PROCUREMENT TOOLS


By going through Valor's Bruce Isbell


this process the component user minimises the risk that his production lineswill be held up due to some unforeseen problem with the components. Such product “hold-ups”


cost a lot ofmoney in terms of idlemachines, stationarymaterials andmissed delivery schedules.


Key to success:


• extend typical incoming inspections to nowinclude 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 ofmanufacturing events occurring everyminute in a factory. It is essential to open awindowto the actual usage ofmaterial once it leaves the stock room.


Key to success:


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


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


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


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.


www.mentor.com July 2010 | 15


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


5. Leanmaterial flow control


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. By combining the production schedule with the “pull” signals coming fromthe assembly lines, components can be pulled into the factory withinminutes of being required, thusminimising the amount of cash tied up in inventory andmaximising the rate at which inventory is turned over.


For the component buyer, the key criterion is to work with


component vendors who 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 from the real performance on the shop floor. JIT requirements can then cascade upwards to the stock room and then to the supply chain in a smart way.


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?What was its “as assembled performance” versus


specifications? Howmany rework cycles were required before that component was 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 datawarehouse of performance and


quality data can be queried for reports thatwill 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-qualityminimised and on- time-delivery performance enhanced.


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