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Contract Manufacturing

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Presentation on theme: "Contract Manufacturing"— Presentation transcript:

1 Contract Manufacturing

2 Acer Inc. Spinning-off 1 The restructuring resulted in two primary units: brand name sales and contract manufacturing

3 Foxconn 1 Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group, is a Taiwanese multinational electronics contract manufacturing company headquartered in Tucheng, New Taipei, Taiwan. It is the world's largest electronics contract manufacturer measured by revenues.

4 Jabil Circuit - Acquisitions and expansion 1 2005Varian, Inc.Purchased the contract manufacturing division of the company for approximately $195 Million.

5 Jabil Circuit - Acquisitions and expansion 1 2002Philips Contract Manufacturing ServicesPurchased the division from Philips for approximately $210 Million and also signed a 4 year supply agreement worth approximately €4 billion.

6 PepsiCo - PepsiCo Asia, Middle East & Africa 1 While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these regions, more of this production is conducted via alternate means such as licensing (which it does with Aquafina), contract manufacturing, joint ventures and affiliate operations

7 Modularity - Modularity in technology and management 1 For instance, when the firm utilizes contract manufacturing rather than in- house manufacturing, it is using an organizational component that is more independent than building such capabilities in-house: the firm can switch between contract manufacturers that perform different functions, and the contract manufacturer can similarly work for different firms

8 Intel Corporation - Opening up the foundries 1 Only Achronix began shipping chips made by Intel using the 22-nm Tri-Gate process.[ forest/index.ssf/2013/07/intel_dabbles_in_contract _manu.html Intel dabbles in contract manufacturing, weighing tradeoffs] // The Oregonian, July 27, 2013[ id=1280814 Intel to make 22-nm chips for Microsemi] // EETimes, 5/2/2013: Microsemi—...— becomes Intel's fifth publicly disclosed foundry customer, joining network processor provider Netronome and FPGA vendors Altera, Achronix and Tabula

9 Windows Mobile - Hardware 1 Microsoft had over 50 handset partners, when Windows Mobile was still being shipped on new devices. 80% of the 50 million Windows Mobile devices that were made from launch to February 2009 were built by one contract manufacturing group, HTC Corporation|HTC, which makes handsets for several major companies under their brands, and under its own brand.

10 Tesla Motors - European parts content 1 The Roadster's chassis was assembled by the contract manufacturing division of Lotus Cars in Hethel, England.

11 Deutsche Post - Brands 1 *Power Packaging: supplies food and beverage contract manufacturing and packaging services to consumer goods companies in North America.

12 Doxil - Doxil shortage 1 (PFE) and Johnson Johnson, announced that it will exit the contract-manufacturing business in a transition to focus on its generics business.Peter Loftus, [ 20110819-712649.html] UPDATE: Ben Venue to Exit Drug Contract Manufacturing Business, Wall Street Journal, August 19, 2011

13 ECM - Business 1 * Electronic Contract Manufacturing, a term related to the outsourcing of electronic assembly

14 VTech - History 1 Today, VTech’s core businesses remain cordless telephones and electronic learning products. Its contract manufacturing services, which manufactures a range of electronic products on behalf of medium sized companies, has also become a major source of revenue. The company has diversified geographically, selling to North America, Europe, Asia, Latin America, the Middle East and Africa.

15 Wyse - 2000-present 1 In 2000 Wyse acquired Netier Technologies of Texas, and turned Netier's Rapport thin device management software into the Wyse Device Manager. In 2003 Wyse went private and company shareholders reorganized the company, selling assets such as real estate and company-owned manufacturing facilities in favor of contract manufacturing. In April 2005 the controlling interest of Wyse was acquired by Garnett Helfrich Capital, a private equity firm specializing in venture buyouts.

16 RPG Group - RPG Life Sciences 1 RPGLS offers services like marketing partnership, NDDS development, development of non-infringing process technologies, and P2P and/or contract manufacturing to its global partners.

17 Module - Modularity in technology and management 1 For instance, when the firm utilizes contract manufacturing rather than in- house manufacturing, it is using an organizational component that is more independent than building such capabilities in-house: the firm can switch between contract manufacturers that perform different functions, and the contract manufacturer can similarly work for different firms

18 Sigma-Aldrich - Other key events 1 * 2004 – Acquisitions of Ultrafine, a supplier of contract manufacturing services for drug development, and Tetrionics, a producer of high potency and cytotoxic active pharmaceutical ingredients.

