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COMPETITIVE STRATEGY
W H I T E P A P E R
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What if a manufacturing company could provide information to enable its customers who are looking to
improve their component selection process, ideally choosing parts with the lowest defect rates and
counterfeit rating? What if a manufacturer could provide design-for-excellence (DFx) information about every
revision of a product, how it compared to the previous revisions (not only the last revision) to ensure
violations and waivers were monitored and ensure corrective actions were truly done, and old violations were
not re-introduced in a future revision? How much would design customers value a dashboard with production
status, roll throughput yield, and running defect correlation to design best practices for their products? What
if a manufacturer could provide a service to monitor quality metrics per product or program, further
strengthening collaboration with the design customers and allowing them key insight as to how designs can
improve over time, which would also lead to improved customer service and customer retention? All this
could be done by leveraging manufacturing analytics information, perhaps providing opportunity for
additional revenue.
This paper defines a manufacturing analytics strategy blueprint and explores how a successfully designed and
executed manufacturing analytics strategy may be leveraged to improve competitiveness and dramatically
improve the ability to provide collaborative services to customers.
WHAT IS ANALYTICS?
Some industry experts assert that we are in the early stages of our 4th industrial revolution (or Industry 4.0)
[1]. This is largely characterized by very smart and well-interconnected production equipment that is expected
to be able to govern the production process on its own. There is no shortage in the amount of available data
coming from each individual piece of equipment to let the factory know every relevant piece of information
about what it is doing, what product it is building, how fast, and what
its materials utilization is, just to name a few. This data is made
Analytics is the discovery
available to the other machines in the factory so that decisions can be
made based on its contents. Unfortunately, technology has not fully
and communication
caught up to the massive amounts of data available yet. Bala
Deshpande said [2], The role of data in manufacturing has traditionally
of meaningful
been understated.
patterns of data.
RESISTANCE TO CHANGE
The idea of using the data collected in a new way, for a new purpose, and investing in new analytic strategies
requires manufacturers to change how they think. Human natures natural resistance to change is the obvious
risk of discussing relatively new technologies and topics such as manufacturing analytics in the context of
competitive strategies. According to Everett M. Rogers in Diffusion of Innovations, the landmark 1962
textbook that popularized the study of how new ideas and technologies spread through societies and peer
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groups, this is what we know today as the adoption curve, as seen in Figure 1 [4]. Early adopters make up
13.5% of the group who will adopt an innovation relatively quickly.
As with many technologists and entrepreneurs, the
early adopters are viewed as the thought-leaders. In
business, they drive customer demand by being ahead
of their competitors and provide new types of value to
their customers as few others can. It is also those that
can demand higher rates for these new services and
values. As they say the early bird catches the worm. To
create new services is first to define what those services
should be, and then set the bar and standard for the
rest of the peer group.
Change is inevitable. Forty years ago, bare-board
manufacturers used bomb-sighting machines to
create drill programs, and designers around the world
were using light tables and tape to lay out tracks. As
technologies became more complex and competition
grew, manufacturers had to be able to handle those
Figure 1: The adoption curve [4]. complexities, be faster, more accurate, and still make
money. This pushed them to invest in computer-aided
design and manufacturing (CAD and CAM) systems.
Fifteen years ago, a standalone design-for-manufacturing (DFM) system was incredibly difficult to justify
within manufacturing. Few invested in it. Then, the early adopters brought in a DFM solution and built
services around them. They benefited from becoming partners and increased the value they could provide to
their customers, while adding another revenue stream or solidifying future revenue. A 2010 Aberdeen Group
benchmark study said that best-in-class companies are 53% more likely to leverage design-formanufacturing tools [5].
In todays competitive marketplace, companies are constantly looking for new ways to differentiate. Again,
change is needed, and it is inevitable.
without the right infrastructure. In many cases, they have data collection, but because of their disparate
systems or sometimes manual systems, they are challenged to provide accurate data in a timely
manner.
