PROCUREMENT TOOLS


By going through this Valor's Bruce Isbell Key to success:


• extend typical incoming inspections to now include allmanufacturing factors: a. Supply formand quantities are as ordered (reel/tray type, quantity per reel)


b. Orientation of components in their packaging c. RoHS compliance d. Moisture sensitivity specification e. Component function, tolerances f. Component shelf life


4. Inventory accuracy


As a basic principle, themore accurate your knowledge about component inventories andwhere the components are in the factory, themore opportunity you have to eliminate both the intended and unintended buffer stocks (and thus cash tied up in the supply chain).


However, inventory datamust be real-


time and based on the thousands of manufacturing events occurring every minute in a factory. It is essential to open awindowto the actual usage ofmaterial once it leaves the stock room.


Key to success:


At the front end of the NPI cycle it is crucial to validate the correct dimensional attributes of multiple sources of the same part number


process the component user minimizes the risk that his production lineswill be held up due to some unforeseen problemwith the components. Such product “hold-ups” cost a lot of money in terms of idle machines, stationary materials andmissed delivery schedules.


By combining the production schedulewith the “pull” signals coming fromthe assembly lines, components can be pulled into the factorywithinminutes of being required, thusminimizing the amount of cash tied up in inventory andmaximizing the rate at which inventory is turned over.


For the component buyer, the key criterion is toworkwith


component vendorswho support pull-based delivery signals from local delivery points,with the commitment to pass those pull signals up the supply chain in order to guarantee a continuous flow.


Key to success:


•manage inventory levels based on actual demand signals created fromthe real performance on the shop floor. JIT requirements can then cascade upwards to the stock roomand then to the supply chain in a smartway.


6. Qualitymanagement goes beyond incoming inspection


Quality data is gathered for every component placed on a circuit board in the factory. Did it pass test or inspection?Whatwas its “as assembled performance” versus specifications? Howmany rework cycleswere required before that componentwas satisfactorily assembled? For any component, howmany are failing in the field and coming back into the factory for


rework, or being cast aside by the consumer as they switch brands?


The data warehouse of performance and


Many components on the shop f loormust comply with regulations for lead free status (RoHS) and alsoMoisture Sensitive Device (MSD)


• real-time visibility of: a. Materialwastage,mispicks and misplacements on the assemblymachines


b. Consumption due both to successful placement on the board and to any rework after inspection/test


c. Reconciliation between components coming off reels and being transferred into PCB assemblies


d. Reconciliation of reels and trays coming offmachines and going back into buffer stocks


e. Any splitting of reels to supportmore flexible line setup or work-order scheduling


5. Leanmaterial flowcontrol


When supported by accurate real-time inventory data, buffer and warehouse stock levels can be brought down tominimumlevels and shifted to the assembly line (as opposed to stockroom) level.


Key to success:


• maintaining the correct traceability chain in data collection and data warehousing so that supplier trace data is continuously linked to product performance. There can be no break in the traceability chain, no ambiguity in the data, and the supplier quality datamust be instantly accessible.


Julian Coates is director of business development for the Valor Division ofWilsonville,Ore.-based EDA tool vendorMentor Graphics Corp.


Bruce A. Isbell is senior strategicmarketingmanager for the Valor Division ofWilsonville, Ore.-based EDA tool vendorMentor Graphics Corp.


www.mentor.com June 2010 | 27


quality data can be queried for reports that will enable the component buyer to track failures or quality-problemroot causes back to the supplier and lot-code. Poor performing components and suppliers can be scrubbed fromthe approved vendors list, cost-of- qualityminimized and on-time-delivery performance enhanced.


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