Sunday, August 30, 2020

Warehouse common chaos - an analysis - Quick overview

    Throughout my working life in an EMS industry, I have seen a few well managed warehouse. However, I have also seen such many poorly managed warehouses. 

I have taken the opportunity to look into one of the warehouses and would like to share them with you. 

Below is just a quick overview:


Warehouse Readiness

o Receiving

Resource

Receiving

o Critical

o Main purpose

Receive goods in less than 30 minutes per truck

How to shorten?

Cleaer trucks

o Expedited materials

Special process to handle this

o IDM

o MRO parts

o Process flow

Expedite team

o Who? 

o Process flow? 

Sorting process

o Abnormality

How to handle? 

Use "Banking" concept

o Normal process

Provide training & guide

How to allocate

What do you have now?

o Can you hire temp staffs?

o Fork Lift

Driver/operator

Battery

Process flow

Normal

Expedited

Must provide proper guide & process flow

o People know what to do

o IQA

Resource 

Do we have enough people?

Process flow

Normal

Expedite

People know what to do

If IQA lack, it will snowball

Process flow

Normal

Expedited

o Store

How to store? 

Can the current resource complete the work?

o If no, please establish new process flow

Place to store

o WMS

Process flow

o Kitting

Major challenge

Resource

2 shifts

o Morning shift

Clear all expedited kitting

o Night shift

Clear normal kitting

Get enough people

Process flow & expectation

Finish the activities the same day

o No overflow

o The goal?

Warehouse operates normally

Full support of production

Normal demand

Expedited process

o MUST Adhere to

5S

QBwM

Zero defect

No excuse

Ask yourself this question

Can or cannot do?

Want or don't want to



I hope you enjoy the above article. 

I appreciate your feedback and comments. 

If you would like to know more, please let me know. 


Best regards,

Ronald Gan  






Training provided on account management - an overview

    This is the training that I have provided previously on account management in an EMS industry. 

Just to share what are the topics involved in account management.





Below is the list of items as above, in text form:

Account Management Overview & Training

o Company internal Definition

Find from Intranet

o Roles & Responsibilities

o Organization

Customer

Hierarchy 

o Trainings proposed

Usual HR Training

Mandatory Training Required by COO

Cornerstone

o Search "Training Market Sector"

RFQ Explanation

How to use the system?

How to smartly quote

What is this for?

Items to take note

Software & Tools

IBM

o Planning Analytics

o TM1

Power BI

Microsoft Dynamics 365

o Use of CRM

Customer Contacts

Customer Organization

Set opportunities for RFQ

Trigger NPS

VPN

Web based

Citrix

Microsoft Office Tools

Company Intranet navigation

NPS

o Topics to discuss

Miller Heimann

Green sheet

Blue Sheet

CRM

CVN

Customer Review

What is this? 

Format

o In Share point 

Purpose

Attendees

o Who needs to attend?

o Who may attend?

What do you need to do?

o Prepare

o Peer review

o Review with Senior Director

o Review with VP & MSVP

o Anticipate questions

o Access to Power BI

o Access to IBM Planning Analytics (Web1)

o Know how to navigate

P&L

Details

How to obtain the file

Quotation

Process Flow

Ownership

o New

o Existing

OIL

Format

o Customer

o Internal

Finance

TM1

o What is this for?

Planning Analytics

o What is this for?

Pricing File

Contract

Financial Forecast

Site level

Market sector level

Inventory E&O

Branding & Marketing

Self read

Company presentations

o Self learnt

o Expectations

Make mistakes & learn from that

Avoid repeating the mistakes

Pay attention to details

Stand back & think

Methodology

Self learning

o Self explore

Purpose

Multiple ways

Think out of the box

Challenge the status quo

Questions & Answers after reading the materials

Daily 1 hours of calibration session

o 10 am

o 3.30 pm

Practie yourself

o Be hands on

o Don't worry to make mistakes

o Purpose

Learning curve

Overview

Share what is the R&R

Knows what is CM

And know when to push back

Ownership

Responsibility 

Gather previous CMs' experience

Know what is important to CM team

o Characteristics

Open

Resourceful

Always ready

Independent

Leader

Make hard decisions

Strategic

People manager

When in trouble

Always come with proposals/solutions

Salesman

Buyoff & agreement

Pay attention to details

Think & strategize

7 habits

Story teller


If you would like more information, please leave me a message. 

As usual, I appreciate your feedback & comments. 

Thank you very much.


Best regards,
Ronald Gan




Re-Pricing from an EMS industry standpoint

What is re-pricing?

    This is an activity where buyer and seller agrees on a point to reset the buy price and sell price. 

    Why is this important? It is critical to set the financial information right, as well as the values of the existing inventory. The price of the materials will fluctuate either in a short term, or long term. If this is not done, the financial of the organization will be questionable, and not accountable for. 

    Below is the proposed process flow for re-pricing. I believe I have covered most of the critical areas. 
 




    If you need a clearer picture, please email me. I have them in pdf file or in a format derived from the apps called "Flowdia".

