Supply Chain Challenge TROY

Supply Chain Challenge • Understand the implications of the transition to lead-free on the supply chain

• Understand how the transition affects my product portfolio / business model

• Define actions for the transition to RoHS compliance

TROY

1

Troy members • ASML Netherlands • Mat-Tech • Neways • Nyquist Industrial Control • Philips Medical Systems

TROY

2

TROY Awareness Assessment Model

TROY

3

TCO approach • Take a long-term perspective (product life-cycle) and include elements other than initial purchase price

• Consider the impact of other business functions on the valuation of a specific purchase

• Understand and Measure the cost impact of all activities associated with a purchase.

Source: Ferrin and Plank (2002)

TROY

4

TCO in practice 5

Cost drivers in the Product Life Cycle

MARKETING MARKETING&&SALES SALES

1 Supply Chain

CH TE

N

O OL

2

GY

LO

ST GI

S IC

ECM

Multiple tier supplier

End -user OEM

R SE

CE VI

&

P RE

R AI

4

O PR

CT U D

TROY

C

TS S O

3 5

Product life cycle phases

NPI

Time

EOP

EOS

Introduction

Mature

Service / Phase-out

Lead-free

Mix

Leaded

TROY

6

1

Technology

5


1 C TE

SE

I V R

CE

&

O HN

RE

4

L

I PA

2

Y OG L

I G O

S

R

PR

U D O

TROY

CT

C

T S O

C TI

S

S

3 7

Lead-free Pb

Pb

Source: Texas Instruments

TROY

8

“ Back to first base ” •

A reliable drop-in replacement for lead has not yet been found

•

Most of the experiments were predominantly in the high volume field

•

Not yet a proven technology (for long term reliability)

•

All current reliability models are void

•

No design rules – (No IPC-standards) (+/-)

TROY

9

IPC / JEDEC lead free

North America Conference

•

NO knowledge of long-term reliability

•

Wider failure distribution than Sn/Pb

•

Construct Design for Reliability (DFR) procedures based on the ‘physics of failure’

•

The survivability of most components during lead-free soldering has not been established

•

Lead-free joint is matt - more (re)work with handsoldering and inspection

•

Soldering temperature (wave and reflow) will have to be substantially higher, and / or processing time longer.

TROY

10

Product characteristics • Operating conditions – – – –

Heat Vibration Atmosphere Moisture sensitivity

L E R

I B IA

L

Y T I

• Lifetime - aging • Risk of critical failures (medical, communications, defense)

TROY

11

Potential design difficulties • • • • • • • •

Special and optical components Asian components (Bismuth) PCA density Large variety of small and large components Bad heat-distribution (tracks) BGA on large pca’s Hand soldered components Metallisation

TROY

12

Lead-free issues Process related issues – Supplier responsibility

DFM

Reliability related issues – Joint responsibility

DFR TROY

13

Learning curve

(Design and Production)

Lead-free

Soldering knowledge level

Leaded

? 1950

2000

TROY

2006

Time

14

5


Reflection Technology • Reliability

1 CH TE

RV SE

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 IC IST G LO

S

TS OS C T UC

3

• Design / layout • BOM • Capacity • Planning

TROY

15

1

Logistics

5


1 C TE

SE

I V R

CE

&

O HN

RE

4

L

I PA

2

Y OG L

I G O

S

R

PR

U D O

TROY

CT

C

T S O

C TI

S

S

3 16

Component availability Lead Lead-free t QTY & DIV

t EOL lead or function

JUL04

JAN05

JUL05

JAN06

TIME

TROY

17

Component availability • • • • • •

Most lead-free components will become available before July 2005, but some parts (much) later. Available does not mean “mass production” RoHS > Lead-free There will be a (long) phase-in/phase-out period Some types of components will become EOL Risk of obsolete stocks will increase

How much longer after the component’s End Of Production date will the leaded components be available?

TROY

18

What is the transition moment?

