Manufacturing Outsourcing as a Strategy for Increasing Production Capacity and Reducing Production Costs

Abstract

This study addresses the increasing demand for smartphones in the electronics industry and the need for manufacturing expansion to meet this growth. Outsourcing production was analyzed as a strategy for cost optimization and increased business process efficiency. The article proposes an empirical outsourcing model for manufacturing in an electronics company within Brazil’s Industrial Hub, aiming to expand production capacity without requiring new facilities. The research utilized the action research methodology, divided into three main stages: concept analysis, empirical methodology construction based on company needs, and practical implementation. Results indicate that outsourcing led to a 14% increase in production capacity and a 15% reduction in manufacturing costs per unit. The study provides a model applicable to companies seeking to expand operations without significant infrastructure investments.