    It is a major process and usually, the below parties are involved:
  • program management
  • finance
  • inventory analyst
  • procurement team
  • costing team
  • customers
  • planner

    How often this is done? Preferably, quarterly and longest should be half yearly. Imagine, if your buying price differs every month, but you do not change your selling price for one year, what will happen? The total inventory values will not be accurate. Also, you may continue to keep making money (if your materials buy price keeps going down) or continue to lose money (if your materials buy price keeps going up). However, if you material cost is insignificant, then you can reset your price annually, or longer. 
    
    If may not be very easy to understand this condition quickly. I am preparing an article on "inventory revaluation". Please watch out for my article. I am pretty sure you will be able to understand further once you read the said article. 

    What are the activities that will follow up after the re-pricing activities?
  • agree on a re-pricing date
  • set the sell price and buy price in the ERP & finance system. Implementation date is critical. 
    • Are there loop holes? YES. And I will be writing another article on this
    • The loop holes enables an organization to either make money or lose money 
  • inventory revaluation
  • buyers to revise the open POs with the correct price
  • seller to revise the invoice accordingly with the correct price

    You may ask me.... what happens if a customer refuse to go into the re-pricing process/agreement with you? There is a trick to this. Please drop me a note if you would like to know more of this. 

    I hope this article provides a very brief overview of re-pricing activities. Please share your thoughts and feedback as I always appreciate your valuable feedback & viewpoints. 


Thank you for your time. 

Best regards,
Ronald Gan




Monday, August 17, 2020

4M + 1E, reloaded

     It has been a long time since I have written about this topic. I would like to share more on this topic with more details. I noticed that my previous article does not have lots of details. 


    As mentioned previously, 4M is:

  • Man
  • Machine
  • Method
  • Materials     
    And the 1E is related to "Environment".

    I typically used mind mapping method to go through and prepare the details of 4M & 1E. I will be sharing a few examples that I have prepared. 
    By using mind mapping method, I realized that I will unlock all the limitations and all the barriers. I can input anything that I have immediately into the work. 



MAN
  • This is any topic that is related to human,  resources needed, training, organization,  roles & responsibilities, job descriptions,  hiring, firing, employee benefits, employee compensation,  knowledge needed, experience needed, etc. 
  • Organization chart is also in here. 
  • Employee relationship internally as well as relationship with customers are also topics worth discussing here. 
  • If you want to, office politics can also be taken into 

MACHINE
  • This is an area that you input the needs of equiment, machines, facilities etc.
  • You will also need to consider the specifications & capabilities of the equipment, machines and facilities. 
  • The physical office area & manufacturing facilities are also taken into consideration here. 
  • Also, anything related to networking, IT facilities, ISP (Internet Service Provider), Software licensing, programming in house & externally can be considered here.
  • Total cost of equipment, facilities, machines, etc.
  • ROI calculation can be looked at.

METHOD
  • There are just too many things that you can discuss here.
  • You can discuss on the process flow here.
  • SOP (Standard operating procedures) can also be taken into consideration here. 
  • What types of ERP used here can also be considered. 
  • The methodology of ERP loading is critical to be discussed.
  • How you do things, the company guidelines are also a good starting point here.
  • Anything you need as guideline can be registered here such as the Dos & Don'ts, policies, restrictions, organization beliefs, policies, goals, etc. 

MATERIALS
  • This is anything related to materials that includes direct & indirect materials.
  • Example is everything related to BOM (bill of materials). What is a BOM? I will have another topic of discussion subsequently. 
  • What is a direct material and what is an indirect material? It will also be discussed in the BOM topic.
  • This topic also will take into consideration of the material purchased price, selling price.
  • Suppliers & vendors are also included here.
  • The specifications, engineering details, mechanical references etc are also included here.
  • How to purchase and when to purchase also could be set here.
  • Logistics methodology is also needed here.
  • Inco terms (buying & selling) & trade compliance is very important here too.
  • One important topic is also ERP used.

ENVIRONMENT 
  • What does this topic cover?
  • The manufacturing required environment such as temperature,  humidity, cleanliness, etc.
  • The storage requirement is also needed here.
  • Certain products required very clean environment for manufacturing.  This is called cleanroom requirement. It could be Class 10k, class 1k or class 100 cleanroom.
  • It is also ignored many times that the efficiency of the manufacturing environment needs to be considered in the beginning, before the manufacturing line is set up. Why is this important? Send me a note if you would like to discuss more on this. 
  • The effectiveness of the overall supply chain environment in the factory is critical here. You need to know where is your storage place, supply depot, finished goods storage, loading bay, receiving bay, JIT (just in time) methodology to supply materials to the manufacturing line. 


I have prepared an example of 4M & 1E using mind mapping tool. It is a very good one for you to use and understand the overall of 4M & 1E. 
The image is not defined well as you can see per below. 
If you want, drop me a note & I will send you a soft copy in PDF form. 
I can also output them into text form so that you can copy them into excel format or word format, or HTML format too. 


 
 


As usual, I value your feedback & comments. 
Please drop me a note if you care. 

For further enquiries, please email me. 

Thanks. 

Best regards,
Ronald Gan
 



Sunday, August 9, 2020

Example of Information gathering before a SWOT analysis




    I have the opportunity to make a good info gathering of an EMS company, before getting into the SWOT analysis. The above graphic is how I draft my work using a mind mapping tool called Simple Mind.

