Finding the correct precision machining company to make your final products can be an overwhelming task. Thus, when assessing makers for precision CNC machining, screw machining, tooling, or any other sort of manufacturing, it’s imperative to provide weight to multiple standards. With that in mind, there are some dos and don’ts to live by, or to make an honest attempt to think about when making a final choice.
Don’t Focus on Pricing
Many businesses give precedence to cost, which is sensitive to a point. Price centricity is centered on the present budget and how much money you can outlay to the transaction. The thing is that this procedure is based on a single condition of sale, rather than the grand scheme of this project. By way of instance, by relying on cost alone, many producers have resorted to offshoring their production to countries in Asia, such as China or Taiwan. to get more info about Hitachi motor you can visit the website http://www.srwinner.com/product-th-1057638-มอเตอร์%20HITACHI.html.
The brief answer why companies do this is due to the very low direct labor costs that keep down total expenses. Many businesses find out afterward that moving abroad is a lot more expensive than the original ticket price. Fellows Inc. is just one great example of losing large by offshoring. The business shifted production to China through a joint venture with Shinri.
There was a change of hands at Shinri that equated to a significant change in managerial philosophy, and Shinri tried to take over total control of Fellows’ Chinese operation. Shinri required price increases and total equitable control, which was a contractual breach of the joint venture provisions, as well as illegal. After Fellowes approached the Chinese authorities for help in resolving the issue, little help was provided. In a nutshell, Fellowes accrued $100 million dollars in sunk costs.
With international shipping prices and the lag in shipping period from China, companies must often order parts 6 weeks ahead of final assembly in the USA. Components from Asia are ‘sometimes’ plagued with quality problems or product engineering issues due to the communication disconnect with controlling things in America. When you get a product that doesn’t meet quality standards, you’ve lost 6 months of lead time and the initial cash investment.