Thursday, September 10, 2020

Outsourcing Process Flow - An overview

    This is a generic flow to help you further understand how to select a contract manufacturer. 
It is a very generic process flow. A very simplified version. 
Hopefully, this flow gives you a very quick understanding on outsourcing, and selecting a contract manufacturing partner.
If you would like to know more, please email me.  
If you need a PDF copy with better resolution, please email me. 


    Hope you enjoy reading this. Appreciate your feedback & comments too!

Thanks.

Best regards,
Ronald Gan


Tuesday, September 8, 2020

New Product Introduction (NPI) 101, Overview

    I would like to provide some simple explanation on what an NPI (New Product Introduction) is. 

    The situation can be best applied for a NPI in an EMS world, focusing in building a new product from their customer. This is only the basic. The overall NPI when executing, will be more than this. It should come with either a checklist, or a gantt chart to ensure everything is well covered. With proper planning, there are less loopholes or risk in the NPI. 

    Why is NPI important? It is important so that all the new product are properly manufactured in a controlled environment, as designed by the designer. Each new product is also properly tested & bought off before leaving the door. When the new product is released, the users or end users can use the product with perfect satisfaction & zero worries. 


    In my previous blog, I have shared the below. It is a very brief 4M + 1E information for an NPI. It could be used to prepare a checklist for an NPI focusing in 4M+1E





    I am adding the items in below text form. If you need a properly formatted copy, please email me so that it is easier for you to build the checklist. 
  

New Product Introduction 4M1E (In an EMS situation):

o What is the new product
Function
Public application / use
Future market
Competitive advantage
o Man
Team available?
Need to establish one?
Direct labor
Indirect labor
Knowledge & experience available
Training requirement
o Cost incurred?
o Long term ROI
Hiring of a team
Setting up a team
Team requirement
o Organization
o Leader
o R&R
o Escalation points
o Team goal
o Machine
What SMT machine is required?
Any unique machines required?
Ask for manufacturing equipments required, if any
Age of quipments
Equipment limitation
Equipment capabilities
Equipment serviceability
What is the cost involved in new machines
Long term ROI
Ammortize in quotation
What is the NRE cost involved?
Long term ROI
Overall equipment cost
Including cost for space & utility utilization
Do not include profit
o Method
Direct transfer from customer?
Additional work needed?
o ECO
o Evaluations
Marketing methodology
When to launch in the market?
Which region?
How?
Why this topic is important?
All documents set up in EMS?
BOM
o Direct materials
o AVL / AML
ECO
IDM
Overall Instructions
Manufacturing Instructions
Packaging Instructions
Shipping & delivery instructions
o Ship to?
o Shipping requirement
o Storage requirement
o Inco terms
Storage requirement
o Finished goods
o Raw materials
Customer forecast
Methodology of manufacturing
o Buy per forecast?
o Build per forecast
o Buy per PO
o Build per PO
o Blanket PO
o All of these has serious & long term impact
Supportability
Materials E&O
Finished Product inspection & buy off
Obtain from customers
o FAI requirement
o Qualification plan
Lead time for the inspections & buy off
Customers approval to build & ship
Qualification Plan
What to do if failed first build?
Weekly conference call
Topics to discuss
Who should attend?
o Material
All documents from customers?
Bill Of Materials
Manufacturing Instructions
All specifications
All approved vendors
When to buy materials
Who to buy from
Cost analysis
Buy standard pack
Buy just enough
To take note
Buy from AVL / AML
Buy legitimate materials
If extra cost needed?
o Due to short lead time
o What to do next?
Do not over buy or over stock
o Quantity
o Cost
o Exception
Cheap parts
Incoming inspections - what to do?
Buy from distributors
Buy from manufacturers
o Environment
EMS industry
EMS situation
Only manufacture the products for the customers
Did not design the product
Contract manufacturing
Business environment
Business quotation
o All documents to quote
o Quotation
Quotes submission
Customer buy off
o Customer award
Manufacturing agreement
Customers requirement buy off
Operational Environment
Humidity
Temperature
Clean room or not?


    Please email me if you would like to see additional information or further explanation on this topic. This is a massive topic. 

I appreciate your feedback & comments. Hope you enjoy the brief introduction. 


Thank you and best regards,
Ronald Gan




Comprehensive overview of total supply chain management

    Here, I would like to share my view of total supply chain management. It consist of overall supply chain from beginning to the end. 

    This is a very interesting topic to know about.... It could mainly apply to manufacturing as an overall.


Below is a mind map of the total supply chain management. The resolution might not be that good. If you need a pdf copy or a mind map copy (using simple mind apps format), please email me. 




And here are the outline. If you need a well formatted word file or PDF file, please email me. 