Looking forward, there is another reason to collect datato drive business. Although not obvious, the
tremendous amount of data collected today is ripe with information. Extracting knowledge from that
information is key to defining value, as any data scientist would say. Knowledge about customers data and
buying patterns while correlating manufacturing information would have immense value that could be
monetized. Going through the process of data analytics, including problem formulation, method choice,
solution evaluation, and general strategy formulation should lead to new business models and opportunities
for growth.
PREREQUISITES
This creating value that can be monetized is at the core of manufacturing analytics. Analytics is still a product
of good data collection, but with the end value in mind. Deciding which data should be correlated and what
analytic models to use should be done carefully, because as Figure 2 describes below, garbage in, garbage
out, in both the quality of the data and the analytic model.
DATA SOURCES
Several different, and currently disparate, systems have to come together into an analytics engine to achieve
the level of analytics needed. Those systems typically would include:
Most ERP systems include the accounting and purchasing of materials and, in many cases, also maintain the
inventory and high-level scheduling. From ERP, information about purchasing trends of components,
availability, lead-time plans vs. actuals, obsolescence, and, most importantly, cost would be available.
A DFM solution would provide risks, cost avoidance opportunities, and constraints adherence. Issues that may
affect the manufacturability of a design would be identified early, as shown in Figure 3. Manufacturers are
able to price their services more accurately and can show cost-drivers in a more granular way. For example, if
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Line utilization, machine performance, feeder performance, OEE, first pass yield, RTY information tied to the
stages in manufacturing, then to design information, components, materials, customers, and revision should
be accessed and fed into the manufacturing analytics engine (Figure 5). Powerful correlation data is available
when integrated, for the use of building new business models by manufacturers. This is the most complex
integration, but it also provides the highest potential value.
Finally, integrating supply-chain sources into the manufacturing analytics would be ideal. Several data
aggregators in the industry provide this information through Web-based connectivity tools for automatic
query and retrieve capabilities. IHS CAPS Universe and Silicon Expert Technologies are a couple of
component data providers, although there are several more.
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If a factory puts the manufacturing analytics infrastructure in place to collect, organize, and build analytics
around component-related defects, coded to the vendor, vendor part number, distributor, and related form
factor and functional capabilities, this would provide valuable insight into component usage data and related
yield-related risks. Again, as the various systems become integrated into the manufacturing analytics engine,
adding supply-chain information, the correlation information can be organized and presented to customers,
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Layer count
Drill-layer count
PCB thickness
Micro-via size
Buried-via size
Blind-via size
Board-size width
Board-size length
Component-count top
Component-count bottom
Component count
Pin-count top
Pin-count bottom
Pin count
Combining design parameter extraction with DFx-result score-carding would further allow an analytics engine
to provide correlations on the problem areas to help predict future issues. Hypothetically, if violation X occurs
when a certain combination of design properties are present, we can model that correlation in the analytics
engine. This is the basis of predictive analytics.
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The answer is in the correlation provided by an analytics engine. Figure 8 shows an example of how this can
be done. When an initial revision of a design is sent to a manufacturer, data correlated from the DFM solution
and QMS can be graphically depicted into a hotspot map for the customer, identifying areas of highest
defects, before a revision spin (ECO/ECN) is sent.
Designers recognize the value in
knowing where quality issues are, and
having that information at their fingertips would be highly valuable, to improve
the quality of their designs, and to
manage target costs.
Computrol is a US-based contract
manufacturer focused on low-to-mid
volume production. The companys
president, Charlie Scott, Sr., commented
about how analytics provides value
added to their business.
Computrol uses an analytics strategy
Figure 8: Hot spot map.
engine or business intelligence (BI) for
several different things. The BI dashboard
gives real-time feedback on products that are in WIP. We use BI for weekly SPC data (FPY, % rework and DPM
levels) to spot trends on products that we are currently running in each area of assembly, he said. We track
and trend our top defects over the last 90 days so that we can focus engineering efforts on the biggest issues
first. Operators/inspectors view defect and SPC data from previous runs to know what defects and locations
were problem areas in the past. BI allows us to generate custom reports for anything that we have collected
data on. We have the ability to generate defect and SPC reports that we can send to our customers so that
they can see data specific to their products. BI also tracks specific serial number history. It allows us to see
what has been done to each board, by whom, and when it was done.
