So while Huawei is a $100 billion company, larger than IBM, Sony, Hitachi, Panasonic and all but a few other tech firms, the declaration could have tentacles that reach far beyond the Chinese OEM. Even if all the defense industry primes, for instance, buy all their boards onshore (doubtful), many others do not, including the financial markets, and key industries such as nuclear, power, and so on.
Almost every North America-based board today shop brokers boards from Asia, mostly China. Their suppliers are, in turn, generally located in China as well. That includes the vast majority of the laminate industry. Sure enough, we are hearing reports of major laminate makers suspending shipments of key materials, including ones for the US defense primes, because of the executive order.
What’s the alternative? North American board fabricators lack the capability and capacity to take on high-volume production. The EMS industry has the capability, but not the capacity. And that doesn’t begin to address the region-to-region cost differences.
Then there’s Washington. The legislators are simply ignorant when it comes to understanding supply chain issues. The executive order targets companies that could put the US economy at risk. Any logical read of that would see that the telecom industry is only one part of the equation. Wall Street is equally at risk.
Just because Cisco or Juniper or HP or IBM or Dell or Arista don’t have Chinese names doesn’t mean they aren’t as reliant on the China supply chain as Huawei. Same goes for their EMS networks. Intel has six chip fabrication plants and three assembly/test sites. Two are in China. Qualcomm is a minority owner of SMIC, which has nine plants open or planned in China. It also has a JV assembly/test house with Amkor in Shanghai.
Take a look at HP’s supply chain. The OEM is sourcing product from China facilities of Foxconn, Jabil, Flex, Celestica, Inventec, New Kinpo, Wistron, Pegatron, Qisda, and TPV, among others. The workers on the HP lines number in the tens of thousands. That can’t be replaced easily, if at all.
Not just the large shops stand to be squeezed. Besides relying on China for raw materials, many smaller North American fabricators also outsource certain services and otherwise procure other relatively finished goods from there, such as engineering or laser drilling or mass lam boards.
Insofar as consumers are concerned, it’s probably a good thing this isn’t happening during the Christmas ramp. But that date is drawing near. Even without the tariffs, given the looming capacity constraints, prices are bound to spike.
And even if the questions surrounding Huawei are sorted out — a big “if” — the fun won’t stop there. At this writing, the US government is considering action against other Chinese OEMs, including ZTE and Hikvision.
Which EMS has received the most private equity funding over the past few years?
Chances are, it’s Tempo Automation. The San Francisco-based contract assembler just added another $45 million (that’s right) in new capital. That’s on top of the $20 million it garnered a year ago, which it used to build a new factory. Overall, we estimate Tempo has raised around $75 million over its six-year life.
Investors are falling in love with Tempo’s emphasis on software-based manufacturing. It has caught the attention of blue chip OEMs like Lockheed Martin, which is also a customer and investor. The latest round of funding, called a Series C, was led by existing investor, Point72 Ventures and includes an array of new and existing outside investors investors. Series C is typically the final funding round prior to an IPO or acquisition.
In an era where PCB assemblers aren’t rushing to go public, this is an interesting development. Privately held Tempo does not disclose its revenue, but it’s likely to be less than $100 million. That level of investment suggests a high level of confidence by outsiders that Tempo is on the right track.
Patty had just finished an
all day workshop on “Common Defects in SMT Assembly and How to Minimize
Them.” The workshop seemed to go really well, and many of the 35 or so
attendees thanked her for a great learning experience.
After most of the people
filed out of the room, two approached her as she was disconnecting and packing
“Dr. Coleman, that was a great workshop. But, I do have one question. You used a term all day that I wasn’t familiar with, ‘SAC’,” a 35-year-old process engineer commented to her.
While saying this, he
presented his business card that referred to him as a “Senior Process
Patty was trying to
recover from this shock, when the second similar looking fellow asked,
“And what are ‘OSP’ and ‘eutectic’.”
After explaining these
three terms and exchanging a few pleasantries, the two senior process engineers
walked out of the room and bade Patty farewell. As the room became empty, Patty
settled into a chair.
