How to prevent component shortages in a crisis
Christian Fritz, director of business development and applications engineering, maxon USA | September 30, 2020After years of economic expansion and a solid start to 2020, manufacturers found themselves suddenly in the middle of a global crisis with COVID-19. Its effects on manufacturing have been varied, but deep. Here are some ideas for recovery.
COVID-19’s impact on manufacturing has created a number of business roadblocks, including order cancelations, large fluctuations in demand, supply chain issues and reduced production capacities. Additionally, even when components were available, many companies found that closures and partial closures caused drastic shortages, increasing back orders and extending lead times further and further out. This impact is not over and is expected to last for months more, especially with the threat of a second wave of outbreaks.
Figure 1: Businesses are looking for new approaches and are sharing best practices. Source: maxon
Catching up with production schedules even once businesses get back to full throughput may take even longer than originally expected. The scale of this global disruption is unprecedented, and the lack of proven concepts leaves many companies scrambling. name="_Hlk51156786">The result is that businesses around the globe and across different industries are looking for new approaches and are sharing best practices. Collaborating across internal department boundaries and extending communication to involve global partners, customers and vendors will help companies navigate the extensive challenges and will enable the industry to recover quickly and efficiently.
Supply chain issues for components
Like any manufacturing crisis, the number-one factor in tending to component shortages is swift action. This means communicating early on with all stakeholders. Focus should be placed on learning to collaborate wherever possible and exploring every idea. This concept can be applied across all in-house departments, with multiple sites, and with all those involved. Gathering key information from each of these sources will allow companies to better understand all aspects of a supply chain.
Continual open communication is key even if a particular situation looks as though it is running smoothly. Likewise, departments should not make any uninformed assumptions about other departments. Most of all, a company should be flexible and conclusions should be revisited repeatedly.
As a global operation, maxon was almost immediately impacted by COVID-19. Consequently, maxon made a company-wide decision to open its channels of communication while allowing personnel to work from home. This quick response enabled them to address challenges early and keep the business impact to a minimum.
Early action meant making sure employees had the right equipment and computers at home, the right internet capabilities and the training needed to get them online and interacting with one another quickly and efficiently. With the ultimate goal of keeping everyone safe, action had to be swift. Plans to get everyone working from home did not exist when this crisis first hit, but for companies that were flexible and quick to evaluate what works and what does not, a plan was enacted. That plan has since been revised continually as more information has become available. This approach will ensure that the company is prepared for any future developments or another crisis.
It is critical to establish a response team. Companies are urged to create a cross-functional response team to monitor and adjust their operation methods so that they remain prepared well into the future. Every department is impacted by a crisis, including finance, purchasing, sales, HR, management, shipping and receiving, as well as engineering and design. The first task for a response team is to rate impacts to each department based on whether they are temporary or long term or whether they should result in permanent change. The team should then identify all critical aspects of the business that the crisis will affect and be sure to update everyone involved, while also refining the processes going forward.
This approach should extend outward to include customers, suppliers and partners who are dealing with similar issues and will have their own adjustments to make. Work together, reach out early, modify existing commitments and share all relevant information. This will help both the affected company and its customers, suppliers and partners. It will also strengthen those relationships with one another, both now and in the future.
Finally, companies may have to make adjustments based on the needs of its customers. For example, as the medical community has under the present crisis. Such shifts in focus could involve balancing the needs of multiple customers with urgent needs. On an engineering level, companies may be required to look on a component-to-component level to see what adjustments can be made that will maintain the needs of the customer through design adjustments.
The global character of this particular crisis meant that the impact and response differed from one location to another. Sometimes local availability was present and sometimes it was not. Opening to the global market in a focused and concerted manner allowed some companies to stay in operation.
Engineering challenges
Equally important as logistics strategies is the adoption of engineering approaches and the definition of product portfolios that are resilient by design. In order to be flexible and allow for broader capabilities, maxon recommends and has implemented a modular off-the-shelf product offering that provides greater agility because components and processes can be shared across many products and systems. This component sharing allows customer requests to be fulfilled more easily, providing greater manufacturing capacity and allowing for alternative products to be produced easily and quickly. Modular capabilities also allow maxon to provide fast turnarounds on sample quantities while allowing it to quickly scale to mass production when the customer’s design is mature.
An example of the company’s modular offerings includes a series of brushless DC motors, brushed DC motors and gearheads (planetary, spur and spindle). Added to this is a series of sensors and encoders, controllers of various types, and accessories such as brakes, cables and adapters. The available combinations are endless, allowing maxon to adjust to its customers’ needs using off-the-shelf components. For engineers familiar with motion control, specifying and selection can all be performed using maxon’s online configurator. For designers who do not have years of expertise putting together a motion control system, maxon employs local applications engineers who can help determine the right solution for an application — the right shaft size, flange, bearing, winding and interconnection — all based on the modular platform they have created. Data sheets and 3D drawings are also available for immediate download.
The online configuration tool allows users to quickly configure the components required for an application and provides instant access to all the necessary technical documents and purchasing information including availability and lead time. This is especially helpful when urgent needs arise or when alternative designs are under consideration. With the help of the online tools, users will be able to review the features and capabilities of available products and can determine if they meet minimal viable product capabilities.
Ultimately, now might be the time to reach out and tap into the specialized expertise of suppliers and partners. Take advantage of the engineering resources they provide and benefit from their experience. Collaborating with companies that provide local technical and sales support and offer global manufacturing, logistics and services will strengthen a business.