Outsourcing Strategies http:www.managementsupport.com

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Outsourcing Strategies http//www.managementsup
port.com
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The Relationship Between Quality and Costs
Figure 16.1
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Product Factors

• Value-to-weight ratio.
• Influences transportation costs.
• High value-to-weight.
• Electronic components.
• Low value-to-weight.
• Bulk chemicals.
• Does the product serve universal needs?
• Industrial products.
• Modern consumer products.
• Handheld calculators.
• Personal computers.

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Possibilities
TECHNOLOGY
DESIGN
MANUFACTURING
SERVICE

• 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

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Contract Development
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Engineering Change Orders (ECOs) and Change
Management

• Initiating An ECO
• Change requests can be originated by the customer
  or CM, typically at the weekly meeting
• Typical issues include
• Product revision
• Component feed format change e.g., tape reel ?
  tray
• Supplier change
• Replacement of part X due to low ICT yield
• The CM Response
• CM reviews now-obsolete material on hand or on
  order
• We develop a response proposal according to the
  urgency of Customer need