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Started by : Susmita Roy, Project Manager, Tata Steel   07 17 2010 11:36:15 +0000
Industry : Industrial Products/Heavy MachineryFunctional Area : Outsourcing(Operations)
Activity:  45 views;  last activity : 08 01 2010 12:08:13 +0000

Outsourcing manufacturing abroad has become commonplace. As such, it is now considered to be a standard way of doing business. Professor Sameer Kumar and Kristoffer Kopitzke from the University of St. Thomas in St. Paul, Minnesota, explain that outsourcing provides organisations with access to new capacity, capabilities, skills, and technologies.

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Outsourcing partners are often able to provide economies of scale, and to create an opportunity to free up resources and capital. This can enable organisations to focus more effectively upon key differentiators and their core competencies. Organisations may also gain greater financial flexibility by reducing risk and debt.

So users, what are the top mistakes made when manufacturing is outsourced?

 
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1 2 3 4 5
1 Making last minuite decisions
2 Proper vendor assessment
3 Improper selection of Vendor, incapability of vendor
4 Incomplete specification
5 Vendor not made aware of the criticality of the end use of the outsourced product
6 On time delivery
7 Vendor selection

Making last minuite decisions

idea posted by Susmita Roy Project Manager, Tata Steel

While outsourcing, we should always avoid making last minuite decisions. last minuite descitions are taken in hurry thus may result in commiting mistakes and even missing many things.

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by Chris C, MMS Student, Mumbai University  | 07 20 2010 17:33:38 +0000

last minute detailing and enhancement of the product is not feasible as one change in product leads to a series of changes..thus hamperin the quality.

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by jairaj shyam prasad, Production Manager, BOSCH Ltd  | 07 20 2010 14:28:36 +0000

hello Susmita,just to add few things to ur argument,there should be a comprehensive assessment of total supply chain of the vendor including his sub-contracts etc.,technical feasibility and adjudicating vendors reaction time is more important.constant and sustained backing to the vendor on technical knowhow and all possible help to meet desired output lies on the organisation.

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Proper vendor assessment

idea posted by Madhusudan.G.A Head Mechanical design, Pari Robotics Ltd

Capability of the vendor has to be assessed.These are in terms of resources like man , machine , material and methods.

Also we should conform whether he follows internal quality procedures.

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by sai kiran M, VR SIDDARTHA ENGINEERING COLLEGE  | 07 20 2010 13:28:13 +0000

Proper vendor assessment and also quality check before taking delivery of the product from vendor.

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by Diwakar Tiwari, Chief Manager, THE Arvind LTD  | 07 20 2010 12:26:44 +0000

Vendor assessment is very important while we have to out source.

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Improper selection of Vendor, incapability of vendor

idea posted by Santosh A. Jadhav Sr. Officer Sales

preventive measures can be taken by the customer, or vendor can also be made aware for the manufacturing of the product,

But most importantly we should confirm whether the vendor is really capable (or skillful) to understand the product and manufacture it accordingly,

Because it useless of sounding Harp in front of a buffalow,

so the first and very important step towards outsourcing is to select a capable vendor and then make him aware of the importance of the product and its application,,,

 

 

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by k.venkateswarlu , Freelancer, Freelancer  | 07 20 2010 11:12:11 +0000

I worked as Management Representative and chief manager technical with a reputed hydroturbine manufacturer. As soon as I joined them I realized that the materials and fabricated items procured did not meet the specifications. Since I was directly under MD I explained the problems and it was decided to implement ISO 9001 systems. Accordingly Vendors were selected by a committee headed by me. Critical SS castings were procured strictly as per stringent spcifications. In addition process control ensured strict finished product quality. We got appreciation from customers for the flawless operation of machines which was not the case earlier. It clearly shows the importance of vendor appraisal and development.

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Incomplete specification

idea posted by K. NARAYAN None, None

This may be another problem.

As long as manufacturing is internal , there is a proper exchange of ideas and information between the producer and the end user.

This same flow does not sometimes carry over to the outsourced producer.

 

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Vendor not made aware of the criticality of the end use of the outsourced product

idea posted by sushil kumar singh Engineering Manager, indian railways
Though the vendor is supposed to manufacture product strictly as per the drawings and specifications, making him aware of its critical application requirements/end use will place vendor in a better position to decide on manufacturing processes/machines to be used for manufacture to suit the accuracy levels for the most critical parameters of the product.
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On time delivery

idea posted by suresh.R assistant manager, craftsman automation p ltd

Many companies fails theirs On time Delivery even though it have worldclass systems. So first priority is On time delivery.

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Vendor selection

idea posted by Somnath Shingare Manager Marketing, Tecpro Systems Limited

The job to be given to a particular vendor, who is having the experience of the same job.

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