Issue link: https://iconnect007.uberflip.com/i/1275152
50 SMT007 MAGAZINE I AUGUST 2020 its setting. Our first goal is implementing AI in our SMT line first to ensure quality. Matties: Do you have one inventory control manager that oversees all of that, or is it a col- laborative effort? Ghalili: We have an inventory control manager who oversees our inventory. But in reality, there is a whole team of people: the inventory manager, the sales order processing manager, the program manager, and the purchasing manager all monitor the inventory. They have daily meetings, and collectively, they decide what needs to be purchased at what time. It's a team effort. Matties: You have to have every component to release a job. You can't let a 50-cent resistor stop your production. Ghalili: Exactly. To be honest, it does happen once in a while. A resistor can stop a $1-mil- lion production. Matties: It's costly when you make inventory control mistakes. Nolan Johnson: Do you run into any issues with counterfeit components? How are you able to prevent that from happening in your produc- tion through the system you use? Ghalili: Everything that we buy is through a cer- tified manufacturer and designated distributor. We don't buy anything outside of that. We've been very regimented about that. It's interest- ing that, for example, right now, we are look- ing for an ST micro-component. Their facilities in the Philippines, Malaysia, and Mexico were down due to COVID-19, so there is a shortage. We found this one component with an unrec- ognized distributor and decided not to use it since we could not trust this distributor, even though it impacted production. We can't afford that. We have stayed away from that as much as possible. It's very costly. Johnson: That puts you in a situation where you have to weigh the trade-offs of being even later with your customer or take the risk of being on time with components that could be sketchy, costing you money and reputation later. That's a difficult trade-off to make. Ghalili: Right. A few years ago, we had one instance where we asked the supplier to take pictures of the components, and we sent it back to the manufacturer for verification and the lot numbers. Again, having one of the larg- est companies as our customer, we can't afford that. We have to make sure that those are going to work. It's a challenge in China, but we have been able to avoid it so far. And we communi- cate with the customers about it: "This is what it is, we don't trust it. What do you think?" And 90% of the time, they say don't do it. Johnson: Getting your customer involved in reaching a consensus makes sense. Ghalili: Key components are all identified by the customer as to who the manufacturer is and what components we buy. They're very much involved. Johnson: What are the advantages to your orga- nization by having this inventory management system in multiple facilities? How does that help you be more responsive or more competitive? Ghalili: The Fremont operation is a new one. We just started it, and it has built some level of inventory. For example, right now for the orders that we produce, we have a U.S. Satel- lite Office Support Team in our China office, that looks inside the inventory and sees what We have an inventory control manager who oversees our inventory. But in reality, there is a whole team of people.