To read more, click here – VEXOS Wins Seven CIRCUIT ASSEMBLY’S Service Excellence Awards 2024

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The decision to outsource can be influenced by many factors, including cost considerations, the desire to focus on core competencies, access to specialized manufacturing skills, and the need for a flexible and scalable production model. Outsourcing offers companies the opportunity to streamline operations, enhance efficiency, and navigate the complex landscape of regulatory compliance, ultimately can contribute to the development and delivery of innovative medical technologies.

Let’s understand a few factors that influence the decision-making process for outsourcing the manufacturing of medical devices:

Manufacturing Capabilities

To find the appropriate partner, it is imperative to ascertain whether the intent is to outsource specific components or materials, such as a printed circuit board (PCB), or more comprehensive Electronic Manufacturing Services (EMS). A contract manufacturer such as Vexos can do both, offering both Custom Material Solutions (CMS), and more comprehensive tasks, including engineering, assembly, testing, box build, and the delivery of a fully finished product with final packaging—ready for customer receipt.

Quality Standards and Regulatory Compliance

The FDA Quality System Regulations (QSR) serve as a national benchmark for the quality management systems of medical companies. Vexos facilities are ISO 13485 certified and have established FDA-compliant quality and regulatory management structures for processes such as product recall, traceability, record retention, and risk management, aligning with the standards set by Medical OEMs.

Global Supply Chain Visibility

The significance of global supply chain visibility has grown as manufacturing processes have extended to offshore locations. Managing products through their entire product lifecycle is crucial to our customers’ success. By utilizing proprietary analytical tools, Vexos can provide assistance from inception of a product through field service requirements and manage the lifecycle of critical components of the BOM.

Time-to-Market Improvement

Time-to-market significantly influences the bottom line as medical product lifecycles shorten. Medical Contract Manufacturers like Vexos enable Medical OEMs to swiftly introduce products, manage demand effectively, and scale up quickly to meet market requirements. With manufacturing facilities spread across the globe in 6 locations, Vexos offers OEMs quick product introduction for a critical competitive edge.

Enhancing Efficiency and Flexibility

Medical OEMs gain efficiency, responsiveness, advanced production technology, and increased capacity through Contract Manufacturers. Outsourcing allows Medical OEMs to focus on core competencies, enhance market flexibility, and transition from fixed to variable costs. Contract manufacturers such as Vexos offers additional value-added services such as Design for Manufacturability (DFM), Design for Testing (DFT), Design for Assembly (DFA), Design for Excellence (DFX), Prototyping, and New Product Introduction (NPI).

Localized Manufacturing for Global Markets

The demand for large medical systems in emerging countries drives the need for localized manufacturing. Manufacturing medical equipment in the same market where it is sold makes practical sense, considering the weight and shipping costs. Contract Manufacturers with operations in low-cost manufacturing regions like Mexico and China provide an advantage, with Medical OEMs benefiting from a favorable tax and tariff structure when equipment is both built and sourced in the target market. With 6 manufacturing facilities and presence in strategic locations – Ohio, LaGrange, USA; Vancouver, Washington, USA; Toronto, Ontario, Canada; Juarez, Mexico; Dongguan, China; Ho Chi Minh City, Vietnam, Vexos offers a unique competitive advantage to its customers.

Emerging Opportunities and Challenges in the Medical Manufacturing Sector

The medical manufacturing sector is witnessing a surge in demand for certain types of medical equipment, due to rising rates of some chronic diseases and a relative increase in DALY, (disability-adjusted life years). There is a growth in demand for a wide range of devices, particularly those used for IoT-based remote health monitoring, and home healthcare assistance devices. Devices used in various medical settings for diagnosis, monitoring, treatment, and management of patient care such as pulse oximeters, hearing aids, ventilators, x-ray machines, ECG, MRI, CT scanners are also seeing an increased demand. With the flexibility and efficiency of a Contract Manufacturer, OEMs can more easily bring new products to market to respond to ever-changing medical equipment needs.

