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Optical Manufacturing Services
December 31, 1969 |Estimated reading time: 3 minutes
In today's changing marketplace, decreasing time-to-production and market are critical for OEMs to stay competitive — and outsourcing remains a valuable tool for navigating through hiccups in the supply chain.
By Srinivas Rao
Based on today's economic and competitive challenges, especially the precipitous drop in demand in the telecommunications industry, OEMs must embrace outsourcing optical manufacturing or risk missing a significant competitive advantage in the future. And electronics manufacturing services (EMS) providers must be prepared to handle the demands of optical manufacturing.
EMS Industry Embraces Optical
OEMs have long outsourced traditional electronics manufacturing to EMS providers. But until recently, the OEM typically handled advanced telecommunications technologies, such as optical networking. Yet many EMS providers have added capabilities to support the rigorous technical demands of optical product manufacturing.
Today, some EMS providers offer a wide range of design, manufacturing, test and repair services for optical networking products, including optical routers, transmitters/receivers, optical switches, DWDM modules and optical amplifiers. Companies also produce modules, subsystems and systems for ultra-long haul, long haul, metro and access, and aviation/military high-speed interface products and passive optical subsystems and components.
EMS providers also leverage their extensive component procurement expertise for optical OEMs. In most cases, EMS providers can purchase optical components at the lowest total cost — saving OEMs time and money. From test development and execution to systems integration, splicing and fiber management, EMS suppliers provide expertise in advanced optical technologies.
Identifying Challenges
EMS providers recognize that optical technology is more exacting than most they work with.
Common issues or problems associated with optical product assembly include system-level test failure associated with components that perform poorly — typically occurring due to inadequate specification, poorly designed card assembly due to unfamiliarity with specific manufacturability guidelines and connection issues. But EMS providers can help solve these problems by establishing and enforcing well-documented, methodical processes. If an EMS provider delivers superior performance in printed circuit board (PCB) assembly, they already have spelled out design guidelines and design-for-manufacturability rules.
At Solectron, for instance, design guidelines enable the company to build in fiber-management solutions, fiber terminations and connection requirements. Thermal issues and fiber-alignment requirements require precision placement (tight tolerances), a secure wrapping of the fiber, and, at times, best-in-class, epoxy-based fiber attach or hermeticity. The company has designed effective work cells and specific processes that help achieve repeatable, high-quality results. Solectron also has automated test data collection at the module level, and completed functional test data at the card and system levels.
Global Reach Saves Time and Cost
In the EMS industry, a global presence helps ensure that OEM service needs are met in critical markets. Optical OEM providers may be increasingly global, but their markets often differ regionally. The goal is to deliver the lowest cost, including logistics, shipping, production and costs associated with time-to-market. That is why EMS providers have invested in a range of optical service capabilities in each major operating region of the world. The advantage lies with EMS providers that leverage large sites to generate volume efficiencies for items such as PCBs, as well as smaller facilities focused on specific skills, such as fiber splicing, systems integration and testing.
For example, EMS providers must strategically position high-value activities, such as new product design and introduction, near OEM design teams; and systems assembly and fulfillment near OEM end markets. It also is why EMS providers are further strengthening their optical capabilities in Asia to leverage the region's lower costs, strong supply-chain and potential end markets.
Faced with challenging market conditions, the OEM's need for cost-effective optical manufacturing services has further placed the EMS industry in the spotlight. Yet building those key capabilities is not a new concept in the industry. Some companies have steadily built an arsenal of high-level design engineers, equipment and processes to accommodate the expected needs of optical OEM customers. Despite the current economic slowdown in the optical networking industry, the long-term future of optical outsourcing looks bright.
Srinivas Rao, vice president of technology, may be contacted at Solectron Corp., 637 Gibraltar Drive, Milpitas, CA 95035; 408-957-8500; E-mail: srinivasrao@ca.slr.com.