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DCCPerformanceandPractice BySnowdenCheng Contents Foxconn sStrategyDCCFunctionalityinSAPsystemPOManagementWWSitesInventoryControl3SBalanceEOLControlandEOLLiabilityClaimSalesAnalysisandInvoiceA RStatusAuditionNewModelsPhase inTiptopOperationandPaperwork FOXCONN SSTRATEGY OneSiteDevelopingThreeSitesManufacturingWorldWideDelivering Quotation Inquiry Order Delivery Goodsissue Billingdocument UpdatedemandManagement RunMPS MRP InventoryManagement UpdateFinancials SD PP MM FI CO DCCFunctionalityInSAPSystem POManagement CALASSIFICATIONOFPOPOREVIEWDemandsAnalysis830ANDBLANKPO830AND24WKSSHIPPINGPLANHOWTODEALWITH850830COMMITMENT870850COMMITMENT855 CLASSIFICATIONOFPO Bytime periodthatPOcoversSchedulePO DiscretePOBlankPOBywaysPOcomeinEDIE mailFaxByEDI Mainkinds 830850ByFunctionofPOEngineeringSamplePOCostPO includingfreight toolingetc NormalPO KEYPOINTSOFPOREVIEW Toseewhetheritisfromanewcustomerandoldone ToseewhethertherequiredP Nisofourrange TocheckwhetherthereisExportLicense Toseewhetherquantityistoosmallortoolarge ConditionsandtermsWhetherwecanmeetrequiredETAWhetherunitpriceiscorrectDeliverymethods bysea air Express Destinationofshipment WhetherCustomerhasspecificforwarder Whetherthereisanyspecialrequirementforpacking DemandsAnalysis 830ANDBLANKPO Samepoint demandsofthemareveryrough Demandsof830ischangeableweekly IfblankPOisrevised PONo willchange Normally 830isbasedononeblankPO BlankPOcoverpossibletotaldemandsofoneperiodoftime morethanhalfayear Normally blankPOisonekindof850 sostructureofitisquitedifferentfrom830 IfthereisblankPOonlyandthereisno830comingin therewillbenouseof 830 24wksShippingPlan 24wksShippingPlanisbasedonthreeimportantfactors 830 inventoryandsalestrend and830isthemostimportantone In24wksShippingPlan projectbufferandinventorydaysarebasedon830directly From830 wecananalyzewholedemandtrendandcurveoflifecircle wecanalsoanalyzesalescurveandcompareitwith830recordinpastweeks Thatwillbemorehelpfulforustoarrangeour24wksShippingPlan HOWTODEALWITH850 Firstly wehavetoreviewandtoseewhether This850isEngineeringPO CostPOP NinthisPOisEOLmodelTherehavebeensomestocksnowTherearesomerawmaterialsnow ifnot howlonglead timeis Commit855within24hrsInformcontactwindowoverseaandadviseourbestETDandETAReleasePOtolinetoprocessFollowingupandtraceAdvisepossibledelayifsomeunexpectedmatterhappenandnecessary 830COMMITMENT870 870isourcommitmentto830 870commitmentmustbefinishedwithin24hrsuponreceiptof830 870commitmentsteps 830example pleasestickherenow 870commitmentform pleasestickherenow Keypoints useinventoryavailablenowtocommitdemandofthe1stweek useETAquantityofcurrentweektocommitdemandof2ndweek useETAquantityofnextweektocommitdemandof3rdweek therestcanbededucedsimilarly 850COMMITMENT855 850example pleasestickherenow 855commitmentsteps stepone pleasestickherenow steptwo pleasestickherenow WWInventoryControl WhatdrivetheF Ginventorypolicy WhatwilleffecttheF Ginventory HowdoesCompaqhandletheF Ginventory HowdoesApplehandletheF Ginventory HowdoesDellhandletheF Ginventory WhatdrivetheF G inventorypolicy Theworldwidesupplyvs demandenvironmentTheagreementsignedwiththecustomerThedistancefrommanufacturingsitetothesalesmarketTheproductvalueThelogisticsmodel WhateffecttheF G inventory Theprecisionofthecustomer sforecastThecompetitionamongthecompetitorsThemanufacturingcapacityandflexibilityThelogisticscapacityandflexibilityTheorder MPSprocessprocedureThesupplychainmanagementcapabilityTheimport exporthandlingcapability HowdoesCompaqhandletheF G inventory ThelongtermforecastdirecttheOEMpartnermarkettrendRequestforbufferstocktocoverthemarketvariousnessPre alertsenttoOEMpartnerforapproachingEOLSitetransfertobalanceworldwideinventory HowdoesApplehandletheF G inventory Thestrict13weeksforecastdrivetheOEMproductionThespecialoperationteamwatchtheOEMplantactivitiesverycloselyTocontrolthewholeF G pipelinemovementfromex factorytoex hubPaytheOEMpartnerF G inventorycostintimeDonotaskforF G bufferstock HowdoesDellhandletheF G inventory Theprecise18weeklyforecaststabilizetheOEMpartner sproductionThemulti vendorsuppliestocoverthedemandchangeThedirectShip CTO andBTObusinessmodelreducetheuncertaineffectsdistortingthemanufacturingactivity 3SBalance Whatis3S Why 3SBalance isveryimportant Year2001DT 1 General3SBalanceAccumulation Whatis 3S 3Smeans Shipping QuantityshippedfromLHtoWWsitesSales QuantitysenttoCustomerfromWWsitesStock Quantityonpipeline Inland