Assumptions can be treacherous in manufacturing. We’re not in the business of winging it or saying, “let’s try this and see what happens.” Those are good ways of wasting time, money, and other resources.
If your company or product team is considering outsourced manufacturing, you certainly don’t want to blindly assume the transition will go smoothly. A little due diligence can go a long way in ensuring your product’s quality, fulfillment, and profitability. How do you know if the numbers and logistics check out for business process outsourcing? It all starts with a feasibility study.
What is a feasibility study?
In the world of manufacturing, a feasibility study is a comprehensive assessment to determine if it’s practical to make a product as designed – and if it makes financial sense to do so. The study examines all aspects of your manufacturing, from the raw materials to the best processes for the job.
Ideally, a feasibility study validates your manufacturing system. However, this exercise often uncovers unknown challenges or inefficiencies. These factors may go unnoticed until someone takes a holistic look at the operation. Based on this new information, manufacturers can adjust to simplify processes, shorten manufacturing time, or reduce costs.
Setting business process outsourcing up for success
Due to today’s challenging business climate, more OEMs and product teams are considering business process outsourcing (BPO), which is bringing in a partner to handle the manufacturing of products or components. This approach has many benefits, including freeing your team to focus on core competencies, simplifying supply chain management, reducing internal labor and equipment costs, achieving greater operational efficiency and scalability, and more.
A feasibility study is an essential step in establishing a business process outsourcing partnership. In fact, the study is beneficial for both parties. For the OEM, a feasibility study ensures a smooth transition from in-house to outsourced manufacturing, including consistent product quality. At the same time, a reputable manufacturing partner will want to verify they are capable of producing the products to specification and quantity. Finally, both sides want to ensure the finances are fair and agreeable.
What to expect from a BPO feasibility study
As mentioned earlier, a feasibility study should take a comprehensive look at your manufacturing process and business needs. As such, a potential manufacturing partner should bring in a cross-functional team – including manufacturing, engineering, and operations professionals – to conduct a feasibility study for business process outsourcing.
The study team should meet with your internal team and visit your current manufacturing facilities to assess your products, materials, processes, and more. There are many factors that determine BPO feasibility, including (but not limited to): technical requirements, production techniques, schedule and lead times, quality and regulatory requirements, supply chain management, current resources, and institutional knowledge, and other operational or logistic requirements.
At Tapecon, we offer feasibility studies to companies interested in outsourcing their complex printing and converting needs. In addition to following the steps mentioned above, we provide customers with a detailed report and presentation. The findings typically include:
- Portfolio review, including equipment and product SKUs
- Risk and mitigation strategy
- Cost-savings estimate
- Support documentation, including data collection and test results
- Capability assessment
- Recommendations for a phased implementation
After the initial feasibility report is provided, we work with the customer to adjust and finalize the plan before beginning the implementation phase of BPO. To learn more about Tapecon’s approach, download our business process outsourcing case study.
Let’s make something great
With over 100 years of manufacturing experience, Tapecon works with product teams to solve challenges, create products, and enhance lives. Learn more about our outsourced manufacturing services.
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