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The newly unveiled 40,000 sq. ft. facility in Juarez, Mexico, is strategically designed to support the increasing customer demand for Vexos services. The addition of this greenfield site follows the September 2023 acquisition of ControlTek in Vancouver, Washington, and further fortifies the company’s foothold in North America.

In addition to the previously established manufacturing locations in Markham, Ontario, Canada; LaGrange, Ohio, USA; Vancouver, Washington, USA, Ho Chi Minh City, Vietnam, and Dongguan, China – the Juarez facility further enhances the company’s ability to serve clients globally.

Scheduled for a Q1, 2024 launch, the Vexos Juarez facility will mirror the advanced equipment and capabilities of the Vexos Markham location. Vexos Juarez is positioned to attain ISO 13485 and ISO 9001 certifications, aligning with the Vexos global commitment to quality and excellence. Operations at the Juarez facility will be overseen by the experienced team from Vexos Markham in Canada, ensuring a seamless launch and consistent product quality.

From PCBA manufacturing and testing to box build assembly, the Vexos Juarez site will replicate the high standards set by the existing Vexos manufacturing locations, offering award-winning EMS manufacturing and engineering solutions.

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The Vital Role of EMS in Medical Advancements

The landscape of medical technology is one that demands absolute precision, rigorous quality standards, and a relentless pursuit of innovation. With a focus on lifesaving and diagnostic equipment, such as X-Ray, CT, and MRI technologies, EMS providers like Vexos play a pivotal role in the industry. These sophisticated medical devices rely on complex electronic systems that require an expert level of manufacturing prowess – a standard service offering from Vexos.

Vexos understands that the intricate electronics powering today’s medical equipment are the heartbeat of the medical industry, ensuring accuracy and reliability in every diagnosis and treatment. Their extensive experience in manufacturing, in tandem with various partners, positions them as vital contributors in the medical field.

Ensuring Quality and Compliance

Quality control in medical electronics manufacturing is not just a regulatory requirement; it is a moral imperative. The rigorous quality standards necessary for certification, such as ISO 9001:2015, ISO 13485:2016, and ISO 14001:2015, are non-negotiable benchmarks for any EMS provider wishing to contribute to this market. Vexos not only meets these standards but consistently exceeds them, ensuring that each product manufactured adheres to the highest levels of quality and compliance. These certifications align closely with the stringent requirements laid out by authorities like the U.S. Food and Drug Administration (FDA) for medical devices.

A Full Spectrum of Services

The journey of a medical device from conception to market is intricate. Vexos, working alongside other experts, simplifies this process, contributing to services like PCB design, assembly, New Product Introduction (NPI), and full-scale product launches. This end-to-end service capability streamlines the manufacturing process, ensuring that no detail is overlooked and every regulatory requirement is met with precision.

Vexos’ services are not just about meeting the status quo. They are about setting new industry standards, pushing the boundaries of what is possible in medical electronics manufacturing. By continuously innovating and improving their processes, Vexos ensures that medical device OEMs can deliver products that truly make a difference in patients’ lives.

Vexos: A Beacon of Technological Excellence

In the realm of medical electronics, the name Vexos has become synonymous with technological excellence. The company’s portfolio boasts a range of products that span the breadth of medical applications – from laboratory automation and cold chain applications to oxygen generation and emergency ventilators. This versatility highlights Vexos’ ability to adapt and cater to the diverse needs of the medical industry.

Moreover, with a sharp focus on sustainability and responsibility, Vexos ensures that its manufacturing processes are not only efficient but also environmentally conscious, aligning with ISO 14001:2015 environmental management standards. In fact, the importance of sustainable practices in manufacturing is underscored by organizations like the Environmental Protection Agency (EPA), emphasizing the necessity for eco-friendly production in all industries, including medical device manufacturing.

The Vexos Advantage

Choosing Vexos means opting for an EMS provider that brings a wealth of experience and a commitment to excellence in the medical market. Their deep understanding of the complexities associated with medical devices, combined with a track record of delivering high-quality manufacturing solutions, sets them apart in this highly specialized field.

