New Component Introduction

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WTD-ETSI: New Component Introduction management by the Project Core Team

"New Component" means either a new part number in a BOM or a second source of an existing component.

From the moment a decision is taken until the implementation in the manufacturing workshops the cycle time can be very long. Therefore it needs to be properly managed every time it has a consistent business impact.

Drivers for the introduction cycle time:

Technical drivers

Technical and Industrial qualification (when they are necessary)

Databases completeness prior to component procurement by the plants:

  • component in a PDM BOM with status is equal or higher than RH.
  • PDM status equal or higher than RP.
  • AMR fully populated.
  • component purchasing data available (FIA).
  • demand loaded in the MRP.

Logistical drivers

Components procurement lead-time.(Varies from 2 weeks till 20 weeks)

The introduction in production will take into account the demand, the supplier market share, and the existing inventories and works in progress, from supplier inventory till finished goods. So the date of swap will depend on:

  • Inventory available on old part.
  • Inventory in progress.
  • Not cancellable orders sent to suppliers.
  • Suppliers inventory when we are liable for it.
  • Saving done with the swap.
  • Cost to scrap inventory.

Role of the PCT:

The preliminary analysis is handled by the CCB-component.

The decision either to launch or not the introduction of a new component is under the PCT leadership taking into account costs, inventory, potential date of introduction….

Then, the PCT seeks to optimize the new component introduction in terms of timing, total cost and risks, to trigger any appropriate anticipations on above cycle time drivers.

Finally PCT makes periodic assessment to verify if the initial hypothesis remain valid, and follows the progress

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