Category Archives: Hot Wires

Mike Buetow’s thoughts on the industry

No More Cookson

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If you read this announcement about Cookson splitting in two the first question must be, what will this mean for the organization?

My take is, not much. Here’s why:

1. The company will remain public, and the shareholders are the same. (Under the proposal, Cookson shareholders get one share in each of the two new companies.) Had this been an MBO or private equity group, I would expect slash and burn. But the transition as planned should bring much-desired stability to the new organization.
2. The upper management isn’t changing. Had Cookson Performance Materials group CEO Steve Corbett left, I might think differently. But Corbett, who joined Cookson in 1990 and has run Enthone since 2002 and both companies since 2004, is highly responsible for the existing management and operational structure. He knows what he is doing, knows the markets and understands the brands.
3. The debt is manageable. Alent (the new name of the former Cookson Performance Materials) will “get” about one-third of Cookson’s £451 million ($727 million) worth of debt. Given the new company’s sales of £418 million ($675 million) and profitability, it should be able to swallow that meatball.
4. The brands are intact. The Alpha Metals and Enthone brands are well-recognized and respected worldwide. Indeed, after spending some time trying to beef up the somewhat unwieldy Cookson Performance Materials name, the company reversed gears and has been working over the past year to rebuild those individual brand names. Perhaps this was in anticipation of the demerger, but either way, the strategy was well-timed.

In fact, the only casualty I see in all this is the Cookson name, which is, believe it or not, more than 300 years old. One wonders whether the Cookson name was seen as a negative by either of the spinoff companies.

And so goes Cookson. From its founding by Isaac Cookson in 1704 as a collection of metal and glass businesses to its aggregation of a herd of electronics assembly equipment and materials companies in the 1980s and 1990s to the respective divestitures of Speedline, then Polyclad and its Precious Metals business, Cookson has always been in a transition of some sort. It’s hard to believe, though, that this is its final move.

‘Board Talk’

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Today we launched Board Talk, the bulletin board for the Printed Circuit Board industry, a service brought to you by UP Media Group, Printed Circuit Design & Fab and CIRCUITS ASSEMBLY magazines.

The bulletin board — the URL is www.theprintedcircuitboard.com — is open to anyone in the industry. We’ve set up categories for PCB design, fabrication, assembly, market data, trade shows and press releases. Members are invited to create their own topics (threads) for discussing anything industry related that they have on their mind.

We also are happy to announce an agreement with the IPC Designers Council to offer Board Talk as a communications center for news, announcements and meetings, plus information on the Designers Certification program.

Please check it out!

Why France Publishers are Putting the Screws to Google

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More than any other single factor, Google changed the model for publishing, and now some countries are fighting back.

France is threatening legislation that would force Google to pay publishers for indexing their stories on Google News. In response, Google said it would stop indexing stories from French publishers if such legislation is passed.

This is the latest in a string of volleys against the world’s largest search engine, which has long sought ways to leverage its advantage in one area (search) to also dominate another (advertising). In Brazil, for example, the nation’s publishers have decided to opt out of Google’s index, rationalizing that the dubious promise of higher traffic wasn’t worth the loss of a captive market.

Most anti-trust courts have found such behavior illegal; Google thus far has managed to skirt any real trouble, thanks in part to the presence of Yahoo and Microsoft’s Bing. But Google aggregates so much content, and circumvents so many paywalls, it’s difficult to prove that there’s fair value to a given participant.

This is something to watch as most publishers, including UP Media, have been batted around like a mouse in a cat’s clutches Google, and few of us will feel much empathy if the search giant were to be forced to play by the rules.

 

 

US Manufacturing Needs a Brand Makeover

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When I was growing up, it seemed like everyone believed that United States manufacturers made the greatest products in the world. From our home appliances to our cars, we all chose Made in America products for their quality and their value. No other country put as much pride, innovation, and workmanship into their design, and looking elsewhere wasn’t even an option.

US manufacturing was a flagship of our economy, and nothing could knock it from its pedestal — or so we thought.

Of course, the sentiment has changed since then as the economy has grown more global, and countries like China compete on price. But the pendulum is swinging back — or should I say forward — as Made in America quality once again becomes a status symbol for consumers and a competitive advantage for manufacturers here at home.

My company recently conducted its annual Industry Market Barometer survey of U.S. manufacturers on the growth and outlook of the industrial sector as well as strategies companies are employing to get there. The findings confirm this transformation.

