OEM equipment manufacturers already pay excessive customer fees to their EMS and ODM suppliers. With every engineering change order (ECO) or engineering change notice (ECN) any manufacturer wants to be able to analyze impact to time, cost, quality at time of ECO conception. Prioritizing ECO/ECNs can also impact material availability and other aspects impacting production and production schedules.
Being able to manage and approve recurring ECO/ECNs in a rapid way, using the proper EMS industry KPI metrics with your contract manufacturing partner saves OEM companies time, and money. Comprehensive EMS industry cost models can help OEM decision makers leverage supply chain delays as contract negotiating values.
Faster product innovation with greater control of spend (costs) and contract manufacture pricing (fees) are some of the benefits of better ECO/ECN management. Manufacturing cost models let you change product components, and many other aspects like factory location and currency, volumes and lot sizes, warehouse storage and shipping costs, and more and immediately see how changes impact BOMs, inventory, quarterly spend, cost reduction strategy, and more.
Managing engineering changes in EMS: CFT, DFT meetings
Meanwhile, OEMs can expect ongoing meetings and reports and a constant flow of information exchanged between you and your EMS manufacturer to discuss and track your outsourcing program engineering changes. Two meetings you want to make sure take place regularly are the customer focus team (CFT) meeting and, defect reduction team (DRT) meeting.
Examples of these two types of meetings follow. OEM site users can request examples of actual CFT and DRT meeting minutes in our white papers section.
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