"Can we request this domestically using the current procedure manual?"
We received an inquiry from a company that wanted to switch from manufacturing products in China to domestic production due to tariff friction. They were concerned about whether it was acceptable to simply use the instruction manuals created for the local assembly plant in China when requesting quotes from local factories in Japan.
If you get an estimate following the procedure manual, the amount won't match.
Instruction manuals for overseas markets specify the division of processes and the order of processing in detail. If you request a domestic factory to perform the work according to these exact steps and order, you may receive a quote that is higher than expected.
The process itself is not wrong. The reason the figures don't match is not because of the procedure manual itself, but because of the way the factory is used, which is the premise of that manual.
The division of the process is determined according to how the equipment is used.
Equipment usage, process divisions, and inspection standards often differ between overseas and domestic markets. Even for the same product, which processes are handled on a single line and where processes are divided will vary depending on the equipment configuration of each factory.
Procedure manuals for overseas markets are structured to suit the equipment and personnel allocation of the local factory. If these process divisions are directly applied to a local factory in Japan, tasks that could be handled in a single factory are often unnecessarily divided into multiple processes and outsourced to the same factory.
When a process is divided into multiple steps, setup changes, inspections, and transportation are required each time. Since small factories in Japan often provide estimates for each individual step, costs tend to accumulate as the number of steps increases.
We'll see how much of the work is entrusted to one company and where it's divided.
When putting together a quote, the first thing we look at is which processes can be entrusted to a single factory. If a factory is skilled in both processing and assembly, entrusting multiple processes to them together reduces the number of setup steps and helps to lower costs.
Another thing we're looking at is the line between supplying parts and outsourcing only the assembly, and entrusting the entire process, including material procurement, to the contractor. Which approach is more advantageous will vary from project to project, depending on the supplier and purchase price of the materials.
- Is the factory capable of handling everything from processing to assembly in-house?
- If parts are supplied, how much will the procurement and inventory effort increase for the supplying party?
- If the process is divided, how much will the number of transportation and inspections increase?
An example of rearranging the process and distributing it among multiple local factories.
We once considered a method of rearranging the processes to suit the strengths of each local factory, rather than simply following the procedures written in overseas manuals.
In one project, we compared two approaches: supplying parts and having one company handle only the assembly, with placing a single order with one company for everything from material procurement to processing and assembly. Because different factories specialized in different parts, we were able to reduce the number of setup changes across the entire process by using both parts supply and bulk ordering for each stage of the process.
Simply dividing the work into different factories without changing the order of steps outlined in the procedure manual will not easily eliminate this duplication of procedures. The structure of the process itself needs to be reviewed to match the configuration of the factories in Japan.
Instruction manuals are not meant to be copied, but rather used as materials for rearranging.
The approach to adapting overseas-specification procedures for domestic use can be applied not only to tariff compliance changes like this one, but to all manufacturing outsourcing projects that shift from overseas to domestic production.
Instead of simply accepting the steps outlined in the instruction manual as the correct procedure, it's better to reframe them as the necessary work processes for producing the product, and then rearrange them to suit the expertise of the factory in charge.
MACHICOCO handles everything from process planning to selecting the processing location.
MACHICOCO is a company based in Higashi-Osaka that manages product manufacturing projects in collaboration with engineers from local factories. They don't own large-scale facilities; instead, they work with engineers specializing in each stage of the process.
When consulting on a shift from overseas manufacturing to domestic production, like in this case, we start by considering how to rearrange the process in the procedure manual, whether to supply parts or place a bulk order, and how much responsibility to entrust to each factory. We can also handle everything from confirming the design details and creating prototypes to planning for subsequent mass production.
When seeking advice, having the current procedure manual and the actual item in hand will expedite the process.
It would be helpful if you could send it when you come for a consultation.
- The overseas instruction manual you are currently using (if any)
- Product photos or actual item
- Drawings showing dimensions (if available)
- Product usage and operating environment
- Expected quantity
Drawings are not required. Even if the processing method hasn't been decided yet, we can consider the manufacturing method while looking at drawings or actual samples.