“How can this be?” she
thought. She was stunned that people with enough experience to be called
“senior process engineers” would not know these terms.
Today 6 AM …
Patty was jogging back to her house in Woodstock, VT, when she spied a beautiful red fox. Neighbors had reported seeing the fox numerous times. People believed that the fox was nesting. In addition, a black bear had been sighted by everyone in her family over the past few weeks. Add all of this to the family of deer and the rafter of turkeys in her neighborhood and it was quite an experience for Patty, Rob, and their sons.
The fox, however, created
a new problem. Patty and Rob had bought their twin sons a Yorkshire puppy,
Ellie, about a year ago. At 6 pounds she could be dinner for the fox, so,
unfortunately, they could no longer let Ellie out by herself.
Figure 1. Ellie the Yorkie after a big day. Sadly she has to be
watched when she goes outside of Patty’s house, due to the local predators.
By 7:30AM Patty was
in her office. She was giving a workshop in two weeks at a local chapter
meeting in Boston and decided to create a pre-test to give to the attendees so
that she could assess their current knowledge. Patty planned on having the
students grade each other’s exams and on working the exam in as a leaning
experience at the start of the workshop. By assessing the results of the
pre-test, she wanted to make sure she didn’t use acronyms they don’t
understand, and to also explain topics that the students might not be familiar
with. As she was working on the questions for the pre-test, Pete walked in.
“Hey, Professor C, how
goes it?” Pete asked.
“I’m preparing a pre-test
for the workshop I’m giving in a few weeks,” Patty replied nonchalantly.
“I remember you talking
about doing it a month or so ago. Seems like a good idea to me,” Pete
“I’m ,glad you approve,”
Patty said wryly. “I just finished it. Do you want to take a look at it?”
Patty printed out a few
copies and handed one to Pete. They both looked at it for a few minutes, in
Finally, Pete commented
sheepishly, “Aaa, Patty your joking, right?”
“Why do you say that?”
Patty asked, a little annoyed.
“It’s just too easy.
Everyone will get 100% and you won’t get any information,” Pete opined.
Patty then reminded Pete
of her experience 6 months ago.
“OK. Maybe you have a
point. But, I still think it’s too easy,” Pete concluded.
“I’ll tell you what. How
about a bet? If the average pre-test grade is above 70%, Rob and I will take
you and your new crush, Mary, out to Simon Pearce. If
it is 70% or less, you treat us,” Patty teased.
“It’s a bet,” replied Pete
What does the letter “S” in SAC stand for?
How much silver is in SAC305?
What is the approximate melting point for SAC305 solder (+/- 4oC)?
Solder paste is approximately how much (by weight) metal (+/- 5%)?
What is not a current common defect in SMT?
BGA Ball Matting
Which is a closest to typical stencil thickness?
Which is closest to a typical lead spacing for a plastic quad flat
Which has finer solder particles, a Type 3 or 4 solder paste?
What does OSP stand for?
Place an arrow at the eutectic point of the tin-lead phase diagram
Epilogue (two days after the workshop)
Patty arrived at Ivy U and
couldn’t wait to see Pete. She went to his office but he wasn’t there. Finally,
she found him in the machine shop helping four students with a project that
required some additive manufacturing.
“Hey, Pete! When are you
and Mary going to treat us to our dinner?” Patty teased.
“Don’t tell me the average
was less than 70%,” Pete grumbled.
“Forty-three point zero
eight to be exact,” Patty punctuated.
Figure 2. The Pretest
“Yikes!” Pete exclaimed,
rubbing the back of his neck. “I guess you were right.”
“It really helped me to
take things slowly and explain all the terms. I think I helped the students
much more than usual,” Patty explained.
“Rob and I both agreed, we
are ordering the most expensive meal that Simon Pearce has,” Patty joked.
At that Pete let out
a deep groan.
Dr. Ron note: All of the events in this post are true. How would you do on the pretest?
I have enjoyed writing the Patty
and the Professor blog for about 10 years now. I’ve written about numerous
real-life electronics assembly examples that I have encountered in my career,
all disguised, of course.
