Automation is defined as taking a process or product, and designing a machine to assist is the making of this product, specifically for the purposes of cutting costs, improving productivity, and improving quality.

Business Considerations

In general, to set up an outsourcing company you must train them to be as good or better at producing your product as you are. Care must be taken to prevent them from being your next big competitor.

Outsourcing companies make their living manufacturing a variety of products. More successful partners will have several products besides yours to stabilize their business. This could cause your product to become low priority. Financial or political difficulties at your outsource can arrive with little or no warning, leaving your company with no means of production.

Issues Regarding Manufacturing

Costs:

• An outsourcing company is another "middle man between you and your bottom line." As product manufacturing matures, vertically integrating can be new sources of profit.
• Outsourcing has the advantage of being a fixed cost under ideal circumstances. But significant problems at your outsource can cause increased cost, delays in shipments, and a decrease in quality.
• Automation allows you to lower your manufacturing costs, and maintain a close watch over your production.

Productivity:

• Automation can be sized to meet your expected levels of productivity. Because it requires little or no manpower to operate (depending on the design), increasing productivity may not require hiring more people. Temporary increased requirements can be dealt with immediately and directly.

Quality:

• A company's value is many times it's expertise in producing it's product. Usually the development process helps identify the weak points. This knowledge base is not easily replaced.