiency
5. How Can You Implement Lean Manufacturing?
In an industry that is under tremendous pressure to improve productivity and quality while reducing costs, lean manufacturing is an everyday expectation. Shield Works is your perfect partner to assist you every step of the way.
With over 15,000 projects completed, our clients have full faith in us to help them improve their business. Contact us for more information.
Manufacturing Trends: The Just-In-Time Inventory Management System
You may not believe how much capital is actually tied up in inventory. Inventory, along with accounts receivable and accounts payable, is equivalent to 7% of the US GDP.
With so many resources tied up in inventory, it’s no doubt that businesses are constantly re-evaluating their inventory management system.
One of the most popular traditional methods is the just-in-time inventory management system. But after the pandemic changed the way many businesses operate, it may be time to consider a new method.
Below we have created the following guide explaining the importance of your inventory management system. We’ll also talk about finding the production planning sweet spot.
How Does Just-In-Time Work?
“Just-in-time” is a method of inventory management that means inventory arrives exactly when it is needed. It’s also commonly referred to as a “pull” system. This is because the system replaces supplies as goods are consumed.
Just-in-time inventory works based on the idea that materials arrive when you expect production to begin. However, they should not arrive before production begins.
Essentially, production can’t begin without inventory. But businesses using JIT don’t want to incur any storage costs for inventory that arrives too soon.
Many businesses have relied on JIT to keep production value balanced with inventory levels. This keeps capital free to use in other areas of the company while meeting production demand.
JIT works the best when a company has trusted suppliers. They provide consistent quality of materials at the expected times. Simultaneously, suppliers provide products in long-term contracts that mitigate price fluctuations.
Because this model relies on a smooth supply chain, unexpected supply chain interruptions can disrupt the entire process. Sudden shortages during the Covid-19 pandemic can have detrimental effects on the end production of a product.
For this reason, many businesses suffered. Over 60% of small businesses reported disruptions in the supply chain during the early pandemic.
Just-In-Time Inventory Used Successfully
However, this doesn’t mean that a JIT system isn’t effective. Just-in-time inventory management works well in numerous industries and will continue to be effective.
Take restaurants. Food preparation uses a just-in-time inventory approach because many ingredients don’t last longer than a day or two. Chefs will have to buy meat to serve every day by estimating what diners will order.
Fast fashion is a segment of the fashion industry that relies on just-in-time systems. Chains like Zara don’t order ahead for an entire season.
Instead, they’ll design and manufacture items with short turnaround times. Fast fashion brands will be able to keep up with trends as they happen.
You may have heard of dropshipping in the eCommerce world. Dropshipping only purchase products from the manufacturer when a customer places an order. The eCommerce seller carries no inventory and essentially outsources inventory management.
Based on these business models, just-in-time inventory management can be successful. Many industries will continue relying on a just-in-time system. But you may find it to your benefit to start mixing in other strategies for your inventory management.
Just-In-Time vs. Just-In-Case: Pull vs. Push
Companies use just-in-time inventory to prevent excess supply from building up. This will keep inventory low and cut costs as much as possible.
But what happens when the supply chain gets stopped? In 2020, 82% of mid-market manufacturers had to significantly reduce production or shut it down completely at some point.
This then affects sellers using just-in-time management. They won’t receive the materials and products for customers. Instead, they can only sell what they have.
With a JIT, businesses wouldn’t have a lot to sell. They would run out of existing inventory quickly.
At the same time, demand for certain products, especially health-related items, skyrocketed. Businesses in this industry could not keep up with the high demand.
Here’s where just-in-case inventory management comes in. It helps to facilitate growth by allowing companies to keep up with most demand.
JIC inventory management focuses on maximizing inventory by purchasing larger inventory orders. This helps to manage unpredictable demand and survive disruptions in the supply chain. This approach will no doubt become more popular in the wake of the pandemic.
JIC is referred to as a “push” system because inventory purchases are not based on current demand. JIT is a “pull” system because inventory is purchased to order.
The main drawback of JIC is the additional costs of holding the excess inventory. Businesses will place larger orders if they use JIC, which will increase the cost of the order and tie up capital in inventory. Maintaining the excess inventory will raise storage and management costs.
Finding the Sweet Spot
If the pandemic has proven anything, it’s that JIT can’t be relied upon alone. Supplier stability is returning closer to normal. However, the way that many businesses operate has changed forever.
Businesses are starting to realize that balance will provide the most benefits. Both JIT and JIC systems have positive qualities. Combined, they can create the most effective inventory management system.
Companies can create a hybrid inventory management model. In practice, it would use both the buffer of just-in-case and the conservative use of capital associated with just-in-time.
