Contract manufacturing

Contract manufacturing

The manufacturing of goods and products by one company under the label or brand of another. Contract manufacturing is a process in which one company outsources part or the entire manufacturing production to another company for such benefits as cost savings, improved quality, increased ROI, reduced safety risks, enhanced business focus, and faster speed.

Industry: Manufacturing

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Contract manufacturing

First-pass yield

Manufacturing; Contract manufacturing

The percentage of product tested that passed inspection on first attempt.

Electropolishing

Manufacturing; Contract manufacturing

Producing a smooth, bright surface on a metal by immersion in an electrolytic bath.

Drilling

Manufacturing; Contract manufacturing

Making a round hole or cavity by boring directly into a solid surface with rotating bits.

Joint service agreement (JSA)

Manufacturing; Contract manufacturing

A document used in conjunction with a contract to define the processes, performance targets and expectations of both an OEM and a contract manufacturer. The joint service agreement should be specific ...

Manufacturing and supply agreement (MSA)

Manufacturing; Contract manufacturing

A contract that defines responsibilities and bridges the relationship between an OEM and a contract manufacturer. It outlines what the EMS provider is required to do for the OEM and at what "cost" to ...

Low-mix, high-volume

Manufacturing; Contract manufacturing

A contract manufacturing environment where there are a few number of assemblies produced in large quantities. High-volume production may last for weeks or months using the same setup. Changeover is ...

Nonrecurring expense (NRE)

Manufacturing; Contract manufacturing

Items and activities required by an EMS provider specific to a particular OEM's product program, such as setup, tooling and programming. These one-time charges are separate from the product cost.