How Can Hardware Manufacturers Manage Risks?

Computer hardware manufacturers face many unique challenges. Successful operators are problem solvers who understand many of the difficulties they face go beyond manufacturing hardware complexities. They proactively manage their business processes and the risks they entail. For instance, they use best practices to lessen risks whenever possible. They also rely on trusted partners to help them identify risks and obtain proper insurance coverages. The goal in working with their partners is to mitigate and protect against losses with a comprehensive NJ Hardware Manufacturers Insurance program.

The best approach to managing risks is twofold. The first is to investigate and research to pinpoint problems and act to eliminate or moderate them. The second is to implement a safety net of flexible and broad insurance and risk management solutions to address the perils that threaten the business. 

Start with the Basics.

An excellent place to start managing risks is to address those mutual to all businesses, including electronics manufacturers’ physical operations. Chief risks are on-the-job injuries to employees, property loss and damage, general liability claims, and vehicle accidents. 

To get specific, hardware manufacturers conduct loss analyses to understand how the products they build and the information they manage create loss exposures to their business model. By encompassing necessary and specific risk assessments, they can develop comprehensive risk management solutions for all aspects of their computer hardware manufacturing businesses.

Best Practices for Computer Hardware Manufacturers

Hardware development and manufacturing is a complex process requiring teams of highly skilled workers. There are many best practices that, when put into place, will streamline, and improve the results, including:

• Concurrent Engineering. It calls for integrated product development where cross-functional teams work in parallel to cut production times. 
• Design for X (DfX) is the concept of using product design analysis to review manufacturing processes to apply technical knowledge and to improve and invent product variables such as power, cost, yield, and reliability. Design for Manufacturing or Manufacturability, Design for Cost & Design for Procurement, and Design for Testing or Testability are subsets of DfX.
• Prototyping involves using pilots and prototype builds to identify potential risks and mistakes and to enhance best design practices for rapidly scaling production to volume levels with the fewest problems and errors.
• Monitor and Adhere to Compliance Regulations. Hardware manufacturing is regulated due to the potential environmental and safety consequences inherent to the business. By overlaying internal auditing of plant processes with in-house or third-party expertise to understand the risks their products pose, hardware manufacturers can avoid expensive and possibly disastrous losses they face should they fail to address such concerns.
• Inclusive Scalability comprises all aspects of the hardware manufacturer’s operations. As production and sales grow, every team involved must scale in growth with them. Having scalable growth plans in place for all teams avoids the pitfalls of playing catch up after the fact.
• Manufacturing Risk Mitigation includes using risk assessment tools such as Failure Mode and Effects Analysis (FMEA.) FMEA is a step-by-step approach for identifying design, manufacturing, and assembly process failures developed by the US military. It emphasizes using feasibility studies, product roadmaps, and reasonable timelines for initial product requirements and features. 

There is a wide array of dangers and risks for hardware manufacturers in the design, development, engineering, and assembly of technology hardware products. Fire, flooding, or other natural disasters at a server manufacturing facility can put research and development behind months. A subcontractor’s defective product can cause revenue loss and reputational damage. Equipment breakdowns can delay production and delivery. 

Severe exposures such as these are difficult hindrances to the success of all manufacturing businesses. Whether you’re in the business of building computers, circuit boards, or communications equipment, the Dickstein Agency Associates team has the expertise to address the unique risks hardware manufacturers face and access to the industry’s best insurance markets to protect them. 

Coverage solutions include General Liability and Property to Electronic Data Processing, Products & Completed Operations, Professional Liability, Business Interruption & Dependent Business Interruption, Cyber Liability, Executive Protection Liability, Workers Compensation, and much more.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area for over 55 years. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible and unbiased coverage for each client’s unique circumstances. For more information on how you can leverage all of your insurance to work best for you, and how we can secure the best insurance in the marketplace based on your specific needs and business objectives, contact us today at (800) 862-6662.