Quality
Heiland recounts that during recent site visits in Asia, he
observed instances where the pressure toward cost containment has led some plants in Asia to reuse not only the same
gowns but also the same gloves for up to a week at a time.
“Some Asia cleanrooms are having their soiled gloves and
polyester wipers washed, for re-use up to three times. There is
a limit to reusing disposables, particularly for critical cleaning
applications.”
We would point out that while gloves may be resistant to
chemicals, extensive reuse of what are supposed to be single use
products can also result in breakdown of the glove and perme-
ation by process chemicals. This can lead to contamination of
the product and to exposure of the worker to chemicals.
What will happen by 2020? Miniaturization, concern with
surface quality, and the required level of cleanliness will only
increase over the next six years. Managing critical cleaning,
surface quality, contamination control, and application of
coatings requires exacting, unambiguous, readily understood
written instructions. Adherence to such instructions has to be
part of the contract. It also requires a level of on-site inspection
and auditing. Jones comments that “if you have to station large
numbers of people offshore to watch over the local production
personnel, you have negated at least some of the cost benefits.”
The unexpected
Outsourcing has to be finessed. How, when, and where you
outsource can make the difference between success and failure.
Unanticipated expenses and legalities can negate at least some
benefits of outsourcing. Jones notes that people must realize
that “outsourcing is a double-edged sword. Properly used, it
can be an effective tool. However, especially where you get
close to your value-proposition, the day you move offshore is
the day you give away your business. Particularly in China, you
may end up creating competition that has a negative impact
on your margins.”
“If you look at the Western world,” explains Jones, “there
are the confluences of the rule of law, the relative transparency
in government, an ability to enforce contracts, and expec-
tations of benefits from intellectual property. Companies
moving to other areas and attempting to operate in a Western
manner can be bitterly surprised.” Jones asserts problems with
infrastructure and unexpected expenses can add to costs. In
India, there can be duties and fees as you move from state to
state. In Malaysia, you pay annual taxes up-front when you
open your doors. “Companies may not discover the extra
expenses until they are neck deep in it.”
Rules, attitudes, and policies differ among countries.
Mozolic contends that there is more I.P. protection in India
than in China; and, in contrast with China, the language of
industry is English. On the other hand, explains Mozolic,
what would be called “payoffs” in the U.S. has traditionally
constituted expected business practice in India. This practice
is being officially mandated out of existence; and it is likely to
be eliminated for larger, visible enterprises. “I don’t know how
long it will take to go away, especially for ‘ma and pa’ shops,
because it is a traditional part of the culture; it is not viewed as
Pollution and worker safety
Nash-Hoff adds that by 2020, “more people will be concerned
about pollution. We make artificial borders; but we share
the same air.” She notes that pollution in the northwestern
United States is wafting over from China via the trade winds. 3
Atmospheric modeling links this air pollution from Asia to the
production of exported product. 4 In addition, Asian pollution
can have effects that reach well beyond the West Coast of the
U.S. Looking to the future, related air modeling studies predict
that there will be global climatic effects. 5
Jones also predicts that the social implications of offshoring, pollution, and worker safety concerns will grow. “Look
at the building collapse in Bangladesh that killed more than
