There are a few options any company can use to manage wires and wire harnesses.  The list below is ordered by user friendliness from least to most. While not comprehensive, it does include the most common approaches possible.

1. Manual/External Documentation - This method allows users to enter the consolidated information about each assembly (i.e. total length of each type of wire, all connectors, etc) as a BoM and let MRP handle the material flow. However, it requires external documentation for processing each wire and assembling the harness. This method is flexible, customizable, and will work with nearly any ERP system. However, it is very manual, not very efficient, and doesn't work well at high volumes and complexities.
   
   
2. In System Static Documentation - This is similar to the first method but allows users to load details about the assembly within the system. This allows for more efficient distribution and better documentation control. However, it is still not very efficient and requires additional systems or processes for preparing each wire.
   
   
3. Custom External Applications - A custom application to enter and manage individual wires can add all the required functionality and may be able to validate information to ensure accuracy. Although this contains the required information, it isn't integrated and would require additional security controls and add an extra step for entering and updating the information. However, it may be possible to create custom reports to combine ERP and custom application information into a single report for production purposes.
   
   
4. User Defined Fields - If the system will allow, user can utilize user defined fields (UDF) for store and processing information on each wire. With sufficient fields, users will be able to store wire gauge, length, termination and strip details. If this is not all in a single text field, the information can be exported for additional processing at the wire cutting machines.
   
   
5. Full Feature Implementation - If the system will allow it, this method is the most efficient. It will allow for storing all pertinent information about each wire without creating subassmblies. It will allow exporting for processing by the cutting machines. And, it potentially could help in grouping similar wires by gauge, color, length, termination, etc. This is the most automated and ideal.
   

ManEx has current and planned features to make wire harness processing as easy as possible.

1. BoM Item Notes - This is an open text field that allows users to add details about the line item. This can be a great place to add details for production. 
   
   

   While this does not automatically translate into combined cut cards for the cutting machines, it will automatically provide assembly details to production through the BoM.

   Below is an example of how this could look if several BoM line items have wires setup.

2. Related Documentation - Excel files and other related documentation can be created outside ManEx and attached in ManEx.  Users can attach* these documents to the internal part number and/or to the shop floor tracking setup.  This provides a central location to manage and control the documents and automatic electronic distribution of the documents to production.  However, this still requires external processing to combine like wires and increase operational efficiencies at the cutting machines.
   
   
3. External Applications - As an interim solution until the ManEx upgrade is complete, and to fully test the concept. We have created an access database partially integrated with ManEx that allows users to:
   
   
   1. Define wires for each wire harness assembly. 
      The current design has several standard fields, but users can add more fields to the tables, form, and reports.
      
      
   2. View those wires in a production bill of material. 
      By selecting the assembly and part number, wires are automatically added to the appropriate item on the Harness BoM.
      
      
   3. Combine like wires across assemblies and Work Orders for more efficient processing through the cutting machines.
      Users select the Work Orders they want to process and the report lists all wires grouped by part number and sorted by length, then Termination A, then Termination B.  This information can be exported to excel.  Additionally, users can modify the report to group and sort by other information.
      
   
   The database and Crystal Reports validate the Assemblies, Part Numbers, BoM Line Items, and Work Orders through ManEx to eliminate the duplication of information. We will make the application and reports available to all interested readers willing to provide feedback.

• BoM Module Modification - This will add an additional tab to the BOM module for wire harness processing. All the standard fields required for completing wire harnesses would be available. This allows users to quickly load pertinent information. Then, users would be able to export to the cutting machines and do additional analysis and processing as needed. 
  
  Users interested in this feature should submit a list of the fields (name, length, type, etc) typically required for creating wires so that we can include them in the plan.

While these methods are not the only solutions, they do seem to be the most universally applicable and acceptable.  They also add some efficiencies to the process.  If you are interested in discussing these ideas in greater detail, please let me know.

For Electronic Contract Manufacturers, it is nearly impossible to completely avoid alternate part numbers.  Tight production schedules and restricted material streams make it important to have a good method for tracking and managing alternate part numbers.

Before implementing an alternate tracking system, it is important to understand how you will define an alternate.

The method you use will depend in large part on how you have your part numbers setup. If your components are setup with all parts having the same form fit and function under a single internal part number, then an alternate is likely to be better in some way (i.e. tighter tolerance, higher voltage, etc).  If your parts are setup for each manufacturer, customer, or similar grouping, then an alternate may be just another internal part number for the exact same part.

Ideally, your numbering setup should reduce the number of part numbers in your system and the frequency with which you have to use alternates.

Regardless of your setup, the three main considerations for you alternate part number tracking system are:

1. Visibility of Possible Alternates - Users must know that an alternate is available/approved if they are going to use it.  Without clear visibility of these alternates, they might as well not exist.
   
   
2. Use of Alternates - If an alternate is available and the user knows it exists, they must be able to easily use the alternate part.  A system that makes using the alternate too difficult may not prevent the user from using the alternate, but it increases the likelihood that the use will not be properly recorded and accounted for.
   
