In this article, you will find a list of relevant words and terms, as well as their definitions.
Tip: press ctrl+f (windows) or cmd+f (mac) to search for a specific term.
Outsourcing
Outsourcing is the act of contracting out functions or processes to external companies. This is often done with the aim of reducing costs, improving efficiency, or accessing specialized skills and resources.
Sourcing
Sourcing generally refers to the process of finding, evaluating, and selecting suppliers of specific goods or services. It involves identifying potential suppliers, negotiating contracts, and ensuring delivery of the required products or services. Learn about the multi-market sourcing strategy here.
CM – Contract manufacturers
Third-party companies that are hired to handle the entire production process, from sourcing materials to production and delivery. Learn more here.
EMS – Electronic manufacturing services
Companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). Learn more here.
OEM – Original equipment manufacturer
A company that manufactures products for another company. These products are to be sold under the brand name of the other company.
ODM – Original design manufacturer
A company that designs and manufactures a product for another company. These products are then rebranded by the other company for sale.
PCB – Printed circuit board
A thin board made of insulating material that supports and connects electronic components using copper traces. Learn more here.
PCBA – Printed circuit board assembly
The process of attaching or soldering electronic components to a PCB to create a functional printed circuit assembly. Learn more here.
Motherboard
The main printed circuit board in a computer that holds crucial components such as the central processing unit (CPU), memory, and connectors for other peripherals.
Box build / Box build assembly
The process of assembling all components of an electronic device into its final enclosure or "box," which may include the assembly and integration of PCBs, wiring, cabling, and other hardware components. Learn all about box build here.
Production Part Approval Process (PPAP)
A standardised method in the automotive industry to ensure that components meet quality standards. Suppliers submit a PPAP package, including documentation and samples, for approval before mass production, ensuring consistency and reliability in the manufacturing process.