Subcontracting Or Outsourcing
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Overview: Because of the increasing complexity of valve design and construction, meeting customer demands would steadily become more costly. Currently, Burkes investment in tool cutting was limited to old style lathes and drilling equipment. Introducing the entire range of computer aided cutting equipment into the area would place a substantial cost burden on the company. The plan indicates that the tooling problems facing the company faced would inevitably increase, as both the number of customers and the depth of product range grew.