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.
Click here to listen now.
And here’s the Powerpoint, True Cost of Outsourcing for Del Mar Show , so you can follow along.
Interested as we are in the process of establishing second sources.
One more comment:
The Risk Factor “RF” (page 25) has four main elements.
RF = Geography*(Resources*Expectations) / Capabilities.
- 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.
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