Sample Essay

If a decision was made to outsource the manifold manufacturing, then the overheads of the Bridgestone Industries will show significant difference and even reductions in the level of overhead costs. The overhead pertaining to the wages and benefits for the non skilled personnel would decrease as the outsourcing of the product line would reduce the need for the non skilled personnel in the capacities of trucks and janitors by a small percentage level. The overhead associated with the salaried personnel, including the benefits would also decrease as there would be no need to hire or pay personnel to work on the manifold line.

The production supplies overhead which includes production gadgets, tools and equipment like gloves, safety goggles and packing material etc would also reduce as the manifold line would not require such production supplies if outsourced. The overheads associated with the small technical tools would also reduce as the need for such tools would no longer be presented by the manifold line, if the line is to be outsourced to a third party.

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