EOL

TROY

19

Inventory management • Lead-free • Leaded • End Of Life management : – – – –

Assigning components Degeneration Secured storage Shelf space

– – – –

Cycle counting Climate control Insurance Time on stock

TROY

20

Product reliability vs. inventory • No historical data • Change of inventory levels as a result of decreased PCBA reliability • Wider failure distribution than Sn/Pb

TROY

21

Quality control •

Storage conditions (MSL)

•

Strict separation of leaded and lead-free product / component flows

•

New quality standard – certification

•

Recognisability leaded vs. lead-free

•

Traceability - prove your product is really RoHS compliant

•

Training personnel / skills

TROY

22

5


Reflection logistics • Component availability

1 CH TE

RV SE

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 IC IST G LO

S

TS OS C T UC

3

• Stock levels • Administration

TROY

23

1

Product Costs

5


1 C TE

SE

I V R

CE

&

O HN

RE

4

L

I PA

2

Y OG L

I G O

S

R

PR

U D O

TROY

CT

C

T S O

C TI

S

S

3 24

Manufacturing • • • • • •

SAC (Tin Silver Copper) solder alloy Components price development PCB price development Throughput time - temperature profile Energy consumption First pass yield

• • •

Inspection and manual soldering Testing Contamination of lead-free solder bath

TROY

25

Quality & Reliability •

There is no drop-in solution yet

•

No-one will guarantee the solder joint for industrial applications yet

•

Total reset of the existing standards (proven technology)

TROY

26

5


Reflection product costs • Manufacturing costs

1 CH TE

RV SE

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 IC IST G LO

S

TS OS C T UC

3

• Through put time • Reliability

TROY

27

1

Service & Repair

5


1 C TE

SE

I V R

CE

&

O HN

RE

4

L

I PA

2

Y OG L

I G O

S

R

PR

U D O

TROY

CT

C

T S O

C TI

S

S

3 28

Service level • Service depends on reliability • Spare parts philosophy: – PCBA or component level – Leaded or lead-free

• Scenario’s – Servicing completely lead-free – Servicing lead-free on leaded products – Servicing completely leaded

• Aim for backwards compatibility (FFF)

TROY

29

Service demand •

Reliability issues

•

More safety stock – Changing safety levels – Additional service warehouses

•

Field call rates (mean time between failure)

•

Forecast service demand in case of Last Time Buy or Last Time Production

TROY

30

5


Reflection Service & Repair • Reliability

1 CH TE

RV SE

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 IC IST G LO

S

TS OS C T UC

3

• Stock levels • Spare parts philosophy

TROY

31

1

Marketing & Sales

5


1 C TE

SE

I V R

CE

&

O HN

RE

4

L

I PA

2

Y OG L

I G O

S

R

PR

U D O

TROY

CT

C

T S O

C TI

S

S

3 32

5


5

Marketing & Sales Topics

1 CH TE

RV SE

•

Green image vs. Reliability

•

Market’s view on reliability

•

Early adapter or late follower

•

Opportunity lover or a risk avoider

•

Sales regions

TROY

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 ST GI LO

IC

S

TS OS C T UC

3

33

Impact of reliability • • • • • •

Increased risk - decreased warranty Liability issues Loss of image Low margins Decreased turnover Loss of market share

Be an early adapter or a late follower?

TROY

34

5


Reflection Marketing & Sales • Image

1 CH TE

RV SE

IC

E&

GY LO O N

I PA RE

4

R

OD PR

2 IC IST G LO

S

TS OS C T UC

3

• Positioning • Liability • Sustainability

TROY

35

5 MARKETING MARKETING&&SALES SALES • Image • Postioning • Liability • Sustainability

• Design / layout • BOM • Capacity • Planning

1

Y G O L NO H C TE

CE I V R SE

• Reliability • Stock levels • Spare parts philosophy

&

IR A P RE

4

2

CS I ST • Component availability I G • Stock levels LO • Administration TS S CO

T C U D O PR 3

TROY

• Manufacturing costs • Through put time • Reliability

36

TECHNOLOGIE De Route naar

Betrouwbare Elektronica

TROY

37

LOGISTIEK

TIJDIG PLANNEN

TROY

38

PRODUCTIEKOSTEN

LOODVRIJE ELEKTRONICA KOST MEER

TROY

39

SERVICE SERVICE EN REPARATIE

VOORSPELBAARHEID ?

TROY

40

MARKETING EN VERKOOP

BETROUWBAARHEID ?

TROY

41

Nyquist Industrial Control

Omgaan! En Hoe!? Reitze de Graaf Supply Chain Manager Nyquist Industrial Control

Electric Drives and Controls

2005-11-08; BRC SC / Einkauf

© Alle Rechte bei Bosch Rexroth AG, auch für den Fall von Schutzrechtsanmeldungen. Jede Verfügungsbefugnis, wie Kopier- und Weitergaberecht, bei uns.

