Develop and Validate the Business Case for Outsourcing

This chapter describes the factors a client may consider when deciding whether to outsource. One aspect of the decision is determining the approach to outsourcing: should it be toll manufacturing, contract manufacturing, contract development and manufacturing, or custom manufacturing? The chapter focuses on the workflow the client should use to manage the process safety-related concerns that must be addressed during the decision process. A key tenet of RBPS is that companies should manage their process safety risks according to defined risk tolerance criteria. Before embarking on a search for a broker and potential CMs, the decision-makers in the client organization should discuss and come to an understanding of their business reasons for outsourcing and their expectations for the CM. Whether the process is well developed or only conceptual, the client should recognize and communicate to potential CMs the key process safety hazards and concerns that must be controlled.