In the end, we heard from more than 1,600 manufacturers, and nearly eight out of 10 of them indicated that they expect growth this year. By standing behind their Made in America quality, these manufacturers are even taking back business from the Chinese. They’re borrowing a page from the playbook of The Rodon Group of Hatfield, PA, an injection molder of small plastic parts.

A few years ago, when they sensed Chinese competitors gaining ground, Rodon launched an online “Cheaper than China” campaign to focus on their American manufacturing values. Within two years, their sales jumped more than 30%. These companies never lost sight of the glory of American manufacturing, and now the world is coming to share their point of view.

Our research shows that U.S. manufacturers are entering new markets, expanding into new regions, and increasing their exports. With their gears fully in motion, American companies are looking to hire more workers to meet new market demand. And that’s where this engine of economic growth suddenly starts to sputter.

Our research supports what we are all seeing every day: Despite an unemployment rate of close to 8%, manufacturing jobs are going unfilled. Nearly half of our respondents want to bring in line workers, skilled trade workers and engineers. But the people who are qualified for these jobs are either untrained or uninterested. This is a symptom of a larger problem. Despite the resurging interest in U.S. products, American manufacturing is in need of a brand makeover.

While Americans are proud of the quality of our products, many have a far different perception of manufacturing jobs. They see manufacturing as “dead,” lacking opportunities or challenges, and even as dirty or “undesirable” work. They’re blind to the reality that today’s manufacturing jobs blend design with technology and robotics, and many pay extremely well. With shop classes disappearing and families and educators pushing students of all abilities toward a bachelor’s degree, however, younger generations have no opportunity to be exposed to the rewards of a manufacturing career.

Respondents to our survey are vocal about this issue. They stress the importance of STEM (science, technology, engineering and mathematics) curricula, along with support for technical and vocational schools. One of them notes that we must “get the message out that manufacturing isn’t dead in the US; it has just gone high-tech.”

It’s gratifying to hear from individuals like Tracy Tenpenny, vice president of sales and marketing with Tailored Label Products (TLP) in Menomonee Falls, Wisconsin. Tracy advocated for TLP’s sponsorship of a program called Second Chance Partners, which helps high school students to gain manufacturing skills. Many of these students come from challenging backgrounds, and they are at risk of not finishing high school. Through Second Chance, they continue working toward their diplomas while beginning to learn a trade. TLP actually installed a classroom at their plant so that these students can continue their academics there for two hours a day. The rest of the time, they are working at TLP and other area manufacturers. TLP is not only introducing them to a new profession; the company has hired two of these students.

Rodon, too, has innovated to develop a solution. The company formed a consortium of about 50 local manufacturers. Together, these firms have approached two-year colleges and trade schools in their area, asking them to send graduates their way. Not only does this help Rodon and neighboring companies to grow; it’s a competitive advantage for the schools, who are able to demonstrate a return on their training. In addition, consortium members are presenting at middle schools and high schools to ignite students’ interest in manufacturing.

These are just two of many examples of manufacturers who are taking the initiative to help their industry make a comeback. Families, educators, associations, government, and businesses are all stepping up. We were gratified to endorse National Manufacturing Day, another wonderful example, with manufacturers opening their doors to students and their families, and associations offering insights and resources to aspiring and current manufacturers alike.

US manufacturers, after all, have a passion for their industry. Eight out of 10 of those we surveyed would choose their industries all over again, and they want to share their enthusiasm with the next generation. Great things are possible when bright, ambitious young people have the opportunity to apply skills and knowledge to real-world applications, and contribute meaningfully to the growth of a company, a sector – and ultimately the economic vitality of our nation. To engage this new generation, we must restore — and elevate — the US manufacturing brand.

Eileen Markowitz is president of Thomas Industrial Network.

SMTAI-IPC Midwest Pact a Long Time Coming

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John Mitchell is putting his money where his mouth is.

As the new IPC president, installed just this spring, had made clear in multiple conversations we’ve had, he takes adding value for customers seriously, and he looks for ways various associations can coalesce.

That vision became reality yesterday when Mitchell took to the dais at the SMTA International trade show to announce the two groups would colocate their respective fall shows starting in 2013.

Under terms of the agreement, which remains to be signed, IPC will hold its semiannual standards committee meetings at the SMTAI show in Ft. Worth, TX, next October. IPC will retain its IPC Midwest brand, but the decision effectively tables, for now at least, the Chicago area trade show IPC has sponsored for the past several years.

It’s a welcome change from the past decade, during which something of a Cold War formed between the two dominant North American industry electronics trade groups as each competed for the minds (and bodies) of assembly engineers.

