Outsourcing Management Process

Business outsourcing this emerging management model to effectively reduce costs, enhance the core competitiveness of enterprises and other characteristics into more and more domestic and foreign enterprises to take an important strategic decision, then, outsourcing management process is how? A look!

Outsourcing mode of operation has become increasingly popular in recent years, the reason for this is because the industrial structure is increasingly rational, the social division of labor is increasingly detailed, driven by Internet, the global industrial structure is undergoing a new round of restructuring: on the one hand, no production line companies (such as design companies and sales companies) to develop rapidly; on the other hand, the industry polarization phenomenon is becoming increasingly evident, information products, On the other hand, the industry is becoming increasingly polarized, with the production of information products, electronic components and electronic raw materials becoming more concentrated in a small number of manufacturers. These not only create a favorable external environment for outsourcing, but also provide a broad space for development.

At present, outsourcing in China is not mature, the turnover still accounts for a small proportion, mainly because of the relevant policies, regulations are not synchronized, traces of the planned economy still exists. But after all, there are still a number of vibrant young enterprises along the coast, such as the well-known TCL Group and Skyworth Group in the early days of their watch products - TV sets marketed successfully adopted the outsourcing mode of operation.

Outsourcing usually has two meanings: electronic component outsourcing and system outsourcing. Electronic components outsourcing refers to the OEM (Original Equipment Manufacturer) or CEM (Contract Manufacturer) authorizes a distributor to be fully responsible for its production of components required for procurement, inspection, inventory and logistics transportation, the biggest advantage of this mode of operation, one is to greatly reduce the procurement costs, the second is to transfer the manufacturer's own inventory risk to the distributor, and the third is conducive to the stable supply of high-quality components. System machine outsourcing refers to the design company or OEM will be part or all of the system machine production tasks to the CEM for production, this mode of operation is relatively more complex, this paper will be from the review? In this article, we will review, evaluate, and follow up on the three major aspects of the outsourcing management of the machine.

The first step: assess the feasibility of outsourcing

The assessment is the contract assessment and delivery capacity assessment of the general term, that is, the contract terms signed by the marketing department, the agreed product characteristics and market prospects, their own design capabilities, production capacity and manufacturing costs for a comprehensive analysis. The review is the basis for deciding whether and how to outsource. The evaluation is usually done by an evaluation team consisting of about 6-15 experts from marketing, purchasing, design, production and quality departments. The review is not just an analysis of the feasibility of outsourcing, but also the formation of systematic documents with operability, such as design plans, process control points, key parameters of the test method, outsourcing process table and related responsibilities.

In terms of popular products, outsourcing is not only ? Catch the trend? If the contract product process is more mature, or commissioned processing and material processing is easier to operate? Ltd., Shenzhen mayor moment purchasing manager Chen Ziqing said, ? Although the profit is thin, but the capital involved is less, the capital turnover is fast. Long moment company is specializing in home appliance trade export-oriented enterprises, commissioned processing and material processing accounted for more than 60% of the company's total business.

The review of the new product was much more complex, and even multiple representatives of potential contract manufacturers were invited to participate in the discussion. The three options available include: one is to build or modify the production line, self? And manufacturing; Second, since the completion of the design and appointment of contract manufacturers; Third, according to the acceptance criteria agreed with the demand side, the whole process of outsourcing. As for the use of that program, but also depends on the product market prospects and their own delivery capacity. In the information industry, the general market life of the system machine products at most two years, and some even shorter. Therefore, the second program for some young Chinese companies is not a good idea, not only to play their own talent advantage, control of upstream resources, but also the use of the old enterprise process technology maturity of the strengths, but also a relatively low rate of capital consumption.

Located on the banks of the Beijing-Hangzhou Grand Canal, Huajing Electronics Group is one of China's? The 8th Five-Year Plan? During the period spent a huge amount of money piled up to become a large-scale IC manufacturer? Huajing had a brilliant moment in China's color TV localization wave, but in the blink of an eye the company's glory has become the past. Therefore, people often wonder what would have happened if only the Huajing Central Research Institute had been built in the first place. Huajing's . On the one hand, the example of Wafer Works is a clear example of the rapid development of the information industry. On the other hand, it also warns people about the importance of evaluation.

Of course, the review of complex projects or large orders can not be overnight to be able to solve the Q, which will need to review the work broken down into several parts, and then dealt with one by one in an organized manner. If there is a need to discuss with the demand side of the place, should be fully communicated; about new product development, design review and process control and other aspects of technical issues, but also to invite the contract manufacturer to participate in, until fully meet the contract requirements.

Step 2: Contract Manufacturer Evaluation

The contract manufacturer is the carrier of outsourcing. The contract manufacturer assessment is one of the most critical aspects of outsourcing management. The assessment usually consists of a factory review? Manufacturing Capability Review and Sample Certification.

The factory audit is an on-site evaluation of a potential contract manufacturer's quality management system and technical capabilities. Potential contract manufacturers refer to the intention to cooperate and have a certain supply capacity of the manufacturer. Audit work is generally organized by the Purchasing Department quality management and engineering and other departments of experts **** 3-4 people. The audit is based on the Company's management requirements. The main contents of the audit include: quality management system? Environment and safety system? Work process control? Production planning system? Employee morale, education and training, etc. The results of the audit should form a written report, as the basis for the continuation of the Manufacturing Capability Assessment (MCA).

