Recycle Planning in the High Tech Industry

In the High Tech industry, Recycle Planning plays an important role in reducing inventory cost and improving profit margins by focusing on the optimal utilization of recycled material. The most significant factors in Recycle Planning are Product Quality Management and Factory Capacity Planning which are used to generate and re-use recycled material.

RECYCLE PROCESS IN THE HIGH TECH INDUSTRY

Recycle Planning Process
In the High Tech manufacturing process, product failures are often encountered after assembly during multiple testing operations. Failed products are then sent to teardown to recover components that can be reused. These components, classified as recycle components, can be reused after rectifying the component failure depending upon customer-based quality control and component level restrictions.

OBJECTIVES OF RECYCLE PLANNING

Recycle Planning revolves around following strategic objectives:

ObjectivesRecyclePlanning

CHALLENGES & COMPLEXITIES

High Tech manufacturing firms face many challenges when trying to achieve the above mentioned objectives due to the inherent complexity of using several existing systems to derive this information. First, standard MRP packages offer BOM (Bills of Material) based component consumption, but these do not address the complex requirements and consumption restrictions of recycle components based on quality and engineering controls. In addition, it is difficult to accommodate the production team’s commit, while planning for teardown/rework capacity.

These challenges have caused planners to manually plan with an Excel-based approach. This kind of stand-alone planning can cause teardown/recycle inventory to pile up and often results in discrepancies between the various teams used to handle the teardown/rework process. As a result, teardown/recycle inventory cost becomes high and more prime material is ordered to meet the demand. The end result is added overhead to the supply chain cost.

SOLUTION

Inspirage has come up with an innovative solution which offers functionalities to achieve Recycle Planning business objectives in an accurate and timely manner. The solution focuses on improving material utilization by forecasting recycle projections more accurately based on capacity availability for teardown/rework and real commit from the production control team. The solution also honors customer/product-based quality controls while reusing recycle components to meet customer demand. For more information about Recycle Planning please contact us at info@inspirage.com.

Ashutosh Sharma | Key Contributor

Ashutosh is a Senior Consultant with Inspirage where he has been involved in Value Chain Planning consulting assignments for discrete manufacturing based organizations. As a Techno-Functional Consultant, he has helped clients manage their critical Supply Chain challenges by providing innovative solutions with the use of Oracle Advanced Supply Chain Planning (ASCP), Demantra and Advanced Planning Command Center (APCC) modules. He enjoys in-depth analysis of Supply Chain processes in different types of industries and believes in identifying key focus areas to improve process efficiency. Prior to Inspirage, Ashutosh also worked for IBM India as an IT Specialist for nearly 2 years.