   
3. Accounting for the Cost of Alternates - Once the user pulls the alternate, the system should provide visibility of the use and the cost differences because of its use.  This can be done manually, but this is not practical, especially if alternates are used more frequently.
   

ManEx has some important tools to aid in alternate part number setup, usage, tracking.  Although there are some significant hurdles to over come, current features go a long way aid manufacturers in this area.  Future upgrades will continue to improve this process as well.

On the surface, the topic seems straight forward and should be easy to implement. However, a more in-depth analysis reveals a few key questions that need specific answers. For example, when and why would MRP use alternates? Will each manufacturer answer that in a different way? How does this apply to all manufacturers? If alternate parts are used, what impact would that have on the actual cost of the assembly, on the standard cost of the assembly? If alternates are frequently used, should the cost of the alternates be factored into the product pricing? If alternates are frequently used, should they be considered alternates? And the list goes on.

Despite these tough questions, ManEx has provided a way to manage each of the key topics relating to alternate parts.

1. Visibility of Possible Alternates - ManEx allows users to list alternate parts for each item on every BoM.  This is for reference only and merely provides visibility of possible alternates.  However, if alternates are used more than rare occasions this alone is not sufficient to meet users needs.
   

   Additionally, users can setup a part manufacturer under the internal part number that ties to another internal part number, or related customer part number.  If the alternate customer part number is used, then the customer AVL can be applied as well.  This notifies purchasing, kitting, and production of possible alternates and allows the alternates to be used in place of the original as decided by the user.

2. Use of Alternates - If alternates are rare and/or the qty using the alternate is large enough, users can use the effective and obsolete dates to turn off the original part and add the alternate to the BoM. .
   

   In most situations, the suggested method is to leave the BoM as originally specified and issue the alternate part to the kit.  Because the AVL from the original part indicates the alternate that can be used, kitting will know to look for the alternate when the original isn't on hand.  Kitting should also mark the original as complete in kitting.  This will remove the MRP demand for that part and prevent a duplication in demand and usage.

3. Accounting for the Cost of Alternates - By recording which parts were actually used in the kit, the system will have an accurate history of part usage, material costs for the kit will reflect any part pricing differences, and standard costs will not be affected by the alternate.
   

While this method is not the only solution, it does seem to be the most universally applicable and acceptable.  It also adds some efficiencies to the process when alternates are needed.  There were other methods suggested that would work on a more specialized situation.  If you are interested in learning more about those ideas, let me know and I can provide greater detail.

Even outsourcing companies sometimes need to outsource.  This can be a cost effective way to complete a job when they do not have the resources or capabilities in-house.  However, three main actions are needed in order for it to work:

1. Notify Purchasing - after MRP creates demand for the processed component, purchasing must be notified to not only order the raw material, but also the processing of the raw material into the finished component.
   
   
2. Notify Inventory - once the raw material is in house, it must be sent for processing.  If there is a delay from initial receipt to shipping to the outsource provider it may delay the entire order.  If the same outsource company always processes the raw material, then this can be setup under the raw component so inventory knows where to send it.  Otherwise, purchasing must have a way to indicate which supplier will process the raw material for the specific order.
   
   
3. Reflect Costs in Accounting - if the additional costs are not reflected in the final assembly, it will not be priced correctly and can make the entire job unprofitable.  Many companies forget this because the labor is not done in-house and the tracking is done outside of their system.  (There is some debate on how and where to record this additional expense.  Is it reflected in the labor or materials?  The preferred method, for most, is to record these costs as part of the material cost since it is purchased and not produced.  This is the same reason companies do not separate the labor costs to produce a capacitor under labor for the final assembly.  If desired, the labor required for tracking and managing the outsourcing may be recorded under labor costs for the top level.)
   

Many companies do not have an effective way of tracking these within their system and ensure that each step in the process is completed quickly and correctly. It is possible to manage this outside of any system, but doing so requires careful attention and an awareness of the potential pitfalls.

ManEx is designed for EMS companies that traditionally do the outsourced work.  However, there are ways to setup and track outside processing within ManEx.  We suggest handling the three main actions as follows:

Notify Purchasing:

By creating a sub-assembly in ManEx for the processed component, users can accurately track costs and notification actions.  Because ManEx allows up to 512 levels on a BoM, users can make very complex sub-assemblies and still keep delivery commitments and costs.

The easiest way to notify buyers is to create an inventory part called "Outsource Labor" and put it as an item on the subassembly* to make the processed component.  This has several advantages, it allows MRP to automatically create the notification for buyers and they know how to process the "part", it allows accounting to capture this cost in the assembly (and include it in cost roll-ups), it allows receiving to have a part to receive once the processing is complete, it can be used on numerous assemblies as needed, and it allows users to account for both the raw and processed parts.

The sub-assembly approach will also ensure that the raw parts are delivered in plenty of time to allow for processing and still be included with the rest of the purchased components. This extra lead time is determined by value recorded under the processed component's production lead time in the item master.

