Part 1: Electronics Materials Management in EMS Manufacturing Factories
Below are some key metrics electronics OEM professionals can ask about, or verify, when touring EMS factories to better understand how EMS manufacturing companies are managing their electronics components and materials inventories.
- Number (#) of master production scheduler (MPS) changes within next 4 weeks
- # of MPS changes within 5-8 weeks out
- # of MPS changes within 9-13 weeks out
- % performance to customer commit
- Units forecast / requested
- % performance to loading / OEM customer request
- # of EDI lines not correct
- Monthly MPS / COGS Report
- # Part numbers
- # Part numbers added during period
- # Part numbers deleted during period
- # (PO) numbers placed
- # Purchase order (PO) lines new
- # Purchase order (PO) lines changed
- # Purchase order (PO) lines canceled
- # Part numbers on pull programs
- # Part numbers on regular order programs
- On time delivery percentage (% early, % on time, % late)
- $ Purchase price variance (PPV)
- $ Value NPV recovered from customer
Knowing what EMS companies focus on, and how they manage their materials management, can help OEM companies when evaluating and selecting EMS manufacturing partners.