Part attrition

In electronics contract manufacturing, attrition refers to the loss or damage of components during the production process. While attrition is a common occurrence in manufacturing, it becomes particularly crucial in low volume orders. Extra parts are essential in ensuring smooth production and timely delivery.

1. Planning for the unexpected: The primary reason for requiring extra parts in low volume orders is to account for the probability of losing or damaging components during production. While manufacturers may not necessarily expect to lose any parts, they must be prepared for the off chance that it might happen. This preparation helps avoid production delays and shipment issues caused by being short a single component.

2. Risk mitigation: The manufacturing process involves various stages, such as soldering, assembly, and testing, each introducing a certain level of risk of losing or damaging components. In low volume orders, these risks are amplified due to the smaller quantity of components involved. By procuring extra parts, manufacturers create a buffer to mitigate the risks associated with potential losses.

3. Balancing cost and risk: While the cost of attrition in low volume orders may seem high as a percentage of the overall Bill of Materials (BOM), it is essential to consider it as a necessary measure to ensure smooth production and timely delivery. The additional cost of procuring extra components is relatively small compared to the potential losses incurred due to delayed shipments or production stoppages.

Typically, the excess stock of components cannot be returned to the supplier or the customer due to their condition, such as cut strips, ends, or other non-usable states. This makes it crucial for manufacturers to account for potential losses upfront. While the percentage of attrition cost in the overall BOM may seem high for low volume orders, it should be viewed as a necessary expense to maintain production efficiency and minimize potential delays.

Manufacturers procure extra parts to account for the off chance of losing or damaging components, ensuring that the production line runs smoothly and orders are shipped on time without any delays. As a customer, it is essential to understand the importance of these extra parts and their role in maintaining production efficiency, minimizing potential delays, and reducing the risks associated with unexpected component losses.