*In order to purchase a part, it must be BUY or MAKE/BUY.  Buyers cannot order MAKE parts.  Additionally, BUY and MAKE/BUY parts cannot have other parts issued to them in kitting. This is why the processing is setup as a component on the processed part. Otherwise, users will not be able to automatically associate the costs of the raw component and processing with the processed component.

Notify Inventory

Parts that require outside processing can be marked to require incoming inspection.  This creates a flag for receiving so they can see what needs to happen next.  If the outsourcing is always done by the same supplier, users can add this information to the item master note as this is easily accessible from receiving.  Otherwise, buyers can indicate in the PO (either on the item or schedule notes) where the raw parts should be sent for processing.

If the part is always outsourced, it may be helpful to modify the part description to indicate this as well.  That will serve as another level of notification for receiving and inventory.

Another option is to create the WO for the processed part and change the kit status to "In Process" as soon as the raw material is ordered.  This will create a kit shortage for the raw part and allow receiving to "pull" the parts for the kit upon receiving.  Because they are needed for the "Out Sourced" work center (see the next section for details) receiving would know that it needs to be shipped for processing.

Reflect Costs in Accounting production Control

To keep an accurate picture of the value and location for raw and processed parts, the processed part bom should have a routing that includes a work center called "Out Sourced".  When inventory sends the raw parts out for processing, they can document this in the system by issuing them to the kit and transferring the qty to the "Out Sourced" work center.   Once the processing is complete, receiving will see that it is needed for the open work order already containing the raw parts.  The processing labor "part" can be issued to the kit and the "assembly" transfered to FGI.

The method will accurately reflect the cost, qty, and location for the raw parts and the processed parts (including the labor for processing).  It will create the notifications and action messages and help manufactures stay on top of their outsourced work.

Unfortunately, it is all too common for companies to solve the documentation control issue by implementing more controls, checks, and validations.  While it is important to ensure that the correct files are in the right hands when needed, inefficient systems can create unneeded bottle necks and problems. 

• Physical Documentation - This method is easy to understand and quick to implement.  It can also make it easier to control documents if wet signatures are required on all production documents.  However, it can be difficult to distribute, and limits the number of available copies to preset copies.  This also requires fastidious control over existing copies at the completion of each job and at each update to the files.  Regardless, this is still one of the most popular methods.
  
  
• Electronic Documentation (loose) - This method replaces the physical paper with electronic copies.  It requires easy access to a terminal in each production station in order to get the needed files to the production line.  Typically, the approved files are stored in an accessible folder on the server.  Workers would access the files via the work station terminal.  These files can also be controlled by requiring only "signed" documents be placed in the accessible folders.  This makes revision control, and distribution easier.  However, it also creates the potential for workers to access the wrong file by mistake.  Another potential issue is the cost of placing a terminal at each workstation.  Although it is getting more cost effective, it may still be prohibitive for some companies.
  
  
• Electronic Documentation (controlled) - This method is similar to the last method, except it uses a program to supply, control, and block access to files.  This can ensure employees access only the correct and approved files for the current job.  It also makes it easy to control and distribute updates and revisions to production.  As with the prior option, this method requires a terminal at each work station.  This functionality does not need to be integrated into the production system, but doing so can increase efficiencies and reduce possible mistakes..

ManEx provides the tools for manufactures to be efficient and effective in their documentation control.  Through the standard system and PDM module, users can attach a myriad of file types to an ever growing list of ManEx screens and modules.

Some of the benefits of ManEx's documentation control are:

• Users are able to attach virtually any file type that can be viewed on the local work station.  This includes word, power point, pdf, excel, gerber files, cad files, and more.
  
  
• Files are automatically controlled with the same level of protection as the modules.  If users cannot access the module, they cannot access the files.
  
  
• Files are distributed automatically to wherever workers have access to a terminal and can be accessed by more than one person at a time.
  
  
• As Engineering updates the files, they are automatically pushed to production. This virtually eliminates the risk of production accessing any unapproved file.

Although there are many areas users can attach related files in ManEx, this article will focus on Inventory Control and Production Control.

Inventory Control

Users will use the related documentation option in this module to attach part specs, preparation instructions, certificates of conformance, assembly drawings, and other customer and supplier files related to components.

Production Control

Users can attach assembly instructions, process flow instructions, assembly drawings, test instructions, and more.  These can be associated with not only an assembly, but with the specific work center for that assembly.  This reduces the number of files visible in each area and makes it easier for workers to find and use the files they need.

Small changes can make the difference between a profitable project and a time wasting money drain.  In the Electronic Contract Manufacturing industry, supply chain/ material management can have a greater impact on profitability than almost any other element in the process. 

A few critical aspects, of supply chain management, that can help companies maintain their profit are: demand accuracy, purchasing power, and communication.

Demand Accuracy
How can you plan if you have no idea of what to expect?  You cannot control customer orders and forecasts, but you can mitigate their potentially negative impacts while leveraging the positives.

• Customer Accountability - Keep customers accountable for excess inventory due to demand changes and fluctuating forecasts.  Customers want the best possible price and flexibility.  If you can provide this, good customers will be willing to share in the risk for a greater reward.
  
