Question 8-17 Hammaker Manufacturing Ii (Business Process Reengineering or Outsource)

After analyzing all these risks and criteria Id like to present some points to demonstrate why we should go for outsourcing:

Every company will focus on supplying a service, product, or both. How and where the product is made plays a crucial role in the company’s success. In order to help visualize how the products are made process maps are formatted. These process maps can help to identify areas that need improvement. In order to implement improvement, process development will be implemented. The form of good that a company supplies is also important and to ensure that the best product is distributed product development is conducted. Target Corporation is a complex company, which provides consumers with their necessities.

Therefore, manufacturers face a trade-off between gain from the efficient technology and loss from paying the information rent. When a firm decides on in-house production instead of outsourcing, although a manufacturer can obtain the entire profit, it loses the gain from the cost efficiency of outsourcing. When outsourcing is selected, although a manufacturer can acquire the gain from cost efficiency, it is required to share the gain with the outsourcer.

Analyze the role of an operations manager, and then determine three challenges that an operations manager will respond to differently within a manufacturing industry as opposed to a service industry.

List and describe at least three factors that a firm should consider when making an outsourcing decision.

* Aside from maximizing profits, list the key factors that managers should consider when deciding whether or not to outsource offshore. Determine the key factors that you believe to be the most influential. Provide a rationale for your response.

3. Outsourcing It can save time for the company to manufacture or assembly its products.

Fiscal and IT staff will need to have an understanding of how to answer potential questions from staff or at the very least who the contact person would be to address the concerns. The outsourcing company will also need to provide the available training options that can be utilized during each phase of the transition.

e) Will Breezy be able to gain competitive advantage over local suppliers? Breezy could choose between cost leadership strategy or product differentiation strategy.

Make sure outsourcing company responsive to feedback and makes changes according to the requirements of hiring company. Monitor the process through representatives of hiring company to make sure mistakes being fixed before they incur additional cost.

Companies that decide to outsource do so for a number of reasons. The primary reason is to achieve cost savings or better cost control over the outsourced function. Companies usually outsource to a vendor that specializes in a given function more efficiently than

The new business process and integration tool also offered real-time visibility into its extensive manufacturing process, including tracking inventory, handling billing and monitoring vendor performance for on-time delivery and other measures. The system was fast, reduced errors and improved efficiency.

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

This case addresses many issues that affect insourcing/outsourcing decisions. A complex and important topic facing businesses today is whether to produce a component, assembly, or service internally (insourcing), or whether to purchase that same component, assembly, or service from an external supplier (outsourcing).

Outsourcing should only be implemented when a company’s core competitive advantages are not affected and then when