(888) 860-1193

https://www.ventureoutsource.com/contract-manufacturing/everything-know-about-oem-ems-program-management/

Everything you need to know about program management for outsourcing electronics manufacturing

By Mark Zetter

Stop losing money with bad materials management. Learn what’s important to contract electronics manufacturing (EMS) providers in OEM-EMS relationships and manage manufacturing supply chain operations more effectively.

 

This article is dedicated to the OEM program manager.

Its of little surprise to decision makers responsible for outsource manufacturing strategy and supply chain performance that sound management of materials purchasing and materials cost of good sold (MCOGs) are important areas technology companies allocate a great deal of focus.

In fact, electronics materials management and optimizing the management of functional groups supporting technology manufacturing are both so important that numerous companies (and entire industries) have emerged eager to help improve your company’s tracking and management effectiveness in these areas. Think: software vendors specializing in ERP; PLM, SRM, CRM and sales and operations planning (S&OP), financial planning and analysis (FP&A) …

 

Expand your provider search

 

Invest in your career
By carefully reading through this article and closely examining the linked content located throughout, you will understand 90 percent of what being a program or project manager in the electronics industry is all about.

 

READ
Understanding the OEM RFQ process and best practices
4 types of contract electronics manufacturing agreements
Manufacturing problems: Tracking and resolution
More articles on program management
Manufacturing contracts, RFP/RFQ templates, design contracts, supplier evaluations

 

Getting started
The following examples are from recent, actual working engagements with program management teams inside EMS providers. Engagements focused on improving program management sense of urgency while paying closer attention to managing the profit center in OEM customer programs.

This article salutes program managers everywhere. As decision makers in the electronics industry you already hold some of the cards directly related to your company’s success. We want to reward you with another type of card, here.

This article reflects the perspective of a senior EMS program manager helping other EMS program management staff within an EMS provider set strategy for effective EMS programs and materials management of OEM customer accounts.

 

Manage OEM quotation packages
EMS program management obtains the most relevant (and current) BOMs for all assemblies which are then used for:

  • Calculating monthly [$] material demand
  • PPV analysis
  • Creating and managing leadtime charts based on findings
  • Determine critical or allocated parts

 

Find electronics NPI services
Go

In your search results, you will be able to further target options by choosing 'Markets', then selecting Go.

 

OEM orders and forecasts
EMS program management collects details for current OEM orders and current forecasts which is used for:
1. Check against ERP and work or purchase orders
2. Verify material lined up to support orders and forecasts
3. Calculate monthly [$] materials demand
4. When ordering against forecasts advise program management of material liability

  • Ensure material is underwritten by customer
  • Do not order materials against forecasts if it is not underwritten by the OEM. Requests must be seen in writing / email. Verbal requests are not sufficient, either from program management or from the customer

 

New OEM orders from existing programs
EMS program management supplies EMS purchasing copies of all new orders which are then used to:

  • Check raw materials pricing (costs) and requested vendor delivery dates
  • Compare with forecasts, advise materials of implications of any mismatches
  • Confirm orders are consuming the forecast
  • Status critical parts and long leadtime items
  • Within two (2) days receiving orders, advise program management of anticipated start date for the order
  • Ensure order is entered into system in-line with start date before actioning ERP
  • Measure performance against agreed on completion dates from program management, planning, and manufacturing

 

Rescheduling
Treat OEM reschedule requests similar to new orders, taking the following actions:

  • Compare existing date with new request date
  • Schedule pull-ins: status material and advise a start date
  • Schedule push-outs: calculate the value of inventory being held
  • Get appropriate EMS functional groups in decisions whether to charge inventory carrying costs
  • Respond to reschedule requests within two (2) working days

 

 

 

 

Find manufacturing services
Go

In your search results, you will be able to further target options by choosing 'Markets', then selecting Go.

 

Engineering changes
Engineering changes can typically involve replacement of one component / part with another. In such instances take the following actions:

  • Status the price and availability of the replacement (new) part
  • Status the stock-on-hand and the stock-on-order of the deleted part(s)
  • Advise program management of new part cut-in date, any obsolescence costs

 

Then submit new BOMs to program management, who then submits new quotation(s) to the OEM along with an effectivity date. Again, make sure you receive revised customer orders for assembly work plus any obsolescence costs.

READ FULL ARTICLE: Full content is available to logged in electronics OEM site users only. Registration is free. If you are an electronics OEM professional working in an electronics OEM company please Register or Log In.






Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

Add your comment

Comments

Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

TIP: Anyone can post article comments whether or not you are registered. But, if you register or log in you can attribute your posts to your user profile in GlobalNet Community.

Your email address will not be published. Required fields are marked *


*


*

You might also like:

Sourcing Managers & Category Managers Best Practices for Outsource EMS Manufacturing

Provider spotlight

About VentureOutsource.com

VentureOutsource.com is the leading online destination helping electronics OEM decision makers make more informed decisions and reduce risk. We offer educational Webinars, thousands of original articles and helpful tools, a community of influencers who understand the challenges facing your company today, and a comprehensive directory of electronics provider services.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions please contact VentureOutsource.com at 1-888-860-1193 or visit www.ventureoutsource.com