Yield management for increased profitability

While most Electronic Manufacturing Service (EMS) providers are focused on transitioning their customers' products to lead free, many of these customers still have a need to sustain their leaded products. These Original Equipment Manufacturers (OEMs) compete in industries which are perceived as exempt from lead-free compliance. In addition, these customers are reluctant to re-qualify their products because of the high cost. ACC Electronix, Inc's focus is to develop processes and strategies as part of its program management methodology to individualize support for OEMs not transitioning to lead free in the short term. This paper will look at the challenges associated with products that are not transitioning to lead free and suggests key points for consideration for both the EMS Provider and the OEM. It also looks at examples of how specific customer needs have been addressed to minimize the impact to the EMS Provider and its OEM customers.

The Electronic Manufacturing Services (EMS) industry continues to enjoy a healthy growth rate. Some sources suggest that revenue growth for the EMS industry will grow at a rate of 28% through 2004 1 . Helping to fuel this growth is the expansion of the fiber optics industry. Last November, the Dell'Oro Group estimated the current overall market for optical networking hardware to be $5.5 billion. With a 25% annual growth rate, the global optical networks market is expected to exceed $17 billion by 2004, with 60% of this coming from optical switching systems in North America 2 . Likewise, the Market Research firm RHK Inc. predicts the worldwide market for optical components used in DWDM and optical networking applications will grow at an annual rate of 48%, from $5 billion in 2000 to nearly $24 billion by 2004 3 . While the current economic conditions 4 may not allow the achievement of these two predictions, optics will continue to help fuel EMS growth. The integration of optics into current communication systems will continue, although at a slower rate. What is fueling the growth of fiber optic systems? Along with the many advantages of fiber optic cable over copper cable, fiber optic systems are quickly becoming the backbone standard for voice and data transmission. As more Original Equipment Manufacturers (OEM's) contract out their assembly business, they are requesting EMS suppliers to provide a wider array of services: optics assembly, functional and system test, and box assembly services. To compete in the market place and enjoy the continued revenue growth EMS suppliers must develop and/or acquire the necessary skills to support the optics industry. While opto-electronic assembly requirements are not extremely difficult in nature, there are unique requirements for assembling, soldering and handling fiber optic components and cable. Much of the ‘assembly’ information available today, training classes and Web-based information, is for fiber cable installers. Very little information has been published on opto-electronic assembly at the electronic circuit card level. Much of this ‘optics knowledge’ is resident within the OEM's who are just now beginning to out-source optical assembly and are looking for EMS suppliers with optical assembly experience. An EMS supplier must either develop or acquired the necessary skills to support their customers and the optics industry. Management commitment to implement opto-electronic assembly capability - prior to committed customer orders - is required to develop expected levels of support for the optics industry. This paper discusses several key considerations towards the development of a world-class opto-electronic assembly facility.

Spurred by the increasing competition among the Electronics Manufacturing Service (EMS) providers and in response to the needs of the Original Equipment Manufacturers (OEMs), a new model of manufacturing that epitomizes an integrated and predictive manufacturing environment is being proposed. The dynamic nature of the EMS environment mandates the need for a manufacturing schema that is both integrated and predictive (rather than reactive). This research is part of an ongoing effort to establish an integrated predictive manufacturing model through the concept of ‘continuous improvement’. The first step was to perform a general analysis of the operational structure and losses in a manufacturing environment. Once the losses were identified, they were grouped into equipment, production, process, operational, and material related losses. The key performance indicators for monitoring the variety of losses were identified. Process, equipment, operational and production monitoring tools were developed based on these performance indicators. Based on this understanding, a formal requirement specification was established. Shop floor control systems that provide on-line information on Work In Progress (WIP) status, defect-data, finished goods ‘genealogy’ and unitlevel traceability through data captured throughout the entire manufacturing cycle are being developed and implemented. Process metrics like first pass yield, Defects Per Unit (DPU), and Defects Per Million Opportunities (DPMO) are shared with shop floor personnel in real time by the application of proven Internet technologies. Real time Statistical Process Control (SPC) charts and process triggers, which serve as proactive tools in predicting ‘out-of-control’ situations, were also developed. Process metrology tools were developed through interfaces developed for inspection equipments like Automated Optical Inspection (AOI) and X-ray Laminography. Since a major portion of electronics manufacturing at an EMS provider is performed by capital intensive Surface Mount Technology (SMT) equipment, the performance of these pieces of equipment plays a major role in deciding the performance of the line, which in turn impacts the performance of the plant. Therefore, an integrated system with the capability to collect real-time data from production equipment and provide information on critical performance indicators like machine/line/plant utilization, downtime and component placement reports, which enhance the operational efficiency of the plant, are being implemented. Standardization of manufacturing practices and documentation and their influence on reduction in manufacturing lead-time is investigated in this paper.

