Outsource-welding,
a Route to Explore.
SOLUTIONS with Effective, Practical Advice
Outsource-welding is generally considered a profitable alternative for meeting the temporary requirements of surge in demand, or for enjoying the benefits of some specialized new technology before acquiring the expertise and the equipment to perform it. It may be a route to think of for regaining competitiveness.
In both cases there are clear trade offs that should be thoroughly examined.There are however barriers to outsource welding production, so that the implementation of such a policy should be regarded as a complex project requiring well understood tools and resources.
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Among the hurdles are feared loss of intellectual property, giving up gain of additional know how, possible migration of production expertise, building of potential competitors. Another way for reducing costs and improving competitiveness involves focusing on innovation and exploring automation and robotics. By selecting this option one can find more cost-effective and profitable alternatives. Cost savings can be achieved while improving quality and control, if the transition is mastered correctly. However, to succeed, automation and robotics must be based on strong in house welding engineering and expertise. Outsource-welding is probably best applied when it can be implemented selectively and gradually for processes that require extensive manual labor provided that the quality needed is assured. However this is not the case for automated processes, for items needing final finishing steps and for heavy constructions where labor savings cannot compete with logistic expenses and transport penalty. Before undertaking Outsource-welding activities one should study if, for filling temporary additional welding equipment requirements, leasing or renting such means is an option, without the need to finance the cost of purchasing them. Maintenance would become less of a problem, in that the leased equipment should be operational for the period of lease. A company's decision to own or rent equipment would become a cost analysis problem. New features or capabilities may then become available in new versions of the same machines when the time comes to invest in improved facilities. Even if willing to grow by hiring additional welders, suitable workforce of needed skills and expertise may be not easily found, at least at shortage times like this. When outsourcing, welding becomes a fixed cost, provided in time delivery, quality and price are assured and maintained as agreed beforehand. Otherwise the promise may become a liability. Outsource-welding can be proposed to relatively near production facilities, or involve complete industrial migration overseas, more complex economically and much more emotionally charged. In this last case different business cultures of suppliers and customers, lack of resources to study the market, too high expectations for cost reduction may undermine the economic success hoped for. As with many other decisions having an impact on the bottom line, Outsource-welding options should be studied thoroughly and implemented gradually for maximizing potential benefits while limiting negative results. * * * Any questions or comments or feedback? Write them down and send them to us by e-mail. Click on the Contact Us button in the NavBar at top left of every page. Let us remind you that, if you are interested, we offer a no cost subscription to our Practical Welding Letter and a bonus book in pdf format to be made available for download to your computer on the subject of PRACTICAL HARDNESS TESTING MADE SIMPLE. Click on Subscription.
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