To Grow With Peace of Mind: Outsourcing Operations - Development and Production Solutions

"One of the things that distinguishes us is our design-to-cost approach: we take into account future production costs already in the product development stage." Providing clients a comprehensive development and operations package uniquely tailored to their specific needs. Another important advantage is that Outsourcing Operations is a single team of highly professional individuals, each with a different expertise in order to offer a wide range of solutions from an in-depth vantage point.

In 2008, during the global economic crisis, Nir Hertzman's life was at a crossroads. Although he was the VP Operations at a high-tech company, like many others, he lost his job. Hertzman quickly found himself searching for a new job, but that proved more of a challenge than expected. "While I was looking for a job, my wife encouraged me to do something on my own," Hertzman recalls about the events that led him to start his own business. "After much deliberation, I decided to give it a chance. I met with CEOs and Operations VPs. I learned what their needs were, and discovered that they mostly entailed issues with Operations in startup companies that are transitioning from development to production. They needed someone capable of seeing the bigger picture – what will happen in the future and how to reach that goal, yet at the same time, someone capable of carrying out urgent actions instantaneously so that things will happen."

Hertzman realized that he should utilize the extensive knowledge he had accrued, which combined operational experience with technical know-how, and serve as both an operational and manufacturing engine. "I started making phone calls and made passionate marketing pitches to all who would listen and eventually I managed to sell my services. After I amassed clients, the business came to life and its activities developed according to the clients' requirements."

Today, Hertzman heads Outsourcing Operations, a business that provides a range of services to startups related to technological production lines: product development, outsourcing of operations management, transitioning from development to production stages, establishing production lines in Israel and around the world, strategic planning for operational infrastructure and setting up the company's customer service. Hertzman's clients include a roster of companies, including MedoVet, Itamar Medical, Greeneye Technology, PiXcell Medical, and Polyron.

"I saw that many companies that already reached the production phase could not obtain the required parts as scheduled," Hertzman describes establishing a production department. "The parts that didn't arrive caused delays in assembling the products. The company had fixed costs, but in actual fact it didn't make any progress with the product's development or production. I realized this was a pain point and found business partners in Israel and in China to produce these parts. Today I manufacture parts according to a rapid timetable: machining parts & metal sheets parts are produced within three weeks, compared to the standard in Israel of around three months; high pressure injection molds for plastic parts take six weeks (for T1), compared to the industry standard of 3-4 months. Although the cost is slightly higher, the product is obtained significantly faster and in high quality . This saves money for the company and enables it to adhere to the timetable to which the CEO has committed," he elaborates. "There are large companies in the industry that come to us with an initial idea," Hertzman says, describing the work process. "We take the idea and carry out the entire process from the beginning. First of all, we try to understand the company's wishes and the need for the product, and then we help to write the marketing and technical. When necessary, we even develop the complete product for the company – from plastic and metal parts, to electronic boards and software – up until there is a working prototype."

What distinguishes you from other companies in this field?
"One of the things that makes us unique is the design-to-cost approach, whereby we consider the future production costs already during the product development phase. This enables us to select components and production technologies whose prices suit the cost we defined in advance. Many companies design prototypes which only take into account technical needs without checking the cost of serial production, components availability , and their compatibility with applicable regulations. Thus, a product whose final cost is estimated at around $100 bends up being much more expensive because of a failure to choose the correct parts and because the ramifications of serial production were not properly evaluated. Sometimes, additional planning is required to adapt the product to the serial production process or to regulatory requirements. At Outsourcing Operations, we include the manufacturers in the development process, checking at each stage what the serial production costs would be, and always assessing whether we are conforming with the targets we set as far as costs and performance are concerned. The selected components are also evaluated in terms of their availability and from a regulatory perspective."

In addition, Hertzman talks about the services that the company offers during the transition from product development to production. "We manage the entire NPI process and establish production lines in Israel and around the world," he says, adding "this is how we build a production infrastructure for clients, enabling them to grow and to support the company's marketing and sales operations. Later, we manage all the operations through outsourcing: procurement, production, and service for the companies. For some of our clients, we provide required services and support for purchasing components and manufacturing parts within a short time frame.

We offer an immediate solution for rapid procurement, production and product assembly, product installation in Israel and around the world, as well as servicing these machines in the field. Moreover, we offer a strategic view on how production and service infrastructure should look in the future."

What are the other teams you work with?
"This field involves tough challenges. As a result I must have the most adept professionals on board. All teams involved – the suppliers and manufacturers – have been my business partners for years. The development team has been working with me for seven years. The manufacturing partners in Israel and China have been working with me for over a decade. My role is to integrate all the parts and maintain synergy among all of them, in other words, managing the 'system engineering.' I make sure everyone is synchronized up to the finest detail, and manage the project, the timetable and the budgets. The client receives an entire package that is unique and adapted to their requirements, in the areas of product development and operations. The major advantage is that a single team provides a range of solutions – viewing everything meticulously and carrying out the project in an optimal and highly professional manner." Furthermore, Hertzman is also responsible for establishing an operations team in the companies that he assists, while securing long-term connections and creating productive relationships with manufacturers and subcontractors.

"At the end of the development and production process, I help the companies recruit their operations teams – production workers, production managers, procurement managers, operations managers and service engineers – which suit their needs and will be able to support the company's activities. I train and mentor each team, with the aim of maximizing its management capabilities and its teamwork within the company and with its suppliers. In some cases, I set up departments from scratch. The goal is simple: at the end of each project, when I part ways with the company, a trained and independent team must be in place that knows its job to a tee and will be able to continue on its own. It's important that they are no longer dependent on me or my team. It's also important to maintain a complete transparency regarding the price and the subcontractors with whom Outsourcing Operations works."

www.operations.co.il
054-6416417

Partnered with Outsourcing Operations