Samwha Capacitor Ltd is the largest capacitor manufacturer in South Korea. Sang Gil Kim, the company's purchasing director, has said that Samwha is one of the main suppliers to Samsung, Deawo, Hyundai, and well-known telecom equipment manufacturers in Europe and the U.S., and therefore requires a fairly high level of management and supply capability from contract manufacturers. Kim said that before Samwha conducts a factory review on a prospective contract manufacturer, the first thing that is done is to introduce the other party to Samwha's quality control system and requirements, such as procurement management? Item identification system? Non-conforming product handling procedures? Corrective and preventive measures? Engineering correction requirements? Warehouse management requirements? Work process management? Environmental management, etc. If the contract manufacturer accepts these terms and is willing to cooperate further, then we will consider scheduling an evaluation program.

Another part of the evaluation is the Manufacturing Capability Review. This is important, but often overlooked by most manufacturers. In reality, the contract manufacturer in an outsourcing situation is the equivalent of the supplier's manufacturing plant. The manufacturing capability review is essentially a review of the results of the previous step regarding the outsourced product, such as design requirements? Key process requirements? Key material requirements? Acceptance criteria? Delivery treaties, etc., are discussed with the relevant personnel on the contract manufacturer's side to ensure that the contract manufacturer fully meets the contract requirements. If the requirements are not met, appropriate relaxation of tolerances or other processing/manufacturing conditions may be considered without affecting product performance. The results of the review should be documented, indicating the full process quality control measures, the number of the QC document, the method of measurement of key parameters and the name of the instrumentation used.

Kim believes that manufacturing capability is a sign of a contract manufacturer's overall strength. When selecting a chip capacitor contract manufacturer, product quality and production scale are the first two items that must be evaluated, and neither is essential.

The final part of the contract manufacturer evaluation is sample certification. Of course, the samples here may only be analogous products, but it is at least a microcosm of the contract manufacturer's production capacity. Here are two points worth noting: First, the contract manufacturer in the submission of samples at the same time should be accompanied by their own test report, indicating the code of the standard used, because the other party in the inspection to refer to or analogous to the report submitted by the contract manufacturer; Secondly, the buyer should not be a product or a product of a certain performance failed to phase out of the contract manufacturer in this regard, and should be allowed to re-commissioning or re-sending samples until all the items are qualified. all items pass.

Step 3: Follow-up management

After selecting a contract manufacturer, it is important to follow up on the outsourcing process. Follow-up that the stability of the current contract manufacturer supply quality and quality assurance system for the continuity of supervision and control, and the formation of documents filed, and then regularly feedback to the contract manufacturer, in order to take timely and appropriate corrective and preventive measures. The main content of the follow-up includes: inspection, inspection, quality assurance system audit, etc..

As outsourced items are directly oriented to the demand side, inspection is particularly?e important. Inspection is not limited to the final product, but should involve incoming materials, processes, and all aspects that may affect product performance.? All inspection activities done at the contract manufacturer's manufacturing plant neither relieve it of its responsibility to provide conforming products nor preclude later rejection? said Cheng Yu-tang, an engineer in the quality department of Yunhai Computer & Communications Co. For all the unqualified problems found during the inspection, we will raise them on the spot and solve them with the contract manufacturer's engineers and technicians***?

Inspection is different. Inspection is carried out by QA (Quality Assurance) personnel with certain professional experience and licenses in accordance with certain procedures and specified standards for acceptance of products completed by the contract manufacturer. The place of acceptance can be in the warehouse of the contract manufacturer or in other places as agreed by both parties. Any product that passes the inspection shall be stamped and labeled on the outer carton, and a written record shall be made and entered into the computer, if appropriate, to form the contract manufacturer's file.

For the inspection process found in the nonconforming products, should be handed over to the MRB (nonconforming product review team) to deal with, in order to ensure the correctness and effectiveness of the inspection. Where the quality engineer determines that the MRB confirms the existence of quality problems, the SQA (Supplier Quality Assurance) quality engineer should be responsible for the contract manufacturer for quality complaints and follow-up, the contract manufacturer can not be any reason to shirk its responsibility.

As the contract manufacturer in the outsourcing process plays the role of the supplier factory, for long-term cooperation with the contract manufacturer, an annual quality system audit is extremely necessary. Audit work arranged by the SQA, the participants should include internal auditors, buyers and engineers and technicians about 3-6 people. Before the audit should be made by the internal auditor to develop a checklist, the checklist should be based on the ISO9000 standard, supplemented by the company's own requirements and the specific situation of the supplier, the scope of the audit is related to the supply of products and production processes of the department.

For unqualified items found during the audit, a ? Rectification notice? The report includes specific corrective measures and implementation steps. At the same time, SQA should include the report in the contract manufacturer's file for further follow-up or to check the implementation of corrective measures in the next review.

It can be seen that outsourcing is an operationally flexible business model. In the process of outsourcing, the contract manufacturer should be regarded as a partner of equal importance to the customer, and as much as possible in the management and technical support, in order to establish a long-term, stable and trusting partnership, *** with the progress of the *** with the benefit.