Contract Manufacturing

Definition: Contract Manufacturing is a business outsourcing model in which the hiring firm approaches the contract manufacturer with a design or formula, after which the contract manufacturers will quote the parts based on processes, labor, tooling, and material costs.
After the bidding process is complete, the hiring firm will select a manufacturer and for the agreed-upon price, this party acts as the hiring firm's factory, producing or shipping unit for the design.

More on contract manufacturing. More on manufacturing: 5 Whys, Changeover, Cradle to Cradle, Experience Curve, Five S, more...