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Integrating New Business with an EMS Provider
December 31, 1969 |Estimated reading time: 6 minutes
Starting a new customer with an EMS provider has always been challenging for both parties. If not carried out in an orderly fashion, it can be costly on both sides; and in the extreme, can end the relationship before it begins.
By Robert Stoller
Beginning a relationship with a new electronic manufacturing service (EMS) provider can be tricky. One EMS provider developed a solution to this (volatile) endeavor. While it seems logical that there should be a plan, all too often nothing is written down, and the seeds of confusion are sown. An implementation plan is developed as a road map to set expectations, assign responsibilities and provide a transparent document for all parties to track the progress. The primary issues that need to be addressed include:
- Documentation;
- Specifications;
- Process development;
- Test;
- Time lines and deadlines;
- Component suppliers;
- Lead times;
- Pricing based on lot size, annual usage vs. the original quote;
- Tooling;
- Engineering Change Notices (ECNs);
- Product Lifecycle Management (PLM);
- Assignment of responsibilities.
Before delving into specifics, it is important to describe the mechanism used to visually lay out the steps and post the names of responsible parties along with real due dates and the status of the actions in terms of timely completion. That takes the form of a Gantt chart, which is drawn up and agreed upon by all parties. It is posted on the EMS provider’s Website. Coupled with a weekly conference call, this is a powerful method to keep the project on track. When difficulties are encountered, everyone will know about it and appropriate remedial actions can be developed.
Provisions should be made for a contract review and kickoff meeting to ensure that the team understands the objectives, as well as individual roles and responsibilities. It should be clear what the customer’s expectations are at this time. This item belongs on the chart for the benefit of the EMS team, and to ensure an OEM that all appropriate actions are taking place in a timely fashion. This promotes transparency and builds confidence.
Documentation is the heart of any implementation, and the responsibility of the OEM team to provide this in a timely manner. Electronic transfer of documentation is key and can eliminate errors. Unfortunately, sometimes it is difficult for an OEM to gather all the information necessary, which may lead to schedule extensions and unnecessary errors.
Specifications are part of documentation, but they must be clear and understood by both engineering and purchasing teams. Acceptance criteria are crucial because it is the last opportunity for the EMS provider to detect issues that may not be acceptable to the OEM. However, as we know, it is preferable to uncover problems before they occur and this is only possible when there is a clear understanding of expectations upfront.
Process development may be as simple as applying existing processes to a new product. However, if a new process is required, it is prudent to allow sufficient development time. Time should not include recovery from a false start, but rather assume that it will be successful the first time. Extreme cases where technological ground is being broken, however, may necessitate allowances for false starts.
Test is generally a shared responsibility in terms of generating information. Design for testability is a critical activity, and results can highlight the need for changes that will pay dividends for the initial startup, but will definitely have a long-term impact. To develop in-circuit test (ICT), the EMS provider uses the electronic data for the bare board coupled with a list of components, as well as placement of those components to create an estimate of test coverage that may be stipulated as a percentage in the OEM’s requirements. Any special test routines for specific components should be called out or suggested so they can be developed, and appropriate time scheduled. Functional or system tests can be a collaborative process. The designer is to provide the theory of operation and the test developer creates test routines and hardware. Software may reside on a standard platform. The process of development and agreement on the test is generally an iterative process as new aspects of the product’s output become available.
Because they can have significant impact on schedules, materials must be included as a line item. Consideration must be given to suppliers of unique items and the necessity for alternate sources where possible. Obsolescence and availability are challenging issues - even in periods when overall demand for electronics is not overheated, as was the case in the mid-90s. The impact of schedule changes may create pricing pressures that can become a source of tension between the OEM and EMS provider.
Tooling must be considered (whether it will be consigned or developed); and a block of time and resources acknowledged. In either case, its use and the criteria for product acceptance based on the test, and any diagnostics involved must be agreed upon.
ECNs are part of the electronics product life cycle and will become part of the mix of issues that must be resolved over the course of the startup. While no specific timeslots can be allocated in advance, it is worthwhile to have a discussion as to how these will be handled and agreement reached in advance. It is an acceptable practice to include an item on the Gantt chart for ECN implementation without a time line.
Manufacturability
Manufacturability assessment is another element that may not have a time allotment, but should be included as a line item because it is required for a successful project. Failure to perform this may lead to delays in production, require additional efforts and threaten product quality for the first production run, and possibly later during normal production.
All too often, an OEM is focused on the “now” for a product. If consideration is given to what happens when “out-of-warrantee” returns come in, it may be fleeting. This aspect of the service that an EMS may provide needs to be included for the purpose of providing the OEM with an opportunity to give the entire cycle further thought, instead of being forced into a reactionary mode at some point in the not-too-distant future.
Periodic teleconferences are required to highlight activities outlined in the program schedule. While everyone has access to the overall plan and a current status of each of the elements at a given time, it is still required that the parties have a dialogue to discuss remedial actions being taken when events do not occur in a timely fashion, or perhaps there is a disconnect or an assumption does not “pan out.” Having more knowledgeable people focused on a problem is better than one. This is not the time to be secretive. All teams must remain focused on the objective - to deliver this product to the customer on time at an acceptable level of quality, for a price that makes everyone profitable.
A post-production meeting should be incorporated into the plan. Participants include the EMS team and appropriate members from the OEM. The purpose of this session is to critique the entire program, highlighting areas where improvements can be made and noting which steps worked. This is also an opportunity for the OEM and EMS teams to congratulate each other on developing a positive rapport, which has enabled them to navigate the tricky waters of product introduction in a new environment.
Together, all foregoing items constitute the expectations of the OEM and EMS providers. It is crucial to include both participants because this is truly a collaborative effort. It requires constant communication of the facts and correction of items that may go awry. The Gantt chart and its use as a Web-based tool is a methodology that should be fairly obvious, but surprisingly has not experienced widespread use.
Robert Stoller is president of Genesis Electronics Manufacturing. For inquires, please contact Frank Mokry, vice president of sales and marketing, (256) 881-2331; e-mail: fmokry@genesismfg.com.