Very good points all around. Here's my $0.02, only offered because I've
been on both sides of this one:
Agree very much about the need for design engineers to be familiar with
processes involved, a good experienced operator can be worth their weight in
gold, outsource or no.
A good mfg house will provide DFM feedback, which if the "customer" is
willing and able can be a very good fit. One problem is: unfamiliarity with
the final application in some cases, such as high freq RF, etc. If the
assembly is something of a "custom" or more piecework than high vol, then it
may not be worth the effort and expense for outsourcing.
On the other hand, a customer may not have the resources and experience that
a good mfg house will have, and they can actually save the customer a lot of
heartache. The customer may be stuck in the same old way of doing things,
which today, with parts obsolesence and new technology, is not very long to
be still up to date without frequent change. They may not have the means,
the desire, or even the realization that they are unable to build as
efficiently as they could be. A mfg house can more easily justify the
latest and greatest, and pay for expertise with problems associated with new
technology and packages- that's their livelihood, and it's well worth the
investment. (A good example is that of stencil design. A mfg house depends
on that to make a profit. A customer may just touch up the defects without
realizing they can avoid them.) Sometimes the fact that a customer is
making a profit while building for themselves can mask how poor their
efficiency really is, and with some attention to the right needs, they could
be making much more profit. Unfortunately, in such an organization, it's
usally too little too late.
Shop around for mfg houses, and see what kind of service you get. Are they
prompt, accurate, provide data, dfm? Have they suggested ways for you to
save money, improve reliability? How old is their gear? Do they have a
high rate of turnover, both customers and employees? Where will your
product fall in the scheme of things there? Prototype runs can tell a lot,
as well as the quoting process. Do they have a lab? Is it managed well?
That will tell you a lot too. How do they track defects? Corrective
actions? Engineering changes?
Ask the same questions about your own facility. Also, take a good look at
what you're sending them: are there lots of custom or rare parts? Many
different part #s with low qtys per? Is it designed well? Do you have
drawings that are solid and up to date? How about a first piece? Will it
need special tooling or fixtures? What quantities will you be ordering? Do
any parts have really long lead times? Will it be "turn-key" or CFM? Are
you close by, and able to visit quickly? What gives you trouble, and how
are you able to address those things in house?
Outsourcing is not a good fit for every company. There are some things that
may at least save time if nothing else, like cables, and simple
interconnects. However, if the product is designed with outsourcing and
efficiency in mind, outsourcing can be a very good fit.
There is no blanket answer, as I'm sure everyone can attest, but I hope that
at least some of this will help!
best regards- Bill C
-----Original Message-----
From: Douglas Pauls [mailto:[log in to unmask]]
Sent: Tuesday, April 24, 2001 9:55 AM
To: [log in to unmask]
Subject: Re: [TN] Loaded question...outsourcing vs. in-house
manufacturing ...
Good morning all,
Another thing to consider in the outsourcing is who will be watching the
quality of the products made for you? Many companies outsourced
manufacturing and got rid of their experienced solder operators,
inspectors, and other quality people. When it came time to monitor the
quality of the product coming back in from the subcontracted source,
surprise, all the people qualified to make the decision were gone. Design
engineers who never visited the manufacturing floor when it was in house,
are a poor substitute.
Doug Pauls
Rockwell Collins
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