    Generally, information gathering is more difficult to do, when compare to SWOT analysis. You will need to have full information before a proper SWOT analysis could be done, as well as preparing for a way to counter the SWOT. 

Hopefully you will enjoy.  


Company XXX SWOT - Info gathering

Topics

BD

Program management

     Extremely weak

     No proper training

        o Hit the ground running

     Very junior

     Does not really serve the full purpose of this team

Strategy

     Nvr change

     Arrogant 

     Want to grow to usd X B

        o Did not know what to give & take

Quotation 

     Know how

        o Not many really understand the details

        o Not many encouraged to explore variations

        o Not many knows really how the format works

     Succession plan

        o Slow

        o Not ready

     Highly secretive

        o Too many fat hidden in the costing file

     Only good for PCBA

        o HLA, system build & System integration is not well costed

        o Distribution & Direct Fulfillment is not well costed

        o Reverse Logistics is over priced

     Excel file

        o Macro written by one person

        o No back up plan

     CBOM weaknesses

     Overall process weaknesses

Finance

Senior management

     Poor succession plan

     Very biase

     Perception

     All of them have their own agenda

Engineering in manufacturing

     90% of them are weak in these areas

        o Experience 

        o Exposure

        o Skills

        o Knowledge 

        o Language

             Spoken

             Written

        o Problem solving skills

        o Integrity

Problem solving

     Weak like hell

        o At working level

        o At senior level

        o Just want to get over it

     No standard way

Quality

     Very poor

        o Don't know how to manage the situation

             Fail to solve a complex problem systematically

     Bad mentality

     Significant escapees

        o R&D

        o Manufacturing

     Majority of the team is weak

     There is no proper & systematic problem solving tools being used

     Most of the times, failed to even identify the "Problem Statement"

        o Jump directly to root cause

Overall Integrity

     Very lack of integrity

     No professionalisme

     All based on personal perception

     Top management can do what they like

        o Will get their "watch dogs" to run the dirty work for them

             Spread news

             Influence

             De-fame

             Gather information

             Benefits 

     Only good for senior management - Director & above level

        o Always there will be food & drinking sessions at top level

             Using company's money for "personal agenda"?

     Lousy medical coverage

Customers visits

     Very good

     Systematic

     Senior management's involvement

     Flexible

     Utilize MH Green Sheet

     Excellent salesmanship

CRM tools

     Ms Dynamics 365

     IBM cognos

     IBM TM1

     Miller Heiman

        o Blue sheet

        o Green sheet

        o Used at all level

                 Standard language

     Power BI

     Annual customer survey

        o Customer is getting annoyed by this survey

        o No proper actions taken

             No change

     Customer review

     Great tools, BUT

        o Not many people knows how to really use it

             For the real purpose of self improvement

Engineering R&D - focus in APAC

     Poor succession plan

     Not qualified as senior management

        o Poor in managing customers

        o Unable to manage situation

     Charges are extremely high

     Lack of business people that is able to quote based on what the customer wants

     Very inexperience

        o Too young 

     Always over charge

     Don't know how to be flexible

     Refuse to accept the fact that they are weak

        o Still thinks they are the best

     Arrogant 

Succession plan - weak

     Functional / Department head

     GM

     Senior level

        o Questionable

     Operations Directors that are capable

     Not based on how good a person is

        o Based on how much top management likes the person

Secret projects

     Way too many

     Too secretive

Internal politics

     Among regions

        o Massive

     Personal gains & agenda

     At top level

     Very unhealthy

     Worst I have ever seen

     Always in a blame game

Supply Chain

     It is a big political mess in this group

     Very weak

        o The team thinks they are very good

             That is because they were never exposed to real good SCM team

     Leadership sucks in APAC

     There is no proper plan & long term goals

        o Don't have the know how

     Sub teams

        o Costing

        o Sourcing

        o Procurement

        o MRO

        o Logistics

        o Warehousing

        o Materials system

     ERP system used is really outdated

Travels

     Senior level travel in business class

     Hit the ground & start to work

        o No time for rest

Pay & package

     Lower than industrial standards

     Lower than competitor

     Extremely lousy package in APAC region

     Package is very good only for Director & above level

Work hours

     No flexibility in APAC region

     Very calculative


Note: 

The information gathered is based on my personal view. If further information is desired, please email me. 
Last but not least, would appreciate your feedback and sharing. 

Monday, August 3, 2020

New business engagement - analysis, review and buy off (Electronics manufacturing services environment)

    Many times, when there are new business opportunity, companies will rush into the business without proper review, analysis & approval. 

    If lucky, the business will make a good investment. However, if the investment is not a good one, best case the company will breakeven in that investment. Worst case, company could run their P&L (profit & loss) into a red zone. 

    I have previously prepared & established one proposed process flow to provide guidance for this purpose for one of my projects. 

    Please have a look at the below JPEG file.
     As usual, I have the original PDF & source file with me. Drop me an email if you desire the PDF file. 

    As usual, I appreciate your feedback. Hope this guideline helps.