While acknowledging that some wrinkles could still remain, most of the folks we spoke with in Orlando this week are supportive of the move. Many IPC committee members are also regular presenters at the much-lauded SMTAI technical conference, and this allows them to reduce their fall travel. Moreover, it will cut costs for some exhibitors that have tried to pull double duty in the past.

It says here SMTA, which has been burned by colocation arrangements in the past, deserves a mountain of credit for putting aside any bad feelings for the good of its members. And IPC, in particular Mitchell, should be lauded for recognizing that success is not a zero-sum game, and that win-win relationships are possible even among trade associations.

Living La Via Loca

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I got an email a few weeks back from one of our customers who is with a semiconductor manufacturer for whom we make evaluation boards.  He asked some good questions that I answered, of course, and I thought this information may be useful to others, too.  Here is what his email said:

Hi Judy, We received the boards today… and they look gorgeous!  And of course it leads to a question….. not a negative, not an “inquiry” style question….

One thing that caught my eye was how “flush” the board surfaces were.  I wasn’t able to identify a single via on the front or back surfaces of the board…. and (education time) I had an Apps Engr point out that I could see the via plugs by looking at the edge of the EVB.  So I want to understand more about the via fill process, and whether there are different options that influence cost and lead time.

I will share with you my brief answers, which are not overly technical. However, I will follow my comments with a link to a very good in-depth paper from Michael Carano of the Electronics Division of the OM Group on this subject. Unfortunately once you start talking about via filling and plugging it is a bit like opening a big can of worms!

First of all, a semantics lesson:  There are two methods of filling via holes—one is via “filling” and the other is via “plugging.” Via hole filling refers to the non-planer filling of plated through-holes. Via hole plugging refers to the planarization of blind and buried vias, as well as through holes. Via hole plugging pertains to HDI and microvia designs.

(In the case of the above customer they requested the through-hole vias to be plugged with conductive  ink that would facilitate a connection from the front to back sides).

Once the conductive ink has been applied to the holes, the conductive ink must be cured. After curing some of the cured material will protrude from the holes leaving a small bump or “nail-head.” At this point the board must be “brushed” to flatten this protruding bump, with micro precision, to remove the excess material without removing any material from within the via hole. The brushing process must not damage the knee of any unplugged holes. This requires the use of a very flat working surface and special brushes. In some cases there may need to be an additional final cure for hardness. (UV)

Getting back to our customer, we took all these steps to properly fill, cure and planarize the plugged vias. Afterwards, these boards went through final outer layer pattern plating, which further erased any evidence that the plugged vias were present.  This made it impossible for our customer to detect any sign of the plugged vias (unless they peered through the side of the board into the substrate where they could see the front to back plugs). I think they were a little worried we forget to plug them at first glance!

As far as how filling verses plugging vias influences cost and lead time—the HDI via filling does take some extra time and TLC and thus raises the cost, and may or may not affect the lead time. Usually you must allow for one full day to complete the via plugging process.  Obviously if you need a quick turn, the lead time would be affected. However, if the lead time was standard, it probably wouldn’t make much of a difference. It stands to reason that the quantity also comes into play in regards to time and cost.

Thank you, Bill for asking these questions—they were good ones! We appreciate your kind words and commitment to our partnership. We are thrilled you think our boards are “gorgeous!”

I would also like to thank Michael Carano for his expertise and outstanding paper on the subject of filling and plugging vias that can be found here: http://www.electrochemicals.com/viafill07.pdf

‘The Magic One’

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It was 50 years ago today when a then 33-year-old scientist at General Electric invented the first practical visible-spectrum light-emitting diode, a device that GE colleagues at the time called “the magic one” because its light, unlike infrared lasers, was visible to the human eye.

Dr. Nick Holonyak, Jr. could not have known then the door he was opening, but today LEDs are not only the foundation of a massive government-driven push to eliminate the popular (but higher energy consuming) incandescent, but also a potentially enormous market for the manufacturers of LED and driver printed circuit boards at the core of LEDs.

 

LEDs contain metal or graphite core bare boards, generally with lead-free solder paste. They are not easy to rework, on account of their heat-sinking core. The LED components are typically surface-mounted, although some versions have radial-leaded parts, explains Scott Mauldin of LEDnovation, an OEM of residential and industrial LED lighting.

Many PCB and EMS companies have an opportunity to play in this market today, thanks to one man’s bright idea 50 years ago. We owe Holonyak a big round of applause.

