Outsourcing In Manufacturing
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Outsourcing Manufacturing Process
Shabeerali [email protected]
In January 2002, IBM outsourced manufacturing of its NetVista desktop computers to Sanmina-SCI as part of a broader strategy to reduce both fixed and variable costs. Allowed IBM to focus more of their own investments on areas that deliver the highest value to their customers.
In 2000 Microsoft added game consoles to its product mix with the Xbox. Microsoft hired Flextronics to introduce the product and ramp up manufacturing to meet global demand. Ultimately,the Microsoft-Xbox product was built in Flextronics's existing manufacturing facilities around the world.
Core Process Management Roadmap Understand Customer Requirements
Strategic Objectives
Measure Current Performance
SWOT Analysis
Identify Processess
Specific Goal & Objectives
Identify & Priortize Projects Develop & Implement Improvement Plan
Direct benefits include:
• Focus on core competency • Reduction in manufacturing costs through the consolidation of operations and reduction of inventory carrying and transportation costs • Reduction in management • Improved accuracy through better inventory visibility and production tracking • Flexibility and wider range of service.
Indirect benefits
• Creating a catalyst for change by highlighting how outsourced operations are managed • Initiating or fuelling expansion by allowing a company to offer new services because outsourcing has improved performance • Stimulating analysis due to the requirement to document business processes and their costs • Converting sluggish functional areas into dynamic, successful one • Developing resources and contacts brought to the table by the service provider
Reference 1. “Defense & Aerospace ElectronicsManufacturing Outsourcing – Realities &Trends” by Jeff Kaylor, Sypris Electronics, LLC, Tampa, Florida, USAS 2. “Logistics and Manufacturing Outsourcing: Harness Your Core Competencies” by James A. Tompkins, Ph.D., Steven W. Simonson, Bruce W. Tompkins and Brian E. Upchurch 3. “Strategic Outsourcing: Electronics Manufacturing Transformation in Changing Business Climates” by Al Delattre, Tom Hess and Ken Chieh
Shabeerali [email protected]
In January 2002, IBM outsourced manufacturing of its NetVista desktop computers to Sanmina-SCI as part of a broader strategy to reduce both fixed and variable costs. Allowed IBM to focus more of their own investments on areas that deliver the highest value to their customers.
In 2000 Microsoft added game consoles to its product mix with the Xbox. Microsoft hired Flextronics to introduce the product and ramp up manufacturing to meet global demand. Ultimately,the Microsoft-Xbox product was built in Flextronics's existing manufacturing facilities around the world.
Core Process Management Roadmap Understand Customer Requirements
Strategic Objectives
Measure Current Performance
SWOT Analysis
Identify Processess
Specific Goal & Objectives
Identify & Priortize Projects Develop & Implement Improvement Plan
Direct benefits include:
• Focus on core competency • Reduction in manufacturing costs through the consolidation of operations and reduction of inventory carrying and transportation costs • Reduction in management • Improved accuracy through better inventory visibility and production tracking • Flexibility and wider range of service.
Indirect benefits
• Creating a catalyst for change by highlighting how outsourced operations are managed • Initiating or fuelling expansion by allowing a company to offer new services because outsourcing has improved performance • Stimulating analysis due to the requirement to document business processes and their costs • Converting sluggish functional areas into dynamic, successful one • Developing resources and contacts brought to the table by the service provider
Reference 1. “Defense & Aerospace ElectronicsManufacturing Outsourcing – Realities &Trends” by Jeff Kaylor, Sypris Electronics, LLC, Tampa, Florida, USAS 2. “Logistics and Manufacturing Outsourcing: Harness Your Core Competencies” by James A. Tompkins, Ph.D., Steven W. Simonson, Bruce W. Tompkins and Brian E. Upchurch 3. “Strategic Outsourcing: Electronics Manufacturing Transformation in Changing Business Climates” by Al Delattre, Tom Hess and Ken Chieh
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