A successful contract manufacturing project does not start when the purchase order arrives, It starts before the PO is issued, when the customer and contract manufacturer align on expectations, documentation, responsibilities, risks, and acceptance criteria.
Through years of experience managing complex, technically challenging manufacturing programs, we have learned at Keller Technology that the work done before the PO can make all the difference. Here are some of the practices we have found are critical to getting a project off to a strong start.
1. Get Everyone Aligned
Before the PO, both sides should have a clear understanding of the project.
Key steps include:
- Develop a detailed proposal and scope of work
- Resolve technical questions and discrepancies
- Establish primary points of contact
- Identify technical and financial decision-makers
- Set a regular project meeting or call cadence
- Agree on milestones, delivery dates, and delivery cadence
The goal: Eliminate ambiguity before it becomes a production problem.
2. Make Sure the Documentation is Complete
Incomplete or outdated documentation can quickly create delays.
Before kickoff, confirm:
- All drawings are at the latest revision
- Detail and assembly drawings are complete
- The Bill of Materials (BOM) is accurate and complete
- Drawing and BOM information is consistent
- Obsolete components have been identified and approved replacements selected
Component obsolescence is especially important in electronics. Finding out that a critical component is obsolete after manufacturing begins can have significant schedule and cost consequences.
3. Plan the Supply Chain Early
Supply chain risks should be identified before they affect production.
The contract manufacturer should understand:
- Long-lead and difficult-to-source components
- Potential single-source or availability risks
- Customer-directed suppliers
- Customer-supplied materials or components
- Sourcing responsibilities
- Potential component obsolescence
Identifying these issues early gives the customer and CM more time to develop alternatives and minimize potential disruptions.
4. Plan the Manufacturing Approach
For larger or more complex programs, manufacturing planning should begin well before production starts.
The CM should consider the floor layout and production flow needed to support efficient material movement, assembly, inspection, and testing. Planning these requirements upfront can help identify potential bottlenecks and create a lean, efficient manufacturing process from the start.
5. Define Testing and Acceptance Upfront
Do not wait until the equipment is built to decide what “done” means.
Establish:
- Responsibility for test plan development
- Inspection and documentation requirements
- Factory Acceptance Test (FAT) requirements
- Customer acceptance criteria
- Set a regular project meeting or call cadence
- Requirements for application-specific software and training
Everyone should understand how the finished product will be evaluated before manufacturing starts.
6. Establish Change Control
Changes are common in complex manufacturing. Uncontrolled changes create problems.
Before kickoff, establish an Engineering Change Notice (ECN) process that defines how changes will be:
- Documented
- Reviewed
- Approved
- Communicated
- Incorporated into production
If first article inspections or approvals are required, those procedures should also be established for the CM, customer, and applicable suppliers.
7. Clarify Customer and CM Responsibilities
Clearly defining responsibilities upfront helps prevent delays and confusion once the project is underway.
Determine who is responsible for:
- Customer-directed supply sources
- Customer-supplied materials or components
- Test plans and protocols
- Application-specific software
- Software or equipment training
- Technical approvals
- Financial approvals
Both parties should know who has the authority to make decisions when questions arise.
8. Address Compliance, Safety, and Security
Special requirements can influence the entire manufacturing approach and should be identified early.
Consider:
- Industry or regulatory standards
- Quality requirements
- Safety considerations
- Confidentiality requirements
- Faculty access controls
- Customer security requirements
These considerations may affect everything from documentation and supplier selection to manufacturing floor layout and personal access.
Preparation is Part of Manufacturing
At Keller Technology, we have supported technically challenging programs in industries where quality, documentation, and execution are critical, including medical capital equipment, commerical space flight hardware, and semiconductor fabrication equipment.
That experience has taught us something important:
Many manufacturing problems are easiest to solve before manufacturing begins.
A strong pre-PO process helps uncover risks, clarify responsibilities, establish expectations, and create a realistic path from purchase oder to successful delivery.
The PO may start the commercial relationship. Good planning starts the project.