The idea of applying the two-photon 3D lithography (2P-3DL) to an industrial printed wiring board (PWB) fabrication process is quite pioneering. Taking advantage of the unique rapid prototyping properties of 2P-3DL--its particularly inherent true 3D capability and its high flexibility in processing- this lithographic method can be adapted and optimized concerning the direct laser-writing of integrated optical interconnects with tens of microns in diameter. This will push the method forward towards industrial fabrication of next generation PWBs with integrated optical layers, and put it on the leading edge of printed circuit board (PCB) technology. In this context, the concept of a direct laser-written embedded waveguide is based on the local increase of the refractive index of the exposed material, which is triggered by two-photon absorption (TPA) at the laser focus. The laser induced refractive index difference forms the core of the waveguide, whereas the unexposed surrounding material forms the cladding. Thus, only one optical material is required to form the waveguide using true 3D lithographic process compared to other devices, which significantly simplifies processes. The material is subject to stringent requirements concerning the PWB production process: beside its high refractive index change, a low optical loss of the fabricated optical interconnect is required. The integration of the waveguide into the volume of the material also requires thick films up to 500 microns on the PWB substrate, and the material has to withstand the complete PWB fabrication process, where the board is chemically treated and exposed to high temperatures as well as high pressure during the lamination processes of subsequent metal layers. For this application, an inorganic-organic hybrid polymer (ORMOCER) film is applied, casted onto a PWB substrate, and the two-photon 3D lithography system parameters and optics are tuned such that waveguides with a diameter of approx. 30 microns can be inscribed. The board is equipped with laser- and photodiodes, which are totally covered by the thick ORMOCER film. The integration of the waveguide in such a preconfigured board requires precise 3D registration of the sample prior to the waveguide writing in order to align the waveguide relative to the optoelectronic components. By means of the 3D registration, the waveguide alignment is an inherent part of the fabrication process. The 3D capabilities of the 2P-3DL permit not only the fabrication of single embedded waveguides with a simple geometry, but also more complex waveguide structure (e.g. bundles) with largely arbitrary waveguide configurations. In this paper, we present the development and realization of the two-photon 3D lithography for the fabrication of integrated optical interconnects on PWBs. The ultimate goal of this approach is the large-scale fabrication of leadingedge PWBs with an integrated optical layer for additional functionality. The functioning of the fabricated and embedded waveguides is demonstrated by measurements of the essential parameters of such an optoelectronic system (photocurrent, optical loss, throughput, etc).

In today's electronic package development cycle, activities are managed by multiple participants in the supply chain which might have different quality and reliability impacts to the end product. As a result, the reliability risk is much higher for companies who do not have insight into and/or control over the products received. Design-for-Reliability (DFR) approaches will come into play to manage the risk. In this article, DFR approaches for package development will be discussed from the perspective of the original equipment manufacturers (OEMs). DFR practices through the package development cycle will be described based on key development modules. A case study for FCBGA package development using an advanced Cu/Low-k silicon technology will be presented. Key measures to help control the quality and improve the reliability will be presented. The DFR methodology will be helpful for fabless design houses, electronics manufacturing service (EMS) partners in the supply chain, and OEMs to manage the reliability of the products.

