Charlie Barnhart & Associates LLC - Insights into the world of global electronics manufacturing

Listen to Charlie’s presentation in Del Mar

This entry was posted Saturday, May 8th, 2010 at 12:36 pm

“The True Cost of Outsourcing” which includes a total cost comparison of manufacturing in US, Mexico, China, and SE Asia.

And here’s the Powerpoint, True Cost of Outsourcing for Del Mar Show , so you can follow along.

Rick Snow says:

May 10, 2010 at 9:41 am

Interested as we are in the process of establishing second sources.
David Sangster says:

May 10, 2010 at 4:41 pm

One more comment:

The Risk Factor “RF” (page 25) has four main elements.

RF = Geography*(Resources*Expectations) / Capabilities.

Arithmetically:
- if Geography risk is up, RF is up (makes sense)
- If we have high Expectations, the RF goes up (OK)
- if the supplier is very Capable, RF goes down (OK)

However, if Resources goes up (OEM putting more resources on teh program), I would intuitively expect the RF to also go down, yet the way the equation is written, the RF INCREASES depite adding more resources to the program.

Counter-intuitive.

Comments?