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Customer P/N -internal P/N


Customer P/N -internal P/N | 1 October, 2004

Hi Everyone:

I'm doing a paper for a class on Operations Management for Competitive Advantage and my subject is, moving from Internal P/N to Customer P/N. The CM I work for, was as of last year, using mostly internal P/N's. We have moved to using mainly customer P/N's. In our production lines, we use to have only one reel for 5 different customers (5 is just a #). Now we have to have 1 reel for each customer. This has increased our inventory and space issues.

My question: Has anyone else been through this and what are the advantages (savings, tracking, etc) and dis-advantages (space, increase $$, etc.) of this system.

Thanks for your input. Carl

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Customer P/N -internal P/N | 4 October, 2004

Hi Carl,

On the upside try building all 5 at once with one reel.



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Customer P/N -internal P/N | 4 October, 2004

Sounds like a perfect application of a linear program. This is a chance for an OR-guru to shine with a real-world application, rather than something dopey, like determining the most profitable mix of products to create from a piece of timber. The LP would maximize profitability. Factors might include: * Customer satisfaction * Operating costs, including inventory space and holding cost

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Customer P/N -internal P/N | 4 October, 2004

What exactly was the motivation to migrate to 5 separate (but equal) part numbers? Am I to understand that you had (for example) a chip resistor of given specs under p/n "xyz123", used on 5 separate customers assemblies and now you have isolated that very same part as a unique customer part number. Even though you have 5 separate customers that use xyz123, they are now identified under 5 unique numbers?

That bites! What about assigning an alias part number? xyz123 also equals "insert internal number here". Some MRP systems will support this....some will not.

We have this very same issue. As a CM you customers design engineers spec the parts. You (the CM) buy the parts and assign them your customers P/N. The down side is if you run short in one place you have to do a "where used search", subtract inventory, re-label then fill the shortage. An Alias system could issue two P/N's: External / Internal.

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Customer P/N -internal P/N | 5 October, 2004

Funny...I was having this same discussion the other night with a guy from Jabil. He told me all the big publicly traded CM's operate this way but the privately held firms can get away with assigning the same part numbers for different customers. I still can't figure it out but sounds like someone is snowballing these guys into believing this is the right thing to do.

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Customer P/N -internal P/N | 5 October, 2004

Hi All:

Thanks for the feedback. I've did a lot of surfing for more info and found there are pro's and con's to each side. One side with the customer P/N your customer service doesn't have to worry if the others bump their builds ahead of your and use the parts you were going to use. The bad side is carring more inventory. Pro if a customer does leave you can make sure all the parts used on their assy's also leave. Some CM design there own P/N scheme and create one more level in their system and use some sort of x-ref. why recreate the wheel? It's easier for customer service to speak with the customer without having to look up what's their P/N to the internal P/N.

It just goes to show that there are 2 side to each problem.

The best solutions seems to be a globel P/N as shown here:

Take a look and see the customers who belong. A lot of your upper CM's and OEM's names are there.

This should turn out to be a good paper.

Again thanks for the feedback. Carl

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Customer P/N -internal P/N | 5 October, 2004

Can you say reel splits. We do our share of reel splits. some times up to 17 per day. It has seemed to get less due to Customer P/N. But there is still a large #.


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Customer P/N -internal P/N | 5 October, 2004

Sounds Interesting. Can you share the paper when you are done ?

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