Cost reduction has been replaced by order lead time as the top issue facing mid-size manufacturers, according to a new report. As customers eliminate inventory by asking manufacturers to be more reactive and reliable to their demands, customer service is no longer simply improving complete and on-time order performance. Mid-size manufacturers are scrambling as they recognize that their order-to-delivery processes are not capable of delivering in less time with the accuracy and cost profiles required to please customers and the CFO.
 
"Mid-size manufacturers now understand that their current order-to-delivery processes are nothing but a set of loosely coupled functions and not as integrated and streamlined as needed," said Chris Jones, Aberdeen Inc.'s senior VP of value chain research. "Best-in-class mid-size manufacturers have adopted end-to-end integrated order-to-delivery process and are using real-time information to accelerate the velocity of their business."
 
The report finds manufacturers that move from a loosely coupled set of department or functions to a tightly synchronized order-to-delivery process are 2.5 times more likely to have the shortest lead times. Far too many mid-size manufacturers mistakenly believe that an end-to-end integrated process does a better job at passing information between the functional operations. Only 20% of respondents had end-to-end processes in place and only 14% had integrated, real-time IT solutions.
 
To optimize order-to-delivery performance, Jones recommends:
 
-- Understand the difference between an integrated process and connected pieces.
 
-- Get started by picking the top three functions to integrate.
 
-- Automate and use workflow to drive velocity.
 
-- Extend order-to-delivery to the supply base.
 
-- Drive order-to-delivery performance with real-time information
 
Download a copy here: www.aberdeen.com/summary/report/benchmark/RA_MidSizeMfg_CJ.asp

 

Santa Clara, CA -- Dimensions Consulting Inc. (DCI) has doubled the size of its headquarters in Santa Clara, CA, to include an in-house manufacturing division for test sockets. At full utilization, the facility will triple the company's production volume of sockets.   
 
"The demand for our sockets has increased to the level where we'd now like to have complete control over manufacturing," said Zaid Ayoub, president. "We have customers that need custom sockets as well as quick turn sockets, and having control over the capacity, materials and quality will give us the ability to respond immediately with reliable sockets."  
 
The facility will accommodate extreme fine pitch for next generation packages.
 
The company has hired Donald Hayes as manufacturing manager of the new division. 

Binghamton, NY -- A Texas court has entered final judgement in favor of Universal Instruments Corp., a subsidiary of Dover Corp., following a three-week jury trial in Houston.  All 17 claims of the asserted software patent were found invalid and not infringed. 

According to Universal, the suit, filed in 2002, is one of an increasing number of patent cases brought by companies whose primary business model is licensing and litigation of patent assets—typically, with the assistance of contingency fee lawyers. In this case, the plaintiffs alleged that the GSM Platform for surface mount placement of components on PCBs infringed U.S. Patent 5,283,943. The plaintiffs waived their right to appeal in return for Universal's agreement not to seek costs or attorney fees.

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Nuremberg, Germany --Siemens Logistics and Assembly Systems has opened a training facility on the campus of Senai University in Manaus, Brazil. Siemens will conduct SMT technology training for students and customers in the region. 

Close cooperation between the university and company will enable research results to directly benefit the development of new Siplace machines. Siemens also equipped the center with a new SMT placement machine.
           
Siemens also has a training facility on the Senai Campus in Campenas, Brazil, and the same course curriculum will be offered at both locations.