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Discover the advantages of subcontracting in product development as discussed at the AIA Spring Conference on May 12, 2004. Key benefits include reduced costs from lower overheads, minimized financial risks through fixed-price contracts, and better management of workload fluctuations. Learn about the importance of local subcontractors, access to essential resources, and how to partner effectively with internal organizations to maximize capabilities. This presentation outlines methods to enhance visibility into performance and prioritize engineering and manufacturing resources strategically.
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Tech Pubs Partnering Drex Rutledge AIA Product Support Committee Spring Conference 12 May 2004
SUBCONTRACTING BENEFITS • Normally lower cost (reduced overheads) • Fixed-price contracting reduces financial risks • Reduces workload peaks and valleys
Product Liability Retained by Developers Visibility into Performance with Ability to Adjust Priorities Ready Access to Engineering and Manufacturing Resources In-House Benefits to an OEM
Current Partnership Arrangements • Local Subcontractors – • Surge Control; Full or Partial Manuals • Some illustrations Graphics Support • Printing Services • Vendors – • Database Administration • Authoring/Graphics Software • Internal Organizations – • Cross-Site Work Sharing • LM EIS for computer systems support & programming • LM NESS for ETM and Viewer technology support
Long Range Business Strategy • Support Fluctuations in Workload Through Subcontracting • Partner with Internal Organizations to Maximize Resources • Utilize Specific Support Specialties for Short-Term Needs (Data Conversion, etc.)