PurposeIn today's electronic package development cycle, activities are managed by multiple participants in the supply chain, which might have different quality and reliability impacts to the end product. As a result, the reliability risk is much higher for companies who do not have insight into and/or control over the products received. The purpose of this paper is to show how design‐for‐reliability (DFR) approaches will come into play to manage the risk.Design/methodology/approachIn this paper, DFR approaches for package development will be discussed from the perspective of the original equipment manufacturers (OEMs). DFR practices through the package development cycle will be described based on key development modules. A case study for flip chip ball gris array package development using an advanced Cu/Low‐k silicon technology will be presented. Key measures to help control the quality and improve the reliability will be presented.FindingsThe proposed methodology significantly improves component and package reliability through the engagement in design, manufacturing, assessment and system evaluation.Originality/valueThe paper discusses the research results and the proposed DFR methodology will be helpful for fabless design houses, electronics manufacturing service (EMS) partners in the supply chain, and OEMs to manage the reliability of the products.

This research presents the selection of a cellular layout for an Electronics Manufacturing Service (EMS) by Analysis Hierarchy Process (AHP). Moreover, the selectedly outisevaluated by computer simulation. EMSistermed used for companies that design, test, manufacture, distribute and provide returned and repaired services for electronic components and assemblies for original equipment manufacturers (OEMs). It has to be able to adjust it self

PurposeThe purpose of this paper is twofold: first, it investigates whether and to what extent “linguistic hedging”, an impression management form of linguistic expression that conveys an ambiguous level of commitment, is used in corporate social responsibility (CSR) employment narratives; and second, it explores whether there is any difference in the use of linguistic hedging between written and spoken corporate forms of language. It mobilises these objectives by examining employee-related narratives made by electronic manufacturing services (EMS) providers domiciled in Taiwan, in the context of labour malpractice incidents.Design/methodology/approachTwo groups of data are examined: corporate responsibility reports (written language) and interviews and speeches of corporate founders and senior executives (spoken language). The research sample is ten Taiwanese EMS firms, all of which attracted public criticism and scrutiny due to a series of employee-related incidents. The sample period is between 2009 and 2013. Linguistic hedging is measured quantitatively by the relative word frequency of hedges, using the concordance software ANTCONC, with findings interpreted through the lens of legitimacy theory and impression management.FindingsThe study found that hedging was evident in CSR narratives. The EMS providers in Taiwan appeared to use hedging in employee-related disclosures to manage legitimacy challenges due to employee-related incidents that had happened in their assembly plants. The adjustments in employee-related disclosures made by the EMS firms as a legitimation strategy can be seen as a rhetoric device of impression management or a form of symbolic legitimation to persuade society to restore their legitimacy status. Further, overall hedging was more frequently used in spoken than written language, which suggests that rhetorical hedging in written narratives is more likely to be a deliberate choice of tactics to influence stakeholder perceptions and thereby manage corporate legitimacy.Originality/valueThe study introduces a new analytical technique, linguistic hedging, into the CSR literature. This enriches research methods used in this field, providing more compelling insights into the relationship between the use of language and CSR narratives in the process of corporate legitimation of employee-related practices. This study thus provides a platform for future computational-linguistics studies in the field of CSR.

In the semiconductor and telecommunications industry original equipment manufacturers (OEMs) outsource manufacturing to contract manufacturers who are specialist electronic manufacturing service providers. There are a large number of such specialists in existence who collaborate with the original equipment manufacturers at one end and the component suppliers at another end and provide engineering, manufacturing and distribution services. But there do not exist good theoretical developments supporting these real world operations. We consider a global manufacturing system consisting of the contract manufacturer, logistics provider, and OEM and study the influence of sharing scheduling and demand information over the Internet. More specifically, we consider an OEM operating an Internet-based private exchange as a channel master with its contract manufacturers and their suppliers participating by sharing information. We develop a linear program based optimization model for this environment. Specifically, our LP model calculates the quantity of raw materials that is to be procured in each time period from each of the suppliers in order to meet the given demand. We compare these results with traditional make-to-stock linear supply chains with sequential order flow. Our numerical experiments show that information sharing results in cost and inventory reduction.

When an original equipment manufacturer acquires a facility or product line, customers seldom see the difference. However, in the electronics manufacturing services (EMS) world, the individual “brand” of a given EMS company is its culture and processes for service delivery. EMS provider EPIC Technologies made three major North American acquisitions over the last three years and is continuing global expansion efforts in 2006. This paper will look at its processes for optimizing operations to its Synchronous Flow Manufacturing (SFM) model, integrating best practices learned from acquired facilities and maintaining customer satisfaction during acquisition integration.

