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Created by : Susmita Roy, Project Manager, Tata Steel  | 10 09 2010 06:08:57 +0000
Industry : Industrial Products/Heavy MachineryFunctional Area : Valuation(Corporate Finance)
Activity:  456 views;  last activity : 12 24 2010 07:56:10 +0000

In a contract manufacturing business model, the hiring firm approaches the contract manufacturer with a design or formula. The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs.

So, are contract manufacturing reliable?

 
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Yes. In contract manufacturing, Principal's representative will oversee quality along with the manufacturer's employees.
By Suryanarayan Murthy, Free lancer  | 12 24 2010 07:56:09 +0000
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possible- it is very important the training of service engineers and timely feed back from the customer.
By suresh gujjar, Asst. Manager/Manager (Technical), empire machine tools  | 10 12 2010 15:12:35 +0000
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Contracting manufacturing is very common now a days. One has to identify the kind of service provide that suits one's need assess the capability of such service provider and then give out contracts. Vendor or job worker is an important part of modern manufacturing. it also helps growth of SEMs.
By Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd  | 10 11 2010 04:34:53 +0000
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s this is reliable. only thing to have is a very close follow up with the manufacturer to see things will not go wrong especially in case of quality aspects.


By jairaj shyam prasad, Production Manager, BOSCH Ltd  | 10 09 2010 15:04:58 +0000
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vsombansi I'm sure to accept that contract manufacturing is reliable. Many a time people land up in trouble due to the defaults of their contract manufacturers but if you have given enough  technical support &chance to grow & prosper the contractor then surely he will support you and you will explore .hence service service in contract manufacturing is reliable.


By vijay singh sombansi, Associate/Sr. Associate -(Technical), pccpl  | 10 09 2010 09:58:46 +0000
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I have had bad experience with the contract services. Bajaj is supplying Gas Geysers. Just because it is a reputed brand I opted for it. I was assured that they have good service facility. The reality is totally different. Srujana enterprises which is supposed to service this product has no idea of the product. The geyser started giving trouble ever since it was purchased. When the technician came for installation he declared merrily that the pressure was low and hence new pipeline solely dedicated is necessary if I want to use it. I was not told about this aspect at the time of purchase. I had no other way except to spend a huge amount on a dedicated pipeline. Another technician came for installation and somehow managed to start it and took the installation charges of Rs 350. He advised me not to change the settings. This happened in summer season. When the rainy season started it did not function. I gave a complaint and another technician came and he changed some internal settings and told me that I should not change external settings. After a couple of days there was problem again and they sent another technician who was supposed to be most experienced in that setup. He again repeated the pressure is low. I told him that the geyser worked even when the water was at the bottom of the tank and hence that is not a problem at all. The cotract service setup is unable to diagnose the problem. I offered to sit with their Design people and identify the problem. There is no response from Bajaj. It is not clear how such big companies also act in such a fashion. It is high time they realize their reputation is at stake because of substandard contract services. The same thing is true of Nokiacare which is supposed to represent Nokia. I am sure there are several such cases. If only people go to consumer courts the courts will be simply flooded with complaints.


By k.venkateswarlu , Freelancer, Freelancer  | 10 10 2010 14:30:11 +0000
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The contract manufacturers, except the highly professional (like Tata Elxi) ones, are not reliable on quality and delivery terms. They need a lot of follow up for adhering to quality and delivery schedule.


By Manish Kumar, Senior Manager, Quality Assurance, Telcon  | 10 09 2010 08:13:29 +0000
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I'm a bit confused to accept that contract manufacturing is reliable. Many a time people land up in trouble due to the defaults of ther contract manufacturers.....thus I think services in contract manufacturing are not reliable.


By Susmita Roy, Project Manager, Tata Steel  | 10 09 2010 06:08:57 +0000
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