For OEMs searching for an EMS partner that can navigate the nuanced landscape of medical electronics, Vexos offers the perfect synergy of expertise, quality, and innovative manufacturing solutions. They are not just manufacturing products; they are engineering the future of medical care.

Partnering with Precision

In conclusion, as the medical industry evolves and the demand for advanced medical electronics grows, partnering with an EMS provider like Vexos becomes increasingly crucial. With their cutting-edge manufacturing solutions, stringent quality standards, and comprehensive service offerings, Vexos stands ready to meet the challenges of modern medical electronics manufacturing.

Discover how Vexos can empower your medical device manufacturing needs and help you lead the way in medical technology. The future of medical electronics is precision, innovation, and partnership – core principles that Vexos embodies in every project they undertake.

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On 26th June 2023, Vexos Markham had the pleasure of hosting a group of distinguished guests from various companies at our state-of-the-art 84,000 sq. ft. facility.   The City of Markham helped in coordinating the bus tour to spotlight the city’s innovation ecosystem to international delegates including businesses, startups, and representatives of different levels of government who were in Toronto to attend North America’s largest tech conference – Collision.

During the tour, we provided an in-depth look into our cutting-edge manufacturing processes, highlighting our commitment to quality, innovation, and sustainability. It was an incredible opportunity to showcase our operations and share our expertise. Our guests had the chance to witness firsthand advanced technologies and meticulous attention to detail that drive our success.

We were thrilled to engage in meaningful discussions, exchange industry insights, and address questions that arose during the tour. The interaction and knowledge-sharing were truly inspiring, reaffirming the value of collaboration and networking within our industry.

We sincerely thank our esteemed guests for taking the time to visit our factory and for their active participation. Their presence and enthusiasm made this experience truly memorable.

We would also like to express our gratitude to The City Of Markham team members who played a pivotal role in organizing the tour for us. Their hard work and expertise were instrumental in creating an informative and engaging experience for our guests.

At Vexos, we believe in fostering strong connections and partnerships within our industry. Hosting such factory tours allows us to showcase our capabilities, strengthen existing relationships, and forge new ones. We look forward to further collaboration and exploring opportunities that lie ahead.

For more inquiries, contact

Kulveen Ahuja

Marketing & Communications Specialist, Vexos

Phone: 416 409 0209

Picture Courtesy: City of Markham

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Unparalleled Medical Electronics Manufacturing Services with VEXOS

VEXOS, an industry-leading Printed Circuit Board (PCB) & Electronics Manufacturing Services (EMS) provider, offers specialized services for the medical industry. We have deep-rooted expertise in the manufacturing of complex electronic equipments that serve as lifelines for medical diagnosis and treatment. Our portfolio includes state-of-the-art imaging technologies such as X-Ray computed tomography (CT), positron emission tomography (PET), magnetic resonance imaging (MRI), and other medical equipment. We are also proficient in manufacturing patient monitors, scanners, and respiratory systems.

Comprehensive Solution for the Lifecycle of Your Product

At VEXOS, our solutions encapsulate the entire lifecycle of your product. We provide an array of services from design support to prototyping, all the way to mass production and after-sales support. Leveraging our vast experience in the medical industry, we tailor our solutions to meet our client’s unique needs and requirements.

Adherence to Industry Standards and Regulations

In the medical industry, complying with stringent industry regulations and standards is paramount. All of our manufacturing facilities are ISO 13485:2016 certified. Our LaGrange, Ohio facility is ITAR compliant. As an experienced EMS provider, we have cultivated a proven path of manufacturing expertise that ensures our products align with or even surpass our customers’ expectations. Our quality management system is meticulously designed to ensure our manufacturing processes comply with the highest industry standards.

Expert Team Guiding Compliance and Quality

Our strength lies in our team of seasoned professionals who have a deep understanding of the regulations governing the medical industry. They collaborate closely with clients, ensuring their products are manufactured in adherence to these regulations. To keep our team abreast of the latest regulations and best practices, our quality management system also includes ongoing training and education programs.

