The tendency to incorporate electronics into all kinds of products is increasing exponentially, so it is becoming more and more difficult to find products on the market in which electronics are not present to a greater or lesser extent.
In the current global crisis, few markets have an annual growth like that of the electronics market. Considering the sales published regarding EMS Sales in this sector during the year 2012, 200,000 MUSD have been exceeded. Given that only 30% of electronics is subcontracted by the OEM companies, the total turnover of this market is estimated to exceed 650,000 MUSD.
This generalization and this growth in the use of electronics have made the OEMs (Original Equipment Manufacturers) seek the support of EMS (Electronic Manufacturing Services) companies, which have been specializing in different activities, such as:
- Engineering (ENG), which support the development of technology and even functional prototypes of new products.
- Contract Manufacturers (CM), focused on the manufacture and, at times, purchase of electronic components and product test.
- Original Design Manufacturers (ODM), dedicated to the design and manufacture of semi-finished modules, ready for integration by the OEM in complex systems.
Rapid technological evolution is leading to the boundaries between the services provided by these different types of EMS becoming increasingly diffuse and expanding along the OEM value chain. In the table below we can see an example of the different models of EMS and the activity they support within those required in the product life cycle:S: usually Supported O: usually Outsourced *: sometimes supported
OEM support is based on the development of services, which are different in nature, some being closer to the manufacturing process and others more related to product development processes. The level of service they aim to provide will determine, in this way, the level of specialization of the equipment incorporated therein.For better integration into the OEM process, these services will be well defined in scope and responsibility, and can be grouped into the following categories:
- Basic services: Services to be included in this category are those more directly related to the production activity, as might be manufacture itself, product testing, repair and after-sales services and product maintenance services, mainly related to management of obsolete items and product end-of-life.
- Advanced services: This includes those services complementary to product development and designed to optimize the product or solve specific problems related to it. Product Evaluation Services such as BOM Analysis or DFMA (Design for Manufacture & Assembly) Analysis, Industrialization and prototype manufacturing or more specialized services, such as PCBs or Product Validation (functional, pre-certification, robustness analysis, etc.) will be included within this category.
- R+D services: Mainly product development, from conceptual design to hardware-software implementation and mechatronics integration.