"How High-Tech Technology Can Assist in Lowering an OEM's Total Cost of Ownership"

Manufacturing is an ever-changing world, and Hi-Tech Technology is here to help you understand the intricacies of what we do. That's exactly what I try to do in our contract manufacturing. This episode discusses how a contract manufacturer can help OEMs manufacture their new product ideas.

OEMs are facing increasing challenges in order to remain competitive in the global market. Customers are demanding more and more value. Companies with a global presence provide competitive products and force lower profit margins. As technology advances, product lifecycles become shorter and product updates become more frequent.

Costs of all kinds are rising in the current scenario, and resources are being stretched thin. This difficult business environment forces companies to rethink their business models and implement new strategies, particularly in terms of total cost of ownership management (TCO)

Using a contract manufacturer's expertise and support is critical to overcoming these obstacles and reaping the full cost benefits of simplified logistics, improved product quality, and product lifecycle management.

Hi-Tech Technology, which specializes in high-mix, low- to mid-volume assemblies, has the experience and insights required to assess, address, and oversee the three fundamental elements of TCO:

Direct costs

Indirect costs

Risk factors

Direct costs, in general, reflect the logical flow of product introduction, beginning with program and engineering management, continuing through manufacturing, and concluding with quality assurance and scrap, excluding major OEMs.

Direct costs are visible, invoiced elements that are easy to track. Prior to beginning product development, the paper trail and previous product design cycle experience allow for reasonably accurate cost estimation.

For complex high-commix, low- to mid-volume assemblies, TCO direct cost elements and Hi-Tech Technology responsibilities include:

DIRECT COST

INDIRECT COST

Indirect costs, which are costs that are not immediately apparent, are sometimes overlooked during the initial decision-making process. If included, they are frequently estimated incorrectly.

Due to their failure to account for indirect expenses and any potential problems they may cause, such as being late to market with new technology, many Manufacturers lose market share.

Indirect expenses are well understood by a contract manufacturer who is focused on the specifics of construction and knows how to manage them:

Risk Factors

Because OEMs are vulnerable in areas with which they are unfamiliar, risk is an additional cost that is frequently overlooked or calculated incorrectly. For example, it would be difficult and costly for an OEM of highly specialised equipment to acquire and retain regulatory compliance expertise.

Furthermore, it is unlikely that the OEM would have personnel solely dedicated to planning a long-term roadmap for the existing off-the-shelf component of their product — an area where technology can transition at a steady and exaggerated rate.

The inability to hire or dedicate select experts does not absolve OEMs of the need to comply with regulations, but it does create significant risk. Working with a contract manufacturer alleviates these concerns, as well as:

Hi-Tech Technology: An OEM’s “Virtual Division”

Hi-tech Technology operates as a?manufacturing project management?of our OEM partners — delivering efficient, cost-effective total system solutions that are focused on lowering the OEM’s TCO in key areas of impact:?

1. Specialized Expertise: We expertise in Contact manufacturing is practically unlimited precision manufacturing processes and capacities for engineering companies, importers and Domestic companies.

2. Technical Expertise –Travelled path of Industrial & Engineering sourcing

3 Total Solution Provider –from concept to delivery

4 Competency In Product Development

5 Cost effective Solutions –Guaranteed reduction in buying cost

6 Quality Standard –Supplier network follows global quality standards

7 Value Add –Cost optimization, Short delivery time, Consistent Quality

8 Excellent Domain Knowledge.

9 Provide customer physical India presence virtually

Prashant Lotake

CEO

Hi-Technology

www,hi-techtechnology.com