Ankf00
10-29-04, 11:31 AM
Interesting read
http://lists.newsforindustry.com/cgi-bin3/DM/y/hh6H0MaNp30CKX0BMdF0AF
"...The authors identify principles of best design practices that many U.S. manufacturing companies overlook when outsourcing: It is often possible to redesign products in ways that reduce part count and cost. The authors argue that U.S. companies should do a better job making cost analysis part of product design. They claim instituting rigorous cost analysis for product design would let U.S. manufacturers develop innovative products that are more economical to produce.
The study features an in-depth, quantitative analysis of how redesigning an electric drill would eliminate the cost advantage of offshore manufacturing. The report also points out the necessity to account for extra costs associated with offshore manufacturing. Hidden costs include shipping and logistics that can add about 24% to labor and material expenses at offshore locations. One conclusion: Companies that consider the potential for design improvement and make a realistic estimate of outsourcing costs will conclude that it often makes more sense to manufacture products in the United States. ..."
http://lists.newsforindustry.com/cgi-bin3/DM/y/hh6H0MaNp30CKX0BMdF0AF
"...The authors identify principles of best design practices that many U.S. manufacturing companies overlook when outsourcing: It is often possible to redesign products in ways that reduce part count and cost. The authors argue that U.S. companies should do a better job making cost analysis part of product design. They claim instituting rigorous cost analysis for product design would let U.S. manufacturers develop innovative products that are more economical to produce.
The study features an in-depth, quantitative analysis of how redesigning an electric drill would eliminate the cost advantage of offshore manufacturing. The report also points out the necessity to account for extra costs associated with offshore manufacturing. Hidden costs include shipping and logistics that can add about 24% to labor and material expenses at offshore locations. One conclusion: Companies that consider the potential for design improvement and make a realistic estimate of outsourcing costs will conclude that it often makes more sense to manufacture products in the United States. ..."