Archived posting to the Leica Users Group, 1999/08/04

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Subject: [Leica] outsourcing components
From: Frank Dernie <FrankDernie@compuserve.com>
Date: Wed, 4 Aug 1999 04:41:31 -0400

DonjR43198
I still going on about the difference between manufacturer and assembler.
The dictionary is hardly a definitive source about industry, which the
compilers probably have no experience of.

I have worked most of my life in the F1 motor racing business. Only Teams
who  manufacturer their own car are eligible for the world champinship
series. Two World Championships are awarded, the World drivers Championship
and the World Championship for Manufacturers. The definition of
manufacturer has been made clear, not least for the obvious legal reasons.
The manufacturer is the company that owns the intellectual property rights
to the design. Ferrari have a $160m budget and 510 people in the F1 team,
they still have many of the chassis parts of the car made by specialists in
England, to Ferrari drawings. Jordan GP have fewer than 100 people. All of
the car is made by specialists to Jordan drawings, they build and race the
cars, carry out their R&D and testing, updating and development. Anyone
suggesting to Eddie Jordan that they were an assembler not a manufacturer
would be tasting a Knuckle sandwich!
Any company whose production volume is less than is necessary for each
machine to be working full time would be stupid to make those parts,
period.
Somebody wrote that if Leitz continued like the old days they would no
longer exist. Well, they DO no longer exist, it is many years since Wild
took over and started bringing procedures upto date. Precision engineering
has come a long way since 1925. Hand finishing parts to perfectly fit was
the only way then. Now it is neither cost effective nor necessary. Racing
engines have developed the same way. It is ludicrous to imagine it being
done today, as recently as the 1950's nobody new any other way.

Cheers Frank