A global steel maker took pride in designing proprietary manufacturing equipment. Management simply assumed that it was thus best positioned to maintain the equipment. Global competition forced the company to evaluate all functions to find cost reductions. When purchasing benchmarked the internal repair cost with outsource opportunities, the economics for third party repair were compelling. Now, several years later, maintenance costs are lower and equipment uptimes are higher.

A medical devise manufacturer outsource the transcription of output information. Due to changes in global communications and an opportunity to tap lower cost labor in Asia, the company set up an internal entity to insure the transcriptions. The results were more control and lower costs.

Best Practice | Case Study | Commentary

April 5, 2000
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