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Outsourcing Strategies

Outsourcing Strategies. Enterprise Excellence Series. Increases Productivity. Lowers Manufacturing Costs. Increases Profits . Improves Performance Reliability. Lowers Rework and Scrap Costs. Lowers Service Costs. Lowers Warranty and Rework Costs.

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Outsourcing Strategies

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  1. Outsourcing Strategies Enterprise Excellence Series

  2. Increases Productivity Lowers Manufacturing Costs Increases Profits Improves Performance Reliability Lowers Rework and Scrap Costs Lowers Service Costs Lowers Warranty and Rework Costs The Relationship Between Quality and Costs Figure 16.1

  3. Product Factors • Value-to-weight ratio. • Influences transportation costs. • High value-to-weight. • Electronic components. • Low value-to-weight. • Bulk chemicals. • Does the product serve universal needs? • Industrial products. • Modern consumer products. • Handheld calculators. • Personal computers.

  4. Possibilities TECHNOLOGY DESIGN MANUFACTURING SERVICE • Components • Modules • Products • Electrical • Mechanical • Industrial • DFX (test, manufacturing, supply chain, etc.) • Systems • New product introduction • Prototyping • Subsystems manufacturing (e.g., PCB assembly) • System assembly • Logistics and fulfillment • Repair • End-of-life product management

  5. Contract Development

  6. Engineering Change Orders (ECOs) and Change Management • Initiating An ECO • Change requests can be originated by the customer or CM, typically at the weekly meeting • Typical issues include: • Product revision • Component feed format change [e.g., tape & reel  tray] • Supplier change • Replacement of part X due to low ICT yield • The CM Response • CM reviews now-obsolete material on hand or on order • We develop a response proposal according to the urgency of Customer need

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