Challenges
Risks
If it is proven that the translation from design to a production process is straightforward, then the risks in this model are limited. The risks then focus on the supplier selection and the Total Cost of Ownership of the cooperation between OEM and supplier. Furthermore, it is relatively easy and inexpensive to change suppliers if desired.
The biggest risk of this model is that it is wrongly chosen: there is insufficient proof that the design can be produced well and during the preparation for production it turns out that adjustments to the design are needed. This can lead to very high costs and long delays.
Intellectual property
In this model, OEM has ownership of the technical product documentation (e.g. drawings and software), all design documentation and any patents. Supplier has all intellectual property of manufacturing processes to the extent not prescribed by OEM.
The right tools
The most important tool in this model is a product design that has been proven to produce well with existing production processes.
In addition, the partner selection tool and the Total Cost of Ownership tool can be applied when choosing and possibly further developing a Build to Print partnership.
