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

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

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  

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.