Setting up and operating offshore manufacturing doesn’t save money on a total cost basis, but trying to do so may compromise quality, delivery and product development, which could otherwise provide real cost reduction and the pursuit of new high-profit opportunities, like mass customizing of products.
Rather than weakening operations with the burdens of offshoring, local operations could pursue more effective cost reduction by designing low-cost products, eliminating waste through Lean Production, lowering the cost of quality and setting up flexible factories that could build standard products and mass-custom versions on-demand without the costs and risks of carrying inventory.
This article in Orthoworld will give you 21 thinking points to understand why offshoring will actually work against your company’s and customers’ best interests and bottom line.
21 Tools for better sensemaking.
Our job here at pmpaspeakingofprecision.com is to help you find “Tools You Can Use” to keep your medical shop competitive and sustainable.
We think getting you the ideas in this thoughtful article is best use of our blog today.
Tag: Compromise Product Development