Electronics Industry
Overview
Electronics manufacturing companies are concerned with several key business areas, including standardization, configuration, communication, manufacturing throughput, obsolescence, and supply chain management. These areas are especially prevalent with manufacturers of printed circuit boards (PCBs). An electronics manufacturer’s ability to execute within these areas often determines both their profitability and long-term viability in an increasingly competitive business environment.
Electronics manufacturing companies are acutely focused on strict standardization of all business, engineering and manufacturing processes. These companies strive to maximize efficiency, both internally and externally within their supply chains. Internally, electronics manufacturers strive to standardize their customer, supplier and manufacturing cycles. Externally, electronics manufacturers are demanding better visibility into transactions and a better understanding of customer and supplier relationships. Business process standardization helps them achieve this end.
Printed circuit board (PCB) population can be very complicated due to the nearly infinite number of configuration combinations and board locations. PCB requirements are usually defined through close interaction with the customer. Often, a customer may have multiple combinations for different applications, and a given combination is subject to future modification. These companies therefore must be prepared to configure on short notice. This functionality requirement is usually satisfied through the use of configuration or engineering software, although proper business processes and inventory policies are equally important for success.
Strong internal communication regarding PCB population and location is needed between the sales organization and the shop floor. This requirement is usually satisfied through specific BOM functionality and paper-based shop floor instructions. It is not enough to simply list out the components required along with a simple routing. If the process is automated, the instructions often deal with machine settings. With more manual operations, the instructions must be precise to avoid costly production errors and re-work. Miscommunication can lead to delayed production runs, obsolete inventory, and missed customer orders. The financial consequences can be devastating for an organization.
Electronic manufacturing operations are usually throughput-intensive in this high-volume industry. These environments are often repetitive, especially with PCB production, and use special equipment to populate the boards. Throughput must be managed to accommodate a typical “burn in” period, which allows the PCB components to properly set. This burn in period can last up to 48 hours.
Obsolescence is also a primary area of concern for an electronics manufacturer. Obsolete inventory usually occurs when an organization builds inventory ahead of orders, and the component requirements of the order demand change. This creates the conflict between reducing production runs and unit cost through longer runs versus reducing obsolete inventory through shorter runs. Several software tools exist to help manufacturers manage this issue.
As electronic manufacturers within the supply chain move faster and faster, accurate and timely information is critical. Electronic manufacturers must be able to see up and down the supply chain. The combination of new technologies, along with a proven ERP backbone, can meet these requirements. Clearly, finalizing the ERP backbone is critical to success in today’s electronics manufacturing environment. As importantly, organizations must define and adhere to clearly defined, standardized and well-implemented business processes.
Key Industry Business Drivers and Complex Requirements
Companies within the electronics industry are primarily concerned with several key areas:
- Standardization
- Supplier and customer visibility
- Supply chain management
- Collaborative planning
- Clean manufacturing environments
- Component obsolescence
- Forecasting
- Replenishment
Our Experience
Logan Consulting has tremendous experience working with electronics manufacturers. Our ability to execute projects quickly and successfully, and our dedication to implementing business, manufacturing and project standards, make us an ideal partner for companies within the electronics industry. We have assisted manufacturing companies whose products range from appliance electronics to wireless components to computer hardware and peripherals.
Specific Clients:
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