Part 1: Electronics Industry Materials Management in EMS Manufacturing Factories

Mark Zetter

Mar 27, 2024 — 1 min read

Below are some key metrics electronics OEM professionals can ask about, or verify, when touring EMS factories to better understand how EMS manufacturing companies are managing their electronics components and materials inventories.

Number (#) of master production scheduler (MPS) changes within next 4 weeks
# of MPS changes within 5-8 weeks out
# of MPS changes within 9-13 weeks out
% performance to customer commit
Units forecast / requested
% performance to loading / OEM customer request
# of EDI lines not correct
Monthly MPS / COGS Report
# Part numbers
# Part numbers added during period
# Part numbers deleted during period
# (PO) numbers placed
# Purchase order (PO) lines new
# Purchase order (PO) lines changed
# Purchase order (PO) lines canceled
# Part numbers on pull programs
# Part numbers on regular order programs
On time delivery percentage (% early, % on time, % late)
$ Purchase price variance (PPV)
$ Value NPV recovered from customer

Knowing what EMS companies focus on, and how they manage their materials management, can help OEM companies when evaluating and selecting EMS manufacturing partners.

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Steps How Electronic OEM Brand Companies and EMS Manufacturers Purchase Semiconductor Components

Indian Manufacturing Trails Behind Peers in Asia

U.S. Electronics Equipment Suppliers Affected Most by Geopolitical Risk and Decoupling from China

Cost Inputs EMS Manufacturers Use to Quote Circuit Board and PCB Assembly Programs