Tài liệu tiếng Anh (cao học) Chapter 10 Outsourcing

Tài liệu tiếng Anh (cao học) Chapter 10 Outsourcing, dành cho cao học.

Chapter 10

Outsourcing

» The Creation of Strategic Vulnerabilities

» The Dangers of Vertical Integration

• Horizontal Integration

» New Product Development and Outsourcing

» Lean Manufacturing

• Tactical Decisions

» Control of Production and Quality

» Business Process Outsourcing

» Technology Risk and Maturity

» Unreliable Suppliers

» Suppliers’ Specialized Knowledge and Research

» Small-Volume Requirements

» Limited Facilities

Key Concepts

• Factors Continued

» Work Force Stability

» Multiple-Source Policy

» Managerial and Control Considerations

» Procurement and Inventory Considerations

• Netsourcing

• The Volatile Nature of the Make-or-Buy Situation

» Dangers of Outsourcing

• Administration of Make-or-Buy Activities

» Chief Resource Officer

» Framework for Outsourcing

» Executive Level Involvement

Outsourcing and Supply Management

increase an organization’s flexibility to

meet rapidly changing market conditions, focus on core competencies and develop

competitive advantage

Supply Management has intensified and

positioned supply managers as agents of

strategic change critical to supply chain

success

Outsourcing: A Growth Industry

» Not just materials, many business functions

are being outsourced

» Leveraging of the supplier’s expertise

» Increases in innovation

» lower staffing levels

» reduced costs

» more flexibility

Strategic Issues

Horizontal Integration

trend

» The idea is to achieve significant cost leverage

core competencies must be defined

» All other activities are candidates for

outsourcing

manufacturing skills or equipment

core competencies

Strategic Analytic Procedure for Subsystems and

Components

Is the subsystem strategic?

Outsource

No

Can the subsystem be broken into families?

Yes

Are families strategic?

Yes

Yes No

Make In-House

No

Based on

Figure 10-1

Make or Buy at Tactical Level

Considerations Which Favor Making

Considerations Which Favor Buying

1 Limited production facilities

2 Cost considerations (less expensive to

buy)

3 Small-volume requirements

4 Suppliers’ specialized know-how

5 Stable work force (rising sales)

6 Multiple-source policy

7 Indirect managerial control considerations

8 Procurement and inventory

considerations

Major Elements Included

in a “To Make” Cost Analysis

quality and related problems

Major Elements Included

in a “To Buy” Cost Analysis

service

– Also measure hidden costs (storage, inspection,

tooling, quality, etc.)

» 1 We are at capacity

– Fixed costs are an issue

» 2 We are not at capacity

– Fixed costs are not as much an issue

Incremental Costs from “Make” Decision

When Operating at 80% Capacity

Figure 10-2

Other Factors Influencing the Make/Buy Decision

• Production Requirements

» To maintain control over ability to produce unique parts

» Continuity of supply of critical parts

• Quality Requirements

» To control level of quality of difficult parts

» To increase level of acceptable quality

• Business Process Outsourcing Issues

change.

aspects of a part or process design.

Other Factors Influencing the Make/Buy Decision

• Technology Risk and Maturity

» Technology life-cycles

» Developing or new technology

• Unreliable suppliers

• Suppliers’ Specialized Knowledge and Research

» Take advantage of suppliers’ knowledge and expertise

• Small Volume Requirements

• Limited Facilities

Other Factors Influencing the Make/Buy Decision

• Workforce Stability

» Stabilize the workforce

» Retain a competent workforce

• Multiple-Source Policy

• Managerial Control Considerations

» Data gained from outsourcing can be used to check internal processes and costs

• Procurement and Inventory Considerations

Netsourcing

• Many companies are not readily staffed to

keep a company competitive in e-business

• As a result, companies are outsourcing

infrastructure development and

maintenance to “Netsourcers”

• Netsourcing has become popular since it

allows:

» A quick e-business presence

» Flexibility to make changes

» Sustained performance

» Support without the need to train or hire

specialized personnel

The Volatile Nature of the Make-or-Buy Decision

• Beware of rigid formulas and rules of thumb

• The make‑or‑buy question is influenced by a

multitude of diverse factors constantly changing

• Under such conditions, few easy decisions turn

out well in both the short and the long run

• Moreover, the relevant factors vary immensely

from one firm to another

• Every company should periodically evaluate the

effectiveness of its past decisions to generate information helpful in guiding future decisions

Administration of Make-or-Buy Activities

» Manages and initiates outsourcing for direct

support to the company’s bottom line

Concluding Remarks

strategic dimension of the make-or-buy

decision

manufacturing firms have become much

more specialized

increase in many industries

END