Contract Engineering is defined in terms of a comprehensive range of scalable, value added
electronic engineering services obtained from a service provider.
Range of Services
Range refers to successive stages of electronic product development from
architecture (POST-DEFINITION) to handoff to contract manufacturers
Scalability requires that all engineering capacity:
infrastructure, personnel, computer systems and tools be adjustable
will to match the size and specificity of the task at hand.
Scope includes all design, development and test engineering
to build chips, boards, embedded software and complete electronic systems.
Value is added by the service provider, - i.e. the Contract Engineering
Company - to its customers, by doing the following:
current and up-to-date with engineering technologies,
so as to provide optimized combinations of cost, quality and speed
of service to its customers
in and managing an infrastructure of tools and equipment
so as to reduce customers' burden of fixed costs
training and managing engineering personnel so as to provide
customers scalable resources while eliminating their compulsion
to incur costs of idle time
robust implementation processes in order to provide customers
reasonable guarantees of implementation success
project responsibility and delivering efficient project management
to provide schedule confidence to customers' product architects.
Companies that make electronic products requiring integrated circuit
chips, boards, software and systems.
Traditionally, companies that make electronic products have owned all
stages of the value chain from concept to delivery of products, including
engineering and manufacturing. Since the early 1980s, there has been
observable shift in emphasis from ownership to efficiency. Manufacturing
was successfully contracted out to specialist companies like Solectron
(NYSE:SLR), Jabil Circuit (NYSE:JBL) and others.
out manufacturing enabled Product Companies to be more responsive
to market needs as they no longer worried about the manufacturing
infrastructure and processes.
Contract Engineering enables better ROI* by doing for Design,
Development and Test Engineering what contract manufacturing did for
Manufacturing. It provides knowledgable and scalable resources
and a flexible infrastructure backed by process guarantees
and project management, without the requirement of having to invest
Contract Engineering product-companies can leverage what they know best:customers,
markets, products, features and competition, for greater profits.
*Return on Investment