  
• System Information - Keep system information updated and accurate.  Garbage in = garbage out.  Keep orders, dates, job status, and quantities updated.  Current information and settings will allow your system to keep inventory levels at the optimum level and help you get shipments out on time.
  
  

Purchasing Power
Companies like Foxconn, Flextronics, Sanmina-SCI, and Solectron have tremendous purchasing power which allows them to be more competitive and still profitable.  Small to mid-sized manufacturers may not have the same purchasing power, but they can often increase their leverage with existing orders.

• Combined Orders - Combining demand and delivery based on current and expected demand are crucial.  You may not have Foxconn levels of demand, but that shouldn't stop you from leveraging what you have.
  
  
• Purchase Commitments - Most suppliers are willing to provide better pricing for commitments of larger/more purchases.  Committing to purchase your most expensive/highest volume components from a supplier will often result it better pricing and terms.  Just make sure to be reasonable in your commitments and manage demand and bonded inventory levels closely.
  
  
• Common Manufacturers - You need to build according to customer specifications, but that doesn't mean you can't standardize as much as possible.  Many customers are willing to approve new AVL's if it will save them money, improve delivery, and maintain quality.

Communication
Improved communication between customers, suppliers, and your company can only promote success for all parties.  Everyone in the supply chain wants to succeed, and they succeed as their partners succeed.  Open and improve communication so you can all work together for mutual success.

• MRP Sharing - Giving suppliers visibility of your current and future demand will help them better maintain their inventory levels.  This will help them to be as profitable as possible and ensure the parts you need are ready when needed.  Suppliers should be notified as soon as possible after demand changes in either direction.
  
  
• Customer Updates - Keep customers apprised of your progress.  Let them know what is done and shipping, and what is delaying shipments.  As they see your openness and communication, they will trust you more and rely on your services and expertise.
  
  
• Internal Communication - You should consider your internal processes and departments as part of the supply chain.  Internal departments cannot be islands of information.  Inventory should know immediately if production needs more components.  Purchasing should know when inventory is low or out of stock so they can replenish stock before it impacts production.
  
  

Mastering these areas does not guarantee success, but ignorance or incompetence in these areas nearly guarantees failure.  If you are lacking in any of these areas, start now to correct it.

ManEx provides the tools for manufactures to be efficient and effective in their materials and supply chain management.  The rest of this section will address how ManEx help with each solution listed in the business solution section.

DEMAND ACCURACY

• Customer Accountability - After the contracts are in place, you can manage demand changes in the Sales Order or Forecast module.  You can monitor customer committed inventory levels with the standard inventory module.  For greater visibility and control, you can use the In-Plant Store module to accurately control and monitor inventory levels and use.
  
  
• System Information - Keeping the order and inventory information updated and accurate will allow ManEx MRP to effectively manage your ordering and inventory levels.  ManEx provides numerous system settings to allow you to control how MRP uses the orders and fulfills demands.
  
  

PURCHASING POWER 

• Combined Orders - ManEx allows you to have one internal part number to multiple supplier, customer, and manufacturer part numbers.  This increases the likelihood of common parts and increase combined demand across orders and customers.  ManEx provides complete visibility for all demand.  If used properly, buyers can place a single order for each part number and not have to modify the order or create a new one unless the demand changes.  This can lead to significant time and money savings.
  
  
• Purchase Commitments - Using the In-Plant Store module, you can create and manage supplier contracts.  You have instant and complete visibility of available supplier inventory, contracted pricing and purchase levels.  Kitting will know when to use internal inventory, and when to pull from supplier inventory.  System notes and fields can help buyers know which parts are committed to specific suppliers and which are open for any supplier.
  
  
• Common Manufacturers - ManEx gives you the best of all worlds with its approved manufacturer management.  It is easy to standardize on a manufacturer where customers will authorize the change.  It will also allow you to purchase and use only approved parts even if the customer will not change their approved manufacturers list.  It may even highlight a different, but more common, manufacturer among the total demand.
  
  

COMMUNICATION

• MRP Sharing - Using custom triggers and reports, or sharing some of the standard reports, you can automatically update your suppliers with the latest MRP information in ManEx.  Additionally, it has many tools like "Open PO Status" and "MRP Horizontal Planning Summary" to keep your team updated on the status of current orders and demand.
  
  
• Customer Updates - Many ManEx users leverage the "Customer Order Status" to quickly provide information to their customers on the status of their jobs and potential production and material delays and issues.  ManEx also has numerous reports to provide updates on the status as well.
  
  
• Internal Communication - ManEx offers numerous internal note fields and automatic notifications to aid internal communication.  This makes it easier for shifts to communicate with each other, down stream departments to know what is coming and what issues they have encountered, and each department to take accountability for their work and quality.

ManEx recommends keeping information in the system as accurate as possible.  Trying to work around an apparent problem is likely to create other issues and concerns.  Recording inaccurate information will lead to inaccurate results.

In a situation with missing or closed customer credits, ManEx suggests the following:

• Create a deposit for the actual check amount -  If the invoice is for $1,000.00 and the customer pays $800.00 and tries to apply a missing/closed/non-existent credit for the balance, record a payment for $800.00.
  
