Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

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Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

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What quality-minded manufacturers want from supply chain vendors

By VentureOutsource.com Staff


The automotive industry prides itself on discipline when it comes to JIT vendor and supply chain management. But ERP systems even failed auto manufacturing supply chain executives when Covid hit since all the ERP vendors were doing was just collecting data automotive – and other manufacturing customers – was providing to them, following by these ERP systems then performing only some minimal value added capabilities for their customers.

As manufacturers emerge from an unprecedented global lock-down, vendor inventory management systems are facing scrutiny in the face of the corona virus pandemic. Promises of lean manufacturing are leaving electronics OEM equipment manufacturers with massive write-downs.

Manufacturers are re-thinking their Industry 4.0 project plans and prioritizing strict cost discipline. Today, managing manufacturing spend and cost reduction is top-of-mind for manufacturing supply chain executives focused on cash conversion.

Quality and manufacturing productivity seem to be in a constant struggle. The faster you want to speed up production, the more likely you are to have manufacturing quality issues. Whereas, raising objectives for product quality may be more likely to adversely effect your productivity objectives. (View mandatory quality processes for EMS manufacturers here).

Below are key areas manufacturers should consider when identifying quality-minded suppliers. Each of these are further broken down into considerably more detail which we may do in a later article.

Fast response

Problem solving, communication, and lessons learned. Does the supplier have a system in place to immediately respond to significant internal and external quality failures. An example here is having daily leadership meetings that address significant quality concerns. Manufacturing should own this process and designate owners, assign report cause and effect dates. Also includes cross-functional, multi-level attendees on both sides, OEM and EMS. (Read about contract manufacturing quarterly business reviews here).

Control of non-conforming material

How are materials and product that do not conform to specified requirements prevented from unintended use? Any forms used for containment of non-conforming materials must identify expected quantity and locations of suspect material. Accompanying this would be shop floor standards such as color-coding of scrap containers for containment issues. (See: Building electronics product to customer specs)

SEE ALSO
Discovery vs disclosure in EMS manufacturing selection
EMS internal costs vs OEM quote pricing

Verification systems

Is there at least one verification system in the process? How is process information monitored and information relayed upstream to those who need to know and react. This includes defect tally sheets at work stations, automated testing and control charts that identify fault codes, defect descriptions and, noting out-of-control conditions.

Standardized operations/workplace organization

Is there a systematic approach to utilize and maintain workplace organization? Efforts should be in place for procedures or operator instruction for cleaning and maintaining organized areas, including documentation that support this, such as 5S which also focuses on waste elimination. Documentation should define what is to be left in a work cell, how it should be labeled and, guides for label location. TPM, FIFO, visual aids are used to assist process flow.

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Standardized work instructions

Is a system in place to develop standardized work instructions (methods and sequence) for all operations? This is often combined with operator instructions (manufacturing process instructions – MPI). Finding standardized work instructions should be easy for anyone visiting or touring the workplace.

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“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”

— Jeff Treuhaft, Sr. Vice President, Fusion-IO

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