Another issue on design outsourcing: what about the other costs?

By _EDN Practical Chip Design

March 1, 2010

Before leaving the question of design outsourcing altogether for this month, I wanted to mention a fascinating point made by operations management guru Charlie Barnhart in a recent Blog posting on his site. Charlie cites a report on a 2009 Apple Computer audit of its suppliers. The company reportedly found 17 types of serious violations of Apple's policies: such things as excessive recruitment fees (a euphemism for child-buying?), under-age workers, illegal disposal of hazardous wastes, and falsified records. The audit also turned up dozens and dozens of instances of lesser violations, including consistent excessive working hours, failure to follow employee safety procedures, pay irregularities, and involuntary pregnancy testing. Apple terminated one supplier over repeat offenses.

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