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.