PRODUCTION CONTROL (1)
This time, I hope to discuss other aspects aside from

What is
Production?
·
It simply refers to “a
comprehensive management that is linked to production sales “.
·
It depends on market
demand where current market requires inexpensive outputs to be
produced fast with expected function and quality.
·
To meet prompt
delivery, three aspects; man - machine - material must be monitored
and controlled closely as well as the quality and quantity.
Production Flow in the Market
Research
►
Development
►
Design
►
Prototype
►
Production
Preparation
►
Procurement
►
Production
► Sales
(R&D / Procurement/ Production are the 3 Main Stages)
Flow in
Sub-Contractors
Inquiry
Estimation
Procurement
Trial
Production
Delivery
When parts are supplied by a manufacturer, the procurement step may
not necessary.
Several Types of New Inquiries
·
Normally, both dra
·
Sample photos are
sometimes provided, while sub-contractors have to complete the whole
design.
(Photos above are
Quotation
·
A rough quotation is
cited based on the pick-up components from photo and present it to
customers as a guide.
·
Manufacturers shall
study and evaluate with information given on hand and estimate the
processing cost of new products in order verify the new products
whether consistent with the target price.
· Manufacturers are under risks of facing product failure, shall the product does not meet the specifications as expected after the trial evaluation, component changes, circuit review, processing time increased attributed to the modifications, additional jigs, and changes electrical tester, etc, attributed to the higher costs.
·
This increased cost
will be passed down to the sub-contractors that might contract a
non-profitable project, unless the makers absorb the additional
costs.
·
Hence, the quotations
must be done carefully and precisely as well as competitive pricing,
so as to match up with competitors.
·
Lastly, the
sub-contractor must decide a pricing that fits the market situation,
customer’s requirement and also the total costs of production.
Factory
Level
·
Cost is the prior
concern among Japanese firms, MNCs and local competitive factories.
·
Formerly, cost of
machine implementation, machine depreciation and labour were
contained in sub-contractors’ cost of an implementation of chip
shooter capacity (for C/R).
·
However, since the
·
Such low-cost
geographies had brought greater attraction to the Japanese MNCs to
invest.
:: Quoted by Mr. Berdie,
dated