When the engineers and the accountants put their heads together

Started 4 months ago | Discussions thread
bobn2
bobn2 Forum Pro • Posts: 67,538
Re: When the engineers and the accountants put their heads together
1

Tom Caldwell wrote:

But I think that I am correct that such a high volume production facility would be very complex and expensive to set up.

You're correct to say that, but there is no reason that OMDS needs to do so. There are plenty of contract manufacturers that already have the high volume production facilities for both lenses and cameras, and can take on manufacturing jobs at surprisingly short notice.

It would also need a continuing volume of product to feed it.

Which is one of the reasons for going the contract manufacturing route. It's also why most semiconductor companies are now 'fabless'. Semiconductor fabrication lines are now hugely expensive. If you tie up the capital in them you are committing to high volumes or you go bust servicing the loans you took out to pay for the plant. If you contract the work out, and share the facility with other companies, you can work with much smaller volumes.

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