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Outsourcing Dilemma at National Electronics

CASELET, OPERATIONS AND PROJECT MANAGEMENT
ET Cases, 2 pages

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Outsourcing Dilemma at National Electronics

 

National Electronics, a Chennai-based, electronics parts manufacturing company had an illustrious client list which included major companies like Micromax, HTC and Nokia. The company was setup in 2011, by Chris Xandu (Chris) with an aim to become one of the leading electronics component suppliers in India. To achieve this aim, Chris strategized to supply zero defect parts to his customers. He setup a quality control committee, comprising of a Production Engineer and Quality Engineer, which planned to implement statistical process control and hence initiated reverse engineering of each and every process in manufacturing. As of 2013, the company started exporting too and also nurtured its mission to become a billion dollar company by the financial year 2015.....................

Teaching Note Preview

Outsourcing Dilemma at National Electronics

 

Synopsis

This caselet enables an understanding of the application of factor rating to evaluate outsourcing providers. The caselet provides a brief about the dilemma of choosing a supplier at National Electronics, a Chennaibased electronic parts manufacturing company. With an aim to focus on core products, the company decided to outsource some of its production. Upon request for bids, four suppliers responded. Now, the company Founder Chris Xandu has to finalize the outsourcing supplier based on certain criteria. He enlisted the assistance of an expert, Gopal Verma for this assignment. Gopal Verma had to find a precise  method to select the supplier for outsourcing.

Expected Learning Outcomes

  • • The basics of outsourcing
  • • Factor rating to evaluate outsource providers

 

Prerequisite Conceptual Understanding

The participants were asked to read the following chapter given as mandatory reading at the end of the caselet to participate effectively and to enrich the learning outcomes:

Jay Heizer, et al., “Supplement 10: Outsourcing as a Supply Chain Strategy”, Operations Management, 9th Edition, Pearson Education, 2008

Case Positioning and Setting

This caselet can be used in MBA/Executive MBA program for Operations Management course to illustrate the concept of Outsourcing.

Assignment Questions

  • I. Using the un- weighted factor-rating method, which Supplier should CEO select based on risk avoidance?
  • II. If the Supplier 2’s ratings for “Quality” and “Price” are each lowered by 50%, will your answer to the previous question (Assignment Question no. I) change? If yes, how? If no, why not?
  • III. ..............

 

Suggested Orchestration

The classroom discussion and analysis for this caselet could be summarized and facilitated under two broad sections [Exhibit (TN)-I]....................

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Abstract


This caselet enables an understanding of the application of factor rating to evaluate outsourcing providers. The caselet provides a brief about the dilemma of choosing a supplier at National Electronics, a Chennai-based electronic parts manufacturing company. With an aim to focus on core products, the company decided to outsource some of its production. Upon request for bids, four suppliers responded. Now, the company Founder Chris Xandu has to finalize the outsourcing supplier based on certain criteria. He enlisted the assistance of an expert, Gopal Verma for this assignment. Gopal Verma had to find a precise method to select the supplier for outsourcing.





Pedagogical Objectives


  • To understand the basics of outsourcing

  • To understand and use factor rating to evaluate outsource providers


Case Positioning and Setting

This caselet can be used for MBA, Executive MBA or Executive Development Programs to highlight the following course:


  • Operations Management course - Supplement 10: Outsourcing as a Supply Chain Strategy - To understand basics of outsourcing and analyze how to evaluate the suppliers.




This Case Pack Includes:
 - Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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