GlossaryKind of term: Manufacturing termSubcontract operation
What is a subcontract operation?
A subcontract operation is a step in the route that an outside company carries out on the part, such as anodising, hardening or coating.
It concerns parts you make yourself: a part bought in complete is not a subcontract operation but a bought-in part. Common examples are anodising, hardening, stress relieving, coating and nickel plating, but also grinding or wire EDM when you do not have them in house. The part leaves the shop for that step and comes back for the next operation or final inspection. In the estimate the step has its own line with the supplier's price.
Where does a subcontract operation sit in the route?
Its place in the route follows from the operation. Hardening usually comes before grinding, because the part can distort during heat treatment; anodising and other surface treatments are often the last step. A coating can add to dimensions, and heat treatment can cause distortion. That can call for an adjusted dimension beforehand, a grinding allowance, or masking of fits and threads, depending on the requirement and whether it applies before or after treatment.
How does a subcontract operation work in practice?
A subcontractor's price often depends on pieces, weight or surface area, with a minimum per lot; on small quantities that minimum can set the price per part. The step also costs lead time, transport, packaging and incoming inspection on return. Those belong in the estimate or a mark-up, and the lead time belongs in the delivery date. If the price is still missing, keep the line visibly open rather than zero: a zero makes an incomplete cost look complete.
What is a subcontract operation often confused with?
A subcontract operation is not a bought-in part: subcontracting means someone else does one step on your part, a bought-in part is bought complete, such as a bearing or a bolt. Nor is it subcontracting the whole part; that trade-off is make or buy.
How do you see a subcontract operation in Blake?
In Blake a subcontract operation such as anodising, hardening or coating is its own line in the estimate, priced from your own subcontract library. If that price is missing, the line stays flagged as open and does not count as zero. More on estimating.
Frequently asked questions
How do you cost a subcontract operation?
With the supplier's price per piece, kilo, surface area or lot, and the minimum per lot where one applies. Add transport, packaging and incoming inspection, as a line of its own or as a mark-up on the subcontracted amount.
Why leave a missing price open rather than zero?
Because a zero cannot be told apart from free. An open line shows the cost is not yet complete, so nobody bases a quote on an incomplete estimate by mistake.
Does a subcontractor's lead time count towards delivery?
Yes, including transport and queueing at the subcontractor. When a finish is the last step, that time often sits on the critical path to delivery.