Making a decision to give up control of your electronic manufacturing to an external provider depends on a high level of confidence and trust from you and your manufacturing partners. There are many benefits that can come from joining an electronic manufacturing service (EMS) partner: giving you an encouragement of external resources, expertise, and equipment; free you from daily shop floor disturbances; and allows you to focus your energy on other core areas of your business.
But choosing whether outsourcing is also likely to bring many questions – and some understandable doubts. Outsourcing is an important decision – and this will depend on thorough research, in-depth examination, and asking some difficult questions.
In this blog post we summarize the four main areas that you want to examine when you begin the process of selecting your supplier:
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Process of controlling their suppliers
Can they give you a list of the latest approved suppliers? What is their process for selecting suppliers and how do they monitor performance? How often do they visit and audit their suppliers and how do they manage monitor and track supplier concerns? What is their strategy for managing purchase orders to ensure that only approved vendors are used?
Do they operate an in-house inspection system: including inspection sheets, sampling plans, results, measurement testing facilities, facility calibration, Certificate of Analysis (CoA) and Certificate of Conformance (CoCs)?
What is their strategy to reject products that do not meet their requirements? Do they run the first, first exit (FIFO) system that ensures full traceability until the finished product?
Do they clearly identify and separate Non-Compliant Materials (NCM) – from the approved section? What is their process for entering and reviewing all current NCMs – and what internal formats do they use?
Do they have adequate inspection facilities (i.e. x-rays for component inspection) to show product control and to reduce the risk of counterfeit components entering the supply chain?
And finally, are their material handling methods sufficient to prevent damage and contamination?
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Their approach to strategic / risk management
Do they have a business continuity plan in the event of a natural disaster, industrial action, fire etc?
And do they carry out a review policy to ensure that any gaps in the supply are plugged in and maintained through additional shifts, alternative location use, additional tools, etc.?
Unfortunately, saying they have a Disaster Recovery Plan in a place not really good enough, you will want to see evidence that it has been documented. And you also want to make sure that the plan is reviewed on an ongoing basis to ensure that it develops as their business grows so that it remains relevant and appropriate for the purpose.
For example, do they have a risk assessment analysis? What emergency procedures are there to deal with the immediate impact of a disaster? What actions do they have to restart the supply chain in the event of an unexpected disruption? How do they ensure their staff maintains the technical and manufacturing skills needed to build client products? Do they have access to various manufacturing facilities and what level of IT support do they have?
In addition to the amount of evidence that your potential EMS partner must be able to provide, it will also be equally important to determine that they are a ‘suitable personality’ for your company.
They must be able to show that they have the right combination of skills and experience to enable your business to grow. And just as important, they have a genuine interest in who you are as a company and what you want to achieve.
By combining complete research with a healthy piece of your own instincts, you can cover all bases to ensure your supplier’s selection process reaps positive results and long-term partnerships.
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Their Quality Management System
Can your potential EMS partners demonstrate the application of relevant National or International Quality Standards? And can they provide proof of their current Audit Institute Certification?
Do they hold regular management reviews that focus on meeting targets and targets for continuous improvement? Do they carry out internal audits (systems, processes, products, etc.) and how is this followed up?
What is the average internal and external PPM or has the percentage declined over the past twelve months? What percentage of memos per building and percentage of delivery on time? Can they give the number of customer concerns open month to month and their response time?
What is their process for producing a certificate of conformity or analysis? Is the certificate given to each batch? Do they operate an effective calibration system with relevant equipment and an audit plan? How do they manage customer, supplier and internal complaints? What are the root causes of the techniques they use and how can they show this?
And finally, what are the general conditions of their manufacturing/assembly area? Do they operate 5S (or similar) programs – and what is their average score?
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Their Approach to the Introduction of New Products
Do your potential Electronic Contract Manufacturing partners use sophisticated, or equivalent Product Quality Planning (APQP) as part of their NPI process? And if not, what is the alternative?
What is their process to get sub-supplier approval related to NPI? Do they provide final sign-off documents that include failure modes and effect analysis (FMEA), quality plans, data, and specifications? And do they verify the process to ensure process control before serial production?
Is process documentation available at each station and area in the production line? Are there starting instructions and sign-off processes (check sheets, details, etc.) for production to run? Are there Control and flow plans on the production line? Who finally signed the balance of payments before shipping the product or machine to the customer?
What are the main control processes that they have in place, namely the statistical process control chart (SPC), and do they operate a fail-safe system to ensure the product is manufactured correctly? Have they established process performance monitors – and are they transparent?
Working with an EMS partner who has a solid track record in test, FMEA, bespoke packaging solutions, and document control can help ensure any quality issues are nipped in the bud before they have the potential to become major problems. To find out more information, contact East India technologies today. Get in touch at (info@eitpl.com) and contact us +91-9910337896, +91-9650274009 today.
