EMS = CEM +
05 December 2007
Should you consider subcontracting not just your production requirements but a complete range of services? Chris Hunt looks at the options
The Electronics Marketplace in the UK is rapidly changing with many companies having to constantly rethink their business strategy to stay efficient, responsive and competitive. Product time to market requirements is critical for innovative companies trying to stay ahead at the forefront in their chosen fields.
Many new companies have recognised this from the very start and concentrate on design, product development and marketing only while subcontracting all other requirements. Indeed some are now virtual companies with key individuals working in various parts of the country without the need for a centralised office and the associated costs. Established companies are also starting to look at their organisations and recognising what they do well and what are their core strengths and are beginning to change the way that they operate.
The Electronics Manufacturing Services (EMS) or if you prefer Contract Electronic Manufacturing (CEM) business has also changed significantly over the last few years. EMS providers have to be what the name suggests - they must offer a full range of Services providing solutions to their customers needs from early concept and design through to full product lifecycle support.
EMS Providers need to be involved at the concept stage with the customers design group often involved in designs reviews where they can add their experience on many aspects of the design such as Design for Manufacture (DFM) and Design for Test (DFT) but its not just the construction and test of the product where assistance is available the EMS provider can help with Material selection avoiding long lead-time problems, package selection and placement restrictions. Any long lead-time issues can be address early or alternatives suggested and where appropriate samples obtained to support the first prototypes.
Prototypes are an area where the early involvement can make a real difference in time-to-market for a product. In the past many design engineers have opted to source the boards and components and then attempt to hand build the first prototypes. At best a great deal of valuable engineering resource will be taken with this approach only to find the prototype does not function, then even more resource will be wasted ascertaining if the basic design is at fault or is it a build problem associated with the hand assembly. It is more cost effective to allow the EMS provider to build the first prototypes in its fast prototype facility utilising machine build and given production standard quality from the start. That way the designer gets a prototype often quicker than the hand assembly option but with the components placed correctly without open or short circuits and they can then concentrate on the product’s performance. Also, during the machine build, valuable information is often learned that can be acted upon before the product goes in to its New Product Introduction (NPI) phase.
Production equipment is expensive but the supplier must continually invest to ensure state of the art placement capabilities. The component industries continue to produce higher density packages such as Micro BGA and fine pitch components and it is important that when choosing a EMS provider that even if the level of technology on offer is not needed by the customer now, then they know that their supplier is prepared for anything that may be required in the near future. Indeed without the designer being aware of the production technology available the design may be restricted to the use of older technology. Capacity is also of concern to some companies but again with modern production lines capable of placing up to 2 Million components per day at incredible accuracy and quality it should not be a concern if you choose wisely.
There are many companies out there who require a much higher level of service than they have been used to in the past where they subcontract their PCB assembly to what some people still describe as ‘board- stuffers’, then lived with the test issues and the next level of product build in house. They expect to place orders for full product build and leave the subcontractor to handle the rest. If they choose the right EMS provider they will find that they will offer a full product build service from a PCB in a simple case to full multi PCB systems in almost any type of enclosure, fully customised and configured to the customer requirements. Those requirements can include loading customised software, product ID and different front panel / case logos if necessary. The Product is shipped to customers’ specification which could be in reusable packaging or in the final product packaging complete with all customer paperwork such as instruction books, warranty cards and software etc. Dispatch can be direct to the end user or a distributor channel totally transparently if required.
Companies should also consider the final part of the jigsaw, there will be a need for a range of customer support services such as warranty returns and ongoing service/repair requirements. There could also be a requirement for product refurbishment to cover service return replacement units or for second user equipment. The EMS provider who built the product is probably best placed to support it. They will know the product well and have the skill sets in place. They can monitor and control material obsolescence and last time buy service levels against an agreed support plan.
The last but not least service that is required is disposal and recycling to comply with the WEEE directive which is also available.
Perhaps its time for more companies to consider switching to an experienced EMS provider!
The author is Sales & Marketing Director of SMS Electronics
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