EMS Program Cost Feasibility Analysis

The OEM companies, such as NOKIA, Motorola, is enjoying the benefit to out source the manufacture process to other factories. This will help them to reduce the overall manufacture overhead. And the factories also get the advantage due to the high volume purchase and mass production from all these OEMs or some of them. This kind of service is called as electronics manufacture service, brief as EMS. The thesis is focus on the program cost feasibility analysis.In the EMS companies, the programs are divided by variant customers and different products. The profitability is the key of the program. Hence the cost analysis and expense control are very important parts during the program management process. The full costing is measured. It is not only the production cost, but also finance cost, inventory cost etc. The thesis does analysis the fixed asset investment and working capital to come to conclusion of the profitability of a program.The thesis is divided into the following six parts:Chapter one briefly introduces the motive, objective. It does indicate that EMS is the trend of current economy. And it also does analysis of EMS in China.Chapter two briefs the cost of EMS companies and indicates the importance of scale economy.Chapter Three states the characters of EMS's program. The product life cycle is introduced. And the methodology to analyze the program cost feasibility is introduced.Chapter Four introduce the background of the coming program. This will help to understand the decision making in the following articles.Chapter Five is the most important one of this thesis. It gives very detail analysis on cash flow forecast, expense and cost structure.On the basis of the analysis above, the conclusion summarizes the thesis and tentatively concludes that this program is selected with certain conditions.