Out-of-the-box Business Management systems don’t always deliver in high-mix, high-churn manufacturing environments. Specialized tools are required to manage the unique requirements of an environment characterized by complex product mixes, exotic materials and rapidly changing schedules.

Fabrinet has developed a suite of sophisticated tools that work in tandem with its ERP and MES applications, and business intelligence systems to provide a comprehensive snapshot of the status of any product at any point in its manufacturing lifecycle.

“We know that our customers count on our quick change capability,” said Dr. Harpal Gill, COO of Fabrinet. “Our business system, our modular facilities, our supply chain - every component of our operation is designed for flexibility and agility. We’ve had to think out of the box to develop the IT tools that fit this model.”

Fabrinet’s internally developed tools fall broadly into three categories: Demand Management, Supply Chain Optimization and Supply Analysis.

Demand Management in high-mix environments relies on instant information and detailed analysis. Fabrinet adds strength and depth to its demand management intelligence with several internally developed tools including a Max Kits tool, a Constraint-based Scheduler, Demand Churn Impact Analysis, and a Flexible Demand Comparison to assess the impact on materials when volume requirements or schedules change.

“We’ll get a call to ‘produce 20 more’ of X,” said Mark Lopus, director of business systems for Fabrinet. “Our demand analysis tools, in combination with our other business management systems, enable us to instantly let customers know the impacts of their upsides – if any-- on their other product lines, as well as an adjusted, reliable delivery date. We can then respond on-the-fly to whatever change the customer makes based on this data, ensuring that there are no surprises down the road.”

Fabrinet’s demand management tools are also useful in end-of-life scenarios, he explained. “We can advise customers on how to fund end-of-life builds to maximize the yield of finished goods while minimizing scrap materials and consuming down on hand inventories. “This has enabled several customers to produce both unexpected revenue and cost savings.”

A constraint-based scheduler identifies when a product can be delivered based on availability of materials and capacity, and then expedites materials to make the schedule. “We use this tool to build an intelligent, optimized schedule,” said Lopus. “In a high-mix environment which often involves shared capacities and materials, this is an extremely dynamic and complex process. Yet we can deliver reliable dates, providing our customers and in turn their end-customers with the information they require.

Fabrinet’s in-house team of Oracle specialists and business analysts use two uniquely designed tools to perform Demand Churn Analyses. A Flexible Demand Comparison tool continually calculates changes in customer’s demand schedules within flexible planning horizons. These changes are then fed into a Churn Impact Analysis which highlights the results of those changes in terms of potentially stranded material inventory or potential shortages in components or capacity. This data can be checked prior to executing to a new demand plan. Customers can be apprised of real and potential impacts of the changes.

Last quarter, one customer chose to expedite the end-of-life of one of its legacy product lines as a new product was prepared to ramp up in its place. The legacy product had several high-cost, unique components in inventory. Using the Max Kits tool, Fabrinet provided them with an immediate cost-benefit analysis of extending the legacy product’s life. With this intelligence, the customer chose a “build out” of its inventory, thereby reducing obsolescence exposure and gaining additional revenue.

On the supply side, Fabrinet has implemented a number of tools to manage its heavy materials churn and to control inventories throughout the supply chain. These include an alternative parts enhancement, a “matchmaker” for excess inventory, alternative scheduling logic, rolling shortage analysis, and excess controls. The alternative parts enhancement identifies cross-customer availability of a matching part (as each customer typically uses their own part numbers), which helps customers proactively disposition excess inventory if desired. The matchmaker tools take these same parts inventories and seeks other uses for them in the factory – another means of reducing a customer’s excess inventory.

The alternative scheduling logic tool provides a more realistic and proactive viewpoint than the standard scheduling logic provided by standard MRP systems. Fabrinet’s tool, for example, recommends line item cancellations in cases where demand is moved outside the components’ lead time, whereas most MRP systems will simply suggest rescheduling the line item. The rolling shortage analysis is an early warning tool alerting customers well in advance of when shortages will occur so that schedules can be re-adjusted or alternative sources can be investigated.

Fabrinet builds in additional layers of control to supply processes. A specialized tool looks for “extra” conditions added by the customer or Fabrinet, on any particular part or material, prior to any purchase. If a condition occurs on a purchased item, such as a “no cancellation / no return” clause, a minimum order quantity that will result in excess inventory, or any other potential issue, senior level staff are automatically inserted into approval hierarchies so that they can review and authorize a “risk” order prior to the execution of the purchase order.

“We provide our customers with the realistic, line item data they need to make informed and rational product manufacturing decisions,” said Dr. Gill. “Our customers know that they can count on us to augment their internal business intelligence and sales forecasts with realistic, reliable costs data and product delivery schedules. The scope and depth of information we can provide, in real-time and on demand, helps our customers respond more cost efficiently to changing market conditions. And I can tell you, they appreciate it.”