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New Priorities in Purchasing Automated Assembly Equipment
December 31, 1969 |Estimated reading time: 7 minutes
By Gary Burroughs
Three factors will determine the success of the automated assembly industry's success in the current economymodularity, flexibility and efficiency.
As we enter a new year, participation in APEX has enabled us to reflect on the most volatile twelve months ever witnessed in the surface mount sector. There, OEMs, suppliers and contract manufacturers (CM) came up for air to re-evaluate the systems, processes and industry conditions that determine a stronger and more vital automated assembly industry. Whether maintaining current business or seeking new customers during this re-evaluation, three factors in automated assembly must be considered in relation to the new economy modularity, flexibility and efficiency. These three factors are difficult to measure tangibly, but several related elements may be examined to evaluate the end results, including cost-of-ownership, cost-per-placement, ease and time to program, footprint, reliability, speed, integration of existing equipment, and customer service. It will be a tough job for those making capital equipment purchases to choose the most efficient systems available. Companies will need a new set of priorities to maintain competitiveness and profitability in surface mount assembly.
Figure 1. Current book-to-bill ratio. courtesy of IPCAssociation Connecting Electronics Industries.
Since the fourth quarter of 2000, capital equipment expenditures have waned as the book-to-bill ratio steadily declined to record lows. Although the book-to-bill has shown signs of hope, this lull will have lasting effects on the decisions made by automated assemblers and machine purchasers in the SMT industry (Figure 1). While OEMs likely will continue outsourcing to electronics manufacturing services (EMS) providers, they will need to scrutinize the methods by which their products are produced with consideration to cost-effectiveness, timeliness and reliability. Pressure from above (by OEMs) and below (by production constraints) has placed CMs in a precarious position. Jobs must be taken on judiciously and with great attention to efficiency and cost effectiveness.
Unfortunately, the industry shakeout has cost thousands of jobs and even eliminated some of the competition. The manufacturing jobs that are being doled out demand quick changeover, flexible set-up and efficient assembly. The key to surviving a constricting automated assembly enterprise is the flexibility to take on any job with confidence. This requires end-to-end line assembly that is easy to use, dependable and efficient. Assemblers now have the opportunity to reorganize production systems to maximize their return on investment (ROI).
Unfortunately, this uncertain environment has created a narrow margin for productivity and profitability. Typically, large CMs are unable to accept small jobs without taking a loss. Yet large, long-term jobs are becoming less frequent, rendering even large CMs incapable of maintaining high-cost, inflexible line assemblies. On the other hand, small manufacturers often do not have the production capacity to sustain substantial-sized jobs. This leaves the medium-sized CM with the bulk of the work. Their jobs must be balanced carefully between their own cost of business and profitability a fine line.
This redefined equation has prompted a restructuring of old production processes in SMT assembly. It has created huge surpluses in the SMT equipment industry. Large inflexible automated assembly machines (such as traditional chip shooters) are sitting in storage or are for sale in the used market at a fraction of the original cost. The abundance of these former industry workhorses has produced an inventory overstock, weakening capital equipment budgets and creating holes in production. When times were prosperous, rigid and inefficient manufacturing methods were tolerable. The existence of some large, high-volume jobs justified the chip shooter's existence.
However, in today's economy there is no room for inflexibility and inefficiency. CMs must produce more jobs faster, emphasizing the need for reconfigurable assembly lines and quick changeover.
Why purchase a chipshooter that places 22,000 chips per hour (cph) when you could purchase two modular machines that place 11,000 cph at less than half the cost. Now, imagine you pull apart the two modular machines to create two separate lines, simultaneously.
The future of surface mount assembly lies in the flexibility to reconfigure lines quickly according to individual job requirements, without waste. Year 2002 is for creative solutions using existing technology and available resources to produce efficient, clean, automated assembly methods. The new face of automated assembly demands flexibility and modularity, speed, and efficiency.
Figure 2. Modular machines allow the assembler to reconfigure lines to accommodate specific jobs.