Image courtesy Scott Mauldin, LEDnovation

What Should HP Do?

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The news out of Palo Alto isn’t good.

Now, that won’t exactly come as a shock to most observers, as HP has been flat for some time. But CEO Meg Whitman yesterday acknowledged that the pain will intensify before the patient recovers, telling analysts that revenues would fall 11 to 13% over the next fiscal year.

In real dollars, that’s a drop of up to $16.5 billion, roughly the size of Jabil Circuit, or, the companies ranked No. 15 to 50 on the CIRCUITS ASSEMBLY Top 50.

Worse, Whitman said not to expect a turnaround before 2016.

Give Whitman credit for honesty, although keep in mind that, by setting the bar low, she raises the prospects for future knighthood should HP’s recovery come faster.

But what Whitman did not disclose is what, exactly, HP’s prescription for saving itself is. In all likelihood, that strategy will focus on paring of the company’s core product lines — servers, PCs and printer. Perhaps it will follow IBM’s lead and sell or spin off its PC unit, an idea that the company itself has floated in the past.

It says here, however, the company HP should be emulating is Apple. HP once was as respected as any business in the tech industry, admired for its stable and forward-thinking leadership, its commitment to research and development, and a manufacturer of the top rank. Today, that path is more remembrance than reality. The company has long since moved away from its manufacturing roots, outsourcing almost anything it could. (Foxconn has been a major beneficiary.) What HP, along with Dell and many of the other big PC makers, is learning the hard way is, you give away the family jewels at your own peril. By offloading its fixed assets — and that includes its people — HP also gave away its competitive advantage. It’s become a parody of itself, a business confined to imitation, not innovation. Sure, HP has to retool, but it should do so by going back to its roots, much like Apple did when Steve Jobs was welcomed back after 11 years wandering the desert.

“Invent” was a favorite marketing campaign of HP. The company should practice what it preaches, bring design and manufacturing back in-house, and strive to be the technology leader it once was. It can be done. But HP has to be committed to the task.

 

Implementing 5S Workplace Organization Methodology Programs in Manufacturing Facilities

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Many manufacturing facilities have opted to follow the path towards a “5S” workplace organizational and housekeeping methodology as part of continuous improvement or Lean manufacturing processes.

5S is a system to reduce waste and optimize productivity through maintaining an orderly workplace and using visual cues to achieve more consistent operational results. The term refers to five steps – sort, set in order, shine, standardize, and sustain – that are also sometimes known as the 5 pillars of a visual workplace. 5S programs are usually implemented by small teams working together to get materials closer to operations, right at workers’ fingertips and organized and labeled to facilitate operations with the smallest amount of wasted time and materials.

The 5S system is a good starting point for all improvement efforts aiming to drive out waste from the manufacturing process, and ultimately improve a company’s bottom line by improving products and services, and lowering costs. Many companies are seeking to make operations more efficient, and the concept is especially attractive to older manufacturing facilities looking to improve the bottom line by reducing their costs.

“A place for everything, and everything in its place” is the mantra of the 5S method.  The result is an improved manufacturing process and the lowest overall cost for goods produced.  Implementing the 5S method means cleaning up and organizing the workplace in its existing configuration. It is typically the first lean method that organizations implement. This lean method encourages workers to improve their working conditions and helps them to learn to reduce waste, unplanned downtime, and in-process inventory.
A typical 5S implementation would result in significant reductions in the square footage of space needed for existing operations. It also would result in the organization of tools and materials into labeled and color coded storage locations, as well as “kits” that contain just what is needed to perform a task.

The 5S methodology is a simple and universal approach that works in companies all over the world. It is essentially a support to such other manufacturing improvements as just-in-time (JIT) production, cellular manufacturing, total quality management (TQM), or Six Sigma initiatives, and is also a great contributor to making the workplace a better place to spend time.

Benefits to the company from using the 5S methodology include raising quality, lowering costs, promoting safety, building customer confidence, increasing factory uptime, and lowering repair costs.

Outsiders Taking Over

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Is the bloom off the rose in Vietnam?

The Vietnam News Service is reporting that with many businesses shifting from production to imports, Vietnam’s electronics industry is “standing on the verge of extinction.” More than 90% of the nation’s electronics exports are performed by foreign-based countries, the Viet Nam Electronics Business Association maintains. Meanwhile, major OEMs are closing domestic plants and switching to an import model to serve Vietnamese customers.

For those who see Vietnam as an alternative to China, this is not the wakeup call they expected.