Controlling the Snowflake Effect on Project Cost

For contract manufacturing projects that aim to produce a product, project cost includes the overall works in design, engineering, manufacturing, quality, project management, and supply chain management. Within each of these categories, work can be divided into many sub-sectors with even more specialty tasks that intertwine with each other. Management teams try to put a budget on the project based on their best estimate. However, there are still many gray areas in the details of each task where decisions need to be made based on skills and best known methods (BKM). Without doing so, this is where the Snowflake Effect can be seen.

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Just-in-Time supply chain model

When JIT Meets Murphy’s Law

In the contract manufacturing business, supply chain professionals know that an interruption in the supply chain will cause turmoil, and can even shut down the ecosystem of a sub-contractor network. This may lead to a major surge in overhead costs when re-establishing the system, and can also cause delays and lost revenue. They also know that the world is full of uncertainties, which are governed by Murphy’s Law (in short, Murphy’s Law can be explained as “what can go wrong, will go wrong”). So what does this have to do with the Just-In-Time (JIT) business model?

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How is a Batch of Customized Products Manufactured?

You’ve placed an order and you’re ready to get your custom product manufactured. Now what? What are the next steps in the process?

After an order is placed and confirmed, E-BI will dedicate a project team to your product. They will hold a kick-off meeting to discuss the timeline and product manufacturing specifications, such as detailed Bill of Materials (BOM) lists, Continue reading “How is a Batch of Customized Products Manufactured?”

How to Manage Supply Chain Risk

In the modern age of business, technology has made the world more interconnected than ever. This interconnectedness creates many new opportunities. Companies can now source from virtually anywhere in the world, and can create more efficient international supply chains. A company with international relationships, if applied properly, can have distinct competitive advantages such as lower material cost, operational costs, more equipment, labor, and manufacturing expertise. As a result, it can dedicate more effort to their core business.

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