To continue keeping things real, and to keep my readers
involved, I am inviting you to submit an authentic story from your career.
That’s right! You’re being invited to submit an idea, story, or experience that
can be built into the Patty & The Professor series.
Your experience will help many other electronics assembly
practitioners resolve their issues and avoid problems.
So, get your thoughts together, then shoot me an email at firstname.lastname@example.org. Share the details of your experience or observation. I may
ask a few questions to help me comprehend the full story. Then, I will write up
the segment and let you read it before posting. You will be credited, of
Bonus: You will also receive either a Dartmouth hat or coffee mug (similar to, not exactly like, those pictured below)!
Contact me if you are interested in submitting a story. I
look forward to hearing from you!
Terry Gou, Foxconn founder and chairman, is
contemplating a run for the presidency of Taiwan. Should he go for it?
Given his wealth – an estimated $7.8 billion – and stature
in Taiwan, some comparisons to US President Donald Trump will be inevitable. There
are distinct differences in upbringing and temperament, however. Gou is a
self-made man, having launched Hon Hai as a components supplier in the early 1970s.
He built the company brick by brick, expanding into new markets as opportunities
arose, and taking advantage of mainland China’s proximity and low cost-model.
When the West started looking for cheaper manufacturing alternatives, he was
He has generally been media-shy throughout his career. It was only after Foxconn came under scrutiny as workers started jumping off its roofs that NGOs began putting pressure on Apple, Foxconn’s largest customer, and Western media took note. Long articles in The New York Times,Wall Street Journal and Forbes followed.
But is Gou the guy? Whether his domineering approach will be welcome even in Asian cultures today is unclear. In the wake of the Enron collapse, in 2007 the WSJ quoted him as saying, “Even for those of us who lived through Enron, it’s hard not to come away disgusted. I always tell employees: ‘The group’s benefit is more important than your personal benefit.’ ” At the time, a typical mid-level assembly-line worker in Taiwan earned about $230 a month, including overtime pay, while Gou was a multibillionaire.
Neither is the inherent conflict-of-interest with China,
where Foxconn has the majority of its manufacturing capacity and business
interests and employs hundreds of thousands of residents. Taiwan’s self-styled independence
stature could be in question were Gou come to office. How would he priorities decisions
that could mean risking his financial standing?
Citing divine inspiration, Gou told media that he
seeks “peace, stability, economy and future.” Those are worthy goals. Given his
track record as an employer and his financial dependence on China, how he will achieve
them deserves scrutiny.
It’s been way too long, let’s look in on Patty and the boys…..
It was 5:30AM and Patty’s alarm went off. She was unusually tired
today because of a PTA meeting last night. She had become much more interested
in the school her twin sons went to when she found out that the school was no
longer teaching cursive writing. She was too late for that battle, but had
heard that the school was not going to teach long division. Another mother told
her that the reason was that long division was too hard and it could be done
with a calculator. When Patty heard this she “went through the roof.”
Fortunately, when Patty attended the PTA meeting, she and the other
parents were assured that long division was still being taught.
Patty’s sons would learn cursive, however, as both her mother
and her husband’s mother would teach the boys during baby-sitting sessions –
and once a week the boys would read one of the 100+ letters to home that their
great grandfather wrote to their great grandmother during World War II. All
written in cursive of course!
After her morning jog and workout Patty was in her office at Ivy
U by 7:30AM. She turned on her laptop and saw an email from Mike Madigan, her
former employer’s CEO. It read:
Dear Professor Coleman,
One of my golfing buddies owns a small jewelry firm, Galahad Jewelry in Providence, RI. One of the units in the company produces silver charms for charm bracelets. This unit is not performing well financially. After chatting with him I sensed that productivity is low, inventory is out of control, and the processes are not lean.
Could you visit his factory and perform an audit? Maybe Pete can go with you – just make sure he behaves.
The note finished with contact information for the company.