Total Supply Chain Management

o What is supply chain management

It is a management knowledge

It is a chain, from beginning to the end

It is a full stretch of knowledge from getting the supply to the buyer

o What are the topics in supply chain management

Sourcing

Supplier & potential supplier

Supplier selection

Terms & conditions

o Pricing

o Invoicing

o Payment terms

Quality requirement

Types of suppliers

o Direct manufacturer

o Distributorship

o Representatives

o Overall

B2B

Design

From R&D

The purpose

Where use application

Logistics

Freight management

o Freight in

o Freight out

o Types of freight

Air

Ocean

Road

Warehousing

o Receiving

o Storage

o Outgoing

o Return of goods

o 3PL

Customs

Trade & Compliance

Procurement

Direct materials & indirect materials

o What is direct materials

o What is indirect materials

PO placement

When to buy

Product quality

How many to buy

Types of procurement

o Buy to forecast

o Buy to PO

Types of materials model

o Consigned

Full or partial

Pros & Cons

o Turnkey

Full or partial

Pros & Cons

o Buy/Sell

o Drop ship

o Customer managed

o High value

o Attrition

Material costing

Standard pack

EAU

Negotiation

Distribution

Consolidation pricing for negotiation

o By material itself

o By supplier

o By mother company

o By total spend

Types of cost optimization

o Annual re-pricing

o Rebate

o Many more creative ways

Materials planning

What type of attrition

What is required

o When to bring in

o When to use

ERP

Will be discussed in another topic

Production Planning

Function

o Build the product in the shortest time possible

o Optimize capacity & ship out once completed building

o When to build

o When to ship

o Minimize waste

o Counter check ineffeciency

Resolve capacity constraints

Types of build

o Build to forecast

o Build to PO

Forecast

Inventory management

Keep the lowest possible inventory

o Pros & cons

Ties up cash

Expiry date

A balanced model?

Inventory tracking & reporting

Reverse Logistics

What is this? 

o Return & Repair

o Upgrades

o Rework

o Refurbishment

o Warehousing & safekeeping

Value added services

Usually, the cost is high

o Why is total supply chain management so important?

It is a chain

All are inter-related

Impact as an overall

To discuss more

o Areas not covered here

Quality

Quality management system

o Quality standards

ISO

Aerospace

FDA

Medical

Military

Telco

Incoming Quality

Engineering

R&D

Process

Manufacturing

Supplier quality

Facility

Test

Industrial engineering

Production

Supplier quality management

Finance

Account Payable

Account Receiveable

Bad debts

Returns

Rebates

Customer management

Customer quotation

Customer contract

IT

HR

Customs

Trade & compliance


    I hope you enjoy reading this article. If you wish to know more on this topic, please email me. 

    Thank you for taking the time in reading this article. Your feedback is highly appreciated. 


Thanks & best regards,
Ronald Gan








How to buy off your supplier's pricing, if you are from OEM

    This is a simple guide to buy off a contract manufacturer's price.... if you are outsourcing your products for someone to build. 
It is a simple guide that I would like to share. And it also has a simple process flow on how things could be done. 

Why I wrote this blog? I noticed that there are OEM folks that might not be at the competitive position to negotiate with their suppliers. Thus, they could not negotiate for a better pricing & be competitive with their competitors. 


Below is a mindmap guide as an overview, in JPEG form. I do have the PDF copy. 




Here are the details in point forms. If you would like a well formatted copy, please email me.

 How to buy off a supplier's pricing, if you are from OEM
o Pre-requisite
You are involved in supplier pricing
You are from OEM
You need to approve pricing
o What do you need?
A few suppliers
A business or a purpose
An RFQ package
Complete BOM & spec package
Manufacturing flow
Test requirements
ICT or Flying Probe
BST?
Functional test
System Test
Quality requirement
Annual volume
RFQ timeline overall
Sample products or pictures
o What are the catchy items
Incorrect costed BOM
Incorrect UOM
Incorrect labor assumptions
o General Process Flow
Identify business/opportunity
Identify potential contract manufacturers for RFQ
o Reach out to the CMs
Confirm interested, send RFQ
Info
o BOM & specs
o Quality requirement
o Manufacturing flow
o Timeline
o Test requirement
o Any materials with contract pricing?
Provide the list
Provide a specific format for RFQ
o Organize a Q&A session with suppliers
All questions answered
Suppliers worked on RFQ package
Follow up with suppliers for RFQ status
Suppliers to submit RFQ
Review & buy off
o If ok, business award
o Start project? 
o Transfer project
o Qualification plan
Once approved, full business award granted
o How to review? 
Check BOM
Part numbers
o CPN
o MPN
o Description
Qty per
UOM
Obtain internal costed BOM
For comparison purposes
Check process flow from suppliers
Check suppliers' committed capacity
Labor cost
Cost per component price?
o Depends on
EAU
Complexity of product
Stability of design
Items to consider? 
Shop rate
o Building space needed
Depreciation period
Depreciation cost
o Water & electricity
o Total equipment cost
Depreciation period
o Labor required
DL
IDL
o Wastage
o Effective working hours
o Manufacturing process
Clean?
Non clean? 
Cleanroom requirement?
Conformal coating
o Rework rate
EAU
Number of heads used
o To see if there is duplicated stations
Where are the bottlenecks
Suppliers ROCE %
SPI?
SG&A cost
Inco terms

 
If you would like to have more on the strategy, please email me. I can share more on how to catch where the contract manufacturer hides their fat, and what are the items to look at. 