ModularityIn searching for flexibility, modular automated assembly systems offer the most versatility. Small footprint, high-throughput, interchangeable machines allow assemblers to changeover jobs quickly and create a custom line assembly for each job challenge (Figure 2). In choosing these modular machines, assemblers should consider cost-of-ownership by comparing features and benefits, customer service, and machine dependability. In modular systems, speed also is a consideration. It has been proven that four nozzles are more efficient than higher nozzle counts. Taking into account pick, travel and placement times, simultaneous four-nozzle pick-and-place is faster than a high nozzle count chip shooter1 as shown in Table 1. Additionally, modular systems can combine standard component placement with fine-pitch placement. As printed circuit boards (PCB) become more mixed, using odd-shaped components, micro ball grid arrays, quad flat packs and small size components like 0201s, the ability to accommodate these placement requirements within a typical line assembly is crucial. Standard chip shooters cannot serve to produce high-mix, high-throughput jobs efficiently.
ProgrammingIn considering machine efficiency and ROI, programming must be taken into account. Surface mount equipment manufacturers have been developing solutions to further enhance flexible modular systems. Modularity and flexibility are not contingent solely on the machines themselves, but on how they interact with programming software and the production environment. Machine manufacturers now have more efficient ways of processing programming data. Because man-hours are so critical to the efficiency/ROI equation, downtime must be eliminated wherever possible. Therefore, a host line computer (HLC) software package that is user friendly is paramount. Traditionally, programming data must be input sequentially on a manual basis to accommodate the HLC software format. Today, equipment manufacturers are installing data conversion software that eliminates the preliminary work of sorting and preparing the data. By allowing raw computer-aided design or Gerber data or even scanned PCB images to be input directly into the line assembly in a Windows version format, downtime and man-hours are reduced dramatically. Once the data are sorted and programmed, quality software will consider previous pick programs and machine specifications to "optimize" the pick-and-place program. The ability to store programs for future use ensures successful repeat jobs.
Perhaps the most critical capability of quality programming software is the ability to operate with existing machines, regardless of manufacturer or model. For instance, a CM may own a chipshooter from manufacturer A and a high-precision modular placement machine from manufacturer B. With an integrated software package, these machines may be grouped to create an original assembly line. As job requirements expand, the assembler may choose to purchase another machine from manufacturer B to increase throughput. These machines then may be reconfigured on a job-by-job basis to fulfill production requirements. With limited capital equipment budgets, this is the type of flexibility and efficiency needed in today's SMT marketplace (Figure 3).
Figure 3. Machine and programming compatibility maximizes line assembly flexibility.
Cross ComparisonsSales forces always will tout the features and benefits of a proposed machine, but customers may use this competitive market to their advantage. Now is an opportunity to weigh the pros and cons. Automated assembly line buyers should demand a collective cross comparison of all machines considered from each manufacturer. This data will provide a concise picture of what each option has to offer from a performance and cost analysis. Machine buyers should be wary of suppliers reluctant to provide hard numbers and verifiable facts.
Customer Service It is during these times of uncertainty that customer service becomes a deciding factor in machine purchases. Downtime is a disabling factor in automated assembly production. How an equipment manufacturer handles its customer service issues can mean the difference between a successful job and a wasteful one. Now is the time when machine purchasers should demand superior customer service to maximize production potential and reduce cost-of-ownership. Customers should ask, "What type of technical support will be offered? What types of customer service policies are in place?" Machine suppliers should back up products with proactive courtesy visits and prompt technical assistance. In times of market uncertainty, dependability will separate the quality machine manufacturers from unreliable suppliers.
Optimistically, the new year brings with it new opportunity. New equipment may be a little less flashy, a little less novel. Yet the SMT industry has learned a good lesson from this downturn. It has taught us to "value" value, appreciate flexibility and preserve efficiency. It has alarmed assembly equipment manufacturers, intimidated CMs and humbled OEMs. It has shown us that not everyone can jump into a thriving industry and survive. The result will be a stronger, more capable industry willing to work together to produce the best product available, using only necessary resources while still being profitable.
REFERENCES1 "The Relationship Between The Number of Placement Heads and Throughput," Gary Burroughs and Gerry Padnos, Juki Automation Systems, SMT Magazine, August 2000, p. 57-58.
Gary Burroughs, president, may be contacted at Juki Automation Systems, 507 Airport Blvd., Morrisville, NC 27560; (919) 460-0111; Fax: (919) 469-0480.