Manufacturing Executive - January/February 2009 - (Page 43) tegrity of your product,” he says. down, solution, likely that the brand owner The it is very according to Travis, is to doesn’t supply chain transparency, —state in achieve even know which supplier a how many there is open caused information which levels down — flow of the problem. in “In many cases, the parties, know silos, real time among all people don’twith nowho they’re dealing with. organizational boundor departmental or They don’t know which company applied the base coat paint or did aries. While the concept might seem more the stitching on achievable in the real Travis, aspirational than the embroidery,” says world, author of Doing Business Anywhere: impleTravis says manufacturers need to The Essential Guide to Going Global (John Wiley & ment technology and processes to come closer to thatInc., 2007). Sons, ideal to safeguard their brands and avoid costly warranty claims and recalls. Since they don’t know which other com- disparate views disparate Brand owner: Contract manufacturer: MANAGING PRODUCT QUALITY Brand owner: Contract manufacturer: PROTECTING INTELLECTUAL PROPERTY Brand owner: Contract manufacturer: 8% VISIBILITY OF DEMAND SIGNALS Brand owner: Contract manufacturer: MATERIALS SOURCING Brand owner: Contract manufacturer: SHARING INFORMATION ON PRODUCTION Brand owner: 25% CHALLENGES IN MANAGING THE CM RELATIONSHIP CMs and brand owners cited their top technical and business challenges: 56% 33% PLANNING AND MANAGING INVENTORY THROUGHOUT THE SUPPLY CHAIN views panies make up their supply chain, these A QUALITY CONTROL FRAMEWORK companies can’t take action to avert quality Many different types of software exist to help problems. “You have to know each link in manufacturers better manage quality in a CM the chain. If you don’t, you can’t ensure the situation. of your product,”from quality modintegrity Solutions range he says. ules in solution, accordingto track-and-trace The ERP applications to Travis, is to functionality, supply chain execution a state in achieve supply chain transparency, and planning, and business/manufacturing intelligence. which there is open flow of information in It can be difficult to know where to begin. real time among all the parties, with no silos, According to AMR, despite the plethora of or departmental or organizational boundarquality applications on the market, current ies. While the concept might seem more IT architectures are often not equipped to aspirational than achievable in the real world, foster the communication of critical data to all Travis says in the value chain to implement stakeholdersmanufacturers needto reduce detechnology and processes to times and to tection-to-correction (DTC)come closer imthat ideal to product their brands and avoid prove overallsafeguard quality and reliability. costly warranty claims and recalls. Often, for example, large companies use mul- 48% 38% 35% 29% 26% 29% 40% tiple databases to collect manufacturing, test, A Quality Control Framework Contract manufacturer: 11% quality, shipping, and warranty information. Source: AMR Research Manythis is siloed byof software exist to different types group or company. Usually, help manufacturers better manage quality in To achieve better quality management, a CM situation. Solutions range from quality determine what the functions Jacobson says, manufacturers need a sustain-modules in ERP is a disaster for the companies.” of quality for their organization quality. That able framework to connect functionality, supply “We have built analytics on top to convert applications to track-and-trace all business chain exare and how to propagate quality data out to the extended supprocesses and technologiesbusiness/manufacturing intelligence. actionable information,” he the data into ecution and planning, and that control quality ply chain. and relate forward-looking qualitybegin. says. IQS and EtQ SigmaQuest is one software vendor that offers on-demand are two other software It can be difficult to know where to management information with actual field event data. quality appli-that ser ve the enterprise quality that monitors and analyses vendors According to AMR, despite the plethora of business intelligence software “This can thenmarket, current IT architectures areand compliance management quality. “It’s difficult to get to the root cause cations on the lead to a closed-loop process often not supply chain area with the keyfoster the communication of critical data to all in manufacturing.of quality issues,” says Nader Fathi, president and CEO of equipped to stakeholders in manufacturing, managingautomation.com quality assurance, and product to reduce detection-to-correc- warranty claims is an customers are mostly in telecom, consumer Reducing stakeholders in the value chain design across SigmaQuest, whose the entire supply and improve overall product quality and for manufacturers and medical devices. “The time to react kills qualeasy place tion (DTC) times network, not just within a electronics, to beRELATED ARTICLES: specific-tierOften, foror OEM,” he says. gin justifying reliability. supplier example, large companies use multiple investments in quality for the companies.” It? ity. That is a disaster If It Ain’t Broke, Fix A first step, Jacobson says, is to impleanalysis software, Fathi adds. “If www.managingautomation.com/warranty databases to collect manufacturing, test, quality, shipping, “We have built analytics on top to convert the data into ment composite metrics that multiple sites you can reduce your warranty costs Creating IQS and EtQ are two and warranty information. Usually, this is siloed by group or actionable information,” he says.the One Enterprise other can buy into, such as DTC. That requires 5% to 10% because of better inforwww.managingautomation.com/integrate company. software vendors that serve the enterprise quality and complitimely access to critical quality data. Manumation, that ends up being a lot of To achieve better quality management, Jacobson says, ance management area Boeing’s Big Supply Chain Wager in manufacturing. facturers should also determine what the money. You have put in place soluwww.managingautomation.com/boeing manufacturers need a sustainable framework that connects you sleep better at Reducing warranty claims is an easy place for manufacturfunctions of quality for their organization tions to help Reporter’s Notebook: Contending with all and how to propagate quality data out analysis software, are business processes and technologies that control quality end ers to begin justifying investments in qualityChallenges night. At the of the day, what China’s Supply Chain and relates forward-looking quality management informa-own is your brand.” you can www.managingautomation.com/chinato 10% Fathi adds. “If reduce your warranty costs 5% to the extended supply chain. you really tion with actual fieldsoftware vendor that of-then lead to a because of better information, that ends up being a lot of money. SigmaQuest is one event data. “This can Using this type of technology can Regulate This closed-loop process with the key stakeholders in manu-competitive advantage,in place solutions to help you sleep better at night. You have put acwww.managingautomation.com/notes42 fers on-demand business intelligence software lead to facturing, quality assurance, and product design across theAMR’s At the end of the day, what you really own is your brand.” that monitors and analyzes supply chain qualcording to Jacobson. “ComCOMPANIES MENTIONED: entire supply network, to just within a specific-tier supplier Using this type ity. “It’s difficult to get notthe root cause of panies are succeeding by tying qual- of technology can lead to competitive i2 or OEM,” he says. quality issues,” says Nader Fathi, president ity management advantage, according to AMR’s Jacobson. “Companies are to warranty or www.managingautomation.com/i2 A first of SigmaQuest, whose implement succeeding by tying SigmaQuest and CEO step, Jacobson says, is to customers composite metsupplier management. This is one quality management to warranty or suprics that multiple sites consumer electronics, That requires plier management. are mostly in telecom, can buy into, such as DTC.way to become a performance-driven This is one way to become a performancewww.managingautomation.com/Sigmaquest and medical devices. “The timedata. Manufacturers should also � driven organization.” ME organization.” timely access to critical quality to react kills maonline D JAN/FEB-09 Executive 0 7 ecember 20 Manufacturing
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