19 Sigma-Aldrich - Product lines 1 *Large scale chemicals contract manufacturing

20 Job production 1 Job production is, in essence, manufacturing on a contract basis, and thus it forms a subset of the larger field of contract manufacturing. But the latter field also includes, in addition to jobbing, a higher level of outsourcing in which a product-line-owning company entrusts its entire production to a contractor, rather than just outsourcing parts of it.

21 Nokian Tyres - Contract production of tyres 1 In the past, some United States contract manufacturing was done by Cooper Tire's Findley, Ohio plant

22 Boots Contract Manufacturing 1 'Boots Contract Manufacturing' or 'BCM' is the subsidiary company of Alliance Boots that manufacturers healthcare products. It is Europe's biggest health and beauty contract manufacturer. It is not simply a contract manufacturer, but develops new products for other customers as well.

23 BCM 1 *Boots Contract Manufacturing, part of Alliance Boots

24 Central Aircraft Company - History 1 In common with other joinery companies during the First World War it turned to sub- contract manufacturing of aircraft components

25 Market entry - Market entry and trade risks 1 without direct investment (management contract, franchising, licensing, contract manufacturing)

26 Pharmaceutical industry in the People's Republic of China - Domestic companies doing RD 1 CO has been providing contract research and contract manufacturing services to pharmaceutical companies both in China and outside of China.

27 American Motors Corporation 1 At the time, AMC had excess manufacturing capacity thus contract manufacturing for Chrysler made sense

28 Benchmark Electronics 1 'Benchmark Electronics Inc' is an electronics manufacturing services|EMS, original design manufacturer|ODM, and original equipment manufacturer|OEM company[ vices.asp Services Overview] Benchmark Electronics Official Site based in Angleton, TX in Greater Houston. It provides contract manufacturing services.

29 Benchmark Electronics - History 1 In 2007 Benchmark Electronics acquired Pemstar Inc, a contract manufacturing|contract manufacturer.

30 Tyan 1 The merger in question was with MiTAC, a Taiwanese OEM which develops and produces a range of products (including servers, notebooks, consumer electronics products, networking and educational products - as well as providing contract manufacturing services), was announced in March 2007 [ 323PD209.html] and completed on October 1 of that year

31 Contract manufacturer - Business model 1 In a contract manufacturing business model, the hiring firm approaches the contract manufacturer with a design or formula

32 Contract manufacturer - Industries that use the practice 1 The pharmaceutical industry use this process with CMs called Contract manufacturing organizations.

33 Contract manufacturer - Purpose, Benefits, and Risks 1 There are many benefits as well as risks to contract manufacturing

34 Contract manufacturer - Purpose, Benefits, and Risks 1 When deciding about contract manufacture, the company should weigh the benefits and associated risks. For small companies, contract manufacturing may not be a good business strategy. For large companies that are trying to extend into new markets, contract manufacturing may be a good choice.

35 Contract manufacturer - Benefits 1 The Benefits and Disadvantages of Contract Manufacturing

36 BlackBerry Limited 1 His strategy is to subcontract manufacturing to Foxconn, and to focus on software technology.[ m/report-on-business/international- business/asian-pacific- business/blackberry-deal-bolsters- foxconns-makeover- gambit/article16097425/ G+M BlackBerry deal bolsters Foxconn’s makeover gambit Jim and Gupta, TAIPEI/SAN FRANCISCO — Reuters, Published Tuesday, Dec

37 Kingston Technology 1 Kingston serves an international network of distributors, resellers, retailers and OEM customers on six continents. The company also provides contract manufacturing and supply chain management services for semiconductor manufacturers and system OEMs.

38 Pininfarina - San Giorgio plant 1 Following the end of contract manufacturing activities San Giorgio Canavese is being used for production of spare parts for cars manufactured in the past.2011 annual report p69

39 Transfer pricing - Cost plus and resale price issues 1 Where a manufacturing entity provides contract manufacturing for both related and unrelated parties, it may readily have reliable data on comparable transactions

40 CMOS (disambiguation) - Other 1 *Contract manufacturing organizations, a company with customizable outsourced manufacturing capabilities

41 Supply network 1 In the semiconductors industry, for example, work-in-process moves from fabrication to assembly, and then to the test house. The term supply network refers to the high-tech phenomenon of contract manufacturing where the brand owner does not touch the product. Instead, she coordinates with contract manufacturers and component suppliers who ship components to the brand owner. This business practice requires the brand owner to stay in touch with multiple parties or network at once.

