Are you curious about what this looks like in practice? Time for some examples from practice. There is a brief description of the OEM and the supplier. Then the Build to Print question is described, and finally the most important ’tops and tips’: what went well and what can be learned?
The OEM develops and builds high-tech machines for the Semiconductor industry. The supplier produces and assembles mechatronic systems and modules.
The OEM has had a prototype of a mechatronic module developed by a specialized engineering organization. Because this organization cannot produce and assemble, this order is placed with the supplier, who receives it with enthusiasm. But what turns out to be the case?
The prototype is difficult to develop in series. This causes a lot of costs and frustration, for both the OEM and the supplier.
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How could this have been prevented ?
The OEM develops and builds microscopes for research and development institutions and companies. The supplier manufactures and assembles analytical systems and modules.
The OEM develops iteratively. A product is developed and marketed quickly, and then improvements are made to the product continuously. The cost of the product is very important. Production is outsourced to the supplier.
The supplier has to deal with ever-changing product documentation, which means that changes are always needed in the factory processes and the supply chain. This leads to costs that put pressure on the goal of a low cost price. This always requires a good trade-off between the frequency of product changes, the level of supplier involvement and the Total Cost of Ownership.
Consider the following questions:
Does the Build to Print business model fit your company?
Why does or does not this model fit?
What are some possible areas of concern for your company with this model?
Does this model possibly fit your organization and would you like to learn more about it?
Then go to ‘Module 9 – Getting Started’.