So, you want to outsource your manufacturing. How do you qualify EMS providers?

Production technology

A. Equipment condition

1. Equipment adds to cost, cycle time, or limits
2. Some equipment in good working condition
3. All equipment is current design/rev with state of the art capabilities

B. Capable production equipment (important to also note ‘core’ competencies)

1. Equipment is not capable of producing product to the technology needed
2. Most equipment is capable of producing product to the technology needed
3. All equipment is capable of producing product to the technology needed and is best-in-class

C. Software (i.e., CIM, CAD, FMEA, CAM, DFM)

1. Not evident
2. Software in use is adequate enough to handle some of our designs
3. Adequate CAD/DFM software in place as well as an automated shop floor MRP system

Process

A. Work Instructions

1. No work instructions exist or, instructions are inadequate or, do not match customer specifications
2. Work stations/work cells clearly defined, illustrated work instructions exist but are not thoroughly documented or, they do not match customer specifications
3. All processes have defined work stations/work cells; illustrated work instructions exist and are followed and, match the latest issue of the customer specifications

B. Process set-up checklists

1. No process checklists in use
2. Process checklists implemented on most processes (>50%)
3. Process checklists implemented on all processes are documented with current procedures

C. Statistical process controls (SPC) implemented

1. No SPC in use
2. Some SPC in place
3. SPC in place for critical processes with needed adjustments being monitored

D. Production-related preventive maintenance (PM) program

1. PM procedures do not exist
2. PM procedures and schedules exist, records are available
3. Evidence of proof, mean-time to assist, is used to determine the correct PM intervals, no non-conformances found

E. Product, process change control (triggered by engineering/process change orders – ECO)

1. Change product/process not controlled
2. Change product/process controls exist for all manufacturing areas, are followed, records exist, and customer’s are informed of changes
3. Pro-actively informs customer prior for change and seeks confirmation and written approval before change(s) is made

F. Calibration of factory test equipment to standards

1. Equipment is not in calibration
2. Calibration procedure with some schedule, inventory, and recall systems exists, no deficiencies found
3. Calibration intervals are determined through analysis; and where required by manufacturer all calibration occurs in a temperature and humidity controlled environment

G. Defect tracking, reporting

1. No defect tracking in place
2. Defect data tracked for some (not all) processes and is compiled but not acted upon
3. Defect tracking is in place at all test/inspection gates, data is compiled and prioritized (pareto’d), corrective actions are shared monthly/regularly with senior management and customers, improvements can be observed

H. Non-conforming material handling control

1. No procedure and/or no control exists
2. Procedure exists to control and segregate non-conforming material, some non-conformances observed
3. Procedure exists to control and segregate non-conforming material, NO non-conformances observed

I. Cycle time reduction program

1. No program documented
2. Documented plan exists for the business which focuses on cycle time reduction
3. Documented plan exists that drives entire operation to a specified cycle time improvement goal and records exist which show progress to the goal

J. Manufacturing process avoids hazardous and environmentally sensitive materials

1. No consideration
2. Monitored with metrics to goals
3. No usage of hazardous and environmentally sensitive materials

Employee training

1. Evidence of internal training does not exist
2. Evidence of internal training exists, and a training plan and matrix are in place, some non-conformances found
3. Records of all training, internal and external, are available including topics on problem solving, quality techniques, and customer satisfaction programs; no deficiencies found

A. Cross-training/job rotation

1. No evidence of cross training or job rotation
2. Training in place for some key factory operations
3. Cross-training in place for key (customer/supplier-defined) facility operations and, promotes job rotation

B. Manufacturing operations training

1. No substantial records found
2. Qualified vocational programs in place (i.e., specific skill training)
3. An organized, progressive, career plan exists and encourages multiple vocation skill sets for employees

Materials management (See: 80 Metrics to focus EMS provider materials management and increase profits)

A. Supplier’s supply base control

1. No controls in place
2. Revision-controlled preferred supplier list exists
3. On-site external supplier audits occur and a revision-controlled preferred supplier exists
4. Quality reviews occur, on-site supplier audits occur and, a revision-controlled preferred supplier list exists
5. Quality reviews occur, on-site supplier audits are conducted, a revision-controlled preferred supplier list exists and, the supplier has a documented process and pro-actively pursues external supplier certifications for some major commodities

B. EDI capability for customer shipment requirements (i.e., Schedule Sharing, Oracle)

1. None
2. Demonstrates some EDI of data (i.e., batched transactions)
3. There is a seamless transition of product to the customer facilities without manual entry of data or any other manual intervention

C. Material Handling Control

1. No handling control in place
2. They have a procedure which is not fully implemented (i.e., FIFO but inadequate storage)
3. There is a procedure with full inventory control (i.e., storage, ESD, storage conditions, handling, shelf life)

D. Material Planning System

1. No system or is manually done
2. Fully integrated material planning, inventory, tracking, and shipment system are in place (i.e. MRP, ERP)
3. Fully integrated system – ‘order-to-cash’ – in place (i.e. SAP)

E. Work in process (WIP) inventory management

1. No shop floor control system exists
2. Partially automated or manual shop floor control system exists with special attention to inventory reductions systems and on-time customer deliveries
3. Continuous process flow exists utilizing automated and on-line tracking of customer orders which aides in reduction of overall manufacturing cycle time and immediate defect prevention and on-time customer deliveries

F. Inventory turns

1. No plans to track
2. Tracked, but no corrective action taken
3. Tracked with goals and evidence of improvement plans

G. On-time delivery (OTD)

1. No plans to track
2. Tracked, but no corrective action taken
3. Tracked with goals and evidence of improvement plans

H. Purchased material qualification & certification

1. No documented process in place
2. Documented procedure has been implemented and some evidence of purchased material qualification exists
3. Documented procedure has been implemented and pervasive supplier qualification and certification records exist to demonstrate on-going management

I. Internal, proactive cost reduction programs

1. No programs exist to pursue cost reduction opportunities
2. Supplier has demonstrated limited cost reduction opportunities based on proactive, internal research
3. Supplier, pro-actively pursues cost reduction opportunities in the areas of shipping, packaging, etc. and, has more than one year of cost data to support

J. Open-book accounting

1. Does not participate
2. Pro-actively shares handling, test, and material costs
3. Pro-actively shares handling, test, material, and manufacturing cost

K. Material control traceability

1. None
2. Uses date/bar code serialization or batch controls
3. Has positive identification, verification, and documentation of all material used in the products produced

L. Quick turn delivery

1. Supplier does not participate
2. Some quick turn capability exists
3. Quick turn capability exists in a dedicated facility with dedicated resources (i.e., equipment, funding, people)

M. Bar code, RFID labeling

1. Does not bar code, does not use RFID
2. All shipments are bar coded
3. All shipments are bar coded per ‘customer’ specifications