42 BenQ - BenQ-Siemens 1 On August 24, 2006 BenQ announced plans to spin off its manufacturing operations in early 2007, separating contract manufacturing and own-brand divisions. rking/benq-spin-manufacturing-operations- 427 Infoworld, BenQ to spin off manufacturing operations

43 BenQ - Corporate restructuring 1 On August 24, 2006, BenQ announced plans to spin off its manufacturing operations in early 2007, separating contract manufacturing and own-brand divisions.

44 Universal abit - History 1 Following USI's acquisition of the motherboard business, the remaining divisions of ABIT switched to distributing components and networking products, while using its Suzhou, China plant only to offer some motherboard contract manufacturing services.

45 Lakeport Brewing Company - History 1 Lakeport took on contract manufacturing work for other beverage brands and reworked its operations to make the brewery profitable

46 Tarmac Limited - Tarmac Building Products 1 Tarmac Building Products is the UK's largest supplier of heavy building products. It supplies aircrete blocks, aggregate blocks, bagged aggregates, mortar, screeds, sports surfaces, TermoDeck, foundry sands, grouts, plasters, renders, bagged cement and bagged lime. It also offers bespoke production and contract manufacturing.

47 Electronics manufacturing services 1 The concept is also referred to as 'electronic contract manufacturing' (ECM).[ es/mi_qa3913/is_200212/ai_n9159251 Electronics contract manufacturing: Global production and the international division of labor in the age of the Internet]

48 AMAX Information Technologies - Location and facilities 1 The Fremont headquarters is a certified ISO 9001, 14:001 manufacturing facility which supports both its enterprise solution manufacturing as well as contract manufacturing for original equipment manufacturer (OEM) appliances and custom built systems

49 Keurig - History 1 K-Cup portion packs were invented by Colby College roommates Peter Dragone (Class of 1979) and John Sylvan (Class of 1980). ham/articles/2011/08/07/the_inside_story_of_ keurigs_rise_to_a_billion_dollar_coffee_empi re/ Dragone and Sylvan founded Keurig in 1990, with later support from co-founder and current vice president of Contract Manufacturing Quality assurance, Dick Sweeney, in 1993.

50 GAZ - 2000 to present 1 Now GAZ car facility is used for contract manufacturing for Volkswagen and General Motors.

51 GAZ - 2000 to present 1 In December 2010, GAZ Group signed a memorandum of understanding with Daimler AG|Daimler on contract manufacturing of Mercedes-Benz Sprinter at GAZ plant in Nizhny Novgorod. It is expected that production will start in 2013. In June 2012 GAZ Group and Daimler announced start of implementation of Mercedes-Benz Sprinter contract manufacturing project at GAZ plant, and plans to organize contract manufacturing of Mercedes engines at Yaroslavl Motor Plant of GAZ Group.

52 GAZ - 2000 to present 1 In November 2011, under the contract manufacturing agreement, GAZ started SKD assembly of Škoda Yeti; full-cycle production started in December 2012

53 Keyence 1 Keyence is fabless manufacturing|fabless (fabrication-less) - although it is a manufacturer; it specializes solely in product planning and development and does not manufacture the final products. Keyence products are manufactured at qualified contract manufacturing companies.

54 American Motors 1 At the time, AMC had excess manufacturing capacity thus contract manufacturing for Chrysler made sense

55 Hon Hai Precision Industry 1 'Hon Hai Precision Industry Co., Ltd.', doing business as|trading as 'Foxconn Technology Group', is a Taiwanese Multinational corporation|multinational electronics contract manufacturing company headquartered in Tucheng District|Tucheng, New Taipei, Taiwan. It is the world's largest electronics contractor manufacturer,[ dUSTRE66L0A220100722 Strikes End at Two Chinese Automotive Suppliers]. Reuters. 2010-07-22.

56 Ajinomoto - 2010 to present 1 In 2013, the Company acquired the contract manufacturing organization Althea Technologies for in a bid to expand biopharmaceutical manufacturing in the United States.

