----------
> From: Michael L Gueterman <[log in to unmask]>
>
> Nick,
>
>   I've not looked into the details, but basically HP (as well as
> COMPAQ, and IBM) will have (at least some of) their systems
> assembled by a selected number of their Channel Partners.
> This is being done to reduce costs and compete with the
> likes of Dell and Gateway.  This is a relatively recent event
> (within the last six months) and I'm not sure if it's proven
> itself yet.  If the QC stays high, then both HP and the Channel
> Partners win since the systems can be built and sold for a
> lesser amount while retaining the amount of margin available.
> On the other hand, if QC goes down the tubes, then it will be
> difficult for HP to pull everything back in-house without it
> costing them both in terms of money and good will.

You mean do the subassembles, package them up and ship them
to another plant for final assembly?  This saves money?
>
>
I think HP, Compaq and IBM are nuts if they do it this way.  The
BETTER way is to automate the process from chips and sheet metel
to packaged product, including QC.  Of course some human
intervention is required for the final QC (on an exception
basis).  NOW the manufacturer can get volume production at a low
 cost.

MNSHO.

Nick

[log in to unmask]
My opinions are my own and I stand behind them.

Performance Software Group
Tel. (410) 788-6777 Fax (410) 788-4476