| ManEx Minute - 34 - Outsource Management |
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"Tell a man there are 300 billion stars in the universe and he'll believe you. Tell him a bench has wet paint on it and he'll have to touch it to be sure."
-Murphey's Law
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April, 2010
Issue 34
Dear David,
Thank you for your interest in the ManEx SQL introduction webinars. We are just as anxious as you to see it progress and finish. We had enough response to warrant multiple meetings. We plan to conduct 30 minute sessions to reduce the impact on your daily activities.
The first meeting will cover system setup and will show the screens and highlight the differences between ManEx SQL and the current version. We will hold this meeting twice, first on 4/16 and again on 4/23 at 9am Mountain. Seating is limited and is first come first serve. Please let me know which you would like to attend so I can provide the connection information.
As if that wasn't great enough news, we have even better news! Business is finally getting back to normal. Not only are our customers seeing an increase in business, but we have been very busy with presentations and demos. It is wonderful to see demand getting back on track. We aren't all the way back just yet, but all signs point in the right direction. We hope that each of you are experiencing this increase and return.
Either way, we want to help in any way we can. If you have a challenge and want help, please take a moment to let us know and see if others can help you work through it.
As always, we look forward to your participation and feedback as you gain new insights and become a more effective provider of Electronic Manufacturing Services.
Sincerely,
David Sharp
ManEx, Inc.
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 Business Case - Production Control |
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Outsource Management
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North Eastern Company (NE Company)* has the need to outsource processing of specific raw parts to other vendors for final modifications that they cannot do internally. They have been doing this outside their system, but are finding it more and more difficult to maintain.
One example is a raw metal enclosure. The manufacturer will not do custom modifications to the enclosure unless minimum volumes are met. Therefore, NE Company outsources drilling, painting, silk screening, etc. to a local machine shop.
To keep their customer exposure to a minimum, they do not outsource more than is needed to meet current customer demand. This means they have the raw metal enclosure in stock as well as some already processed finished enclosures. They need to track the quantity on hand for each variation of the part as well as the added costs associated with the modified components.
How can NE Company structure this in their system to accurately track quantities at each stage in the process? How do they automatically notify purchasing to place a PO for processing the raw parts? How does the stock room know to pull the raw parts and send them for outsourcing? What impact will that have on the overall cost of the finished assembly?
*Name has been changed
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Business Case Solution
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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:
Read the full Business Case Solution >>
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ManEx Case Solution
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ManEx is designed for EMS companies that traditionally do the outsourced work. However, there are ways to setup and track outside processing within ManEx.
Read the full ManEx Case Solution >>
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Outsourcing Control
"[They should]:
- Structure the bills so that the thing going outside is a sub assembly. This provides a stocking point for the part preprocessed and another for it post process.
- Inventory will show at the finished stage. If there is not enough stock available, and exception notice will exist and planning for the parts used in the sub-assembly will have already been planned via PWO's.
- Issue an order for the finished version of this assembly to the supplier and shipped the unfinished units to them. When finished, they will be received back in stock against the subject purchase order.
"In this approach, everything is done within the system and the is inventory and purchasing records on all material."
-Wayne, OR
"[We] made sub-assy boms [and] tagged the BUY items that need to go out for outsourcing as Inspection items so that when they are received...the initial person [is alerted]...the parts need to go back out for additional prep work. [We also changed] the item master description to say 'see I.M. notes', then...that entire notes tab to detail all the transactions that need to be done to get us usable raw material... I had to set the production offsets on the BOM so we got the raw material a little earlier than everything else.
"I believe my way works...however it's not exactly a 'clean' approach."
-Jay, MA
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Please share your challenges and issues. Give us a challenge and see if we are able to provide a workable solution. All cases are presented using North Eastern Company (NE Company) as the principle in the case.
To suggest a new topic please send us an email or click here to submit the topic through our website.
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