Recently I was involved with a locomotive restoration project. Some restoration tasks were outsourced while some restoration tasks were performed in house and some were attempted to be perfected in house with paid staff. In my opinion you have to draw the line somewhere when it comes to outsourcing tasks (especially in critical repairs) vs. the "learning curve" for paid staff to obtain the same results. "Time" is the standard of measure here.
"Time" can be an issue on several fronts:
"Time" can be a crucial factor when equipment needs to be up and running as soon as possible. 'Faster' usually 'costs more'. If you are lacking the tools and skills (paid or volunteer staff) outsourcing (contracting) is your only option to get things rolling again.
"Time" can also be looked at from the perspective of labor costs alone. If you have the tools and the skills (paid or volunteer staff) already in house, then the amount of time required to perform the work will be low and the overall costs to perform the work should be lower than outsourcing (contracting). A shop's labor cost can drive whether the work is 'outsourced' vs. 'in house'. If you are a 'contractor' or 'job shop' you want to keep your 'turn around time' as short as possible. Short turn around times and competitive shop rates is how you make money here or in the case of a private operation this is how you can save money.
If you have the tools, but lack the skills to perform the work, your overall costs will generally exceed the costs of outsourcing (contracting). This is due in part because the required skills have to be developed ('the learning curve'). The subsequent 'reworking' of the tasks performed are due mainly to quality issues. Eventually the amount of reworking should diminish as skills improve and quality of work improves. This in turn brings a shop's labor cost down because the 'turn around time' is shorter allowing staff to work on other tasks.
Every aspect of a project should be looked at objectively before commencing any work. There are benefits to be gained using a mix of approaches and these approaches should be governed by the project's budget (bottom line). If you are a 'job shop' or 'contractor', you are going to have different goals than a private or museum operation performing regular maintenance looking to trim costs without sacrificing work quality. Most private operations know their in house labor and tooling costs and can quickly determine the best approach. Some museums have adequate tooling and rely heavily on volunteer staff for labor. Most museums have limited staff in key positions to direct either contract employees or volunteer staff. With most museums the "time" factor is directly related to the budget. This is why some projects have a lengthy period of completion. Museums can only afford to do so much with their often limited budgets and limited staff.
The primary thing to keep in mind here is the operating budget for a project. Knowing what you can or cannot afford will determine your project's success, regardless if it's contract work, paid staff or volunteer staff.
Erik Young
Caltrans CEO II, Long Barn Road Crew 664: 2018-Present
Caltrans CEO II, Sonora Road Crew 662: 2015-2018
Caltrans CEO II, Merced West Crew 694: 2010-2015
Engineer/Fireman: Hetch Hetchy & Yosemite Valleys Railway
Engineer/Fireman/Conductor: Railtown 1897 State Historic Park 1996-2010
CMO Dardenelle & Eastern Ry
Operating Engineer: init. 12/1985, IUOE Local #3
'Steam Freak At Large'
Edited 1 time(s). Last edit at 10/14/2009 04:20PM by SandingValve.