Leveraging this data to partner with customers would create higher demand for manufacturing services,
greater customer retention, and most importantly new avenues for business value.
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Trends on a particular model, or a certain lot of a specific component can be easily identified. Data analytics
for field repairs and returns can aid in a comprehensive and accurate root-cause analysis regarding why
products are failing in the field. Its an easy way to see if a unit has been previously returned and why. The
analytics engine can help determine the true mean-time-between-failures (MTBF) for each product so the
stakeholders can see if the MTBF is within acceptable limits and provide this vital information to program
groups within OEMs. Partnering services in this area is not new, but with the right manufacturing analytics in
place, it would add further business value to the type of dashboards and knowledge about products.
CONCLUSION
The intention of this paper was to define and quantitatively confirm how a manufacturing analytics strategy,
when successfully designed and executed, may be leveraged to improve a manufacturers competitiveness
and dramatically improve their collaborative services to their customers. Although more than 20 OEM design
groups and contract manufacturers were contacted, many of whom provided ample qualitative information,
the topic of analytics to this degree may be too new to be confirmed quantitatively.
While many companies have implemented a DFM solution, and have deployed various factory systems such as
MES and QMS systems to collect data on the factory floor for the most part, electronics manufacturers have
not yet figured out how to fully leverage the massive amount of production data, which is readily available, to
gain significant improvement in productivity (cost-efficiency) and to leverage this data to drive new business
growth.
Jaakko Paavola, MES Manager at Salcomp, a Finnish-based contract manufacturer with several plants around
the world, stated that they have collected and stored terabytes of production and quality data from their
production floor over the years. He further
mentioned that due to the lack of an analytics
engine, which is powerful enough and intelligent
Companies that capitalize on
enough, much of the data just sits there in memory
spaces. In other words, not providing any added
predictive analytics are achieving
value or competitive edge.
Paavola added that Salcomp does recognize the
need for analytics and is considering several
options for this purpose in order to improve
visibility and gain a better insight about their
factorys performance.
supply-chain integration systems, and a DFx solution, may be leveraged to create predictive analytics, fortify
partnerships with customers by providing never-before seen correlations of customer data, and develop new
business offering to further improve a manufacturers competitiveness, while dramatically improving their
collaborative services to their customers. This paper outlines many of these high-level approaches, ideas, and
strategies. Furthermore, during our research, OEM design organizations confirmed that such services would
dramatically improve their partnership with suppliers, and improve overall design quality, cost, and design-tomarket timeframes [8].
For more information on how the Valor Manufacturing Solutions Suite of tools can help to use analytics
effectively and improve competitiveness, visit us at https://www.mentor.com/pcb-manufacturing-assembly/.
REFERENCES
1. John Donovan, Mouser Electronics, The 4th Industrial Revolution Is Upon Us, ECN, October 29, 2013.
2. Bala Deshpande, Simaphore, How predictive analytics can shape manufacturing of the future, Proceedings of
Predictive Analytics World Manufacturing, October 1, 2013.
3. Maria Montenegro, Verizon, Why Manufacturing CIOs Must Harness Data Analytics, Verizon Enterprise News, June
24, 2015.
4. Rogers, Everett M., Diffusion of Innovations (first edition). Glencoe: Free Press, ISBN 0-612-62843-4, 1962, p. 150.
5. Michelle Boucher, Aberdeen Group, PCB Design: A Guide to Optimizing Design Engineers, 2010.
6. ECIA, http://www.ecianow.org/membership/member-directory/
7. IBM, Business Analytics for Banking: 3 Ways to Win, September 2010, p. 3.
8. This paper was originally published at SMTA International, September 2529, 2016, Rosemont, Illinois, USA.
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