1-1

Nyquist Industrial Control

§ Onderdeel van Bosch Rexroth per 31 oktober 2005 § § § §

Motion Control Systemen voor Semiconductor en medical equipment OEM machinebuilders Azië / Noord-Amerika / Europa

§ B-2-B § Lange product levens cyclus § Betrouwbaarheid & stabiliteit product




1-2

Productlijnen versus ROHS

§ Producten zelf = categorie 9, meet- en controle-instrumenten § Klanten = OEM ; grote niet-verplaatsbare industriële installaties (uitzondering op categorie 6)

§ Geen wettelijke must vóór 1-7-2006 ROHS compliant te zijn




1-3

Productlijnen

NYCe3000 P8 plc NYCe1200 Firepoint NYCe1000 VME PC20 plc

NYCe4000

End Of Life (leaded) Electric Drives and Controls

Maturity (leaded / ROHS compliant)

New Product Intro (ROHS compliant)



1-4

Beslissingsruimte?

§ Wetgeving EU / andere marktgebieden § Contracten met klanten § Marketing - imago § Beschikbaarheid componenten § Beschikbaarheid design en productie capaciteit § Stand van ROHS technologie § Bedrijfsdoelstellingen (Werkkapitaal, ROI, ITOS) § ……..




1-5

Beslissingsruimte?

§ Voorspelbaarheid van de §

behoefte # Varianten / KOOP

§ Stabiliteit product § Alternatief (FFF) § Rente Ruimte Risico

§ Opslagcondities § Prijs § Product § Componenten + Assemblage

§ (re)Design § Reparatie

§ Afzetgebieden

§ Veroudering

!Periode af te dekken? Electric Drives and Controls



1-6

TCO elementen

§ Tips: § Stel kentallen op per productgroep § Stoor je niet aan families § Deel producten in naar ROHS redesign klasse § Kijk naar orde-grootte, op de cent uitrekenen is schijnzekerheid § Gebruik penalties op ongewenste opties




1-7

TCO elementen

§ Tips: § Stel kentallen op per productgroep § Stoor je niet aan families § Deel producten in naar ROHS redesign klasse § Kijk naar orde-grootte, op de cent uitrekenen is schijnzekerheid § Gebruik penalties op ongewenste opties




1-8

Scenario Non-ROHS

§ Afdekken § componenten (productie, service) § assemblageproces (machinaal) § reparatieproces (“hand”)

§ Product EOL verklaren (opvolger aanwijzen) § Behoefte reservedelen / reparaties bepalen § Laatste productie vaststellen § Bestrijden veroudering / opslag geconditioneerd § (Eind)producten op voorraad nemen

Er zal uiteindelijk toch omgegaan moeten worden… Electric Drives and Controls



1-9

Scenario ROHS compliant

§ ROHS productdesign plannen § ROHS componenten kiezen § ROHS processen valideren § ROHS product vrijgeven § ROHS productie up and running




1-10

Scenario‘s Mix

Mixen = Tijd Kopen Mixen = Risico Verlagen § Van zwaarste non-ROHS functionaliteit één FFF omvattende ROHS §

variant maken Overschotten afzetten naar markten waar dat mag, en/of als spares

§ Koop (tijdelijk) een (brandlabeled) ROHS compliant product in § …. Electric Drives and Controls



1-11

Bosch Rexroth SC - aanpak (1)

§ PC20, VME, NYCe1000 zijn al EOL § NYCe1200 en P8 PLC End-of-Life maken § NYCe3000, Firepoint stimuleren over te gaan naar nieuwe NYCe4000

§ NYCe4000 in 2007 ROHS compliant productie




1-12

Bosch Rexroth SC - aanpak (2)

§ EOL brief mid september bij klanten § In nieuwsbrief herfst 2005 aandacht voor ROHS, focus = betrouwbaarheid

§ PUSH de NYCe4000




1-13

Besluiten

§ Kritische leaded componenten ingekocht (opslagcondities!) § Spares voor EOL op contract op stock § Redesigns naar ROHS in 2006 gebudgetteerd § Half 2006 besluiten welke producten van NYCe3000 reeks ook ROHS compliant worden




1-14

En Toch...

§ Product met EOL status sinds 2002 § Al meerdere malen “voor het laatst geproduceerd” § Op klantverzoek omzetten naar ROHS compliant versie, te leveren vanaf 1 juni 2006

§ Investering wordt gedragen door de klant

§ Marketing = driving force




1-15

Mijn boodschap:

§ Haal harde informatie bij uw klanten § Heeft u ruimte, probeer dan tijd te winnen § Zoek gemixte oplossingen, gebruik logistieke naast redesign oplossingen

§ Kies, communiceer, en handel

§ Kom in Actie!




1-16

Bedankt voor uw aandacht Electric Drives and Controls



1-17

Supply Chain Challenge TROY

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