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.

2.66.1 Shortage Management (The "Chase" Process)

• Clear-to-Build (CTB): Analysis

• Definition: TheA "Goldenbinary Metric."status for every Work Order scheduled in the next 2 weeks. A reportkit showingis exactlyonly whatCTB canif be100% builtof basedline items are physically on on-handthe material.shelf or in the Feeder Setup area.
• The Shortage Meeting: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 dailyShortage standupEscalation duringPath

ramp-up

1. Buyer phases.Level: Contact distributor for expedite / tracking.
2. AllocationManager Wars:Level: StrategyContact forsupplier securingSales 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 whenthat complete the globalhighest marketvalue isof constrainedfinished (e.g.,goods, Chipnot Crisisthe protocols).parts that are cheapest or easiest to buy.

Final Checklist

Shortage State	Operational Mandate
Non-CTB	Production Start Prohibited
Line Down	Immediate Escalation to Mgmt
Allocation	Secure stock immediately; ignore standard inventory caps
WIP Hold	"Bone pile" storage requires Quality approval