  
• Inform the Customer - As soon as possible, notify the customer that the applied credit is already applied, or is not entered in the system.  The invoice will remain open with a $200.00 balance until the matter is resolved or the invoice is paid in full.
  
  
• Apply Future Payments - If the customer realizes the credit does not apply and sends another check for the balance, users can record another payment to close the invoice.
  
  
• Create/Update Credit - If users later discover that they do owe or want to credit the customer the $200, they can create a General Credit Memo and apply it to the invoice via the AR Offset Module.
  

Following these steps will ensure the system reflects the current state of the invoice and allow users and customers to research the matter.

To fully track the progress of the issues, users can make notes of each call* with the customer in the AR Aging module, or create an action item in the Customer Follow-up module.

Most systems have some method for notifying users when specific situations occur.  The challenge is knowing which tools are available and how to use them.

Some of the most common methods companies use for notifying users are:

1. User Generated Notifications- This requires users to create/send the notification whenever specific events occur.  While this notification can be immediate and requires no overhead to setup and maintain, it requires users to remember and can quickly become too difficult to maintain all the possible notifications.

2. Standard System Triggers- Leveraging standard system triggers is ideal.  It allows for immediate notifications and will work with current and future system upgrades.  However, the standard triggers may not cover all requirements or be as flexible as the user would prefer.

3. User Defined Triggers- User defined triggers allow for greater flexibility than standard triggers.  However, they may not be immediate and are not guaranteed to work with future system upgrades.

4. DataBase Triggers- Depending on the database back end, it may be possible to create database triggers.  These triggers can flexible and the notification can be sent immediately.  However, it requires greater understanding of the database and may require updates to match system updates.

Companies may decide to use a combination of the above methods depending on experience, understanding, and needs.

ManEx has provided users with the ability to use predefined triggers and create their own notifications. Users can specify when the notification should be sent, to whom it should go (both internally and externally), and what the email notification should say.

The predefined triggers are be broken into several main categories. They are:

• Late Notifications - These notifications will let users know when quotes*, shipments, PO receipts, Kit releases, and Work Orders are late. This helps respective managers stay on top of their jobs and produce the best possible results.
  
  
• System Maintenance - These triggers will regenerate the MRP, re-index the database (and check for system errors), and update the production schedule* based on previous results and current demand.
  
  
• Approvals - These triggers will notify users when approvals are required for: Sales Orders, Purchase Orders, ECOs*, and Quotes*. This helps keep the process moving.
  
  
• General Notification - These triggers send notifications for new Physical Inventory, DMRs, rejected material, RMAs, and when a Sales Order has been completed.
  

Additionally, users can create user defined triggers within ManEx. These triggers can apply to any area and any condition in the database. These triggers can each be run once a day/week/month and are limited only by the users ability to write a SQL statement. If the SQL statement returns a result, the notification and result will be sent at the predefined time.

Some of the most common uses for custom triggers are:

• Customer Notifications - These triggers can send select customers an update of shipments for that day with detailed shipment information like tracking number, qty, etc.
  
  
• Vendor Notifications - These triggers can keep vendors updated on current demand for select components to ensure they have enough on hand.
  
  
• Internal Notifications - These triggers can send notifications for things like: current listing of components due this week, new BoMs added this week, Sales by Customer for the month., and many more.
  

To create the SQL statements, users can: write them within ManEx, create a view/query using a program like Excel or Access, or pay third parties to create the appropriate statement. You can view an example of a user defined trigger under the "User Defined Periodic Triggers" under the Sales Triggers.

Please let us know if you are interested in working with a third party to create custom triggers.

FUTURE CAPABILITY: Once ManEx finishes the conversion to MSSQL, users will be able to create triggers and notifications in MSSQL. This will give users more control over the timing of triggers.

NE Company started using standard and custom triggers and has been able to increase internal communication with the automated process. An unintended benefit was saving money by reducing the work load for the system administrator because he no longer had to manually run data maintenance in the middle of the night.

Their largest customer also likes the updates on daily shipments and appreciates the visibility the new processes provide.

Most manufacturers recognize the need for good communication and documentation control processes, but many underestimate its importance.  They think that running one shift removes the need, or their employees have a good handle and remember what is needed without a system or process.

While that may be true, it is not only not recommended, it would fail most ISO audits.

Companies use many methods for documenting requirements and communicating between shifts. Some of the most common are:

1. Paper Based Tracking - This requires employees to document all needs, notes, and issues in paper format. While it is very inexpensive to implement, it requires additional processes for document control and is subject to employees forgetting to document or misplacing the documents.

2. Email Communication - Some companies will use internal emails to communicate needs and requirements between shifts and production builds. This creates an electronic record of the needs and notes. However, it is difficult to control and ensure everyone has only the latest information. It also requires users to check their email in order to get the latest updates.

3. Daily Meetings - This is probably the most common method for communicating information between shifts. It allows the exiting shift to update the incoming shift of any issues and important topics for the current job. However, it is subject to human error as they may forget to communicate some of the information. It also fails to document the information for later use. Also, this will not carry daily information into the next day if the company runs only a single shift and requires users to remember important information from day to day and week to week.

4. System Based Tracking - Many ERP systems provide methods for documenting important information for each job. Ideally it would allow users to communicate across departments, jobs, and days.

Companies may decide to use a combination of the above methods depending on the complexity of the assembly and production requirements.

ManEx has several tools to facilitate communication between departments, shifts, and days.

• Related Documentation* - The related documentation button in production is part of the Product Data Management (PDM) module. It allows users to attach numerous files and file types and electronically control documents for a given assembly.  This means production always has the latest information and can easily access it from any terminal.
  
  
• Shop Floor Tracking Notes - Production workers are able to document notes and issues related to all work centers in a job, specific work centers in a job, and specific work centers across all jobs. Notes are flagged to make users aware as they click on affected work orders and work centers.  This ensures they have the latest information and it is not lost between jobs, departments, shifts, and days. 
  
  
• Work/Special Instructions* - In addition to related documentation, users can add work instructions and special instructions for each work center in the routing for every assembly. This ensures the needed information is readily available and current.
  

NE Company loaded all of their documentation into the PDM module* and started utilizing the numerous notes within the shop floor tracking module.

Employees were able to learn and become comfortable with these tools. These practices were carried into the second shift and enabled better communication between shifts. It also enabled production to better communicate with production management and ensure documentation was complete and accurate.

While it is difficult to quantify the benefits from this process change, they have noticed a reduction in production delays and defects as they leveraged the wealth of information well documented within the system.

All good ERP systems give users the ability to create components and assemblies.  However, the methods and effectiveness of the methods can vary widely.

The most common methods for creating new assemblies are:

1. Manually Load Each Item - This method gives the most control for creating parts and assemblies in a system.  Users are able to configure each aspect of the components and assemblies.  However, this can be a time consuming process and is prone to human error.  Typically this works best for small assemblies.

2. Copy an Existing BoM - This allows users to save time by copying an existing BoM and changing only what is needed.  While this can save time over the completely manual process, it works only if the assemblies are similar and determining the similarity before the copy can be difficult.

3. 3rd Party/Custom Import Tools - Many ERP systems have 3rd party add-ons available.  Others allow users to create custom tools.  This can simplify the import process and save significant time.  However, 3rd party and custom tools must be updated to work with system changes and must be thoroughly tested to ensure they work as intended without creating other issues.

4. Native Import Tools - If an ERP system has a native import module, it probably has been verified to accurately import the information.  It too may save time and make the process easier.  However, it may be an additional expense and may not be as flexible as custom solutions.

Companies may decide to use a combination of the above methods depending on the complexity of the assembly and production requirements.

It is easy to dump information into a table, but in order to keep the information clean and accurate, users should validate and scrub data before importing. This is especially true when the data to be loaded was created by customers and other outside organizations.

ManEx has created an import module and several utilities to simplify and streamline the import process.

However, using the import module is not always the fastest way to load a BOM.  Below are some tips and tricks to help you create new assemblies faster.

• Manufacturer Match - Users can use the utility to match manufacturer part numbers in a spreadsheet with existing AVLs.  The utility will create a list of existing part numbers that use the manufacturer's part number.  These parts should be auto selected in the import process or manually selected with the cross reference as needed.
  
  
• MFG Scrub* - Using this spreadsheet will allow you to scrub the manufacturers to ensure they are clean and accurate.  Although the import process does this as well, it will allow you to create manufacturer aliases to expedite future imports.
  
  
• Skip class and type - Users are not required to load part class and type to start purchasing and production.  If you skip this step in the import process it will still create the new parts and assemblies, but will assign a class and type of TBD.  When ready, users can utilize the Global Class/Type Replace utility to assign the class and types and update the existing records.  This allows for faster loading and more control part definition as time allows. 
  
  
• BoM copy - Users can copy an existing BOM into a new BOM and modify it as needed. This method works really well for similar assemblies or revision changes.
  
  
• Drag-n-drop - For small assemblies with components already loaded in the system, using drag-n-drop may be the fastest method to create a new assembly.  Users are able to create a BOM by simply dragging components from the item master into the BOM.
  
  
• Modify the import template - When loading multiple BOMs from the same customer or with similar formatting, users can modify the import template to allow for simple copy and paste from the source file.  This may not make sense for one-off assemblies, but can be a significant time saver when loading numerous BOMS from the same customer.
  
  
• ECO Module - The optional ECO module will allow users to document changes to an existing BOM and create a new BOM or revision after applying the changes.  This provides documentation and control while automatically creating a new assembly.
  
  
• QOT Module - The optional quote module allows users to create assemblies in the quote section without adding components and assemblies to Inventory Item Master. Once the job becomes an order, users are able to transfer the quoted assembly into the item master. This will create the new components and prepare the assembly for production. It can greatly reduce the turn time after winning a new job.
  
  

Case Solution

NE Company started creating assemblies in the quote module and is now able to convert a quote to a production assembly in less than 30 minutes.  This allows them to start purchasing and preparing for production almost immediately.

