Expectation, learning and Challenges with

Flextronics
Expectation
Cost cutting through outsourcing production
from relatively high labor (USA, Switzerland) cost
to low labor cost countries
Reducing the complexity of the LEGO production
and organization through standardizing and
documenting work routine
Expectation of developing new capabilities,
getting more competencies, knowledge about
plastic and technology
Reduce risk of production price fluctuation

Learning
Outsourcing is not always the best solution for
cost cutting
It takes more time to educate people than we
had expected - Knudstorp (CEO)
Documentation of work processes,
communication, interface between activities are
important while working on another country
even within the same company
Co-ordination and collaboration between
companies plays key role in outsourcing

Challenges of maintaining the relationship with Flextronics
Solve work environment conflict between LEGO flexible and Flextronics stable and predictable operations
Maintain co-ordination and collaboration between both companies