A hybrid system involves having some parts of the supply chain operate in a push model and others operate in a pull model. There needs to be more demand forecast involved than with JIC. But a hybrid model wouldn’t have standing inventory rest at zero like it would with JIT systems.
The main goal of finding the sweet spot is to address the needs of both long-term and short-term production. Inventory levels should be low enough to be cost-effective but high enough to survive production delays or higher demand.
You may want to consider using JIC for quick-turnover items. It can also be used for scarce items or items with long lead times. JIT inventory can be used for less popular items, like the customization of a certain product.
Leveraging the Right Inventory Management System
The right inventory system is all about balance. And when it comes time to choose your manufacturer, you want a team that understands how to utilize the best practices of different inventory management systems.
Shield Works is a managed precious assembly, manufacturing, and warehouse facility based in the heart of Zhuhai City, China. Learn more about our manufacturing services by contacting us.
What Is OEM Manufacturing? Everything You Need to Know
Running a business is expensive, especially if you produce complex products on a large scale. Operating out of your office or small warehouse isn’t going to cut it.
Building a full-on factory is super expensive. You also have to consider local labor costs and other technical headaches. The simplest solution is to go with an OEM manufacturing company.
What is OEM manufacturing? It’s partnering with a company that already has purpose-built factories. With them, you can reduce the costs and energy required in making your product.
You can also streamline the process and let your staff focus on more important things. The only thing you need to know is what they are, how they operate, and where to look for good ones. For an in-depth guide on OEM manufacturing and its uses, read on.
Defining an OEM
You may have heard the term OEM but aren’t sure what it means. You know it’s related to large-scale manufacturing and factories, but you want more specifics. OEM stands for Original Equipment Manufacturer.
These companies make and sell goods or parts to other companies to finish the product. Examples are companies that make protective glass for smartphones or car exhaust pipes.
The company that buys the components goes by the designation VAR. VAR stands for value-added reseller. VARs contract or partner with OEMs to build smaller components that go into a more complex product.
The “value-added” part comes from the idea that a VAR will do something to an OEM’s parts to increase the value. The sum of the individual parts gets transformed by the VAR into a new product and then sold for a profit.
The parts sourced and manufactured by OEMs are often small. By themselves, they don’t contribute to the overall value or complexity of the product. For example, an OEM might make the knobs on a car’s thermostat, but they didn’t design the thermostat or the car.
That said, OEMs are far more than manufacturers of simple screws and knobs. By definition, an OEM is anything that contributes to a more complex end product. This means that companies who make computer chips or other complex components can also be OEMs.
They only have to make these on behalf of a second company who will incorporate those parts into a new product.
The Basics of OEM Manufacturing
So what is OEM manufacturing, and how does it work on a basic level? OEMs fill a space in the global market for a variety of goods and components other companies need. These range from specialty bolts and screws to glass screens, electronics boards, and textiles.
Many of these companies might like to make these basic parts themselves. The issue is this is often too cost-prohibitive. Building an entire factory only to make screws for IKEA furniture isn’t worth it.
It’s cheaper and easier for companies to contract the services of an OEM. This is because the OEM has already built and tooled the factory to produce a variety of equipment. All the VAR needs to do is partner up with the right OEM company to fit their needs.
All of the top electronics brands use OEM manufacturing.
Using OEM Manufacturing
There are many ways to use OEM manufacturing. They’ve become a staple of the global economy and have made countless commercial products cheaper. Many of them take advantage of cheaper labor and government investment or subsidies.
Innovations in robotics, warehousing, and assembly line manufacturing all help improve efficiency. These also all come at a lower cost. There is nothing stopping an OEM from operating in developed economies, and many do.
However, using OEMs is most effective when you can secure the highest level quality of components for the most competitive price. This leads to a division of manufacturing operations. Western factories and manufacturers can focus on finishing products.
The automobile industry is a fantastic example. These companies rely on special OEM manufacturers to produce many of their car parts. These include battery and engine parts to electronic components in the entertainment systems.
The finished parts get assembled in the VAR company’s facility. They employ skilled workers to engineer the car, draft the parts OEMs will need to make, and put it together.
This process gets the most out of OEMs to produce high-quality local products. The OEM parts are still high-quality and selected by the VAR. Before seeing use, they also pass all necessary inspections in the reseller’s country.
By using OEMs, auto manufacturers can deliver high-quality vehicles to the market. The costs usually associated with building their own factories or components are gone. The result is consumers get cheaper cars without sacrificing quality.
The Relationship of OEMs and VARs
OEMs aren’t only specific manufacturers waiting for VARs to come along. While many OEMs specialize in specific fields or types of commodities, that’s not all they do. They have to remain flexible to work with as many VARs as possible.
