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Reshoring, TCO & DFMA

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Micha
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Iron
Bringing jobs home is bringing balance to our economy.
Micha   2/27/2014 4:04:15 AM
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There are many hidden costs for offshoring production, traveling of management and technical personal has its tolls, plus the fact that with many Asian OEM's; unless there is supervision from the customer all the time, the products are coming out with many short cuts and inferior quality. In many cases, the commitment for quality is not there, and the customer finds himself paying much more than the tempting low cost of a product in the spread sheets which do not show in many cases the real world situation and the real expenses.

The US is importing much more than its exporting goods, and this is not a balanced healthy situation, and I am glad to see that more and more companies are seeing it now.

Bringing the jobs home will strengthen America, and the people will have more money to buy better quality products...

 

a2
User Rank
Gold
Re: that's what I said
a2   2/27/2014 3:45:08 AM
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@a.saji: Why do you feel its not practical mate ? I don't get the exact point you are trying to make here. IF its not a hassle please elaborate on your point please.    

a.saji
User Rank
Silver
Re: that's what I said
a.saji   2/27/2014 12:58:49 AM
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@Harry: Yes a good point. I feel eliminating is something which is more practical and possible right now.        

Harry Moser
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Iron
Re: that's what I said
Harry Moser   2/26/2014 11:15:58 PM
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The Local Content laws would be relevant to the sourcing decision process for product ot be sold in countries where such laws apply.  Since the U.S. does not hve such laws, they are not relevant to the sourcing decison to supply the U.S. market. 

The laws certainly do influence our trade balance and we should either insist that other countries eliminate the laws or we should apply tariffgs to that country's exports to the U.S.

Harry Moser
User Rank
Iron
Re: that's what I said
Harry Moser   2/26/2014 11:15:54 PM
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The Local Content laws would be relevant to the sourcing decision process for product ot be sold in countries where such laws apply.  Since the U.S. does not hve such laws, they are not relevant to the sourcing decison to supply the U.S. market. 

The laws certainly do influence our trade balance and we should either insist that other countries eliminate the laws or we should apply tariffgs to that country's exports to the U.S.

Nancy Golden
User Rank
Platinum
Engineers knew this all along
Nancy Golden   2/26/2014 10:27:19 PM
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Thanks for a very informative article! I especially agree with the statement: "Companies are finding that when manufacturing is moved next to design, and design engineers are working closely with manufacturers, they can improve the design, eliminate waste, improve quality, increase productivity, and make the product more easily and sometimes at a lower cost."


Engineers knew this all along - it is management looking to save a buck that got many companies into the costly mess they are in now of fighting poor quality and the inept handling of design changes.

Turbineman
User Rank
Gold
Re: that's what I said
Turbineman   2/26/2014 11:26:27 AM
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If memory serves me, many countries have "local content" laws, where if you want to sell your product in their country, you have to either have a certain percentage of your mfg. functions in their country or pay a hefty tariff.  Is this cost accounted for in the TCO computer?

On the collaberation front, I remember from the late 1970's through the early 90"s, in many corporations Design and Mfg. Engineers were not on speaking terms, and it showed up in their product.  Chrysler Corp. BMW and Boeing come to mind.

Greg M. Jung
User Rank
Platinum
Concurrent Engineering
Greg M. Jung   2/25/2014 8:43:04 PM
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As mentioned in the article, early concurrent engineering with a cross-functional team is key to ensure success at product launch.  All customer voices need to be heard during the definition and the design cycle of the product.  Not should end user needs be considered, but also installers, sales people, service technicians, etc. to truly meet everyone's expectations.

naperlou
User Rank
Blogger
that's what I said
naperlou   2/25/2014 11:44:37 AM
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Harry, that's what I said!  Many times I have said it here, on this site.  I find it interesting that you mention GE.  Much of my experience and awareness of these issues came when I worked at GE.  I wonder what happened.  I guess the finance types (many of which I had a great working relationship with) got a hold of the business and steered it in the wrong direction.  What we need is more engineers in management. 

Even in the software industry, there is a move to bring back development.  Some large companies have.  When I worked for software companies we also talked about TCO, extensively.  The terminilogy was cost vs price. 

What also suprises me is the idea of China as a "manufacturing powerhouse".  Before the west started opening up to China, they had nothing!  It was Western companies looking for cheap labor that built them up.  I just hope they do better and hepl their own citizens.  Keep up the good work. 

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