Dedication to Continuous Improvement

Our commitment to quality extends to our steadfast dedication to continuous improvement. We regularly reassess our processes and procedures, identifying areas where we can enhance efficiency and reduce costs without compromising on quality. This dedication to quality and continuous improvement has won us a coveted reputation as a reliable partner for Original Equipment Manufacturers (OEMs) in the medical industry.

Reliable After-sales Support

Our after-sales support distinguishes us in the EMS industry. We offer troubleshooting, repair, and maintenance services to ensure that our clients’ products are functioning optimally and fulfilling their expectations. Such support is vital in the medical industry, where malfunctioning equipment can lead to severe repercussions.

Conclusion

In essence, VEXOS is a trustworthy PCB and EMS provider boasting a wealth of experience in the medical industry. Our company provides end-to-end solutions for manufacturing intricate electronic devices, encompassing imaging technologies, patient monitors/scanners, and respiratory systems. Our unwavering commitment to compliance, quality, and continuous improvement, coupled with our robust after-sales support, makes us the ideal partner for OEMs in the medical industry.

For more details, visit our website.

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Have you ever wondered what Smart Manufacturing means and what is its application in the electronics industry?

Brian Morrison, Vice President of Engineering at Vexos, explains Smart Manufacturing as a methodology that leverages equipment software and integration protocols that allow continuous feedback to the process. It is the ability to use equipment and its accompanying data to have the owners act, react, execute and adjust non value-added activities and optimize production

Thanks, #PCEA for featuring Vexos in your publication. 

Click on the links below to learn more with Brian Morrison about smart manufacturing and its relationship to AI and Lean manufacturing processes.

Podcast: https://upmg.podbean.com/e/pcb-chat-101-brian-morrison-on-smart-manufacturing/

Article: https://www.circuitsassembly.com/ca/editorial/menu-features/37850-m2m-communication-is-here-do-we-still-need-judgment-calls.html

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10 PCB manufacturing costs

1. The number of layers.
2. The size of the PCB.
3. The panel utilization (percent) per number of PCBs on a working panel, where a standard working panel is 18 x 24-in.
4. The number of holes.
5. The trace width/spacing.
6. The surface finish/solder mask finish of the PCB.
7. The choice of base laminate/thickness of the PCB.
8. The copper weight/thickness used on the PCB.
9. The routing or die punching of the PCB profile.
10. The labor costs and amount of batch process steps needed to produce the PCBs.

Some of these cost drivers are straightforward, such as the size of the PCB (where cost rises with increased size) and the number of layers, where more complex circuits require more PCB layers, but this also means increased cost. Panel utilization refers to the number of arrays or PCBs per array that can be produced on a working panel. This is typically calculated by the percentage of utilization, which is calculated from the total area for the PCB divided by the total panel area based on a typical 18 x 24-in. working panel. Higher panel utilization percentages mean lower overall costs. Utilization above 75 percent is considered good.

Another cost driver of PCB costs is the number of holes and variety of hole dimensions. Depending on the number of sizes and quantities, each different hole diameter equates to longer machining time, and more use of drill bits, resulting in increased costs. If hole sizes become extremely small, whereby laser drilling may be necessary, this will also add significant costs to manufacturing a PCB.

PCB manufacturing costs are also impacted by trace widths and trace spacing: the width of the individual traces and how close they are to each other from a trace edge to trace edge can impact the cost, based on the cost of the imaging/plating equipment and process capabilities of a PCB manufacturing facility. Tighter, finer trace widths result in increased PCB production costs.

The type of surface finish on a PCB will also impact manufacturing costs and the manufacturing process method used to produce the boards. Typically, lead-free hot air solder leveling (HASL) is the lowest-cost alternative (not good for fine pitch SMT), followed by immersion tin, immersion silver, organic solder preservative (OSP) (shortest shelf life), flash gold, immersion gold, and thick gold. Several alternative finishes are available, each with advantages and disadvantages that should be investigated before deciding on a particular surface finish.

The base laminate that is specified for a PCB production job can also impact costs. It is better to specify material characteristics that are required than to specify a specific manufacturer’s laminate. An alternate approach is to add “or equivalent” to a specific manufacturer’s material. Allowing the PCB manufacturer to use commonly used materials not only produces the lowest possible cost but can also reduce lead times.

