Day 1
Module 1: The Nature of Offshoring. Introductions. Definitions. Offshoring growth in US industry. Offshoring advantages and disadvantages. Offshoring, subcontracting, and outsourcing. The nature of the offshoring challenge.
Module 2: Making the Decision. Company size versus offshore outsourcing. Deciding what to outsource and what to keep in house. In-house, offshore, in-country outsourcing. Third party intermediaries. Identifying all costs. Nonrecurring versus recurring cost. Make versus buy analysis. Net present value analysis. Cost model comparisons. Preventing savings overestimates. Establishing a reserve. Shipping considerations. Air freight costs versus surface transportation costs. Customs issues.
Module 3: Supplier Selection. Evaluating supplier load considerations. Capacity versus load considerations. Cultural considerations. Government assistance programs. Facility evaluation. Assessing supplier capabilities, competence, and quality. Supplier workforce qualifications and stability. Supplier experience in working with customs and shipping. Due diligence. Understanding cultural and legal differences. Turnover. The management bench. References.
Module 4: Engineering Considerations. Engineering approaches. Identifying and designating critical design features. Design responsibilities. Engineering change management. Geometric versus conventional tolerancing. Tolerance analysis. Defining responsibilities for product failures. Case study.
Module 5: Manufacturing Considerations. Process control. Manufacturing management systems. Reliance on labor versus automation. Tooling ownership, modifications, maintenance, and disposal. Delinquent delivery management approaches. Assuring on time delivery performance. Financial responsibilities in the event of delinquent delivery. The supplier’s schedule culture. Eliminating schedule ambiguity. Responsibilities for Customs and other delays. Monitoring schedule performance.
Day 2
Module 6: Quality Considerations. Defining quality requirements. Supplier quality responsibilities. First article inspections. Process capability. Using process capability studies and metrics effectively. Preventing quality fade. Supplier corrective action. Statistical process control. Failure analysis approach and responsibilities. Case study.
Module 7: Offshore Supplier Management. Communications challenges. Required/recommended periodic reports. Process capability reporting. Production control. Controlling supplier cost growth. Defining responsibilities for cost growth. Working with third-party intermediaries. Supplier visits. Supplier visibility. In-house management teams. Litigation and arbitration. Defining a contract dispute approach.
Module 8: Financial Considerations. Identifying all costs. Shipping. Traveling. Customs issues. Schedules. Preventing cost growth. Learning curve theory and learning curve contract incorporation. Clearly defining cost responsibilities. Soliciting and incentivizing supplier cost reduction.
Module 9: Contract, Legal, and Regulatory Considerations.Requirements clarity and the elimination of ambiguity. Joint ventures. Eliminating ambiguity. Scope definitions and clarity. Counterfeits. Tariff and related considerations. Prohibited and sensitive items. Case study.
Module 10: Risk Management. Protecting Proprietary Data. Sample part risks. Counterfeits. Providing samples. Preventing the creation of competitors. Contracting issues and recommendations. Customs delays. Contingency planning. Multisourcing. Supplier outsourcing. National embassies and government assistance. Identifying supplier customers. Common challenges.
Module 11: Course Wrap Up. Review, Questions and answers, and course critique.