In Danaher's decision on Titanium Brackets, which approach was taken regarding production?

The decision made by Danaher regarding the production of Titanium Brackets reflects a balanced approach to supply management, opting for a gray zone where the supplier handles low volume, high mix parts. This strategy allows Danaher to leverage the strengths of external suppliers for parts that do not require high production volumes while maintaining control over more standardized production processes that can be efficiently managed in-house.

By choosing to utilize suppliers for low volume and high mix components, Danaher can benefit from the specialized capabilities and flexibility that suppliers can offer, particularly in scenarios where production runs are not large enough to justify the investment in in-house manufacturing capabilities. This approach can lead to cost savings and improved responsiveness to market demands, as it enables the company to focus its internal resources on higher-volume production where it can achieve better economies of scale.

Overall, this decision embodies a strategic partnership model in supply management, facilitating innovation and responsiveness while optimizing the production process based on the nature of the components required for Titanium Brackets.