Managing the quality of your outsourced manufacturing:
Tips for producing a profitable end product
A common myth that exists about outsourced manufacturing is that production quality is lost in the process. This simply is not true. By outsourcing product manufacturing, you are inviting expert resources into your company that can handle more complicated layers of operations and product development. Yes, there are challenges and hidden costs to the process. However, this article is written to help you understand how to minimize those costs. Additionally, you will see why outsourcing the manufacturing of parts, products or other materials, can help your company to become more efficient and profitable.
Within the last decade the manufacturing industry has become a true global operation. In addition to saving money, companies are now looking at foreign/outsourced manufacturing as a necessary step to assist with building and streamlining internal business & sales operations. Many wholesale companies and small manufacturers have stated that outsourcing production has helped to eliminate the time and energy spent on day to day issues of production quality, production down time, and defect reduction. Business development and customer service, in turn, has become the main corporate focus.
First, finding the right manufacturing partner with the proper capacity and production capability is critical to the process: you can see such supplier details in the article titled "Partnering with Foreign Suppliers" .
While you are searching for the right manufacturing partner, the quality control process should never be overlooked. To ensure that end products are produced to your specified quality demands, here are some factory and outsourcing recommendations.
Seek mass production facilities with over-all, operational quality certifications.
ISO quality certification series: (The ISO 9000 and ISO 14000 families are among ISO's best known): According to the International Organization for Standardization, when a manufacturing facility is ISO certified you are ensured specific standards for manufacturing, quality control, and internal operating procedures.
Example Standards listed by the ISO:
- make the development, manufacturing, and supply of products and services more efficient, safer and cleaner
- facilitate fair and transparent trade between countries
- provide governments with a technical base for health, safety and environmental legislation, and conformity assessment
- share technological advances and good management practice
- disseminate innovation safeguard for consumers, and users in general, of products and services
- make life simpler by providing solutions to common problems
Six sigma quality certified:
Six Sigma is a manufacturing system that seeks to eliminate defects and waste from the manufacturing process. According to Wikipedia, Six Sigma uses a set of quality management methods, including statistical tools, and creates a special infrastructure of people within the organization ("Black Belts", Green Belts", etc.) who are experts in these methods. Each Six Sigma project that is carried out within an organization, follows a defined sequence of steps, and has quantified financial targets to improve manufacturing and business operations. A Six Sigma factory will work diligently at eliminating defects from your manufacturing output.
Lean manufacturing in house:
The process is often referred to as "LEAN". This concept is heavily used by Japanese manufacturers (but is now practiced in factories around the world). Lean is the set of "tools" that assist with the identification and elimination of waste (muda) for both manufacturing and time. As waste is eliminated within an organization, quality improves while manufacturing time and costs are reduced. This type of manufacturing environment will take pride in keeping your product costs down and your process optimized.
After factory certifications are identified, follow these steps to help with the production of a high-quality, end product.
- 1. A very important rule: seek to have a final prototype and production steps outlined and in place for your contract manufacturers to follow. Having such an outline, before production begins, will help in-house engineers to develop the most efficient process and use of proper materials for your manufacturing. This will eliminate costly rework after production begins.
- 2. Hire third party resources to do quality inspections. Third party resources are critical to keeping the process running smoothly. QA engineers with a specialty in your manufacturing process can be sent into factories, on a regular basis, to monitor the production process and materials selection. Inspection companies/auditors can correct costly problems before too many pieces are produced and the production run is complete. It is wise to educate BOTH the manufacturer and your inspection company about your quality needs and standards for final output. For complicated manufacturing projects, it is common practice to have an auditor inspect your production runs at least 2-3 times during production. Also, final container (before delivery) packaging can be inspected.
- 3. Have your products tested in third party testing labs for potential chemical/lead hazards, defects, and functionality standards. As of November, 2008, USA customs is requiring that consumer product safety certificates be included with all necessary customs documentation for all imported consumer products.
- 4. Ensure that factories inform you of material or process changes before EVERY new production run. This will help you manage potential changes in material cost. Be sure to have safety and product testing completed for each production run. This will help protect your own corporate liability. Always request written reports for lab or production run tests/audits.
- 5. If possible, have your final container of manufactured products inspected by an outside party to ensure that both packaging and products are correct. The last thing your company needs is a container full of damaged products at final port.
As you can see, ensuring your company receives a quality end product requires a team of experts to complete the overall process. If your company can not afford its own offshore manufacturing subsidiary, working with trusted suppliers, manufacturers, and inspectors will prove to be one of your greatest assets. Be aware, however, that the process will take considerable management, research, and time to complete correctly. Many companies have had great success using global sourcing companies to help with the transition of new offshore manufacturing ventures. Regardless of the route your company chooses for outsourced manufacturing, know that obtaining good prices and GREAT quality are possible and to be expected.
Michelle Bonn is the owner of Expedient Trade, LLC, an international sourcing and manufacturing service company, based in Buffalo, NY. For questions about this article or other international business information, contact Expedient Trade by visiting their website, http://www.expedienttrade.com/