On way ContainerYard HUB Takearest Why 3SBalance isveryimportant 3SBalance means normally Balance Open Shipping Sales Stock 0 ifnot thatmeanssomethingwrongwithouroperation wherever 3SBalance isanveryimportantindextoreflectresultofbusinessandmanagement 3SBalance isabarometer Ifstockishigher wehavetoslowdownourshippingandpushoursales Year2001DT 1 General3SBalanceAccumulation IfyouwanttoseesampleinExcelSheet PleasestickHerenow EOLControlandEOLLiabilityClaim EOLPre alertsignal AnnouncementEOLControllingEOLLiabilityReportandClaim EOLPre alertsignal Announcement Whendemandsofforecasthavebeencutdownsharply andthistrendlastseveralweeks WhencustomerhasaskedustoreviewWWF Ginventoryandrawmaterials WhencustomerhasannouncedEOLWhencustomerhasaskedustoholdallrawmaterials EOLControlling ReviewandcheckmaterialsstatusweeklyAnalysisliabilityofEOLmaterialstimely andmakejudgment whoseliabilityandwhyControlWWinventoryunderproperstandard days andpaymoreattentionintosalestrendNeverworkoutnewLiabilityorpotentialliabilityCheckandjudgedemandsaretrueandfalsetimelywhendemandsarechangeablefiercely EOLLiabilityReportandClaim BeforeforwardEOLLiabilityReporttocustomers DCCwillhavetoanalysisandmakesurethatthereareampleevidencetosupportreport themostimportantevidenceisdemandsanalysis waterfall Ifyouwanttoseesampleofwaterfall pleasestickhereEOLLiabilityReportwillbeworkedoutaccordingtocustomerrequiredform CompaqrequiredformisinhereEOLLiabilityReportwillcover WWpipelineF G semi assembly rawmaterialsbothinFoxconnandco vendors vendors rawmaterialsbothonhandandopenorders ForwardEOLLiabilityReporttocustomerstimelyandpushclaim SalesAnalysisandInvoiceA RStatusAudition 2001CompaqL5BusinessAnalysisReportInvoiceA RAudition 2001CompaqL5BusinessAnalysis Fromthisreport DCCcantellyou MonthlysalesandtrendFullpictureofannualsalesSalesforecastofcurrentandnextweekIfyouwanttoseesampleofthisreport pleasestickherenow InvoiceA RAudition TomakesureWWsitestoissueinvoiceforallshipmentssenttocustomerwithoutanydelay TohelpCostDepttocontrolWWsalesandInvoicestatus DailyInvoiceStatus pleasestickherenow SomeperiodInvoiceStatus pleasestickherenow Variancebetweensalesandinvoiceduringperiodoftime Pleasestickherenow NewModelsPhase in MainStepsofDevelopmentRoughShippingSchedulefornewModelsMVBMVBandForcePartsP BOMThreestagesofCycleTimeforoneModelDCC sstrategytomeetchallengeofRamp MainStepsofDevelopment DevelopmentStepsExplanation ToolDesign ToolStart T1 PV PV2 PV3 TVR 3B FAI FAI FAI MVB T1 itisthisfirsttimetoruntooling PV1 1sttimetosendsampletoCustomerforverification PV2 2ndtimetosendsampletoCustomerforverification PV3 3rdtimetosendsampletoCustomerforverification TVR ToolingVerificationReport FAI FirstArticleInspection ithappensatanytimebetweenPV andTVR 3B ThestepofCustomer sfinalapproval MVB MassVolumeBuild theverystartpointoframp RoughShippingSchedulefornewModel Ifyouwanttoseesampleform RoughShippingSchedulefornewmodels pleasestickherenow Whatyoucanlearnfrom RoughForecastandDevelopmentSchedule Wherethisnewmodelwillbesentto WhenPV2 WhenPV3ifnecessary When3B WhenMVB HowmanypcforMVB Howtosendthemout WhenRampbegin Whensomeimportantmaterialsareapproved SuchasFDD SPS PCAandsoonBeforeDCCreceivenormal830signal DCCwillputthisroughforecastintoshippingplan allconcerningDeptwillpreparetheirMRPaccordingit EngineeringDept DCCwillforwardthisforecasttoCustomDeptforapplyingforExportLicense MVB What MVB means MassVolumeBuildWhen MVB Afternewmodel ssamplehasbeenapproved 3Bhaspassed What MVB isfor PilotRuninCustomer sProductionLine After MVB Rampwillbegin Quantityof MVB isusuallyverysmall MVBandFORCEPARTS WhenwesendshipmentofMVBouttoonesite weshouldsendsomeFORCEPartstoo atthesametime Whatdoes FORCE standfor FallOutReplacementComponentExchange ForceisdefinedascomponentsthatareintheLevel5enclosurethatmayfailatlevel10test Wepositionthesecomponentssothelevel10mfgdoesnotneedtoteardownthelevel10toalevel5enclosurethemRMAittous AllForcepartsarefreecharge ForcepartsareSPS FDD Cable Speaker Fan RiserCard solenoids functionsparts assembly HowmanypcforeachFORCEparts Quantitywillbaseonvalueofparts Atsomeratio 3 5 ofMVBquantity FAEOversea CustomerService Customer DCCDept P BOM P BOMpartsaresparepartthatCompaqadvisethelevel10mfgtopositiontobeusedforrepairoflinefallout damage thesepartsarepurchasedbythelevel10mfgfortheiruse P BOMpartsarepaintedaccesspanels paintedchassiscover bezels nonfunctionalpart
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