Traceability refers to the ability to accurately identify the history, distribution, location, and application of various components as they move along the supply chain, specifically with regards to their impact on an organization's operational ethics, liability, environmental safety, and personal health. Traceability for electrical components involves an important focus on processes that help companies meet regulations and maintain quality standards.
Traceability is an integral part of any remanufacturer’s supply chain management, especially within the realm of electrical components, because it allows remanufacturers to address many regulatory and OEM-based needs related to efficiency, legal risk, and safety.
Two of the main traceability regulations that remanufacturers of electrical components must abide by are Restriction of Hazardous Substances (RoHS) and Waste of Electrical and Electronic Equipment (WEEE) Directive.
The first compliance, RoHS, bars companies from using specific hazardous materials during the manufacturing process that are commonly found in electrical components, due to their adverse effects on both the environment and personal health during occupational exposure.
The second compliance, the WEEE Directive, aims to limit or prevent the electronic waste that is generated at the end of products’ useful life cycles by contributing to sustainable production, consumption, and disposal practices. If the electrical and electronic equipment is not properly handled during the end of its life, the chemicals found in these components (which are the same chemicals outlined in RoHS) can cause serious environmental and health complications. Furthermore, the manufacturing of these electronic components requires the use of scarce and expensive resources.
Supplier quality management is a crucial part of any remanufacturer’s processes. Because components are becoming smaller, and a greater mix of components are being manufactured simultaneously at any given time, it has become increasingly difficult to monitor components’ quality in real time. This results in remanufacturers not realizing problems exist until the components are already in the hands of end users, which causes recalls to be issued and damages both the remanufacturer’s and the OEM’s brand. Regulations like RoHS and WEEE Directive only compound the difficulty during this process, as manufacturers expend time, energy, and money in an effort to comply.
In order to help mitigate this risk to end users, OEMs, and third party service centers must implement supplier quality management processes that maintain traceability for electronic components and provide peace of mind for all parties involved.
One example of a supplier quality management process that facilitates traceability is having remanufacturers take proactive measures to locate key components that may be more likely to contain the hazardous materials outlined by RoHS, and, therefore, more likely to pose liabilities. Once key components have been identified, manufacturers can map out the components and trace their journey along the supply chain in an attempt to locate and diminish risk.
Most manufacturers have tens of thousands of SKUs for electronic components, which makes mapping out each of their individual journeys along the supply chain may seem like an daunting and unrealistic task. Thankfully, there is technology that exists to assist with the process of traceability for electronic components.
Microsoft Dynamics AX is an ERP software that uses real-time data collection during the manufacturing process, production control techniques, and intra-platform integration to help organizations not only minimize recalls, legal liability, and environmentally unsustainable practices, but also optimize their operation practices and improve other key performance indicators.
Beyond regulations and technology, supplier quality and traceability for electrical components comes down to a matter of pride. For suppliers throughout the value chain, including remanufacturing service centers, quality should be of utmost concern, in order to guarantee a positive and ethical experience for all parties involved.