Total Cost of Ownership

How do you calculate the total cost of ownership (TCO) of your product?

When you total all the costs involved in getting your product to market, the results can surprise you. TCO includes every cost—fixed and recurring–from product design down to end of service life. Doing a complete lifetime cost-of-ownership analysis lets you evaluate the real costs and provides a tool for examining where and how to reduce these costs.

Hidden costs: Sometimes the biggest savings are not from the amount you spend, but from the efficiencies you can create in the manufacturing and supply chain processes. In some cases, just an improvement of 0.01% yield can make a dramatic difference, as can all the factors that can help reduce time-to-market and reduce product failure when in service. Building a strategic plan and putting the proper procedures, processes, and quality controls in place helps avoid many of the hidden costs.

How Enics helps reduce costs:

  • Creates a strategic cooperation plan where all your requirements are met
  • Maximize the yield by conducting bill of material, design for manufacturability and testability analysis
  • Engages known, reliable suppliers for component and material sourcing, and supports the customer’s R&D regarding prototyping
  • Uses the most modern, fast, reliable equipment and systems
  • Builds test and inspection into the process to reduce rework and repair and improve quality and yield
  • Employs data and analysis tools to monitor the manufacturing process and provide status reports
  • Maintains open customer communication channels for better planning and flexibility. Operates a global organization with universal procedures and standards and a local footprint so a product can be transferred to the most cost-effective manufacturing site
  • Connects the customer with our logistics team to optimize shipping and handling
  • Offers complete after sales service and support to ensure the best cost-of-ownership throughout the product’s total life cycle.
  • Based on many of the above mentioned activities, we can help you to achieve your targets and gain annual savings in your product costs.

To ensure that your company is getting the best total cost of ownership, select an EMS company with years of knowledge and expertise manufacturing the highest quality products for companies like yours—that’s Enics.

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