Not only was Pete willing to go, but Rob also had a colleague in
nearby Brown University that he wanted to visit. A few days later our trio
was heading south to Providence in Rob’s Buick.
“You guys don’t know squat about making charms for charm
bracelets. Do you really think you can help them?” Rob teased.
“Hey, we’ve got the great Professor Coleman here. She can solve
any problem! — Seriously, we’ve discuss this before, most manufacturing
processes are similar. I won’t be surprised if we can help them a lot,” Pete
They stayed in a hotel near the Galahad facility the night
before the audit. They arrived at the facility the next morning and met
with the site superintendent, Don Smithson. After exchanging pleasantries,
Patty and Rob toured the manufacturing, inventory storage, shipping, and
administrative areas. By then it was lunchtime. Pete had stayed behind to watch
the manufacturing line and collect productivity data. During a late lunch, they
requested some additional production and cost data from Smithson. They then
requested that Smithson give them two hours to develop a summary of their
After preforming all of the necessary calculations, Patty and
her team prepared a Powerpoint presentation. Smithson had gathered a few of the
process engineers and the manager of production Ervin “Bud” Clark. Clark was an
intimidating man with sharp features and, it appeared, a quick temper.
Patty started the meeting by reviewing the strengths of the
operation. The facility was so clean it could only be described as spotless.
The production workers appeared to have very good attitudes and the quality of
the resulting charms they produced was excellent. Bud Clark beamed as Patty was
sharing this information. Then she reviewed the “Opportunities for Improvement”
‘The greatest OFI is the line uptime. From the data you gave us,
and from what we gathered today, we calculated that your uptime is 30%,” Patty
At this, Clark turned red in the face and demanded,” What do you
mean by uptime Dr. Coleman?”
“Simply the amount of time the line is running during an 8-hour
shift,” Patty responded.
Clark was now shaking with fury, “This is the greatest insult I
have ever experienced, my lines are running almost 100% of the time. Smithson,
let’s kick these Ivy Tower intellects out of here, they’re wasting our time!”
Smithson calmed Clark down and then said to Patty, “Thirty
percent seems very low, how did you calculate it?” he asked.
“We did it two ways. Rob and I took the production metrics you
gave us and calculated uptime, Pete also monitored the line and took readings,
both methods yielded about 30%,” Patty responded.
At this Bud Clark exploded, “My lines run nearly 100% of
the time. I can’t be convinced otherwise,” he fumed.
“Dr. Coleman, can you share some of the details relating to how
you calculated 30%?” Smithson asked reasonably.
“Of course. Pete monitored the lines from the start of the shift
through lunch. The time was from 8AM to 1PM.” Patty stated.
“Well, it shows right off the bat that you don’t know our
schedule,” Clark fumed, “lunch is over at 12:30.” He was so riled that his face
was red and he was shaking.
“That’s true Patty” said, “I’ll let Pete explain.”
“Technically the lunch period starts at 12 noon, but the workers
shut their machines down at 11:48AM today. The lunch period is supposed to end
at 12:30PM, but the workers did not get back to their stations until almost
12:45PM. It then took them until 12:55PM to get the machines running. So the 30
minute lunch period was actually 1 hour and 5 minutes,” Pete explained.
“Boy, what an eye opener,” Smithson said.
Bud Clark seemed numb, but then he chimed in, “There’s no
way that extra lunch time gives us only 30% uptime,” he snarled.
“True,” said Pete, “but the 15 minute break at 10:00AM was
really 35 minutes.”
Now Smithson was getting agitated at Clark.
“Bud, what is going on?” Smithson said.
Patty felt it was time to interject some calming comments.
“To be honest, this type of situation is what we see in most
audits,” Patty said sympathetically.
“Let’s let Pete finish,” Clark said glumly.
“Works starts at 8AM, but the team really didn’t begin making
parts until almost 8:30AM,” Pete went on. In addition, set-ups for new jobs are
performed on most machines two to four times per day. In theory they take 15
minutes, in practice more like 45 minutes,” Pete went on.
“So with all of this downtime our uptime is only about 30%?”
“Yes,” Pete responded.
