||In an era of extreme competition and pursuit of economic success, the competition between corporations has extended to the integration of supply chain management in search of economic leverage over their competitors. Today, outsourcing is deemed as an integral part of supply chain management and increasing number of companies use outsourcing as vital elements in their business strategies. Companies having an established and cooperative supply chain will enhance their competitive strength. |
As a manufacturing company, outsourcing is closely tied with production management and treated as an extension of one's own manufacturing capacity. However, manufacturing companies are faced with unique outsourcing problems; such as manufacturing delays impacting and requiring rearrangement of one's own master production plan as well as resulting bottle necks caused by parts shortages and idle capacity while waiting for parts.
This thesis focuses upon methods that can be taken both in-house and at the outside production provider to reduce the bottlenecks and avoid idle equipment capacity to assure the specification compliant parts are available in the right quantity at the right time to ensure the product throughput necessary to promote the company’s competitive strength.
This thesis incorporates the Thinking Process of Theory of Constrains in developing the proposed solutions to eliminate the undesirable effects and core conflicts associated with Outsourcing Subcontract Management at Aero Engine Factory of the Aerospace Industrial Development Corporation. The proposed Real Time Platform of Collaboration Manufacturing System principally includes the use of; Material Pre-release Notices, Daily Work Orders & Sequence Monitoring, Supplier Non-compliance Reports, E-technical Data & Drawings, E-receiving & Inspection, Supplier Performance Evaluations with TDD concept, Tooling & Fixture Borrowing, and Training & Certification.
The proposed method has proven effective in reducing outsourcing cycle time by 32.71% and has improved the on time delivery rate from 84.32% to 93.81% and the date of late delivery from 1.24 to 0.22 in average from the study period between January 2009 through November 2009 according to data collected by Aero Engine Factory Outsourcing Team.