Showing posts with label EMS industry. Show all posts
Showing posts with label EMS industry. Show all posts

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

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








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  






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




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.