Patty then showed how the production data for the last 3 months
support the 30% uptime number.
“The good news is that if you can increase productivity
by only 10%, your profits will more than double,” Patty added cheerfully.
“I find that hard to believe,” Clark said with an agitated voice
and a red face.
“Me too”, said Smithson, “ if I increase productivity by 10%, I
only have 10% more parts to sell, so profits will go up only 10%.”
“That would be true if you had no fixed costs, your fixed costs
are high. Every additional part you sell brings in more revenue, but costs less
to make because your fixed cost per part is lower,” Patty explained.
“I developed an equation the shows this,” she went on.
“In this equation nimproved is
the number of charms produced in a day after process improvement – let’s say
that is 10% more than the current amount. We’ll use nold as the current
amount per day. Pu is
the price you sell the charm for and Cu is
the material cost. CostFixed represent
the fixed costs,” she explained.
“I plotted a graph of profit versus productivity increase from the cost and production metrics you gave us. Note that current profits are at about $160,000/yr. With just a 10% increase in productivity the profits go to about $360,000/yr,” Patty continued.
Figure. Patty’s Graph of Profit Increase
vs Productivity Increase.
Both Smithson and Clark sat in their chairs dumbfounded. “If we
can’t improve productivity by 10% we should be fired,” Clark humbly replied.
Discussion then ensued on how to improve productivity, much of
it focused on how to minimize or eliminate turning the machines off. Both
Smithson and Clark became energized by this discussion and also expressed their
gratitude to Patty, Rob, and Pete.
“Did you notice anything else beyond production that could help
us reduce costs?” Smithson
“You could save quite a bit by better inventory control,” Rob
“I’m off the hook on this one Smithson,” Clark teased.
“I own inventory control,” Smithson agreed, “what did
“Well you have way more inventory than you need. We especially
noted a block of silver as big as a microwave oven in your store room. We
calculated its value at about $500K. I asked some people who have been with the
company for over 15 years and they say it was there when they started,” Rob
“The block is so big and heavy, we could never figure out how to
work with it so we just put off dealing with it. Weeks became months and months
stretched into years,” Smithson sadly replied.
“In addition, the shipping department, although neat, had
multiple shipping cartons of the same box size that were partially used. People
also commented that they sometimes had to hunt for items for production or
shipping,” Rob went on.
Smithson sat in his chair looking glum.
“Dell estimated that the cost of one week’s inventory is about
1% of the value of the inventory, you have about 30 weeks of inventory. We
estimate that your inventory carrying charges are greater than your profits,”
“I always wanted to assure we never ran out of material,”
Smithson added a bit defensively.
“A worthy goal, but you can almost certainly accomplish that with five, or at most 10 weeks of inventory,” Rob replied.
The group then began discussing to how to reduce inventory and outlined a plan. Our trio agreed to come back in six weeks and access progress in both productivity and inventory control.
On the car ride back to Ivy University, Rob sensed that Patty
and Pete were a little pensive.
“Hey you two, what’s up?” Rob asked.
“It seems like déjà vu all over again,” Pete chuckled.
Patty agreed, “The first productivity problem the Professor
helped us with at ACME was so similar to this it’s so surprising.”
“That was the first of our many adventures together with the
Professor, too many years ago now,” Pete added.
Patty agreed and Rob noted a little catch in her voice ….
The term “via” probably comes from the Latin word meaning “road.” Therefore, open via would essentially mean “open road.” Open roads here in Oregon sometimes run through open range ranch land. That means that cows have as much right to be on the road as do cars. If you don’t want cows on your PCBs where the BGAs go, don’t leave open vias in the BGA footprint.
Don’t do this:
Here’s what happens:
Your assembled board will likely be missing connection between some of the BGA balls and the board. That’s almost as bad as having a cow step on it.
If you are putting the via in the BGA pad, your only choice is to have the vias filled and plated over at the board fabricator. (Read this post). If you’re putting the vias between the pads, you have two options. You can put solder mask dams on the short trace between the pad and the open via. This will prevent solder paste from migrating. I’ve modified the image below to show what that would look like.
