Outsourcing_sample

1. 1© 2004 Superfactory™. All Rights Reserved.
Outsourcing StrategiesOutsourcing Strategies
Superfactory Excellence Program™Superfactory Excellence Program™
www.superfactory.comwww.superfactory.com

2. 2
© 2004 Superfactory™. All
Rights Reserved.
The Relationship Between QualityThe Relationship Between Quality
and Costsand Costs
Figure 16.1
Lowers
Rework and
Scrap Costs
Increases
Productivity
Lowers
Warranty and
Rework Costs
Improves
Performance
Reliability
Lowers
Service Costs
Lowers
Manufacturing
Costs
Increases
Profits

3. 3
© 2004 Superfactory™. All
Rights Reserved.
Product FactorsProduct Factors
 Value-to-weight ratio.Value-to-weight ratio.
 Influences transportation costs.Influences transportation costs.
 High value-to-weight.High value-to-weight.
 Electronic components.Electronic components.
 Low value-to-weight.Low value-to-weight.
 Bulk chemicals.Bulk chemicals.
 Does the product serve universal needs?Does the product serve universal needs?
 Industrial products.Industrial products.
 Modern consumer products.Modern consumer products.
 Handheld calculators.Handheld calculators.
 Personal computers.Personal computers.

4. 4
© 2004 Superfactory™. All
Rights Reserved.
PossibilitiesPossibilities
• 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
TECHNOLOGY DESIGN MANUFACTURING SERVICE

5. 5
© 2004 Superfactory™. All
Rights Reserved.
Contract DevelopmentContract Development
OperationalOperational
DiscussionDiscussion
• VolumesVolumes
• Final AVLFinal AVL
• Schedule and timelineSchedule and timeline
• ForecastsForecasts
• Cycle timesCycle times
• Lead times, especiallyLead times, especially
long lead time partslong lead time parts
• SeasonalitySeasonality
• Quality expectations &Quality expectations &
other metricsother metrics
• Change ordersChange orders
• KanbansKanbans
• Semi-finished goodsSemi-finished goods
• StockingStocking
• What if there areWhat if there are
failures?failures?

6. 6
© 2004 Superfactory™. All
Rights Reserved.
Engineering Change Orders (ECOs) andEngineering Change Orders (ECOs) and
Change ManagementChange Management
Initiating An ECOInitiating An ECO
 Change requests can be originated by the customer or CM,Change requests can be originated by the customer or CM,
typically at the weekly meetingtypically at the weekly meeting
 Typical issues include:Typical issues include:
– Product revisionProduct revision
– Component feed format change [e.g., tape & reelComponent feed format change [e.g., tape & reel  tray]tray]
– Supplier changeSupplier change
– Replacement of part X due to low ICT yieldReplacement of part X due to low ICT yield
The CM ResponseThe CM Response
 CM reviews now-obsolete material on hand or on orderCM reviews now-obsolete material on hand or on order
 We develop a response proposal according to the urgency ofWe develop a response proposal according to the urgency of
Customer needCustomer need

7. 6
© 2004 Superfactory™. All
Rights Reserved.
Engineering Change Orders (ECOs) andEngineering Change Orders (ECOs) and
Change ManagementChange Management
Initiating An ECOInitiating An ECO
 Change requests can be originated by the customer or CM,Change requests can be originated by the customer or CM,
typically at the weekly meetingtypically at the weekly meeting
 Typical issues include:Typical issues include:
– Product revisionProduct revision
– Component feed format change [e.g., tape & reelComponent feed format change [e.g., tape & reel  tray]tray]
– Supplier changeSupplier change
– Replacement of part X due to low ICT yieldReplacement of part X due to low ICT yield
The CM ResponseThe CM Response
 CM reviews now-obsolete material on hand or on orderCM reviews now-obsolete material on hand or on order
 We develop a response proposal according to the urgency ofWe develop a response proposal according to the urgency of
Customer needCustomer need