According to Precedence Research, medical device contract manufacturing was valued at $72.89 billion worldwide in 2022 and is expected to reach $211.66 billion annually by 2032. As a result, companies are continuously scrutinizing development costs, seeking ways to enhance efficiency and reduce expenses.
Underestimating Assembly Costs
During the planning stages, it’s common to underestimate manufacturing and assembly costs. Focusing primarily on component prices can lead to an oversight of significant additional expenses. These include:
- Labor Costs: The cost of assembling components can be substantial, especially if the process is labor-intensive.
- Fixed Costs: The costs of manufacturing space, utilities, and maintenance.
Overhead Charges: Expenses related to the design and management teams, which often exceed the cost of individual components.
Evaluating the efficiency of your assembly process is crucial. Some in-house processes might be more cost-effective if outsourced, while certain outsourced sub-assemblies might be cheaper if handled internally. Analyzing these aspects can lead to significant cost savings.
Determining the Cost of Quality
When selecting suppliers for your component parts, it’s vital to consider the quality of those parts. Lower-cost suppliers may provide substandard components, leading to higher failure rates and increased overall costs. Paying more upfront for higher-quality parts can reduce failure rates and warranty claims, ultimately saving money.
For medical devices, which must meet stringent quality standards, investing in specialized testing equipment is often necessary. This ensures both component and final product quality, maintaining compliance with regulatory standards, and enhancing product reliability.
Improving Design to Value
In the medical device industry, focusing solely on technical capabilities can overshadow cost considerations. Successful companies aim to deliver functionality while keeping costs low, a concept known as maximizing design to value (DTV). This approach involved:
- Cost Reduction: Streamlining processes and materials to lower costs without compromising quality.
- Value Delivery: Ensuring that the final product offers both high functionality and cost-efficiency, providing maximum value to customers.
How Thermal Press International Can Help?
Thermal Press International has been a leader in thermal assembly technology for almost 50 years. By reviewing your planned assembly processes before they go into production, we can recommend improved and more cost-effective methods. Our expertise can help you achieve maximum DTV by optimizing your manufacturing and assembly processes.
Contact Us or call (925) 454-9800 to speak with a Thermal Press engineer.