The other, and better, option is to cap the vias with solder mask. This gives a bit of extra protection in case any of the solder mask dams are too thin or chip off. Just make sure you cap these things on the solder side. If you cap them on the back, solder can still spread on the trace and partway into the via. That still puts the electrical and mechanical connection at risk.
Duane Benson We don’t want cows on PCBs but we have built PCBs that go on cows The IoC: Internet of Cows
China is a country that should be viewed through its actions, not its words.
It’s important to keep that in mind when considering the news today from the Associated Press, which is reporting China will cease its practice of forcing multinational companies wishing to do business there to share their IP.
If this turns out to be true — and the China legislature ratifies the law — one of the big trade hurdles between the US and China will be eclipsed.
As usual, the devil’s in the details, and this case is no different. Per the AP, the new rule simply bars “government authorities” from making demands of foreign firms. So if, for instance, the steep duties China places on imports remain in place, an MNC will almost have to partner with a domestic company.
And that’s the rub. As the AP reports: “[T]he central government routinely says it has little control over commercial agreements between Chinese and foreign firms.”
So for most firms, the Catch-22 will remain.
China has a history of saying one thing and doing another. Sometimes it does so brazenly — such a ignoring WTO trade practices or currency interference. Other times it is on the sly, such as when it says it doesn’t believe in meddling in other nations’ affairs all while it’s meddling in other nations’ affairs.
How to deal with a loose cannon in a leadership position.
His team calls
him “Dangerous Dan” for good reason.
Dan self implodes
in a New York minute.
Perhaps it’s that
inappropriate comment Dan is prone to blurt out. Or maybe it’s that significant
lapse in his judgment that triggers the first domino. It doesn’t matter. The
explosion is immediate and the outcome is far-reaching. And as Dan’s manager or
teammate, you needn’t wonder. You will be blindsided by the flying debris.
Oh, he’s not a terrible
person. In fact, Dan typically has the best of intentions. He’s just an eternal
optimist. And he never seems to notice the aftershock following behind him. Dan
has what you might call “intermittent blind spots.” And he lives in a constant
state of denial. My, that’s a deadly combination!
To make matters
worse, Dan’s boss can seldom anticipate the timing of Dan’s next calamitous
move. Even more troubling, Dan won’t bring a brewing catastrophe to anyone’s attention.
But in this age of the virtual water cooler, people still talk. And the delay
between when Dan pulls the proverbial pin from a nearby hand grenade and the
time his boss hears the explosion only adds to the collateral damage.
So why does Dan’s
team tolerate him?
It’s simple. On
nine days out of ten his contribution to his team is substantial. And every
time he does something helpful, teammates are once again tempted to forget about
his recent faux pas. But when Dan bungles it, he offsets every positive action
he’s taken in one fatal blow! And it’s a vicious cycle.
The first time
I met Dan he showed up at our house out of nowhere. He instinctively made
himself as comfortable as a long lost friend. It was an unusually quiet summer
evening. Dan spied our spinet piano in
the corner parlor. Impulsively responding to some mysterious melody in his mind,
Dan lunged and launched into a loud, busy boogie that rattled our rafters.
He never asked
if we cared. He never considered our toddlers asleep in a room nearby. After
all Dan was on a roll entertaining us, his new friends! In his mind’s eye he
was Billy Joel the Piano Man! In our remembrance, he set off pandemonium.
I painfully learned
over the next few years that Dan was and is semi-oblivious to the world in which
he lives. He careens off the walls of life like a drunken bull in your mother’s
precious china cabinet.
technically awesome. But on a practical level, Dan is blind to the subtleties
of his behavior. He doesn’t mean any harm. He’s just being Dan.
So, is there a
Dangerous Dan Darting Down Your Hall?
too quickly. The ramifications are worth considering.
When it comes to
business, Dan is amazingly self-assured. He’s a problem solver. In those magical
moments when Dan saves the day, you want to hug him. But when the stakes are most
high and you can least afford a miscue; the carnage Dan creates is legendary.
