SMT007 Magazine

SMT007-July2020

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JULY 2020 I SMT007 MAGAZINE 13 coronavirus-related restrictions [2] . What have we learned from the coronavirus crisis? Inventory and supply chain management will have heightened importance and prior- ity to manufacturing efficiency and even to a manufacturer's viability. Crucial questions to be addressed include: • Is a reliable dependency on the chain of suppliers in place? • What is the technology employed to monitor the chain of supply? • Is a risk management program in place? • What is the risk mitigation plan and its order of priority? • Are the policies and procedures to address risks and threats in place? • Do all strategic raw materials have an alternate source(s), if justified? • Do all mission-critical components have alternate source(s), if justified? • What is the level of visibility throughout the supply chain? • What is the predictability of the supply chain? • Is there an adequate system in place to ensure internal and external cybersecurity to reduce manufacturing supply chain cybersecurity risks? Weighing the overseas sources juxtapos- ing with the domestic sources in quality, cost, delivery time, and in-time-availability becomes a strategic as well as an operating issue. Imple- menting the newly available technologies to minimize the risk and optimize the efficiency of supply chain management is also increas- ingly becoming a necessity. Manufacturing Environment and Operation: Technology-Propelled and Data-Driven Assuming there is a reasonable likelihood that we and coronavirus may co-exist for an indefinite period of time, and considering that social-distancing practices will continue, a near-term and long-term plan should be for- mulated and implemented with the goals to ensure workers' safety and health while maxi- mizing workplace productivity and optimizing manufacturing efficiency. questions to select the right EMS provider to produce quality products as intended. In essence, outsourcing a non-value-added task is one thing, but to give up the critical knowledge base is entirely another. Overall, outsourcing should be dealt with as a well- planned strategy, not as a relief tactic. And the outsourcing strategy should be discerned between the temporary lift and long-term busi- ness enhancement. Recalling years ago, during a dinner meet- ing with Dr. Kazuo Inamura—the founder and chairman of Kyocera Corporation—I que- ried directly his view on outsourcing manu- facturing. He replied just as point-blank, in paraphrasing, "How can an engineer not do manufacturing, and how can an engineering company not produce products?" He made his point, and I understood his sentiment. Considering a product development cycle, from an innovative concept to technology devel- opment, to manufacturing the product, to intro- ducing the product to the market place, each of the key milestones is pivotal to a product's even- tual success. The spirit and the principle of man- ufacturing are a part of a product and should be thoroughly embraced and comprehended with or without employing an outsourcing operation. Under today's competitive climate and with appropriate business justification, to outsource certain functions could be advantageous and constitute a smart business move. I have wit- nessed—and been actively engaged in with joy—the phenomenal development of the EMS operations ranging from the fledgling opera- tion to the robust enterprises across three con- tinents. EMS operations continue to have my genuine good wishes. However, it is prudent for OEMs or ODMs to maintain and acquire the engineering strength and know-how to prepare for future readiness. Supply Chain Management During this pandemic period, it is encourag- ing to note that the Institute for Supply Man- agement's manufacturing index for the month of May rose to 43.1% from an 11-year low of 41.5% in April, indicating that the pace of deterioration slowed as governments eased

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