The primary goals of any production unit are to minimize manufacturing costs, maximize efficiency and boost profits. Custom cable assembly manufacturing is no different. Today, custom cable assemblies play a significant role in most industrial projects and the process of designing a custom cable assembly is in high demand. Maintaining quality while keeping manufacturing costs under control is always a difficult task. However, there are a few ways to reduce the manufacturing cost of custom cable assemblies.
Listed below are some of the major factors that can influence the manufacturing costs of custom cable assemblies.
1. Picking the right raw materials
Raw material is the foundation of any manufacturing unit. Therefore, its cost holds a significant chunk of the manufacturing budget and determines the product's market price. Apart from the type, grade, quality, and cost of the raw material, you should consider the current pandemic-stricken supply chain shortages.
Logistics and transportation is always a complex and expensive component of manufacturing costs. Overseas supply chains are particularly expensive, while nearshoring would be a cost-effective alternative.
Nearshoring is an approach through which enterprises can purchase raw materials and other essential items for manufacturing from nearer plants and facilities. With this model, you can dramatically improve project management, reduce production costs, and make daily supply chain operations smoother.
Moreover, the shorter transportation distance brings speedy delivery and lower transit costs as bonuses in the manufacturing cost-saving measures.
3. Third-party compliance
Does your product need approval from the Institute of Printed Circuits (IPC) or MIL-SPEC? All these third-party compliance procedures take time and money. Therefore, the manufacturing budget of your product must also consider these costs right from the beginning. If this significant factor is taken into account at the last minute, it may inversely affect the manufacturing cost of your product. It could also spoil a tremendous amount of time for product development.
4. Product reliability testing
Surprisingly, product reliability testing is typically the most underestimated factor in the budgeting procedure. Product reliability testing should be a significant part of your product development and budgeting process to produce the right product for the market. Along with determining the quality and durability of your product, it can also decide the market price of your product.
5. Cost of labor
Artificial Intelligence (AI) robots haven't taken control of the manufacturing plants yet. And even if they do, a manual workforce will still be required by enterprises to run the robots. Employees are required to develop and inspect goods and to operate tools and machinery. In the world of industrial production, the cost of labor will never fade away, and it should be meticulously budgeted.