Content area
Full text
Effective DFX can translate to big savings in cost and process inefficiencies.
In the electronics manufacturing services (EMS) world, price is a combination of visible cost, waste and profit. The challenge for many EMS providers is that, while most of their original equipment manufacturer (OEM) customers expect regular cost reductions, many are reluctant to participate in teaming efforts that focus on reducing either the cost or waste components of the equation.
Visible costs include: material costs, assembly time, test time, logistics, handling and administration. Waste can include function redundancy between EMS provider and OEM, inefficiencies and quality issues caused by poor design, process inefficiencies at the EMS provider or OEM, and quality or delivery issues caused by poor supply chain performance. In all cases, achieving significant cost reduction requires focus from both parties. The term design for X, or DFX, represents any design enhancement that contributes to reduced cost. For this article, representatives from a broad range of EMS providers were polled for their perspectives on common design flaws they encountered, impediments to DFX initiatives and strategies for achieving DFX-related cost reduction with their customers. Their conversations follow.
Typical Design Issues
"90% of cost is determined by design," said Scott Morey, president of the Morey Corp. (Woodridge, IL). "We take overall responsibility in the development process not only for the design itself, but for component selection, overall board layout and product packaging."
Morey was also quick to point out that an additional benefit of the EMS company taking the leadership role in product development is that EMS companies are expert in product manufacturing and, therefore, see product development as a cost.
"Many OEMs don't understand the cost of the development or don't see the relationship between development time and development cost or the opportunity cost of lost sales when product windows are missed," Morey added. "They are focused on activity vs. results. Our focus is on identifying the critical path and staying focused. Our people understand that the scope of our responsibilities includes managing the customer."
Genesis Electronics Manufacturing (Oldsmar, FL) also believes in a strong EMS role in both design and redesign.
"When we are building the entire assembly, we attempt to provide cost reduction opportunities in the mechanical as well as...