books by Ron Plachno  




Mostly a direct quote from the book:

Many Americans believe from their newspapers that outsourcing is always bad. That is not always true. For example, one could outsource to another company within their own country. And if so, the harm is where? And the answer is that there is no harm. Perhaps if one outsources the right items then the result is that the most efficient company then always works on the correct items and perhaps we all win.

Summary of more logic in the book:

The real problem, perhaps, is that some people outsource the wrong things, or to the wrong place, or outsource too much, or in fact do not even do a valid cost comparison. We should never outsource the skills that make our business the great business that it is, only the added "side" items that simply must also be done. As for doing a proper financial study, I have been two places, one medium size company, and one huge corporation, and still have not ever seen a valid study. Often someone high up just decides to outsource since labor costs will be lower. Perhaps. But also inventory costs may be higher if the place is not very nearby, and transportation costs for engineers or business people may be much higher, and you might lose speed to market or speed to change or speed to fix issues. There is more to consider than labor costs. One thing to consider.. is that I know of at least one company that went out of business after doing much outsourcing. Was that the only reason? Not likely. But it seems clear that it did not help.


Book: Strategies I Learned Becoming A VP   Book: Strategies I Learned Becoming A VP

During my career, back when Motorola was a huge thriving company with I heard some 150,000 world wide employees, I went there from perhaps being the lowest paid engineer on staff to becoming a Vice President. And that was not an honorary title only, but a Vice President in charge of Manufacturing or Engineering of both for a large division with perhaps yearly a billion US dollars in sales. How did I do that? Well, I realized I was not born with this knowledge. I learned it from many people along the way, and tried to decide what information I was being told made sense and what information did not make sense. And I learned from some people.. who I thought were great in business. And so what is the point of this book? My goal is simply to pass on business information to others as best as I could, in order to help others who may come after me. Yes, times change, and some may have to modify the strategies here as the world continues to change. But logic does not change. And you might just find this book a good help at a reasonable price.


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