In many industries, hiring a contract manufacturer to complete the production of parts is often now a modern necessity. With many companies cutting costs by getting rid of in-house production, they often turn to manufacturing specialist companies to carry out this work for them.
This can be a great idea – there are many benefits to this kind of set-up, including significant cost savings, better quality of parts and a more rapid production process. There are, however, several pitfalls that absolutely need to be avoided when working with a contract manufacturer; here are some of the mistakes to avoid.
The first issue that arises is working with the wrong kind of contract manufacturer, as this can result in an inferior product, an inefficient production process and any number of communication, management and administrative difficulties.
It is absolutely essential to ensure that the company that you are hiring is professional, reputable, and has a strong track record of producing parts for companies that are similar to yours in nature. If you are looking for an eccentric shaft manufacturer, then make sure that the company that you select has extensive past experience of producing parts of this type.
Many companies will also specialise in specific sectors, such as the industrial, motorsports and aerospace industries and many more. Finding a specialist in your sector is another very wise idea.
It is also essential to make sure that the contract manufacturer will be able to meet your needs in terms of quality and quantity; think of the outsourced company as an extension of your own, as it will essentially be playing this part.
Another mistake that you must absolutely avoid making is not putting in place adequate project management, as this is essential when taking on a project in conjunction with a contract manufacturer. As mentioned above, you are essentially hiring a manufacturer as an extension of your own company, and therefore your project management needs to be aligned.
The key to successful project management is clear and open communication between the two companies, and for this to happen a plan needs to be put into place so that there is no misinformation passed between teams working on the projects, as well as a lack of information being communicated on important points throughout the entire project.
Another issue that can arise with contract manufacturing is that of unclear costs, which is an area that needs to be clearly defined at the start of each and every project. The issue of cost is present at many different levels, from the initial quote to hidden costs which may arise throughout the process.
A common example of this is that many companies choose to outsource manufacturing abroad, using a tooling or eccentric shaft manufacturer in a foreign country whist not fully considering the costs and issues that will arise in regards to certain standards of production being met, along with transportation and cultural issues that many arise.
Whilst offshore production can be attractive with the promise of cheap labour in some countries compared to others, this can be a false economy for certain companies, and in all cases it is absolutely necessary to factor in the numerous costs that will occur from working with a foreign contract manufacturer.
Another financial concern that is present when working with any contract manufacturer – whether a submarine parts, ceramic core tooling or eccentric shaft manufacturer – is that of a clear pricing structure. The truth is that, when manufacturing components of varying specifications in varying timescales, pricing structures can be blurred.
As with the steps necessary for effective project management, it is essential to clarify all price issues before working with a contract manufacturer. The sooner these details are ironed out the better, undoubtedly leading to a better process and infinitely better results when it comes to the final product.