science

Original equipment manufacturer

Original equipment manufacturer is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Original equipment manufacturer rather than just read about it. In short: An original equipment manufacturer (OEM) is a company that produces parts and equipment that may be marketed by another company. The term is ambiguous, with several other common meanings often attributed to genuine misunderstanding: an OEM can be the maker of a system that includes other companies' subsystems, an end-product producer, an automotive part that is manufactured by the same company that produced the orig…

Key takeaways

Original equipment manufacturer belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Original equipment manufacturer to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Original equipment manufacturer from memory before moving on to harder problems.

Reference excerpt

An original equipment manufacturer (OEM) is a company that produces parts and equipment that may be marketed by another company. The term is ambiguous, with several other common meanings often attributed to genuine misunderstanding: an OEM can be the maker of a system that includes other companies' subsystems, an end-product producer, an automotive part that is manufactured by the same company that produced the original part used in the automobile's assembly, or a value-added reseller. OEM manufacturing is also widely used in the packaging industry, particularly in the production of customized gift boxes for wine and spirits. These OEM producers allow brands to create unique holiday packaging without maintaining their own manufacturing facilities. The term OEM may be confused and used interchangeably with original design manufacturer (ODM) and original brand manufacturer (OBM).

OEM term usage Due to terminology the word OEM is often ambiguous and used as a catch-all for different product manufacturing methods.

Automotive parts When referring to auto parts, OEM typically refers to the manufacturer of the original equipment, that is, the parts which are then subsequently assembled and installed during the construction of a new vehicle. In contrast, aftermarket parts are those made by companies other than the OEM, which might be installed as replacements or enhancements after the car comes out of the factory. For example, if Ford used Autolite spark plugs, Exide batteries, Bosch fuel injectors, and Ford's own engine blocks and heads when building a car, then car restorers and collectors consider those to be the OEM parts. Other-brand parts would be considered aftermarket, such as Champion spark plugs, DieHard batteries, Kinsler fuel injectors, and BMP engine blocks and heads. Many auto parts manufacturers sell parts through multiple channels, for example to car makers for installation during new vehicle construction, to car makers for resale as automaker‑branded replacement parts, and through general merchandising supply chains. Any given brand of part can be OEM on some vehicle models and aftermarket on others. Not all auto parts are available in OEM versions. In some cases, vehicle manufacturers secure exclusive sales rights for specific components. These parts are produced by contracted suppliers and carry the automaker's branding, but the suppliers are not permitted to sell them independently under their own name.

Computer software

Windows Microsoft is a popular example of a company that issues its Windows operating systems for use by OEM computer manufacturers via the bundling of Microsoft Windows. OEM product keys are priced lower than their retail counterparts, especially as they are purchased in bulk quantities, although they use the same software as retail versions of Windows. They are primarily for PC manufacturer OEMs and system builders, and as such are typically sold in volume licensing deals to a variety of manufacturers (Dell, HP, ASUS, Acer, Lenovo, etc.). These OEMs commonly use a procedure known as System Locked Pre-installation, which pre-activates Windows on PCs that are to be sold via mass distribution. These OEMs also commonly bundle software that is not installed on stock Windows on the images of Windows that will be deployed with their PCs (appropriate hardware drivers, anti-malware and maintenance software, various apps, etc.). Individuals may also purchase OEM "system-builder" licenses for personal use (to include virtual hardware), or for sale/resale on PCs which they build. Per Microsoft's EULA regarding PC manufacturers and system-builder OEM licenses, the product key is tied to the PC motherboard which it is initially installed on, and there is typically no transferring the key between PCs afterward. This is in contrast to retail keys, which may be transferred, provided they are only activated on one PC at a time. A significant hardware change will trigger a reactivation notice, just as with retail. Direct OEMs are officially held liable for things such as installation/recovery media, and as such were commonly provided until the late-2000s. These were phased out in favor of recovery partitions located on the primary storage drive of the PC (and available for order from the manufacturer upon request) for the user to repair or restore their systems to the factory state. This not only cut down on costs, but was also a consequence of the gradual obsolescence and phasing out of optical media from 2010 onward. System builders also have a different requirement regarding installation media from Direct OEMs. While a clean retail media of Windows can be installed and activated on these devices with OEM keys (most commonly using the SLP key that's embedded in to the system firmware already), actual OEM recovery media that was created by the PC manufacturer (not system-builder, nor retail Windows versions) typically only works on the PC model line that was designed for it. For example, a recovery disc/USB for a Toshiba Satellite P50-B will only work on that model, and not a Satellite S55T.

Android The OEM smartphone manufacturers, such as Samsung, Sony and Xiaomi, are manufacturers of hardware and software of smartphones. Such manufacturers usually customize and adapt suitable Android operating system, with manufacturer components such as One UI and HyperOS.

Skateboards Skateboard decks are primarily produced by a small number of specialized OEMs, such as PS Stix, BBS, and Dwindle. These manufacturers handle the entire production process, including sourcing high-quality wood, crafting molds, gluing and pressing multiple layers of veneer, and applying graphics designed by the brands to the decks. Once completed, the finished products are distributed to skateboarding brands, which sell them under their respective labels.

Other examples Foxconn is one example of an OEM, which helps upstream companies such as Nokia and Hewlett Packard Enterprise to manufacture servers. The designed intellectual property are usually owned by upstream companies.

Economies of scale OEMs rely on their ability to drive down the cost of production through economies of scale. Using an OEM also allows the purchasing company to obtain needed components or products without owning and operating a factory.

Illustrations

Worked examples

Example 1 — a first encounter with Original equipment manufacturer

Start with the simplest possible case. Write down what Original equipment manufacturer claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Original equipment manufacturer before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Original equipment manufacturer ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Original equipment manufacturer

In research: Original equipment manufacturer appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Original equipment manufacturer in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Original equipment manufacturer is common in secondary-school and first-year university syllabi. It links to neighbouring topics Business terms, Manufacturing, Outsourcing, so understanding it makes those chapters shorter.
In everyday life: Look for Original equipment manufacturer outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Original equipment manufacturer in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Original equipment manufacturer means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Original equipment manufacturer out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Original equipment manufacturer in simple terms?

Why does Original equipment manufacturer matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Original equipment manufacturer?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Original equipment manufacturer.