An OEM/Wire Harness Manufacturers’ Check List
Plan for a Successful Partnership
By Lynda Nolen, Bishop & Associates, Inc.

Wire and cable harness manufacturers seem to be enjoying an increase in business. This isn’t surprising when you look at the growth in connector sales and the growth in outsourcing of this type of service. Over 50 percent of all OEM cable and harness requirements are being outsourced due to high capital equipment expenses, as well as the desire to reduce overall manufacturing costs. Picking the right wire and cable harness house can often be a tough job for purchasing and/or management. Not all wire and cable harness manufacturers offer the same services or approach their business with the same philosophy as the OEM they are supporting. When this occurs, unfortunately for all involved, the final product isn’t always what was initially agreed upon. Although there is no magic involved in selecting a wire and cable harness manufacturer that will create an end product that meets all the necessary requirements, doing your homework up front can save a lot of work, unnecessary delay, and reduce overall manufacturing costs.

• Tooling: Does the harness manufacturer have the necessary tooling in place to successfully fulfill the requirements? Or, will they be able to secure the tooling in a timely manner?

• Personnel: Does the harness manufacturer have the necessary trained personnel in place to support delivery requirements? If there is an increase in requirements how quickly can additional personnel be hired and trained? If overtime is required, is this cost to be absorbed strictly by the harness manufacturer or passed onto the OEM?

• Procurement: Who is going to be responsible for the negotiating of pricing and procurement of components and wire or cable?

• Alternative Sourcing Decisions: Is the harness manufacturer able to solicit additional sources beyond those approved? If they can, are procedures in place at the OEM to evaluate these sources in a timely manner?

• Inventory and Quality Control: Where are components and wire/cable going to be inventoried and if this is the responsibility of the harness manufacturer, do they have the necessary procedures in place for the quality control of incoming product?

• Insurance: In the event of a catastrophe, such as a fire or flood, who is responsible for product on the line, in inventory, or in final inspection?

• Freight: Who is responsible for incoming freight costs of components and wire/cable, as well as outgoing freight costs of assemblies? If changes are to be made in transportation methods, who is authorized to make these changes? Are final assemblies to be shipped back to the OEM or directly to the customer?

• Quality Control: Does the harness manufacturer abide by and have similar quality procedures in place to provide supporting QC documentation when necessary?

• Problem Solving: Does the OEM have procedures in place to address issues or concerns that may arise at the harness manufacturer? Is there open access to OEM management, engineering, and quality personnel in addition to purchasing personnel?

• Communication: How often will the harness house be provided with product or drawing changes or requirement updatesdaily, weekly, monthly? How will this, as well as other information, be disseminated between the OEM and harness manufacturer? If the OEM communicates by e-commerce, is the harness manufacturer equipped to handle information this way?

• Change Orders: In the event of an increase or decrease in requirements, or a change in product design, how quickly must the harness manufacturer respond to the OEM? Who is responsible for product on the line, in transit, or in final inspection?

• Job Responsibility: Whose job will it be to monitor and evaluate the harness manufacturer? Will it be purchasing, management or a jointly-held responsibility?

 While the answers to many of these questions seem very obvious, many of these concerns can turn into major obstacles. It is best for all parties involved to have written guidelines with requirements, procedures, expectations, and compensation clearly defined. OEMs should require from all harness manufacturers a list of references, as well as current financial rating. An initial site visit should occur, with additional periodic scheduled visits once work has begun. Samples of prior workmanship, as well as product prototype units, should be supplied by the harness house to the OEM for a complete written evaluation. Most importantly regular scheduled reviews, both written and verbal, should be conducted with all parties involved.

Lynda Nolen has been in the interconnect industry for over 28 years.  She has worked in sales, sales management, marketing and product management for such companies as TRW Electronics Components Group, Sunbelt Components, Cinch Connectors, Arrow Electronics, PEI Genesis & Delphi Interconnect. She has extensive experience in competitive cross-referencing, drawing, web and catalog review, new product introduction programs, harness and connector assembly programs, account management and customer service programs. Lynda received her Bachelor of Arts degree from Roger Williams University in R.I. in 1979, and since then has taken various electrical engineering courses.