OEM – PLM under MDR

OEM - PLM under MDR

How can we do OEM - OBL under MDR?

In this article, we are going to describe what can we do about OEM – PLM under MDR. 

There are several ways to do OEM under MDR.  But first of all, let’s make clear some definitions to get to know better this subject.

Definitions

OEM: Original Equipment Manufacturer

OES: Original Equipment Supplier 

OBL: Own Brand Labeling

PLM: Private Labeling Manufacturer

VM: Virtual Manufacturer 

Although there is more than one definition for a situation, there are two positions: A position that manufactures the product, another position that brings the product to the customer.

 

We are going to use OEM and PLM defitinitions in the next sentences.

OEM - PLM under MDD (93/42/EEC)

Before MDR, notified bodies were auditing both OEM manufacturers and the PLM companies. PLM companies were buying finished products from the manufacturer by putting their own brand on them.

OEM - PLM under MDD

Requirements from Regulation EU 2017 / 745 (MDR)

According to Article 10;

4. Manufacturers of devices other than custom-made devices shall draw up and keep up to date technical documentation for those devices.

This means that legal manufacturer must have the technical documentation under his control.

Backed and Future Scenarios for OEM - PLM under MDR

1. Distribution Model (Backed Scenario)

This model is already backed by MDR. According to MDR Article 14 and 16, you can use this model as a method but under certain conditions:

 

E.G.

Before making a device available on the market, distributors shall verify that all of the following requirements are met:

  • the device has been CE marked and that the EU declaration of conformity of the device has been drawn up;
  • the device is accompanied by the information to be supplied by the manufacturer in accordance with Article 10(11);
  • for imported devices, the importer has complied with the requirements set out in Article 13(3);
  • that, where applicable, a UDI has been assigned by the manufacturer.
MDR Distributor Distributon Label
Label example for distribution model

*ADVANTAGE: PLM company does not need to have an EC Certificate and thus no more cost of certification.

*DISADVANTAGE: OEM company name will become known.

2. Change of Legal Manufacturer (Backed Scenario)

This model is also backed by MDR. New legal manufacturer is going to be PLM company.  All manufacturer obligations under MDR have to be fulfilled by PLM company whatever they are.

And also the OEM company must grant full access to the technical file. This will expose the confidential information of the OEM company like critical know-how’s.

*ADVANTAGE: No more cost of certification for OEM company (but the PLM company may require the costs to be split in half).

*DISADVANTAGE: Full access to the OEM product technical file.

3. Document Separation Model (Future Scenario)

In this scenario, the PLM Company is the legal manufacturer of the device on the label and no any other company is mentioned. The OEM company supplies the PLM company with all documents except confidential documents and keeps them up to date at all times. When considering an audit, this is about to split the documents as confidential and non-confidential. Notified body audits the “Virtual Manufacturer” (PLM) as a legal manufacturer and when it comes to review the technical file (or any other related documents), OEM company shows NB the its confidential documents. 

OEM - PLM under MDR

*ADVANTAGE: All legal obligations and post-market activities belong to PLM company.

*DISADVANTAGE: MDR compliance is not sure (have to deal with NB). You will need to prepare a procedure which documents are confidential, how you will split them and how you will share them with NB.

4. Encyrpted Document Model (Future Scenario)

The OEM company provides all required documents to the PLM company and encrypts the confidential documents. The password is provided for NB and they will open the documents when auditing. The NB  reviews the documents with this password.

OEM - PLM under MDR

*ADVANTAGE: All legal obligations and post-market activities belong to PLM company.

*DISADVANTAGE: MDR compliance is not sure (have to deal with NB). You will need to prepare a procedure which documents are confidential, how you will encyrpt them and how you will give the password to the NB.

4. ND Agreement Model (Future Scenario)

The OEM company is going to act like a supplier. They are going to give full access to the technical file and they will sign a Non-Disclosure (ND) Agreement with the PLM company so that company secrets are not shared with third parties. The PLM company will also sign a supplier contract with the OEM to ensure the systematicity and quality assurance of production.

OEM - PLM under MDR

*ADVANTAGE: Nothing against the MDR.

*DISADVANTAGE: The security of all company secrets will be compromised.

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