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What points should be kept in mind when selecting a contractor for electronic device development?
For example, if you want to promote the use of IoT in your own products and outsource the development of electronic devices, depending on the technical capabilities of the outsourcer, you may run into unexpected problems and development may take longer than expected. In the worst case scenario, you may end up abandoning the project.
In order to avoid such risks, here we will introduce some particularly important points among the many points to consider when selecting a contractor for electronic device development.
Development outsourcing to Macnica /Manufacturing Consulting
First, let me introduce the Company 's achievements.
In addition to semiconductor procurement and technical support, Macnica also provides development planning and manufacturing services centered on the semiconductors we handle. We specialize in low-volume, high-mix production and medium-scale production of hundreds of units in lots, and we respond to customer needs with the added value that only a semiconductor trading company can offer, such as the ability to select parts that are resistant to end-of-life (EOL). We have developed many products over the years, and we are proud of our support capabilities, so please feel free to contact us.
Here we will introduce some examples.
What is development consignment (entrusted development)? Difference from in-house development
What is development consignment (entrusted development)?
It is a method of compiling the specifications of the system (hardware and software) that you want to develop in-house and outsourcing it to an external company. It refers to communicating requests (specifications) such as "I want to make this and that product" to an external development company and requesting manufacturing that meets those requests.
Recently, there is also the idea of incorporating commercially available microcomputer boards such as Raspberry Pi, commonly known as Raspberry Pi, and Arduino into their own products. However, there are cases where the necessary functions are lacking in such general-selling microcomputer boards, or over-specification costs extra costs, and in some cases they are not allowed to be incorporated into products as a major premise.
With development outsourcing, there are no such concerns, and it is possible to develop products according to your desired specifications. Since it is basically a scratch development (building a system from scratch), virtually any system can be developed.
Difference between outsourced development and in-house development
In our in-house development, after formulating the specifications, we actually draw and review the circuit, extract the netlist, create Gerber data with CAD, manufacture the bare board, mount the components, and evaluate / debug the completed board. You have to do it all yourself.
It goes without saying, but in order to do these things, we need human resources who can create things according to specifications. If high development skills are required, excellent human resources corresponding to them are essential, and training costs are required to make up for the lack of skills.
Nonetheless, there is no need to select an outsourcer or hold a requirement definition meeting. Contacting multiple subcontractors to confirm whether development is possible and obtaining competitive quotes is a difficult task, and it is also difficult to decide which vendor to order to in the end. Also, there is no frustration when deliverables different from expectations are delivered.
In other words, there are advantages and disadvantages to both outsourcing development and in-house development. Next, I would like to look at the advantages and disadvantages from the perspective of outsourcing development.
Advantages and disadvantages of outsourcing development
development cost
Outsourcing development has the advantage of keeping costs down.
If all new development is done in-house, it is essential to secure in-house human resources, and the man-hour burden from product planning to actual work will increase. On the other hand, if you proceed with development outsourcing, you can greatly reduce the man-hour burden. Most of the work is handled by the development company that you order from, so you can reduce the burden of development.
Budget/Schedule
Another advantage of outsourcing development is that the amount and timing of payments are clear, making it easy to set a budget and schedule.
A development contract is a contract. In a contract, the receiving party cannot receive remuneration unless the deliverables are completed. Therefore, the ordering party does not need to pay any expenses other than the remuneration determined at the time of the contract. In addition, since the delivery date is determined at the time of the contract, the order receiving side works with strict observance of the delivery date so as not to violate the contract. Payment is made after inspection, so it is also an advantage that it is easy to make a budget plan.
Human resource development
I often hear cases where in-house engineers cannot grow as a result of relying on external development.
This is because the contractor accumulates experience such as skills, know-how, and troubleshooting associated with development. If you also consider the growth of engineers, you should also consider the option of outsourcing only the necessary parts.
communication
Compared to in-house development, outsourcing development has the disadvantage of being difficult to communicate with.
In a contract, the order-receiving party has the right to command. In the case of outsourcing development, the actual workers will be people from another company, so it will be difficult to have close communication. The reality is that it is difficult to give unreasonable instructions or detailed instructions. Also, keep in mind that it's difficult to change specifications in the middle.
3 points to avoid failure in outsourcing development of electronic devices
We have summarized the points that tend to stumble in the development of electronic devices as of 2023. It is important to choose a contractor carefully, without being confused by the selection criteria such as because it is a contractor with whom you have a long-standing relationship, because it is cheaper than anywhere else, and so on.
1. Having the know-how to develop the latest technology
In recent years, the installation of the latest technologies such as "IoT" and "AI" is increasing.
Without sufficient evaluation and technical know-how, these latest technologies will cause defects in the market and cause complaints from customers. As a result, it is important to choose a contractor who has the know-how to develop the latest technology, in order to avoid the risk of lowering customer trust and causing compensation problems.
2. Ensure the quality standards required for the equipment
It is important to design with a view to passing certification from the time of PoC and prototyping. In particular, if non-certified parts are used, a redesign is required, which is costly and time consuming. Design requires a wide range of technologies, such as electronic circuit design, high frequency design required for wireless communication, software design, printed circuit board pattern design, power supply design, and housing design, so we have all these technologies and knowledge. is also an important point.
3. Ability to procure parts during mass production
For example, when developing an IoT device, various sensors that monitor and detect the state, and wireless components (Wi-Fi, Bluetooth components, etc.) are installed to connect the device to the network. Even if these parts can be easily procured for prototyping, it may not be possible to procure the required quantity for mass production. Depending on the product, there are problems such as whether or not procurement is determined depending on the purchase quantity. If it is not possible to procure parts at the time of mass production, or if it is not possible to procure parts that are commensurate with the cost, production will be delayed.
The point I would like to tell you is, "At the very least, choose a contractor that can handle all three."
Please contact Macnica for outsourcing the development of electronic devices.
Macnica has supported the development and mass production of electronic devices in all fields.
As I mentioned at the beginning, we provide consistent services from development planning to mass production as manufacturing consulting. In these days when there is a shortage of semiconductors, we have the strengths of a semiconductor trading company, such as component selection that takes not only cost and specifications into account, but also availability, development planning capabilities that keep trends in check, and support capabilities that allow us to proactively incorporate the latest products. Yes.
Over the years, we have been commissioned to develop numerous electronic devices, and we are proud to be second to none in this field. Because we have bases all over the world, we are good at negotiating with local companies when expanding overseas and proposing overseas manufacturing partners to reduce costs. You can also work with a dedicated team to develop programmable products such as microcontrollers and FPGAs.
If you are looking for a subcontractor for electronic device development, please feel free to contact us.
Examples of manufacturing consulting
Manufacturing consulting service
Please refer to the button below for details of our manufacturing consulting service.