Hope you enjoy this. 
As usual, please email me if you have additional comments or request. Your feedback is highly appreciated.


Thank you & best regards,

Ronald Gan



Sunday, September 6, 2020

Manufacturing Program Managers in an manufacturing industry

What is manufacturing program management

    Manufacturing program management is a functional department in a manufacturing environment. This role act as a leader for a smaller team in an organization. Manufacturing program management team is also the group that acts as the customer interface. In short, we called it "the voice of customers". This team is also the internal customers of the CFT (customer focused team). Internally, the manufacturing program management team also resolve internal conflicts, provide directions and guideline while at a higher level, assist the team in removing roadblocks. 

    For the sake of standardization, I will be using the term program management instead of the full term of manufacturing program management The situation also is more towards a contract manufacturing environment. 

Overview:


If you need a pdf copy of the above, or a list of the items in text form, please email me. 

Why is program management so important in an EMS industry

    It is important as this role leads the smaller group servicing their customers. The program management team is the connector to all team members as well as the customers. Usually, a program management team has a real good relationship with the customers and are considered as one of the best team in management. 

    I am offering 4 paid courses in manufacturing program management that involves basic, intermediate, advanced and professional. Courses will be done online currently due to the global pandemic challenges we faced currently. These courses explains in great depth of the program manufacturing as a whole. 

Please email me if you are interested.....   


What is the main roles and responsibilities of a program management team? To name a few....

  • team leader
  • remove road blocks
  • resolve conflicts
  • customer interface
  • defend team members in front of customers
  • story teller
        A comprehensive list is as stated in the mind mapping above. Please message me if you would like to have a copy....

What are the main characters of program management personnel?

  • multi-tasking
  • optimistic
  • passionate 
  • resourceful
  • strategic thinking
  • business savvy
  • calm
  • firm
  • leader

        A comprehensive list is as stated in the mind mapping above. Please message me if you would like to have a copy....

What are the knowledge & skills needed to be successful in program management?

To name a few....

  • leadership skills
  • problem solving skills
  • strategic planning skills
  • interpersonal skills
  • project management skills
  • customer relationship management
  • computer literate
  • Microsoft office literate (word, excel, powerpoint, outlook)
  • excellent business language (comprehension, listening, written)
  • time management skills
  • experienced in the field involved
  • business presentation skills
  • psychology & body language reading

        A comprehensive list is as stated in the mind mapping above. Please message me if you would like to have a copy....

    Each and every topic will be discussed in greater detail. My courses (depends on which one) will cover almost everything possible in program management in an EMS world. 

    It is a course that will take up a lot of the brain power. But the magnitude for success in the future is unlimited. You can apply to work, to businesses, to personal matters, etc.

    The ultimate goal is not for you to become an outstanding program manager. Becoming an outstanding program manager is just the beginning. When you have your base established as a program manager, you can advance to be a director of program management. After becoming a successful program management director, you opened the door to a whole new world. You can choose to become a operations director, you can also choose to become a general manager, and so on. 

    In short, the potential of an outstanding program manager is unlimited. The future is bright & the sky is the limit.   

    A program manager is a jack of all trades, and that is his/her value to the company. Not many people will take this as a  core value. But when there is a situation, program managers are usually the ones that step up, leading the team of experts to manage the situation. In the real world, we need program managers to manage. 



Quotation Process for Contract Manufacturing.... an example

     This is an example of how a quotation process is for contract manufacturing environment. 

    There are multiple systems used in the market for contract manufacturers. Some of them are using off the shelf product to carry out a quote. While others may have developed internal system to manage this process. Of course there are pros & cons for these 2 options. Can you list a few?  


    The below picture suggest the first part of the quotation process flow. The second part of the quotation process is actually listed in my earlier blog, named "new business buy off".

   

    There might be technical terms used. Please email me if you have any questions. This could be a basic start for you to learn how to know the whole quotation process works in an EMS industry. 

    Just one additional note, this process can also be used for any major ECO (engineering change order) re-quote. 

    Hope this helps you understand a little bit more on the quotation process in an EMS industry. As usual, I appreciate your feedback & comments. If you need a PDF copy, please email me. 

Thanks. 


Best regards,

Ronald Gan