The previous lackluster growth of the economy motivated many corporations to ree

Question

The previous lackluster growth of the economy motivated many corporations to reevaluate their corporate initiatives and seek the advantage of lower labor costs provided by offshore development. The fear, and sometimes reality, which these companies experience was that quality and accountability may be sacrificed as larger, more complex projects were sent overseas. Sometimes faster and cheaper means just that. How can companies be assured that, in their desire to do things faster and more economically, they are not being short-changed on quality? What safeguards exist or should be put into place for future projects sent overseas to provide a predictably successful project outcome.

Explanation / Answer

Answer:

Assurances of companies in their desire to do things faster cheaper economically they are not being short –changed on quality: This is the critical input for the organization to maintain the quality in the outsourcing processes. When the organization processes are outsources to other countries for low labor cost, it is difficult for the organization to maintain the same level of quality from the new manufacturing location of the low labor cost. The key reason for that is the home organization has developed the skill set and expertise over a long duration for developing the higher quality levels in the processes. The new organization are not skilled and are not experienced enough to deliver that quality levels.

However the organization develops the best possible control plan for the assurance of the quality in the processes, so that it will assure the minimum quality standards in the processes. The Control plan and other operational approaches will help the organization to maintain the minimum desired quality levels in the processes and products which are outsources to low cost countries.

Following are the safeguards/ initiatives to assure the successful project outcomes are as below

Project Review Approach : This is the approach in which a person /team is assigned to lead the transition of project which will ensure the similarities in the production processes and methodology at low cost producer country.

Sample & PPAP Method: This is the method of detail checking of first sample and first production lot(PPAP – Production Part Approval Process) by home country organization , which is produced at the low cost country. This will ensure the cross checking of the outcomes of the low cost producer country.

Testing and Evaluation Methods: The physical testing methods can be applied to ensure that the products made at the low cost country location are meeting the desired quality standards.

In process checks as per Control Plans : This is the method of in-process checking of the process key parameters as per the control plan, which will ensure that the desired quality levels are maintained in the production processes.

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