Posts Tagged ‘Supply Chain Management’

Sharing the Data: Why Contract Manufacturers Feel the Pain

It’s a daunting challenge for a Contract Manufacturer (CM) to aggregate and report data to a customer.  Typically, they have to use manual labor to take the appropriate data, parse it into their system, and manually crunch the data (using Excel sheets or similar tools) to generate the report.  The man-hours necessary from technicians, management and analysts can quickly add up and the labor costs can eat into the profitability of the contract.

In the next few years, the ability to provide on-demand test data for review and analysis will provide contract manufacturers with a more compelling partnership proposal, especially in comparison to other CMs which don’t offer their customers with visible, clear test data.  Those that do offer data and teamwork to the customers will have the upper hand in proving the quality and efficiency of their labor, equipment and processes to prospective and current partners.  To all our CM managers: how much nonproductive time do you spend aggregating data for your OEMs?

Contract Manufacturing Tools and Practices: What’s Your Take?

The last couple of weeks we’ve been blogging about the issues and challenges OEMs face when dealing with contract manufacturing.  One particular problem we hear again and again from OEMs is how difficult and time-consuming it is to obtain a true record of test data from contract manufacturers (and forget trying to get real-time data).  Conversely, we’ve heard from CMs that they want a better way to manage and report their manufacturing data, especially if they’re producing components for multiple OEMs.  Particularly if the CM’s contract dictates that they eat rework and scrap costs, they’ve been interested in refining their processes as efficiently as possible, but this is especially difficult without real-time, accurate manufacturing data.

With upcoming software releases from IntraStage we will be implementing additional Supply Chain module features which will help to solve what we observe to be critical problems facing both OEMs and CMs.  But the best way to solve these problems is to get feedback from our customers who are people deeply involved in this area. So please, let us know about your experiences good or bad. We would love to hear them.

Cisco Implements homebuilt Test Data Management Solution

In 1994 Cisco System’s Manufacturing Team announced the strategic intent of being the undisputed world leader in Supply Chain Management. By 2001, Cisco had implemented a ‘virtual factory’ in which almost every function of production and fulfillment was performed through an outsourced network.  These functions included Parts Procurement, Material Management, Sub Assembly Outsourcing etc.

In 2010, Cisco began to roll out the next phase of this virtual factory through an internally developed software solution called Cesium. Cesium allows the Cisco Manufacturing Team to connect virtually and tap into the manufacturing data of thousands of suppliers and manufacturers to achieve real-time visibility into quality trends.  Cisco says that it can respond more quickly to quality trends and events with access to accurate quality data from its supply network (source Managing Automation April 09, 2010).

Cisco has no plans to market Cesium as a commercial offering, though they do recognize the advantages of maintaining such a solution. “We see quality as a competitive advantage for Cisco,” said Roger Bhikha, Cisco’s Senior Director of Systems and Component Quality. In addition to improved data-quality collection, Cesium is expected to improve Cisco’s component-level compliance and traceability by 20%.

As Cisco realizes the benefits of connecting to their Supply Chain with an automated data collection, analysis and database solution other companies do not necessarily have the financial and human resources required to develop an internal solution.  IntraStage can provide a proven, off-the-shelf alternative for those companies which desire a quick, less costly solution with comparable features and capabilities.