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Publisher's Executive Council Interview
December 31, 1969 |Estimated reading time: 5 minutes
SMT Magazine's Publisher's Executive Council consists of 38 electronics industry executives hand-picked by publisher Jim Collins. They share their expertise and insights with our editorial staff and act as a sounding board for new editorial concepts and projects. These individuals also contribute much to the industry in general, working as leaders within their companies. This month's Publisher's Executive Council Interview features one of the industry's leading innovators: Metcal's Howard Rupprecht.
SMT: To begin, please explain your company's position within the surface mount industry.
RUPPRECHT: Metcal is established as one of the leading global suppliers of high-quality hand soldering and rework/repair and fume extraction equipment for the printed circuit board (PCB) assembly industry.
SMT: What is Metcal's fundamental business strategy?
RUPPRECHT: Metcal's fundamental business strategy is to use our unique knowledge of heating technology and applications engineering to develop innovative soldering products that improve quality, increase throughput and subsequently reduce our customers' operating costs.
SMT: How has globalization of surface mount markets affected your technology and business decisions?
RUPPRECHT: The globalization of surface mount markets fundamentally has not changed our approach to producing quality soldering or rework equipment; however, it has changed the way in which we are structured to support our global customers wherever they choose to manufacture. This has opened up markets such as China, Latin America and Eastern Europe.
SMT: What is the most critical issue for rework and repair equipment suppliers today?
RUPPRECHT: Due to the complex and diverse nature of modern PCB assemblies, rework equipment suppliers are developing systems that offer much greater levels of process control combined with flexibility. Traditionally, customers considered hand soldering to be of minimal consequence, focusing engineering efforts on automatic processes. Customers are now aware that hand soldering and rework operations typically are carried out towards the end of the process when a PCB assembly is at its highest value. The risk of damaging a PCB at this stage is great and is especially dependant on operator skill levels, hence the need for improved process control.
SMT: What is the principal driver behind recent developments in surface mount end of line technologies?
RUPPRECHT: Product miniaturization and increased functionality are driving the industry toward smaller chip components and a much greater number of array packages, particularly in the computer and telecommunications markets. As the number of interconnections per circuit board increases, statistically the chances of defect also increase. Although general defect per million (DPM) levels in the industry are reducing, there is still a growing market for rework equipment.
SMT: How have your customers' needs/demands changed over the past five years?
RUPPRECHT: Customers are looking for better all around value and closer relationships from a fewer number of suppliers. They are looking to companies like Metcal to be partners in solving their surface mount soldering and rework application needs, while adding value by reducing scrap and increasing throughput.
SMT: How has Metcal responded to manufacturers outsourcing PCBs? How are demands from electronics manufacturing services (EMS) companies different from OEMs?
RUPPRECHT: EMS companies typically are looking for increased flexibility in the equipment used because of the wide range of products they may be manufacturing. With profits derived primarily from manufacturing, EMS companies also are seeking greater value for money and lower cost of ownership out of any production equipment. The OEMs tend to be focused only on the particular products they design or manufacture and the important factor is to have products that fit the application need. Metcal works closely with both OEM and EMS companies to satisfy their differing needs and has seen some transfer of business as OEMs have sold plants to EMS companies. Metcal has responded to the geographical shift by supporting customers in emerging markets, while commercial and technical needs are addressed by developing products that offer high performance while still reducing costs.
SMT: Who is responsible for research and development (R&D) efforts in this equation? What is the supplier's role in the OEM/EMS partnership?
RUPPRECHT: The OEM still has the prime responsibility toward R&D and influence on the processes used by the EMS companies in the manufacture of their boards. The OEM increasingly, however, is viewing the EMS companies as the manufacturing experts. The EMS companies also are moving more toward offering a full turnkey solution where they can provide services ranging from PCB layout through to final box build and product distribution. The supplier's role is to work closely with both types of customers to understand their individual needs and develop products that meet both requirements. While the customers' needs differ, they both primarily are driven by applications; this is generally the same for OEM and EMS customers.
SMT: How does lead-free SMT assembly affect PCB rework suppliers?
RUPPRECHT: Lead-free could mean narrower process windows, which will further increase the need for process control. The typically higher solder-melt temperatures create the need for additional power. This particularly suits Metcal's unique Smartheat soldering technology that can deliver extra power and accurate control without resorting to the higher tip temperatures, the approach favored by suppliers of conventional soldering equipment.
SMT: What steps has Metcal implemented to address environmental issues that affect the global PCB industry?
RUPPRECHT: Metcal is working toward offering lead-free soldering tips mainly driven by the demands of customers, especially in the Japanese market. Metcal also was a pioneer in developing fume extraction systems that both protect the operator and eliminate emissions of particulate fumes and poisonous gases to the atmosphere.
SMT: Does Metcal participate in industry standards development through consortiums or associations?
RUPPRECHT: Metcal is an active participant in industry groups such as the IPC The Association Connecting Electronics Industries, the Surface Mount Technology Association (SMTA) and the United Kingdom-based SMART group. We also work closely with industry leaders to establish workable new processes, a prime example being developing methods for reworking land grid arrays (LGA), chip scale packages (CSP) and 0201 chip components.
SMT: How would you characterize business today?
RUPPRECHT: Business today is increasingly competitive and customers have high expectations with regard to supplier performance. It is no longer enough to simply supply good products. Metcal has been successful by understanding and satisfying customer needs with innovative and reliable products and also by offering effective global distribution and strong applications support that adds value to the supplier/customer relationship.
SMT: Where is the surface mount industry headed over the next few years?
RUPPRECHT: From a technology perspective, we expect to continue seeing shifts from traditional SMT to array packages driven by miniaturization and increased functionality. This will result in increased input/outputs (I/O), reduced pitches and possible new interconnection technologies such as conductive adhesives. From a customer perspective, we expect further consolidation of the large EMS companies, resulting in smaller numbers of very large companies that operate globally.