How can you
spot a Dangerous Dan before he wreaks havoc in your living room or lobby?
ten questions and you’ll know if you have one.
Think of the
person you know who most resembles Dan. Ask yourself:
Do his jokes often strike a jangled
nerve in an unsuspecting bystander?
Do you see evidence that his family’s
patience has worn thin?
In the past, have you considered
promoting him but decided against it each time?
Do you feel sorry for the fact that he frequently
undermines his own success?
Do you continue to discover new and
different things that he can do?
Are you often tempted to give him just
one more try?
Do your team members frequently surprise
you with startling new stories about Dan?
Are you allowing your soft heart to
guide your logic?
Has he randomly cost you a small fortune
in unintended consequences?
you say “NO!” if he asked to marry your daughter?
If you answered
yes to seven or more of these questions, here’s the inconvenient truth. You
can’t afford to have Dan on your payroll. No matter how much you would love to
rehabilitate him. It’s not worth it.
Here’s an even
more sobering thought. You will likely have to fire Dan if you don’t take
action. So what can you do now if you are dead set on keeping your Dangerous Dan?
Here are five
suggestions listed in order of importance:
Reassign any people who report
directly to Dan so that you limit his legal liability.
Put Dan in charge of special
projects with limited downside.
Role play any important customer
interactions before Dan leaves the office.
Check behind Dan to ensure he’s
following agreed upon processes.
Avoid any temptation to promote Dan.
He will be even more lethal with more responsibility.
little power goes a long way in the mind of a Dangerous Dan!
I ran into Dan’s
ex-wife not long ago. She and I laughed about all of the good times we had
enjoyed with Dan. They were many. But there was a deep sadness in her spirit as
she relayed her decision to finally divorce Dan. He, of course was off on a new
adventure leaving his former family far behind.
I’d like to say
Dan will learn how to handle life one day. And I’d like to say I’ll soon leap
tall buildings in a single bound.
But I’m reminded of the time a good friend
approached Dan and begged him not to apply for another promotion. “Dan, you’ve
tried managing people on two other occasions and it didn’t work out. What did
you learn from those experiences that will help you be more successful this
Dan turned. He
stared upwards in thought. The he asked, “What do you mean???”
His team calls
him “Dangerous Dan” for good reason.
in a New York minute.
Don’t let him
shake your confidence in you!
Keith Martinohas a passion for helping engineering executives achieve stellar results. Martino authored the book Expect Leadership in Engineering. In addition, the team at Keith Martino has designed and launched Leadership Institutes at multiple engineering firms across the US. Martino is quoted in Young Upstarts, Entrepreneur Magazine, NewsMax Finance, Hotwires, Circuits Assembly, and Printed Circuit Design & Fab. For more information visit: www.KeithMartino.com.
From 2003 to 2006, I worked at a contract manufacturing company as a robotics engineer. I was the first software engineer hired by the company, an opportunistic hire by a visionary CEO who saw the importance of automation in manufacturing. The CEO wanted to reduce downtime in manufacturing, improve quality, and empower the folks on the factory floor to be more efficient.
That period of my career was a fascinating experience. I was coming from a Fortune 500 energy company, where I had been a database programmer working with many highly capable engineers on scaling large data models. In that environment, continuous improvement through software automation wasn’t aspirational, it was our explicit mission. I took the role in manufacturing because I wanted the opportunity to define and deploy a software roadmap from scratch. I learned a lot during that time. As successful as the company was, software didn’t really exist inside the company, aside from an arcane enterprise resource planning (ERP) system that was poorly supported and badly used. I did everything from programming robots by hacking into them (APIs in manufacturing equipment didn’t really exist at the time, and still don’t), to developing web-based workflow software, to educating employees on how to use not only the tools I built, but software such as Microsoft Excel. Along the way, I discovered these existential truths, so to speak, as they applied to manufacturing as a whole:
Everyone saw the benefits of automation and wanted to automate as much as they could
Very few people understood the role software played in automation, even at the highest levels of the company
Fast-forward 16 years and much to my astonishment, manufacturing as a whole has not progressed. In learning about Bright Machines and our opportunity space, I encountered a lot of the same problems I faced 16 years ago. In manufacturing, the bulk of inspection remains largely manual. Instead of data being collected across the factory to be analyzed, it is mostly hostage to a particular machine, or worse, not collected at all. The concept of transforming data across the factory floor into actionable information that enables building higher quality products faster is at best an ambition. From designing a product to setting up a job, there is very little automation throughout the process of building physical products. In fact, setup and deployment take weeks, sometimes months, leading to significant product delays. That’s just the beginning of the list of problems with manufacturing today. It’s a very long list indeed.
