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Industry characteristics:

● Customer demands are difficult to grasp, delivery times are short, and orders are placed frequently, requiring manufacturers to provide products with a variety of configurations to choose from;

● The product structure is clear and fixed;

● Product upgrades are rapid, life cycle is short, changes are frequent, and version control is complex;

● The product production cycle is short, and the coordination requirements for production planning, material planning, etc. are very high;

● There are many varieties and models of product spare parts, and the procurement and assembly are relatively complicated. Both self-made and collaborative production between enterprises are emphasized;

● It is easy to produce sluggish materials;

● Product quality management is generally valued and quality control requirements are high;

● There are many suppliers and suppliers need to be evaluated;

● There are many customers, so it is necessary to keep track of customer credit status and improve the turnover rate of accounts receivable;

● There are many types of products, small batches, frequent rework, cost accounting is time-consuming and laborious, and it is difficult to grasp the true cost;

● Some main parts have long delivery times and need to be purchased in advance or maintained in a certain amount of inventory based on market forecasts;

● Substitute materials are common and need to be fully considered when making material planning;

● Terminal products have after-sales maintenance management requirements. The serial numbers and maintenance records of the products need to be recorded and managed, and the original production status needs to be tracked based on the serial numbers;

Industry management priorities and common problems

1. Material number management is difficult to manage

Electronic products have complex structures and a wide variety of materials. If they are numbered manually, missing numbers, missed numbers, duplications, and misnumberings are prone to occur.

2. Difficulty in product design change management

Frequent product updates and frequent order changes in the electronics industry make product design change management difficult.

3. Product design work is arduous and customer needs are diverse

The common characteristics of the electronics industry are small batches and multiple varieties. There are a large number of elements in the products that need to be finalized by customers, and customers often have special needs, which results in heavy work for the product design department and difficulty in BOM preparation and management.

4. Sales forecasting is difficult

The electronic product market changes rapidly. The sales of some products are related to the season, some increase month by month, and some increase linearly. In order to facilitate subsequent material preparation, the forecast needs to be broken down, so several forecast models need to be provided for managers. Use to simplify forecasting.

5. Prepare materials according to forecasts and produce according to orders

Due to the short delivery time of electronic products, in order to meet customer orders, it is often necessary to prepare materials based on forecasts. When there is a customer order, the product is produced according to the order.

6. The large number of orders makes tracking difficult, which can easily cause delays in delivery progress.

The large number of customer groups coupled with the huge and ever-changing orders makes it difficult for management units to clearly grasp the procurement and production progress related to the orders, thus affecting the delivery schedule.

7. Credit limit control and accounts receivable control

Due to the complex types of customers in the electronics industry, there are a variety of payment methods. Some pay checks with due dates, some pay a specified number of payments or settle accounts based on the quantity used, some pay and owe money in different currencies, and some are subsidiaries. For transactions, settle accounts with the head office. In order to control risks, different credit limits need to be formulated and controlled according to different customers.

8. Difficulties in preparing material procurement plans

The materials used in electronic products usually range from dozens to thousands, and are composed of many semi-finished products. Customer orders are small in quantity, with many varieties, and the order delivery time is short. Some orders also specify key parts that must be selected. Important components The overseas procurement cycle of components is relatively long, so it is difficult to formulate a reasonable procurement plan.