Showing posts with label Analysis. Show all posts
Showing posts with label Analysis. Show all posts

Tuesday, September 8, 2020

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

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





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  






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. 

Friday, March 6, 2020

SWOT Analysis example

This is an example of a SWOT analysis that I have prepared.
S: Strength (Internal)
W: Weakness (Internal)
O: Opportunity (External)
T: Threat (External)


Why is a SWOT analysis so important?
What can we get out of this SWOT template? There are a lot we can achieve using this template. Can discuss more....



Please email me if you need further discussion/info or example for this SWOT template.
If you need a spreadsheet in Excel format, please email me too.