The Preparation for Long L/T Parts
Author: Mark Ma
Purpose:
1. To provide the better services to our clients
2. To meet the customers’ delivery requirements.
3. To increase the competitiveness of PSI.
4. To create the win-win situation between our clients, venders and us.
Based on the average usage in the past 6 months, PSI finds a rule for how many Long L/T parts should be prepared in advance through the computer calculation automatically. So it will prevent our customer from buying the spot components with a higher cost when there is a shortage of components under urgent orders. For the different customers with different characteristics and different special materials, we provided 3 kinds of managing methods for the Long Lead time parts.
Please see figure 1 and figure 2 below.
  1. The standard Forms: Based on the average usage of the past 6 months with the quantity on-order, the inventory, the requirement and the MOQ for the next 6 months included, the computer can make a suggestion on quantity for the next 6 months. We can buy the specific quantity according to customers’ requirement.
  2. To eliminate high usage: This form differs from the standard one because this form excludes values of the high amount of usage after calculating the standard value. So it can prevent us from buying the mistakenly estimated quantity for a special case (e.g., the Prototype trial run).
  3. The form which excludes the quantity which has not been produced for more than several months: This form excludes the product usage which appears in the standard forms for products which has not been produced for more than several months. So that we can avoid buying the excess materials.

Figure 1:

Figure 2: