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Techniques for managing offshore contract manufacturers

Publication:
Quality Progress
Date:
May 2022
Issue:
Volume 55 Issue 5
Pages:
pp. 22-29
Author(s):
Ganesan, Venu, Mishra, Santosh, Duffy, Mary
Organization(s):
International Organization for Standardization, Saab Technologies Ltd., Burnaby, British Columbia, Kardium Inc., Burnaby, British Columbia

Abstract

The use of contract manufacturers (CM) is and has been on the rise, in many cases representing the only way that some organizations can stay in business. Particularly in Asia, and more particularly in China, industrial capacity has been on the rise, and CMs located there have had a long time to practice. They do not operate, however, absent their own challenges, including using unapproved supplier substitution parts, producing parts requiring rework due to operating out of tolerances and cost overruns resulting from production delays. It is important to look beyond a CM's ISO certifications for the truth, in some cases closely examining CMs whose track records are unproven or unsettling.

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