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Balancing Engineering Resource with Demand
Mike Costen
ASR Principal Engineer Analysis Group
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ASR Articles
- Balancing Engineering Resource with
Demand
- Buying Engineering Services
- Where to Find Engineers When You Need
Them
- How to Meet Automotive, Military and
Aerospace Specifications
Buying Engineering Services
Selecting suppliers for engineering services is significantly different
than that for parts manufacture. As a buyer you select a parts manufacturer
on the basis of price, quality and delivery. In contrast, the overriding
basis for the selection of an engineering services provider is TRUST.
Engineering outsourcing typically requires allowing an outside firm access
to competition sensitive information. In addition, deliverables from an
engineering project are typically drawings or a report. These deliverables
are much more difficult to inspect for quality than a manufactured part.
Often, the quality of the engineering service is not shown until components
are built and tested. This can be months after receiving the deliverable.
Given that trust is so important when selecting an engineering services
firm, you will typically need help from your inhouse engineering staff
in making a selection. Your engineers can size up the outsource firm to
ensure expertise and demeanor is a good match. Unlike parts manufacturers,
the outsource engineering firm will become essentially an extension of
your inhouse engineering department. Giving the engineers a say in the
selection is critical. Ultimately, it is the inhouse engineers who will
judge the engineering services, so they should participate in the selection
process.
Once a firm, has passed muster with your inhouse engineers, you need to
ask the following questions:
- Who has intellectual property ownership of any innovations? The only
acceptable answer is your firm.
- Does the engineering outsource firm currently provide services to
a competitor?
- Will the firm sign a nondisclosure agreement? (2 page two way agreement
is usually sufficient).
- Is the firm insured? This is not usually necessary for mechanical
engineering services, where the OEM generally carries the responsibility.
- Is the same CAD and or analysis software used? (Converting drawings
or analysis files between software is not desired)
If the answers to these questions are all acceptable, then requests for
proposals should be issued. The received proposals must be evaluated in
the basis of price, methodology, deliverable and terms. There are many ways
to design components. A firm that offers to design a component using 1970's
methods should not be considered no matter how low the price. Every OEM
develops proven methods in the design of components. The inhouse engineering
staff should review the proposed methodology to ensure acceptability. Billing
arrangements are typically net 30 days upon the reception of all or a portion
of the deliverables. Up front payments are not typical.
Buying engineering services takes a little more effort than purchasing parts.
However, the benefits of having flexible engineering resources far outweigh
the difficulty.
Michael K. Costen
Principal Engineer ASR Corporation
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