For assemblies that do not go through the standard quoting process, NE Company has been able to cut the over 60% of the import time required using a combination of the methods above.

Each assembly has several steps required to complete production.  Each step may be responsible for placing specific components, yet many systems do not offer an easy way to identify and pull parts for each step.

Some of the most common methods for handling a situation like this are:

1. Pull parts for all work centers together - This is the easiest way to create a Bill of Material and pull parts for production.  However, it increases the likelihood of lost parts in production.  It makes it difficult or impossible to offset delivery dates for components needed in each work center.  It also makes it difficult to find components in the totes.  However, it may work well for small assemblies (few items on the BoM) or assemblies with few assembly steps.

2. Creating separate Bills of Material for each work center - This method makes it easy to see which components are required for each work center.  It also makes it easy to adjust the material stream to control cash flow.  However, it also creates excessive work orders to process each work center, and makes it more difficult to tie all work centers to the full assembly (users can overcome this shortfall by making the separate BoMs sub assemblies to the top assembly).

3. Changing the item numbers to indicate the work center - This allows users to see which parts belong in each work center.  It requires users to manually control the item numbers, and pull parts by item number.  This also is not an efficient method for control the material stream to help cash flow.

4. Creating inventory locations for each work center - This method breaks inventory into several smaller locations.  Rather than a central inventory containing all parts, each work center has a mini-inventory containing all parts placed in that work center.  This eliminates the need to pull parts for each work center and makes each work center responsible for the parts.  However, it may require more floor space and may make it more difficult to track overall inventory.  (a variation on this method is to have parts in a central inventory and then create a select few production inventory locations to handle and store the high volume common parts).

5. Using system fields to tie parts to each work center - If the system has a field for indicating the work center or the user can define a field for this purpose, this is the most flexible method.  It allows users to indicate the consuming work center, kit by work center, and offset the material stream for each work center. 

ManEx has standard fields and reports to make kitting by work center as easy as possible. Users of ManEx are also able to utilize any of the methods described in the business solution.

For assemblies with few parts and/or production steps, it is can be more efficient to leave all components in the material staging work center.  Fortunately, this can be updated at any time as required.

Kitting and production typically benefit by identifying consuming work centers on more complex assemblies and processes.  Each component on a Bill of Material can be assigned to the consuming work center. Then, kitting can pull parts for each work center.  Each production department is also able to see all parts required for their work center as well as the entire BoM.  This reduces the clutter in production and the risk of misplaced parts.  This also makes it easier for production to return unused components to the stock room upon completion of each step in the process.

Components used in more than one work center can be separated on the Bill of Material to indicate which locations and quantities are required for each work center.  This enhances control over the disposition of the material.

Case Solution

NE Company started kitting by work center.  They tied all components most assemblies to the consuming work center.  They also adjusted the production offset for later work centers to get closer to a JIT material stream.

Although they have not eliminated production attrition, they have been able to reduce it significantly and increase responsibility.

Component Pricing and Residual Inventory are critical factors in the contract manufacturing world.  The selected method of dealing with these issues can mean the difference between new business and not, or profit and loss.

Some of the most common methods for handling a situation like this are:

1. Quoting best price and sitting on the excess inventory - This method may win you the order, but can cost you the business.  Excess inventory can quickly exceed order profits and while the order may be great business, it may reduce overall profitability as you try to consume or dispose of the inventory.

2. Quoting and purchasing actual quantities needed - This works well for small and proto-type runs.  It reduces excess inventory and keeps record keeping simple.  However, it requires extra work to source the parts, does not provide much attrition and scrap, and requires starting over for future orders.

3. Charging for the full reel - This ensures that all material is covered by the order and the customer is responsible for the cost.  This also keeps internal inventory levels at the lowest possible level.  However, it increases the unit price per assembly, which can cost you the business, and makes you responsible for managing the customer owned inventory.

4. Adding a lot charge for excess inventory - This method provides for the lowest possible price on the assembly, and identifies the value of inventory purchased in excess of demand.  This also makes it easier to add flexibility to any contracts regarding how and when a customer would purchase the extra inventory.  However, you must still have a way to track the inventory so that you know how much is still on hand in order to charge accordingly.

ManEx is the best ERP system on the market for electronic contract manufacturers.  No other system provides better control and more detail in component tracking than ManEx ERP.  These features allow contract manufacturers to handle complex situations like the one described in the business case.

Users of ManEx are able to utilize any of the methods described in the business solution.  Depending on the situation and circumstances, ManEx users can employ one of the following methods to accomplish their purposes:

1. Identifying Excess Inventory Values *- Quoting in ManEx allows users to see the value of inventory after production is complete.  Providing this information to the customer in the quoting process enables everyone to plan for it from the start.

2. Track Customer Owned Inventory - Customers can provide their inventory where appropriate and ManEx will manage it throughout the process.

3. Track Inventory by Project *- Users are able to identify the project when purchasing inventory.  This enables simple reporting of the current on-hand value for project inventory.

4. In-Store Inventory *- This can be used to track customer and supplier owned inventory for which the user will need to place an order upon consumption.  Some companies use this to track components covered by excess inventory lot charges, but which remains the property of the user.

