How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014
-
Upload
dragon-innovation -
Category
Technology
-
view
263 -
download
2
description
Transcript of How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014
![Page 1: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/1.jpg)
DRAGON INNOVATION, INC.
HARDWARE WORKSHOP -‐ NYC
HOW TO SELECT A FACTORY
NOVEMBER 11, 2014
WILLIAM DRISLANE | VP ENGINEERING AND MANUFACTURING | @DRAGONINNOVATE | WWW.DRAGONINNOVATION.COM
![Page 2: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/2.jpg)
2
Presentation Download
http://bit.ly/HK-Hardware-Workshop-Dragon-Innovation
![Page 3: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/3.jpg)
3
Agenda
http://en.wikipedia.org
•Quick Survey
•Dragon Background
•How to Select a Factory (aka “The RFQ”)
•Q & A
![Page 4: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/4.jpg)
Quick Survey
4
![Page 5: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/5.jpg)
Dragon Innovation Background
5
![Page 6: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/6.jpg)
MIT RoboTuna
6
![Page 7: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/7.jpg)
Disney Dino
7
![Page 8: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/8.jpg)
My Real Baby
8
![Page 9: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/9.jpg)
9
![Page 10: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/10.jpg)
Agenda
10
![Page 11: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/11.jpg)
DRAGON INNOVATION HAS HELPED LAUNCH AND SCALE OVER 100 COMPANIES SINCE 2009
![Page 12: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/12.jpg)
Step 1: Decide Whereto Manufacture
12
![Page 13: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/13.jpg)
Examples to Talk Through
![Page 14: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/14.jpg)
China?
![Page 15: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/15.jpg)
15
Yes! Manufacture in China If Your Product...Is COGS (Cost of Goods Sold) sensitive
![Page 16: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/16.jpg)
16
Yes! Manufacture in China If Your Product...Requires higher production volumes (>10k units)
![Page 17: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/17.jpg)
17
Yes! Manufacture in China If Your Product...Requires significant manual labor to manufacture and assemble
![Page 18: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/18.jpg)
18
Yes! Manufacture in China If Your Product...Uses existing manufacturing technology (i.e. injection molding, etc)
http://berkeleysg.com
![Page 19: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/19.jpg)
19
Yes! Manufacture in China If Your Product...Is tolerant of variations in supply chain and logistics
http://berkeleysg.comhttp://kilterpulse.com
![Page 20: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/20.jpg)
20
Yes! Manufacture in China If Your Product...Can benefit from low cost Design for Manufacturing (DFM) Non-recurring Engineering (NRE)
http://berkeleysg.comhttp://kilterpulse.com
http://plasticstoday.com
![Page 21: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/21.jpg)
21
Yes! Manufacture in China If Your Product...Has “physically” protectable IP
http://berkeleysg.comhttp://kilterpulse.com
![Page 22: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/22.jpg)
China Drawbacksfor Manufacturing
![Page 23: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/23.jpg)
23
China DrawbackSignificant Distance from USA
http://supplychaindigital.com
http://skeptically.orghttp://studentuniverse.com
![Page 24: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/24.jpg)
24
China DrawbackSignificant Language Barrier
http://supplychaindigital.com
http://skeptically.orghttp://studentuniverse.com
http://asiasociety.org
![Page 26: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/26.jpg)
26
China ConcernRising Exchange Rate
http://en.wikipedia.org
![Page 27: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/27.jpg)
USA?
![Page 28: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/28.jpg)
28
Yes! Manufacture in the US If Your Product...Requires low volumes
http://berkeleysg.comhttp://kilterpulse.com
http://www.theguardian.com
![Page 29: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/29.jpg)
29
Yes! Manufacture in the US If Your Product...Can be manufactured and assembled through automation
http://berkeleysg.comhttp://kilterpulse.com
![Page 30: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/30.jpg)
30
Yes! Manufacture in the US If Your Product...Is sensitive to shipping time and expense
http://berkeleysg.comhttp://kilterpulse.com
![Page 31: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/31.jpg)
31
Yes! Manufacture in the US If Your Product...Has difficult-to-protect IP
http://berkeleysg.comhttp://kilterpulse.com
http://www.independent.co.uk
![Page 32: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/32.jpg)
32
Yes! Manufacture in the US If Your Product...Requires non-standard capital equipment
http://scientificmachining.com
![Page 33: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/33.jpg)
33
Yes! Manufacture in the US If Your Product...Is part of a government contract
http://en.wikipedia.org
![Page 34: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/34.jpg)
Step 2: Select a Factory (RFQ)
34
![Page 35: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/35.jpg)
35
Overview of the CM Selection Process
http://en.wikipedia.org
1. Talk with trusted network connections who have manufacturing experience.
2. Create a differentiated list of 5 - 10 CMs.
3. Down select to 3 - 5 factories based on your product category (why?)
4. Create a Request for Quote (RFQ) Package.
5. Visit!
6. Analyze Results.
7. Negotiate Big Items.
8. Talk with the CM’s customers.
9. Select the winner, and leave the others on good terms.
![Page 36: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/36.jpg)
36
RFQ Package
http://en.wikipedia.org
•Company Overview-Team overview-Funding-Product-What’s done-What needs to be done-Factory Criteria
•BOM-Canonical format (A2A) in Excel-Transparent and Formula Driven-Separate Std, Special and Consigned Margins/Markups-Include all costs to Ex-Factory-Fill in the blanks
•Schedule-Gantt chart (Cloud)-Fill in the blanks
![Page 37: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/37.jpg)
37
Factory Visit Checklist
http://en.wikipedia.org
Do you like the team? Are they experienced and friendly?
Do they have the right manufacturing capabilities?
Does your intended volume match their volume capabilities?
Are they financially stable?
Do they have enough working capital to get going?
Do they have favorable payment terms?
Are they transparent in their costing?
Do they take IP seriously? Did they show you something they shouldn’t have?
Are they ethical in their treatment of their workers and otherwise?
Do you have access to upper management?
Are they excited about working on your product?
![Page 38: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/38.jpg)
38
CM Comparison (A2A Decision Matrix)
http://en.wikipedia.org
•Total Material Costs
•Labor
•Margins/Markup (Std, Special, Consigned)
•Pareto of Top 5 Most Expensive Components
•Fixed Costs (tooling, fixtures, NRE)
•Schedule
•Fit Criteria
![Page 39: How to Select a Factory - Hong Kong Hardware Workshop - November 11, 2014](https://reader035.fdocuments.net/reader035/viewer/2022070322/559457961a28ab6a2f8b46f9/html5/thumbnails/39.jpg)
Questions?