Electronic Manufacturing Service (EMS) Providers, Printed Circuit Board (PCB) Fabricators and Defense Contractors are spending millions creating and maintaining International Traffic in Arms Regulations (ITAR) compliant systems and processes while at the same time lobbying for change to theoretically improve US competitiveness in foreign markets. What is it within the ITAR that adds cost to the EMS industry and/or the PCB process? Are those costs real or perceived? How can the industry better serve the needs of the Defense Market? What are the inherent challenges of outsourcing in an ITAR environment?

Typically, the introduction and implementation of new technologies in the Contract Electronics Manufacturing (CEM) environment is driven by the existing or new customer demand, however, the CEMs must recognize that adherence to this strategy can increase the risk of losing an existing or a potential customer. On the other hand, in today’s economy of tighter margins, shrinking market-share and diminishing demand, it is economically impractical to invest in equipment upgrades and extensive experiments beforehand and hope that a customer will come along with the requirement for the new technology that the CEM or Electronics Manufacturing Service (EMS) provider has already put in place. In this article, our approach towards the introduction and implementation of the 0201 technology in manufacturing will be discussed. We feel that the best approach is to be prepared to introduce 0201 technology into manufacturing by investing in the training of key individuals, identifying the equipment capabilities, upgrading requirements and documenting a formal road-map.

We study strategies to manage demand disruptions in a three-tier electronics supply chain consisting of an Electronics Manufacturing Services provider, an Original Equipment Manufacturer (OEM), and a Retailer. We model price sensitivity of consumer demand with the two functions commonly used for this purpose, linear and exponential, and introduce disruptions in the demand function. We assume each supply chain member faces an increasing marginal unit cost function. Our decentralized supply chain setting is governed by a wholesale price contract. The OEM possesses greater bargaining power and therefore is the Stackelberg leader. A penalty cost incurred by the Retailer is introduced to capture the cost of deviation from the original plan. We find exact analytical solutions of the effectiveness of managing the disruption when the consumer demand function is linear, and we provide numerical examples as an illustration when the consumer demand function is either linear or exponential. We show that the original production quantity exhibits some robustness under disruptions in both centralized and decentralized supply chains, while the original optimal pricing does not. We show that supply chain managers should not automatically react to an individual disruption, in certain cases it is best to leave the production plan unchanged.

The Electronic Manufacturing Service (EMS) industry contributes significantly to toxic waste generation due to its fabrication processes. Notably, adherence to the Restriction of Hazardous Substances (RoHS) Directive varies amongst EMS providers, despite its aim to reduce electronic waste. This study explores the factors influencing EMS providers’ decision to adopt the RoHS directive, utilizing the technology–organization–environment (TOE) and the human–organization–technology (HOT) fit, or the TOE-HOT fit framework. We validated our framework using partial least squares structural equation modeling (PLS-SEM), based on responses from 379 questionnaires from major EMS providers. The results demonstrated that expert resources, adequate resources, perceived industrial pressure, institutional pressure, and costs were positively associated with RoHS adoption. However, innovation, relative advantage, and verification ability were identified as significant barriers. In particular, innovation in the human dimension was the key determinant for RoHS adoption. Therefore, clear policy instruments and regulations may enhance RoHS adoption by EMS providers. These findings can guide environmental policy definitions in governmental laws and strategies, encouraging EMS providers and other firms to adopt RoHS standards.

This study addresses the critical research issue of how supplier delivery performance can be enhanced by integrating information sharing into volume and delivery flexibility. This study developed a research model to relate information sharing on demand forecasts and inventory data between original equipment manufacturers (OEMs) and first-tier suppliers. Based on a sample of 52 suppliers from automotive industry in Sweden, partial least squares structural equations modelling (PLS-SEM) was used to assess the model. The results confirm that sharing demand forecasts is a key enabler of supplier volume and delivery flexibility while sharing inventory data is not. The study contributes to enlarging the knowledge about supply chain management from the suppliers’ perspective. It also contributes to knowledge by validating the conceptual model and operationalisation of constructs. The study also has practical contribution in which management should focus on improving communication and collaboration practices with OEMs for effective sharing of demand forecasts.