Increases in copper weight and thickness in a PCB generally mean increases in cost. The copper in a PCB is rated in ounces and represents the thickness of 1 oz. of copper rolled out to an area of one square foot. For example, a PCB that uses 1 oz. copper has a thickness of 1.4 mils. A PCB that uses 2 oz. copper has a thickness of 2.8 mils. The base copper thickness used, or how much the product is going to be plated to meet the required thickness, will impact the cost of the PCB. Typically, the lowest cost option is 0.5 oz. copper (thickness of 0.7 mils), increasing in 1-oz. increments to 9-oz. copper. PCBs usually fall in the 1 to 2 oz. range.

The costs of routing or die punching a PCB profile can vary since there are different methods for removing laminate material when developing a PCB’s profile. The main approaches are based on routing, using a high-speed routing bit cutter to remove the laminate materials when creating a PCB profile. The other method is producing a punch that removes the laminate during the punch process. Typically, the punch process is a lower-cost option, but it will have some additional tooling costs to develop the punch tool.

Last on the list of 10 PCB manufacturing costs is the cost of labor, which can be significant when producing PCBs. Most circuit-board-assembly facilities incorporate a batch processing manufacturing process, which will require significant handling for each of the individual processes and moving a product from process to process. When performed at manufacturing locations with lower labor costs, the unit labor costs for the PCBs will usually be less. Other factors that can impact PCB manufacturing costs include whether the board is to be produced to the level of a particular standard, such as an IPC Class 2 standard, which is generally applied to standard electronics, or IPC Class 3, which is more stringent and more expensive. This is not the ultimate list of cost drivers for manufacturing PCBs but understanding how these 10 items can affect costs can pave the way for a better understanding of how to control PCB manufacturing costs.

For more information on the Total Cost of Ownership Contact VEXOS today!

Operating in several locations across North America and Asia, VEXOS is a high-mix, high complexity, mid to low electronics manufacturing and custom material solutions provider with a proven track record of delivering high quality, custom-designed electronics manufacturing services, and supply chain solutions to a diverse group of OEMs. Vexos’ early involvement in the design cycle can provide customers with a more cost-effective product that has increased manufacturability, quality, and reliability throughout its entire lifecycle. During their involvement in design reviews, they focus on key areas throughout the cycle and provide critical feedback to address potential issues and ensure a successful new product introduction. Design reviews can also be categorized by material (Design for Supply Chain), test (Design for Testability), PCB fabrication (Design for Fabrication), assembly (Design for Assembly), and manufacturing (Design for Manufacturing).

VEXOS prides itself in working closely with its prospective and current customers to ensure that they offer value that far exceeds the six fundamental cost drivers of a supplier-customer relationship.

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“Trees for The Future”, a tree planting initiative by Vexos, Murata and GMA, in association with Tree Canada, took place on June 1^st at Milne Dam Conservation Park, Markham, Ontario, where over 375 trees were planted.

Early in May 2022, Vexos announced their association with Tree Canada, which is the only national Canadian non-profit organization dedicated to planting and nurturing trees in rural and urban environments, in every province across the country. They help to grow Canada’s tree canopy through their programs, research, and engagement efforts and by offering grants to communities and schools. They are thought-leaders and capacity-builders, collaborating with a network of industry experts, academics, and other non-profits to deepen community knowledge and help municipalities plan and sustain local canopy. Together with their partners and sponsors, they have planted more than 84 million trees.

Councillor Alan Ho, the Honourable guest for the day, represented the City of Markham. All  participants, enjoyed the day planting over 375 trees at the Milne Dam Conservation Park in Markham. The objective of the event was to leave a small but lasting legacy for the future and this is the first of many steps that we will take collectively to enhance the environment.

“We are more focused than ever on working towards ecological and environmental awareness. Today, we made our first steps towards fostering awareness about the environment and our ecology whilst building a new, purpose-driven and growing culture. Our partnership with Murata, GMA and Tree Canada reflects those values” says Cyril Fernandes, Senior Vice President, Global Business Development, Vexos.