OEMs and VARs work together by having a direct relationship. The VAR has to know exactly what they want, how they want it, and in what form or quantities. The OEM has to listen to these requests and find ways to accommodate them to the satisfaction of the VAR.
Communication, Flexibility, and Customizability
The most important thing in this business relationship is communication. OEMs set up their manufacturing facilities to be flexible but also high-quality. If an OEM factory can make 2-inch bolts, chances are they can adjust to different sizes as well.
The ability to accommodate multiple VARs with specific requirements is key. Quality control is also an important factor. VARs will be clear about proper measurements and specifications.
They’ll also communicate what kind of standard they expect. This is why the OEM needs to work with the VAR to meet these needs. OEM manufacturers sell to businesses, whereas VARs sell to consumers.
This means that VARs take the blame in the consumer market for defective products. Let’s use an example where Levi contracts an OEM to make the zippers or buttons on their blue jeans. It’s Levi that gets raked over the coals if the buttons are cheap or the zipper malfunctions.
The same is true if Samsung uses a faulty OEM part in their phones or TVs. OEMs need to balance flexibility and affordability with guarantees of quality and reliability. Between the two of them, VARs and OEMs need to work together to make sure both sides benefit.
OEMs in the Computer Space
A rising trend in relation to OEMs turning into semi-VARs has been occurring in the PC industry. Companies that design operating software or computer parts have been OEMs. This refers to the likes of Microsoft and Apple and, of course, Intel, Nvidia, and AMD.
The typical relationship would involve Microsoft selling Windows to a company like HP. In addition, Nvidia or Intel might also sell graphics cards and processors to HP. Windows, Nivida, and Intel are OEMs in this relationship, while HP is the VAR.
Companies like HP, Dell, or Lenovo integrate these parts into a finished PC. These are then sold to the consumer. However, with the rise of online ordering and PC building, things are changing.
It’s becoming popular for consumers to buy parts from OEMs like Nvidia or Intel. They can order everything from the graphics card to the wires and even the case online. Because this doesn’t require people to go to third-party retail stores like Best Buy, these OEMs can also function as VARs.
This gives them more leverage over the market. It also gives them more control over things like quality and manufacturing.
Where To Look For OEM Partners
There are a lot of things to consider when comparing OEMs. Cost and quality are important factors, but that’s easier said than done. For companies and VARs, there are two major regions to consider: industrial India and China.
There are, of course, many other options in the developing world to consider. You can also find good quality OEMs to partner within the “Global North,” but costs tend to be higher. India and China have similar strengths, but China wins in several key areas.
The population density in these countries and industrial economic strength are important factors. They have huge skilled workforces, which means a ready labor pool. This is an important consideration since labor shortages, and lack of specialists could choke your supply lines.
Both India and China also have tons of factories to choose from. They rank in the top 5 for having the largest share of global factories. They’re joined by the US, Japan, and Germany, which all have higher labor and operating costs.
Having a large sample size of OEMs to choose from means you’re more likely to find a good and reputable match. That said, a few hidden edge factors make China preferable over any other options.
The World’s Largest Manufacturing Country
China has almost 30% of the world’s manufacturing capacity. This puts them head and shoulders over the US, which sits at second place with 16.8%. Chinese labor is cheaper, and operating costs are lower.
Contrary to popular belief, China produces more than cheap and affordable products. They’ve developed a reputation for innovation in almost every field. They also have a huge number of specialists.
Chinese OEMs are also used to working and communicating with foreign companies. You’ll still need to do your research to find one that meets your needs. However, it’s safe to say China isn’t only the cheapest option; it’s also the highest-quality one.
The Difference Between The OEM- VAR Relationship with Aftermarket
Chances are you’ve heard the term “aftermarket part.” These are products manufactured and sold after the original product has gotten finished. To be more specific, an aftermarket part gets manufactured by a third-party company.
They are not associated with the OEM that made the original part. Aftermarket parts don’t fit into the OEM-VAR relationships and are competitors. OEMs and VARs develop a close business relationship.
How Aftermarket Parts Affect Things
The VAR wants to make sure the parts are standard. They also want to guarantee consistent replacement parts from the OEM. The VAR and OEM might draw up a contract to this effect to make sure certain products have end of life support.
To use cars as an example again, VARs will want to make sure that OEMs keep making specific car components for them. It makes it easier and cheaper for those companies to repair vehicles and source replacement parts.
Some OEMs can attempt to sell these parts directly to consumers, thus by-passing VARs. Many VARs are ok with this, as their focus is on customer satisfaction by keeping their products working. Those VARs who don’t want to get bypassed will usually agree with the OEM about rights.
If the original OEM made the replacement part, it’s official and not aftermarket. If a different company, not associated or contracted with the VAR, made the component, it is aftermarket. Many companies that make parts used as aftermarket replacements are also OEMs.