5. Standard and Custom Reports - Standard reports in ManEx will help users identify excess inventory for a given customer.  Users can also create custom reports to further aid this process.

Case Solution

NE Company decided to provide visibility of the best pricing and potential excess inventory.  They made the decision a collaborative effort.  The customer agreed to either consume the excess inventory within six months or purchase the inventory and then sell it back as it is needed to fill the production runs.

Because they took a collaborative approach and had the ability to manage the inventory regardless of the owner and status, they were able to win the business and increase their sales and profits.

• Project Management* - This module allows users to allocate work orders and sales orders to a project.  This facilitates simplified reporting allowing users to gather information on jobs regardless of the number of assemblies or levels in a project.  
• Custom Reports - The ability to create custom reports, allows users to setup special reports to streamline the reporting process.

• Inventory Control Management - This standard module allows users to control inventory at the warehouse location, manufacturer part number, customer part number, supplier part number, and internal part number levels.  It is easy to see which parts are on hand, if they are allocated, and where they are in the facility.
• Project Management* - This module allows users to allocate inventory to a project while placing the order, and from general inventory.  This simplifies the tracking process and facilitates simplified reporting allowing users to get real-time on-hand inventory quantities and values for any given project. It also provides inventory control preventing the accidental use of project inventory for non-project jobs.
• In-Plant Stores Management* - This module allows users to track and manage inventory owned by third parties.  Users can invoice the customer for slow moving or inactive inventory to remove the value, but still maintain visibility.  If the parts can be used on a future order, it manages the process of properly tracking the value so an order can be placed with the customer or supplier for that inventory.  This reduces holding costs and time required to manage the inventory.
• Inventory by Warehouse - Users can separate the inventory by warehouse, even if the warehouse is physically in the same building.  This increases functionality of the system and provides standard capabilities to increase inventory visibility and control.
• Inventory Allocation - This module allows users to allocate inventory to a job or project*.  This allocation increases the level of control to ensure the parts are available when needed and used only for approved jobs.
• Custom Reports - The ability to create custom reports, allows users to setup special reports to streamline the reporting process.  This can be in addition to any of the previously mentioned methods and allows for greater control and customization.

• Material Risk Code - this is an optional field used in inventory control, and MRP.  It allows users to establish risk procedures and ensure that buyers are following those procedures.
• Product Data Management* - users can attach component documentation to each part within the system.  This can be part specs, images, markings, etc.  This information is electronically distributed to purchasing, receiving, and production.
• Inspection and First Article Requirements - users can indicate if a component always requires incoming inspection and first article or enforce the inspection for any given order as needed.
• Supplier ratings* - based on supplier performance over time, users can establish supplier ratings to help identify at-risk or restricted suppliers and thereby reduce the risk of counterfeit components
• CofC tracking - users can indicate CofC requirements and automatically communicate those requirements to suppliers.  They can also upload the CofC into ManEx providing electronic documentation of component compliance.
• Purchase Order Notes - Once at-risk components are identified, buyers can communicate requirements to suppliers, and receiving.

• Dynamic Production Scheduling* - This screen allows production managers to monitor and track a jobs progress through the production floor.  It sets priorities based on slack time and allows managers to adjust those priorities as needed.  It also communicates those priorities to production workers so they know the most important jobs, in their work centers, at any given time and can focus their attentions where it can do the most good.  The production schedules are adjusted each day to account for the process made that day and the update priorities as needed.
• Capacity Critical Path* - This screen gives immediate visibility of potential bottle necks by allowing the user to select a date (grouped by day, week, or month) and/or work center and see the capacity and load.  This information is available as soon as a job is in the system and scheduled.  This can provide sufficient time to adjust the schedule or the capacity as needed and maximize throughput. 
• Open Work Order List - This screen provides a summary of all open jobs in production and allows users to sort by WO, Customer, Due Date, and Status.  It also shows the build quantity, how many are complete, and the balance.  This can help production workers know which jobs are in process and when they are due. 
• WO Shortage Summary List - This list identifies component shortages by WO, WC, and part number.  By displaying which parts are currently missing and expected delivery quantities and dates, this screen helps production identify critical shortages and adjust the schedule as needed. 
• Web Based Order Simulation* - This screen allows users to enter and assembly, requested quantity, and requested date.  It evaluates processing time and material availability and indicates how many can be done by the requested date, when the full quantity can be done (worst case scenario), and the components currently preventing an on-time delivery with short quantity and expected lead time.
• Customer On-time Delivery Reporting* - The report in eManEx will allow users to show on-time delivery performance for selected assemblies or customers over a selected period of time.  This enables production to evaluate their current processes and process changes to see how it impacts on-time performance.  This report is also available as a third party ad-on.  As part of our plans to help all users get the most of their system and leverage our focus and features, we have the first user develop report available for on-time delivery reporting.  This report was created by a ManEx user and can be used by other ManEx users to evaluate their on-time performance and make necessary adjustments and improvements.  If you are interested in this report, please contact sales@manex.com.