Implementing lean manufacturing principles means figuring out the right tradeoffs. In a perfect world inventories arrive just-in-time from a small pool of suppliers that have agreed to work to a common forecasting and lot-size philosophy. Engineering teams enhance this process by maximizing component commonality in every design. However, EMS isn't a perfect world. The total number of suppliers grows with each customer. Component commonality varies not only among customers but sometimes even in the same product line, particularly in companies with longer lifecycle product. Forecasting accuracy varies widely. Some customers value the benefits of Lean philosophy, but others simply want the lowest material cost possible. Implementing a textbook Lean philosophy can increase the risk of component shortages in the event of allocation, plus it may increase material cost.
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