57 Plessey - South Africa 1 The corporate name was changed to Tellumat Pty Ltd.[ intro.htm Tellumat: Introduction] Tellumat continues to develop and manufacture Plessey-branded products as before and operates in the Defense (military)|Defence, Telecommunications and Contract Manufacturing markets.

58 Acer (company) - Logo 1 The new logo came out following spin-off of Acer's contract manufacturing business to focus on its brand business

59 Luxottica - History 1 In 1967, he started selling complete eyeglass frames under the Luxottica brand, which proved successful enough that by 1971 he ended the contract manufacturing business.

60 Achronix 1 Achronix was the first company allowed to use Intel's fabs and had began shipping of the product.[ intel.html Foundry Model Challenges Intel] // DesignReuse, 8/28/2013 There are 5 fabless companies announced at the middle of 2013 with agreements for chip manufacturing at Intel: Achronix, Tabula (company)|Tabula, Netronome, Microsemi and Altera.[ forest/index.ssf/2013/07/intel_dabbles_in_contract_ma nu.html Intel dabbles in contract manufacturing, weighing tradeoffs] // The Oregonian, July 27, 2013[ l_altera_fab_deal/ Inside Intel's deal to let FPGA biz Altera use its 22nm TriGate fabs

61 Baxter International 1 Baxter’s Medical Products business produces intravenous solutions and other products used in the delivery of fluids and drugs to patients; inhalation anesthetics; contract manufacturing services; and products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis.

62 Deutsche Post AG - Brands 1 *Power Packaging: North America's leading supplier of food and beverage contract manufacturing and packaging services to major consumer goods companies. Power Packaging has a long history of managing multiple customer facilities and dedicated facilities within the industry and has proven to be a diverse and innovative growth catalyst to the packaging industry.

63 Waagner-Biro - Businesses 1 Qualter, Hall Co Ltd. builds bridges and also deals with mechanical engineering and contract manufacturing.

64 East Midlands - Healthcare 1 Crookes Healthcare, formerly Boots and now Reckitt Benckiser, make Strepsils and Optrex on the enormous Boots site, and Boots Contract Manufacturing (BCM) make products for other firms

65 Alliance Boots - Operations 1 Alliance Boots operations are split into two areas, pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution. The Group also has a stand alone contract manufacturing business called BCM and increasingly develops and internationalises its product brands.

66 Alliance Boots - Contract manufacturing 1 'BCM Limited' is the contract manufacturing business of Alliance Boots and manufactures a range of own-brand and third-party medicines, and cosmetic product ranges such as No 7, Kangol, Toni Guy, FCUK, Soltan and Botanics

67 Lazare Kaplan International - Business activities 1 In addition, it has contract manufacturing operations in China and Thailand

68 Multitech - Logo 1 The new logo came out following the spin- off of Acer's contract manufacturing business to focus on its brand business

69 Apotex - Structure 1 Apotex owns 61% of Cangene Corp., a Winnipeg-based biopharmaceutical company, according to Cangene's 2007 annual report. Cangene's business focuses are hyperimmunes, contract manufacturing, biopharmaceuticals and biodefense against infectious diseases such as smallpox, hepatitis B and anthrax. Its products include WinRho SDF. In February 2014, Emergent BioSolutions, an American company based in Rockville, Maryland, acquired Cangene Corporation.

70 Fine chemical 1 Contract manufacturing organization|Custom manufacturing for the life science industry plays a big role; however, a significant portion of the fine chemicals total production volume is manufactured in house by large users

71 Northwest Biotherapeutics - Business model 1 Northwest relies upon the contract manufacturing organization Cognate Bioservices for services supporting manufacture of product for clinical trials

72 Eskayef Bangladesh - Business information 1 Under the contract manufacturing deal between Eskayef Bangladesh Ltd, the Danish insulin maker Novo Nordisk has set up a high-tech insulin manufacturing plant at Tongi. The plant is the third set up by Novo Nordisk in Asia after China and India.

73 Nordion - Medical isotopes 1 Nordion also offers contract manufacturing services which can include medical isotopes for clinical trials or commercial development.

74 For More Information, Visit: m/the-contract-manufacturing- toolkit.html m/the-contract-manufacturing- toolkit.html The Art of Service

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