IDENTIFYING HIDDEN COST DRIVERS IN COMPLEX, MEDIUM VOLUME MEDICAL CONTRACT MANUFACTURING
Author: Paul J. Plante Company: Reptron Electronics, Inc. Date Published: 9/12/2006
Medical Electronics Symposium
Abstract: High volume, low mix medical electronics manufacturing projects are relatively easy to outsource in any labor market with an established contract manufacturing community. Higher mix projects, particularly those with system or subsystem assembly requirements, present greater challenges. These projects often contain hidden costs which may not be apparent to either the sourcing team or the contract manufacturers involved in bidding. The challenge for many medical device manufacturers is developing a selection strategy which adequately identifies hidden cost drivers and ultimately structures an outsourcing relationship which supports needed flexibility at competitive cost. This paper will look at specific outsourced medical product projects in discussing challenges and strategies for resolving them.