How to Manage Outside Processes Like a Pro, 490
Making Chips Podcast for Manufacturing Leaders
Vertical integration and final thoughts on treating OSPs as partners
Nick prompts future topics; Charlie and hosts reflect on vertical integration tradeoffs and reiterate treating outside processes as critical to delivery success.
Every machine shop relies on outside processes—whether that's heat treating, plating, grinding, or coating. But every time a part leaves your building, your risk profile changes. Quality, timing, and accountability become harder to control. In this episode of MakingChips, the hosts sit down with Charlie Hushek, owner of Phoenix Heat Treating and a newly minted machine shop owner, to unpack what it really takes to manage outside processes like a pro.
Charlie's experience on both sides of the fence—running a generational heat-treating company and now owning a machining operation—gives him a rare perspective on what separates smooth partnerships from painful ones. He shares the top mistakes shops make when sending parts out, how to build lasting vendor relationships, and how to turn your outside processes into a seamless extension of your own workflow.
The conversation dives deep into practical strategies for planning, communication, and documentation, plus how to handle the inevitable hiccups along the way. From establishing fixed processes to verifying incoming and outgoing inspections, this episode equips manufacturing leaders with the tools they need to reduce risk, improve consistency, and strengthen their supplier relationships.
If you've ever lost sleep waiting on a heat-treating order—or had a part fall off a truck—this one's for you.
Segments- (0:00) Highlights from the Automated Shop Conference and the rise of blue-collar value
- (3:40) Introducing Charlie Hushek, third-generation owner of Phoenix Heat Treating
- (5:00) The connection between automation, culture, and building value in acquisitions
- (7:09) Phoenix Heat Treating's transparency advantage: real-time client portal tracking
- (8:19) How each added process increases risk, scrap rate, and lead time
- (10:10) Real-world stories: when parts fall off trucks and lessons learned from it
- (11:26) Building relationships and setting expectations with outside vendors
- (12:57) Why "heat treat per print" isn't enough—clarity prevents costly mistakes
- (15:50) Inviting vendors to planning meetings to align early on risk and tolerance
- (17:45) The value of educating yourself about heat treating and other outsourced processes
- (18:27) Treating your vendors like partners—turn them into extensions of your shop
- (19:36) Relationship-building tips: tours, face-to-face meetings, and yes, donuts
- (20:31) Drill in on your workholding with SMW Autoblok
- (21:15) How clear documentation and fixed process numbers can save time and eliminate confusion
- (26:34) Using ERP systems like ProShop to manage outside processes and supplier specs
- (27:41) Why outgoing and incoming inspections are critical for accountability
- (28:57) Handling disputes over damage, missing parts, or quality issues
- (32:33) How ProShop automates documentation and visual tracking for outside operations
- (35:03) Liability and how heat treaters manage high-risk, high-value parts
- (38:28) The importance of empathy when resolving quality issues
- (39:57) Quoting faster: what information outside vendors need upfront
- (41:46) The "Hot Potato vs. Baton Pass" analogy—how to work as one unified team
- (43:40) Why relationship-building directly impacts quoting speed and quality priority
- (44:31) Eliminate risk by integrating your partners into your process
- (46:41) Make sure you meet us at Top Shops 2025!
- Phoenix Heat Treating's transparency advantage: real-time client portal tracking
- Drill in on your workholding with SMW Autoblok
- Get 20% off your Top Shops 2025 ticket with code MAK20
- Connect with Charlie on LinkedIn
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