Thank you for considering us for your
engineering and manufacturing needs! It is very easy to start with us for
any projects that you plan to conduct. Just talk with us about your
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There are no fixed procedures to
initiate a talk with us. But many clients often ask, "What are
the steps to start with Altadox?". Here we describe a common procedure
so that you could get a general idea. But don't treat it as fixed steps. You
can contact us without even reading the following.
In the following, we assume
that the client is trying to develop a new product based on an invention.
Therefore, some steps may not apply to your projects. You can jump
directly to the parts that most concern your project.
You don't really have to prepare
anything before talking with us. Just bring your idea with you! However, to better understand the
nature of the project and your requirements, it would be very helpful if
you prepare a brief description of
the product you want to make, including the following
Function: What does the product do?
Application: Where is it going to be used?
Users: Who will use the product?
Status: Is this a new product? Do you already have a
design? Do you already have a prototype?
Potential: What is the annual sales quantity of your
Timeline: When do you need to start prototyping and/or
Finance: Who will fund the engineering, prototyping and/or
Marketing: Is it already being sold? How do you market the
Protection: Have you protected yourself with a patent or
other intellectual property rights?
You may not have a clear answer to some
of the above questions. You are not alone! You are like many other clients who
contacted us before and some of them have now developed very successful products
on the market.
Whether we eventually decide to take on
a certain project or not, we always treat each inquiry seriously and treat
every customer professionally. No project is too small or too big for
Altadox! Even if we decide a project falls beyond the scope of our
interest or business mode, we always provide as much useful advice as
possible to the customer, even recommend another
engineering company or manufacturer who we think is more appropriate to
handle your project. Therefore, don't
hesitate any more.
Contact us today!
Free Feasibility and Cost Evaluation
If we decide that a project fits our
business mode and interest, based on the nature of the product, its
potential market, our capabilities and previous experience, we will
conduct a preliminary evaluation on feasibility and cost. At this point,
Altadox need to have a solid understanding of the
product and its application. We also need to understand the
potential market for the product, in order to give an accurate estimate of
Feasibility evaluation covers technical
issues, based on the clients primary requirements, including major
electronics functions, important parameters, mechanical constraints, etc.
As a matter of fact, our engineers will do a preliminary design of the
product, to evaluate whether the idea is feasible with today's technology.
Then we evaluate the unit cost based on
the preliminary design. Please note that the cost of material and the cost of
production are related to quantity, especially the quantity per production
run. At this point, we need the client to clearly define the market
potential for the product (i.e., the initial quantity and the quantities
in the first three years), so that we could provide an accurate quotation
or estimate of the unit cost. You should do not provide a large
figure that does not reflect the actual quantity, just to get a
low quotation or estimate on the unit cost. If you did that, you would get a quotation
that is meaningless to you in the future - it would be a waste of time
on your part and a waste of engineering resources on ours. To further
elaborate on this issue, we as a contract manufacturer base our pricing on
our cost plus a gross profit margin (which is the lowest by industry
standard in China). The material acquisition cost and production cost is
higher for small-quantity runs than for large-quantity runs. This is
because, for large-quantities, we have a better leverage to negotiate a
low price with the material suppliers and the production lines can be run
continuously without interruption and readjustments.
Besides the unit cost, most new projects
also involve an NRE and/or tooling cost. These are one-time cost for
developing and building a new product. Non-recurring engineering (NRE)
cost refers to the cost of engineering design, development and testing of
a new product. Tooling cost is the cost for building new PCBs, customizing
LCD panels and modules, and fabricating other non-standard parts. It also
includes the cost of molding an enclosure for the product, if a standard
enclosure is not available. With Altadox, we routinely quote an NRE that
is significantly lower than that from other providers, due to a good
Through years of experience, we already have in our knowledge base
most of the designs common to many applications, ready for extrapolating
to other projects. Therefore we can design and develop many projects much
cheaper and much faster.
Tooling and molding cost are the cost charged by
our various suppliers and will be passed through to the client. Due to our
long-term cooperation with many of these service providers, our cost on
tooling and molding is also very low. NRE and/or tooling cost will also be
quoted or estimated for the client.
Engineering Design and Prototyping
If the client agrees upon the preliminary design and
quotation, and decides to proceed with our factory for the
development of the new product, we will discuss with the client on
business issues, including development schedule, payment method and
production arrangement. Then the client
will start the project by issuing a formal PO for the NRE and necessary
tooling/molding cost, and the PO will take effect when the payment for NRE
and/or tooling/molding cost is received according to the mutually agreed terms
and conditions. We will proceed right away into engineering design and
prototyping. A detailed design and specifications will be provided to the
client for approval about one to two weeks after the confirmation of the
PO. The lead time for the first prototypes depends on the nature of the
project, ranging from 20 days for simple parts to 6 weeks or longer for products
that requires engineering design from ground up. After the prototypes are build, they are shipped to the
client for testing. In most cases, our clients will like the first
prototypes. In case there is anything wrong with the prototypes due to our
fault or misunderstanding of the client's requirements, we will correct the problem without any cost burden to the
In some cases, the client wants to make
certain revisions or modifications on the first prototypes, beyond the
requirements specified in the approved drawing and specifications. We will
be willing to accommodate any revisions or modifications, at the lowest
possible cost to the customer. Most of the revisions and modifications can
be done without any extra NRE or tooling/molding cost at all.
At this point, we should already have a
design and prototype. If the design and prototype is supplied by the
client, we will conduct an assessment of the design and prototype, to
reduce cost, improve reliability, and make it easy for assembly and other
production processes. We may need to make certain modifications to the
existing design, for mass production purposes. Of course, any changes will
be approved by the client before they are implemented.
Now comes the exciting part of mass
production! All the parts and products are manufactured in ISO-certified
manufacturing facilities. Certain parts, such as PCBs, plastic enclosures,
LCD displays, membrane switches, etc, are made in our subsidiaries or
factories closely associated with us. The major part of manufacturing,
such as component placement, assembly and testing are conducted in our
We are able to accommodate various
production scheduling systems, to meet the client's requirements. With
Altadox manufacturing, you will be guaranteed the best quality products at
the most competitive price.
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