Although the
Original Post was about semiconductor fabrication, all of the lessons can be applied to companies contracting their manufacturing needs outside of North America. My thoughts are in
italics:
1. Management Of The Subcontractor - Inadequate
Most work is outside sourced (outsourced) simply on a cost issue, where the company assumes the contractor will operate just like they will.
2. Ineffective Deployment Of Key Contributors
The right people need to be hired to manage this relationship. The right people can communicate needs to the contractor and balance both sides desires.
3. Subcon Selection Misfit
Many times the contractor is simply selected on the bottom line. However, more needs to be considered. Given two companies with one having the ability to mfg for a dollar less, the cheaper contractor looks better on the books. However, if the costlier contractor is, for example, has a better quality record, the better contractor needs to be selected
4. Relationship Lacking for Best Fit
Again, the bottom line fallacy fails again
5. Due Diligence Not Performed Well
6. Cultural Differences Not Recognized
From the original source:
Lack of knowledge in dealing with different cultures and language barriers required to effectively manage the subcontractor for optimum results, i.e. Different communication styles, attitudes towards conflict, approaches to completing tasks, decision-making styles, attitudes towards disclosure
7. Transition Product/Software/Hardware – Poor Preparedness
Anyone who has taken a foreign language class understands there is more to language than putting a sentence through BabelFish. Since language is a concept of a culture identity, the disconnect between Eastern and Western cultures is further divided unless one is semifluent in the other's language.
8. Ineffective Strategy And Plans
Many companies that outsource see outsourcing as a miracle worker that will solve all their needs, not understanding the consequences of the disconnection between the two companies.
9. Corporate Support Insufficient Relative To Staffing, Budget And Time Lines
The politics of the corporate structure further hurt the project as far too often upper managers will give an unrealistic time line and/or limited budget.
10. Contract/Administration – Lack of Attention To
For more information,
please read the original article. It's worth a look