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The 3 Preconditions That Turn Outsourcing into a Success

Published: John Willems

Successfully outsourcing the production of mechatronic machines or systems does not come easily. To ensure the outsourcing process runs smoothly and to achieve the optimal end-result, your company should meet three important prerequisites.

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The outsourcing of production is an excellent opportunity for many companies; it contributes to the realization of growth goals, it leads to increased flexibility, a cost price reduction, shorter lead times and improved quality. Yet, to turn outsourcing into a success your company must comply with three highly important prerequisites:

Business case approved

Only when a positive business case will the result, it is interesting to invest in the development of a product and possible outsourcing of its development and production. In other words, a financial result that yields a profit should –over time– be the result of the investment. Your company should consider all costs involved in the project. MTA developed an Outsourcing Scan with which you can determine in how far the outsourcing of production is a suited strategy for you. In case you struggle to establish a positive business case, MTA’s specialists are always ready to evaluate your problem and help you.

With our extensive knowledge in the fields of mechatronics and production technology, it is highly likely we are able to establish your business case or even take an already approved business case to the next level. For example, there may be opportunities to improve the design of the product through an industrialization-project.

organization-wide support

It is pivotal to create organization-wide support concerning the outsourcing of production. This establishes the basis for successful collaboration that is fueled with trust. Support can be created through open communication between all departments and employees within your company. Based on its knowledge and experience, MTA can play a role in this through the organization of interactive lectures for various departments in your company. In these lectures, we may present and discuss the advantages and disadvantages of outsourcing.

It is understandable that departments and employees are skeptical when it comes to outsourcing. Engineers feel as if they hand over ‘their baby’ and they are afraid the development partner lacks knowledge about the product, resulting in a decrease in quality.

However, this skepticism is unfounded since MTA can guarantee the optimal end-result by making the most out of careful knowledge acquisition and a solid quality system. Outsourcing creates time and space for innovation and the creation of new development projects. This enables your organization to preserve its competitive edge in a quickly changing market.

Share the knowledge

To create a product that fully meets expectations, your company has to be willing to share much needed information with the partner you will collaborate with. It is wise for the OEM to designate a knowledgeable contact person who can guide the transfer of information from OEM to system supplier.

Often times, the majority of the required input is recorded in working drawings and other documents. Matters that have not been included in the Technical Product Documentation (TPD) should be transferred verbally to the NPI (New Product Introduction) project manager at MTA. An example of information that is not in the TPD may be important information a mechanic thinks about when assembling the machine. In other words, the essential information is stored in the mechanic’s head, not in the TPD. After thorough information collection, the NPI ensures the knowledge is stored in the production system. By employing the Assembly Quality System, quality is guaranteed and registered real-time during the assembly and the testing procedure. With this, delivery reliability is assured.

Needless to say, the knowledge and information that is being shared is confidential. All IP-related information continues to be the intellectual property of the OEM. MTA is highly careful in its dealings with this information and – as a strategic collaboration partner – strives to develop a lasting, trustworthy relationship in which the sharing of know-how from both sides results in an optimal production process and end-product.  

 

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