Manufacturing - In house or outsource?
Manufacturing - In house or outsource?
(OP)
This mainly applies to companies whose product is machinery (with machined and sheetmetal parts). I have worked for companies who either
a) outsource all manufactured parts to a stable of vendors
b) have in-house machine shops and do all work themselves
I know many pros and cons to each method (and prefer one over the other) but would like to know your thoughts and experiences.
a) outsource all manufactured parts to a stable of vendors
b) have in-house machine shops and do all work themselves
I know many pros and cons to each method (and prefer one over the other) but would like to know your thoughts and experiences.
Sean Dotson, PE
Autodesk Inventor Certified Expert
http://www.sdotson.com
Autodesk Inventor Tutorials & More





RE: Manufacturing - In house or outsource?
The reasons for hiring an individual are the same as for hiring a firm or another company - they can can bring value to your final product at lower costs; why - because you cannot due it yourself due to time limits, or as well or for any other valid reason
RE: Manufacturing - In house or outsource?
We could buy an injection machine, and learn to design plastic parts for manufacture, and figure out how to make the things, but really, isn't our time and money better spent at what we are good and unique at, rather than replicating somebody else's expertise?
Surely the correct solution is often a compromise, size your in-house machineshop for the base-load requirement, and then outsource either that base load or the specials when a surge comes in. That assumes you have the capital and the workload to justify an in-house facility.
Cheers
Greg Locock
RE: Manufacturing - In house or outsource?
I have worked for companies at both extremes. One had a full machine shop (break, shear, lathes, mills) and did everything except welding in house. It was very nice to be able to have a part fixed or remade (or simply made if you forgot it) in just a matter of mins or hours. When we got slow they made standard parts for stock.
I also have worked for a company that outsources EVERYTHING. They only had one run down mill and a lathe in house for minor modifications. The problem here was that we were at our vendors' mercy. If they promised 2 weeks but delivered in 3 we lost a week in assembly. If you made a mistake and needed a part remade, even for a fee, you would be looking at a week.
In my opinion I think a balance is the key. Have your standard machines (mill, lathe, shear, break) in house and send out the complex milling jobs. Maybe even farm out welding and esp paint and coatings. If you have a guy who can multiple machines it helps a lot too. The ability to react quickly is IMO priceless.
Sean Dotson, PE
Autodesk Inventor Certified Expert
http://www.sdotson.com
Autodesk Inventor Tutorials & More
RE: Manufacturing - In house or outsource?
ProEpro
www.whitelightdesign.com
Pro/E FAQ www.whitelightdesign.com/servicestips.htm
RE: Manufacturing - In house or outsource?
Maybe you should first think about what to outsource. In my opinion, you could not outsource the part of your bussiness where you add your own value, or where really is your know-how, or where is based part of your development/strategic plans. Moreover, in this parts you should think in go up in the production chain : If you injects plastic, maybe you should think on size and mix your own raw material for some specific parts .