Supply Archives

NOTE details the top 7 benefits of implementing a Kanban system.

1. Mitigating long lead times

A Kanban system enables a CEM to deliver to their desired lead time by utilising our effective supply chain model and this can be implemented at sub assembly level or final assembly level.

2. Supply & Demand Flexibility

Customer demand for a product can often be erratic. A well-engineered Kanban system self regulates by pulling higher level build when demand dictates and conversely slows up when demand falls. This is proven to be far better than MRP or fixed schedules.

3. Reduced Costs

A Kanban system can also help to reduce costs in electronic manufacturing both at the OEM and the CEM. Optimal batch sizes, manufacturing within normal hours (i.e. not needing to rush and pay premiums due to spikes in demand) and ship to line supply solutions are good examples of why it is cost effective.

4. Up-issues

If a product or design is changed or updated the OEM does not have excessive finished stock that has to be used before a change can be implemented. Good change management alongside a good Kanban system leads to greater flexibility and speed to market.

5. Working Capital

With reduced stock held at the OEM there is an immediate working capital and cash flow advantage to the OEM. Freeing up cash for R&D and building the business further.

6. Less space used for storage

Components / Assemblies are delivered when they are needed in the quantity that is needed for that day or week as appropriate. This negates the need for the OEM to hold large amounts of inventory. This frees up valuable space for functions that add value to your business.

7. Reduced Waste

Overall all of the above is reducing waste in your business. No waste of valuable space, no waste of cash, less scrap or waste of old issues when changes are needed quickly, less wasted time managing the supply chain and with potential efficiency savings less wasted money/profit.

The most simple solution to avoid counterfeit components is to buy directly from the Original Component Manufacturer (OCM). However, as we know for the vast majority of us this is not possible. Therefore, you need to decrease the chances of purchasing counterfeit components which can have a negative impact on product compliance, safety, quality, reliability and more, by following these simple guidelines.

1- Validate Suppliers

If you are not able to buy directly from the manufacturer the first step in ensuring you do not deal in counterfeit components is to make sure you validate the genuity of any supplier. You can check the ECIA Authorised (http://www.eciaauthorized.com) website for approved distributors. You can also check directly with a manufacturer if a distributor is a genuine supplier of their products. Many manufacturers also offer lists of approved suppliers which can be useful when identifying genuine sources.

2- Request documentation

An initial way to check the genuity of components is to check the documentation. Speak with your supplier and request a manufacturer compliance certificate. Any good supplier will have a policy in place and will be committed to combating counterfeit components. In the case that the supplier refuses to produce this information should set alarm bells ringing. It should be agreed that payment is only due when satisfactory documentation can be produced to verify the origin of the goods. Request an unbroken chain of custody which will help to ensure that the part has not been tampered with.

3- Inspect the components

Do a visual inspection under a microscope using a known legitimate part for comparison, ideally from the same manufacturer. Look at the line marking quality; clean lines which are identical and legible indicate authentic components whereas illegible ones will normally imply poor equipment has been used for the markings. Compare the legs pins and leads ensuring that there are the same quantities and sizes. Check all printing style fonts, any company logos and alignment of all text as well as code formats. Check for obvious signs like misspellings. The list of things to look for could go on but using common sense will point at what to look for. If unsure, contact the manufacturer and remember to keep in mind that sometimes components can be manufactured in different facilities resulting in slight differences.

4- Invest in Training

Ensure that all of your staff are correctly trained in identifying and avoiding counterfeit components. Anything suspicious should be identified and reported immediately for further investigation and testing.

For more information please feel free to contact us or visit our Materials Management solutions.

Tag: Supply

Benefits of a Kanban System