Posts Tagged ‘off shoring’

Sustainable Efficiency

October 8, 2013

“Designed in California and Made in China” or “Designed in Cambridge and Made in China”.

What do these source declarations reveal? Do they show the companies optimized their inputs for sustainable outcomes to create stakeholder success?

Efficiency can be shortsighted and remorseless. Since the 1980s, developed economies have exported jobs to take advantage of much lower wages. Outsourcing to factories based thousands of miles from customers in the name of efficiency. Considering only the wage costs and the transportation costs can result in half-baked decisions to offshore manufacturing.

What could go wrong? Chasing efficiency with incomplete reasoning is not true efficiency. Sustainable efficiency is much more complicated. Sustainable organizations work to ensure their business networks to address the needs of all stakeholders.

The Raspberry Pi Foundation soon found their costs were higher than they had hoped. Their shoestring venture had to make and sell 10,000 computers at $50 each before ordering another 10,000 units. So many units had failed to meet requirements that the Foundation had to pay for quality control oversight in China to get computers as designed. Nonconformity costs had threatened to sink the fledgling venture.

The Cambridge-based Foundation went back to the drawing board to continue their reasoning and costing including the nonconformity costs. They then opened a Raspberry Pi factory in Britain. Run by Sony, British workers are expertly baking these tiny educational computers in Wales.

The Foundation has now sold 1.75 million basic little computers but it cannot stop improving. The educational computer outstrips the computing and programming skills of their teachers. Many of whom have not ventured far beyond their tablets or packaged software programs.

By engaging more stakeholders to understand their needs, we may see a sustainable future for the Raspberry Pi enthusing future engineers of computers, software and the web. Moreover, failing to recognize and meet stakeholder requirements the first time will probably decrease overall efficiency.