Manufacturing Benchmark Study
Problem: A large OEM manufacturer was interested in conducting a benchmark study of manufacturing performance producing printed circuit boards in-house versus independent contract manufacturing assemblers. The sponsor requested that 12 OEMs and 12 contract manufacturers be interviewed and benchmarked along the same criteria to obtain operational performance metrics which could be compared and analyzed.
Solution: NVR successfully completed all field interviews and provided a detailed analysis of manufacturing performance describing direct and indirect costs, average burden added for overhead costing, margins for service, design and labor, average board throughput rate, estimated defects per million, equipment mean-time to failure, unplanned down time, etc., providing some of the first independently obtained statistics for the industry. As a result, the sponsor was able to evaluate its own strengths and weaknesses as well as target some new performance objectives.