Improved product design as an alternative to outsourcing manufacture and assembly

Abstract

Purpose

Highlights growing concerns, raised from both direct company experience and research, about the present industry trend for outsourcing manufacture and assembly to overseas manufacturers, and illustrates the importance of employing “best practice” product design methods.

Design/methodology/approach

Details a number of problems, often unexpected, that can be encountered by companies who outsource production overseas, and the additional costs these can incur. It also reports on an alternative to outsourcing, which is better product design, and how this can be achieved through the design for manufacture and assembly methodology.

Findings

For many companies the potential benefits of outsourcing overseas, in particular low labour costs, can be quickly roded by hidden, but often encountered, extra costs. Moreover, improving product design through DFMA can offer a viable alternative to outsourcing overseas for some companies.

Practical implications

It is essential that before starting on an outsourcing strategy – or even as a review of an existing strategy – companies not only undertake a full cost benefit analysis of overseas manufacture, but also look at the product design. The fact is – as it always has been – that simpler better designs are more productive, require less labour, and may permit manufacturers to remain more agile and competitive by retaining local manufacture.

Originality/value

Brings to the attention of managers some of the key – often hidden‐problems and cost issues relating to the practice of outsourcing manufacture overseas and revisits the still too often neglected area of developing better products by making them easier to manufacture and assembly.

Citation

Lee‐Mortimer, A. (2006), "Improved product design as an alternative to outsourcing manufacture and assembly", Assembly Automation, Vol. 26 No. 2, pp. 121-126. https://doi.org/10.1108/01445150610658103