They often make parts for other companies, such as luxury cars, in the case of the auto industry. Consumers might buy a higher-quality stereo from them or replace the gear shifter. By putting these parts into a different car, they become aftermarket.
What Is OEM Manufacturing?
What is OEM manufacturing? It’s a process and approach that helps lower the costs of producing complex products. OEMs allow the consumer market to pump out affordable yet high-quality items.
Any company considering producing products on a large scale needs to know about OEMs. As long as you have good communication and do your research, the perfect OEM fit is out there. Shield Works is ready and waiting to bring your manufacturing dreams to life, so give us a call today.
OEM Manufacturing in China: More Pros for Business than Cons
For many years, China has been the manufacturing hub of the world. Last year, this production rate shrank, partially due to the impact of COVID-19. This means that China needs your business and there has never been a better time to manufacture in the country. If not you don’t know how to benefit, then we can help. Read on as we discuss why you need to outsource OEM manufacturing to China.
Lower Costs
One of the more obvious and important benefits of OEM manufacturing in China is the reduction in cost. The bottom line is that the better your product and price, the more units you will sell. Even if you are putting out a high-end brand, then you can increase your profits by lowering manufacturing costs.
Domestic manufacturing sounds good in theory. However, it has increased overheads that do not exist in China. This makes locally produced products expensive and is why manufacturing in Western countries has declined in modern times.
Of course, you will have to pay to ship the products and pay import tax. But even if the overall price works out fractionally less, you are still saving. Over time and in increased volumes, you can expect this to be a substantial amount added to your balance books.
Warranty
When OEM manufacturing in China, many manufacturers will offer you a warranty for a given period of time. This can set your mind at rest when ordering products from across the world. If a product has issues, then you can ask for a replacement or ask for a solution to the problem.
Quick Output and Turnaround
China creates goods for companies all around the world. This means they have scaled up their manufacturing to unprecedented levels. If you need a large number of goods in a short time, they will deliver them.
These factories will have produced similar items to yours before. That means they have all of the procedures in place to get things manufactured quickly and on time.
One of the arguments against this is the unfair conditions of Chinese workers. However, if you research the plant you are using you will be able to find out if workers are paid a fair amount and treated fairly. You should also take into account that the attitude to work in China is culturally different from that in the West.
Excellent Service
Manufacturing in China brings with it the exceptional service inherent in their culture. Even for smaller businesses, you will get the same treatment as a larger, global operation would.
This service also carries through to product support. When you contact an OEM manufacturer’s support team, you will get to talk with their engineers. Speaking to their technical team cuts out the middlemen, meaning you can make informed decisions and get great advice on how to improve and refine your product.
Duplication
By no means do you need to counterfeit a product. However, when manufacturing in China you can specify things you like about one item and have them replicated.
Perhaps you want to include a feature you have seen on someone else’s products or use the same dimensions. By discussing this in advance, Chinese manufacturing companies will be able to arrange this for you easily.
This is how a product evolves. By taking something great and improving, you have the opportunity to make it even better. With each iteration of the item, you can expect the quality to improve as well.
Lead Time Reduction
When you outsource OEM manufacturing to China, you have a number of options to help you reduce lead times. One way is to use automation software to manage your inventory. This will ensure you stay on top of how much stock is needed, ordering at the precise time as you begin to run low.
The other option is to order regularly and consistently. This will mean a reduction in delivery and you won’t miss out when orders run low.
Expansion and Diversification
Outsourcing allows you to add new product lines and verification to your portfolio. This has been something you have been thinking of for a while but did not think possible with your current manufacturers. All of this can be done while keeping prices low and with better production.
This can also help you engage more international markets. You can ship to areas all over the world, allowing you access to markets not possible in the past.
Low Labour Costs
Another of the main benefits of OEM manufacturing is that you gain access to all the best that the company has to offer, including their labor. This means you get expertise without having to search, recruit and train your workers. Not only are labor costs lower in China, but you will not have to pay many of the expenses related to hiring local workers.
Scam Prevention
If you deal directly with overseas manufacturers, scamming is a possibility. You may find deposits or whole budgets go missing. In addition, even delivered products could be below standard if you have never dealt with the company before.
That means it is important to get a reputable company to arrange this for you. They will have trusted manufacturers who work to the highest standards. In addition, they will have agents who can traverse language and cultural barriers for you.
OEM Manufacturing
Now you know the benefits of OEM manufacturing in China, speak with an expert. They will be able to work out the best way for you to benefit. You may be able to improve profit more than you think.
Your first stop should be Shield Works. We are a British company working in Southern China for OEM manufacturing needs. Contact us here and see what we can do for your business.