When we compare manufacturing to other industries that have not only embraced technology, but pushed its boundaries to innovate and succeed, we can’t help but wonder why this key economic pillar remains stuck in time. I posit that this is for several reasons. Manufacturing is a demand-driven industry with low margins. For most manufacturing companies, it has simply been easier to throw humans at any given problem, knowing that labor costs can be scaled up and down based on demand. At first blush, the calculation seems rational. Investing in sophisticated hardware powered by equally sophisticated software at an industrial scale carries a lot of expense, not only in upfront costs, but maintenance, ongoing upgrades, support, and so on. Then, there’s the problem of time. Customers want things manufactured quickly. Who has time to invest in equipment set up, calibrating machines, setting up networks, securing the data, etc.? Human workers, on the other hand, can be deployed on an as needed basis.
Except that things really don’t work this way anymore. Humans, rightfully so, decided they are no longer willing to work in arduous and monotonous jobs, leading to reports of “voluntary turnover rates exceeding 300%” in some parts of the world. That is an astonishing statistic. The cycle of innovation in industry has evolved and sped up so much that having the ability to not only deliver product in near-real time, but perform meaningful reactive as well as predictive data analysis is an absolute must in order to operate efficiently in manufacturing. The increasing sophistication of the products being developed require the precision of machine automation and the power of not only software, but artificial intelligence, for higher product quality and predictability.
Which brings us to today. Manufacturing is crippled by these pain points, but ill equipped to solve them, for the same two fundamental reasons I encountered 16 years ago: manufacturing companies certainly understand the value of automation but have not historically utilized software to implement automation. Manufacturing companies are, after all, not software companies. And until now, the lack of demand for software-defined manufacturing has led to few external companies that are actually positioned to deliver holistic software solutions that act as both immediate relief as well as business accelerators to manufacturing companies. Thus, we are at a critical inflection point where manufacturing as an industry is not only ripe for disruption, it is virtually begging to be disrupted in order to save itself.
So what does disruption look like in this space? In fact, what is software-defined manufacturing, really? Is it artificially intelligent robots? Is it data platforms with state of the art business intelligence? Is it cloud-based platforms, remote deployment and troubleshooting, machine-learning driven analytics? These things definitely comprise the concept, but Software-Defined Manufacturing is really just the beginning.
Software-Defined Manufacturing will happen simply because it has to – it is the immediate cure to manufacturing’s already existing pain points. The true disruption in manufacturing will involve not disrupting manufacturing per se, but actually disrupting the very idea of software-defined manufacturing itself. And it will happen by industrializing all the technologies that make up software-defined manufacturing, deploying them as a scalable platform and delivering them to customers in a service-based model that grows and modulates with the needs of the business. True disruption is extending software-defined manufacturing to a hardware/software ecosystem, with minimal to nonexistent single points of failure, where multiple components work harmoniously with the single purpose of enabling fast, high quality delivery at lower cost; where data is assembled, collected and turned into predictive analytics, and artificial intelligence is effectively used to solve repetitive human tasks.
When will this happen? At Bright Machines, the call to innovation has been answered, and the transformation in manufacturing has already begun. For us, software-defined manufacturing is just the beginning, the building blocks of delivering an ecosystem of products that will not only disrupt but redefine an entire industry. It’s an extraordinary challenge and truly a generational opportunity. And it’s Day One of our own journey to change the world.