Definition
Outsourcing is sending a specific operation, such as heat treatment, plating, or a specialized process a factory doesn't have in-house, to an external supplier, while the rest of a part's routing stays in-house. It's one possible outcome of a make-or-buy decision, applied at the operation level rather than to an entire part.
Why outsourcing adds schedule risk beyond its direct cost
An outsourced operation adds its own lead time and cost to a routing, and often introduces a logistics step (shipping a part out and back) that an in-house operation wouldn't need, which is why it can add more schedule risk than its direct cost alone suggests.
Where outsourcing requirements come from
Implied by a requirement, such as a specific heat treatment or coating, that a given factory doesn't have the in-house capability to perform.
Common mistakes
Underestimating the added lead time and logistics risk of an outsourced operation, treating it as if it fits into the schedule as smoothly as an in-house step.
An outsourced operation adds its own lead time and cost to a routing, and often introduces a logistics step (shipping a part out and back) that an in-house operation wouldn't need, which is why it can add more schedule risk than its direct cost alone suggests.
See how Blake reviews a partFrequently asked questions
Is outsourcing the same as buying a purchased part?
No, outsourcing is sending one operation on an otherwise in-house part elsewhere; a purchased part is an entire component bought ready-made.
Why does outsourcing add schedule risk?
Because it typically requires shipping the part to and from the external supplier, adding logistics time on top of the supplier's own process time.
What operations commonly get outsourced?
Specialized processes like heat treatment, plating, or certain coatings that a factory doesn't have in-house capability for.