2.6 Shortage Management (The "Chase" Process)

In high-mix electronics manufacturing, material shortages are inevitable. The efficiency of the organization is defined by its recovery speed. This section establishes the "Clear-to-Build" (CTB) metric and the escalation protocols for critical shortages.

2.6.1 Clear-to-Build (CTB) Analysis

• Definition: A binary status for every Work Order scheduled in the next 2 weeks. A kit is only CTB if 100% of line items are physically on the shelf or in the Feeder Setup area.
• The Rule: Production cannot begin setup on a non-CTB kit without VP-level authorization. Starting short builds creates "bone piles" of WIP and blocks floor space.

2.6.2 The Shortage Escalation Path

1. Buyer Level: Contact distributor for expedite / tracking.
2. Manager Level: Contact supplier Sales Manager / evaluate broker options.
3. Executive Level: Contact Supplier VP / Engineering redesign proposal.

Allocation Protocols During global component crises (Allocation), inventory is secured based on the "Golden Screw" principle: prioritize the parts that complete the highest value of finished goods, not the parts that are cheapest or easiest to buy.

Final Checklist