“We at Murata Canada are very pleased to have been able to work with our customers and channel partners on making a small but significant contribution to the environment.

Thanks for everyone’s support and enthusiasm during the event” says Michael Heise, Area Sales Director, Murata Electronics Canada Inc.

“We are thankful to have the support of great partners, customers and associates in the electronics industry.  We all can have a significant impact on ensuring the future of our planet for upcoming generations. Today was a small step toward a greener future“ says James Shular, Partner, GMA Inc.

About Vexos

Operating in several locations across North America and Asia, Vexos is an electronics manufacturing and custom material solutions provider with a proven track record of delivering award-winning, leading-edge electronics manufacturing services and supply chain solutions to a diverse group of OEMs. For more information, visit Vexos website at www.vexos.com

About Murata

Murata Manufacturing Co. Ltd. is a worldwide leader in the design, manufacture and sale of ceramic-based passive electronic components & solutions, communication modules and power supply modules. Murata is committed to the development of advanced electronic materials and leading edge, multi-functional, high-density modules. The company has employees and manufacturing facilities throughout the world. For more information, visit Murata’s website at www.murata.com

About GMA

GMA is a dedicated technical representative committed to bringing together their manufacturers and customers by fostering mutually beneficial relationships. The company has offices across Canada and upstate New York are staffed with a full complement of inside and outside sales teams. For more information, visit GMA’s website at www.gmarep.com

For press inquiries, please contact:

Kulveen Ahuja
Marketing and Communications Specialist
Email: Kulveen.Ahuja@vexos.com
Phone: 416-409-0209

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While manufacturing is one of the critical stages of the overall product lifecycle, one should decide manufacturing it in-house vis-a vis outsourcing after critically evaluating overall costs and factors. Decisions based solely on the price factor often lead to an understatement of about 20-30% of the overall costs.

Various parameters associated with EMS/PCB manufacturing which should be analyzed are:

• Capital (Machines/ Space/ Technology)
• HR (Hiring/ Sourcing/ Training/ Retaining)
• Time
• Warehousing and Logistics
• Fuel/ Freight/ Duties
• IP
• Flexibility/ Understandability
• Uncertainties (Pandemic/ Natural disaster/ Stockouts/ Political risks/ Currency fluctuations)
• Environmental factors (Sustainability/ Carbon footprints)

One should factor in all cost elements before finalizing a decision. If the in-house production cost is 5-10% more than the cost of outsourcing, one should go ahead with in-house production. Whereas, if the costs are 30% or more, one should consider outsourcing the jobs to the EMS experts.

Many companies do a fair job of understanding the six fundamental cost factors when reviewing quote options with prospective suppliers. These reviews typically include the following as noted in the below table.

As a suggestion, it may be appropriate to pick the elements applicable to your organization and then develop a simple quantitative grading scale from 1-5 for each element. This could provide a summary of each supplier under consideration. The higher the individual value, the better positioned the supplier is on the given element. Once done, you could sum the total value of all the elements to see which supplier is best aligned with your important supplier requirements and expectations.

However, if one considers outsourcing the jobs offshore, say to a different continent, they should also consider additional variables such as transit time, lead time, order management and fulfillment flexibility, fuel cost, freight duties, shipping costs and impact on the environment leading to increased carbon footprint.

The EMS partner under consideration should allow the customer to focus on building and managing the design of the product and help the organization to deliver the same in the market. Ultimately, these factors combine to give you full control over TCO improvement year after year.

For more information on Total Cost of Ownership, Contact VEXOS today!

About VEXOS

Operating in several locations across North America and Asia, VEXOS is a high-mix, high complexity, mid to low volume electronics manufacturing and custom material solutions provider with a proven track record of delivering high quality, custom-designed electronics manufacturing services and supply chain solutions to a diverse group of OEMs. Vexos’ early involvement in the design cycle can provide customers with a product that is more cost-effective and has increased manufacturability, quality, and reliability through its entire lifecycle. Contact Vexos: Info@vexos.com

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