About Mike

Mike Buetow is president of the Printed Circuit Engineering Association (pcea.net). He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow

Laminate Libraries?

Posted on June 26, 2012 by Mike

I was chatting today with Manny Marcano, the relentless force behind EMA Design Automation. He mentioned the company’s webinar tomorrow on library creation and management has several hundred designers registered.

“It is amazing to me that library creation and management is still a big challenge for CAD guys,” he noted. Given the advancements in software, he should be right, but the new parts keep coming even faster.

It did get me thinking, however: when will we see CAD tools begin to incorporate laminate data in the way they currently have the parts libraries? There are so many flavors of laminate these days, it’s nearly impossible to keep up. Yet the material choice plays a huge role in the manufacturability and performance of the finished product.

Thoughts?

Supply Chain Shakeup is Here at Last

Posted on June 11, 2012 by Mike

We’ve often wondered whether the roughly 25 years of serious electronics outsourcing has been deleterious for OEMs. Certainly OEMs that have come to rely heavily on contract manufacturers now lack much of the know-how that comes with in-house product build. That’s a subtle change, and one that’s hard to measure directly.

But I’m getting at something more concrete. Indeed, is it possible the broad-based philosophy to “outsource everything” has not only led to a loss of manufacturing development but also actually cost more than had OEMs maintained their internal production capabilities?

Some OEMs are finding out. The ODM model, not so long ago the envy of the contract manufacturing world because of its higher margins, is being torn apart. Customers are pushing for additional services and in the process driving up internal ODM costs.

The flooding in Thailand, the earthquake and subsequent tsunami in Japan, the unrest in the Tunisia – all these unpredictable events are forcing OEMs to look ever more closely at their ever-more-fragile supply chains. The decimation of the disk drive market in Thailand last fall really woke everyone up.

Now, industry leading mid-market OEMs have already begun restructuring their supply chains, disengaging and reworking their manufacturing agreements with ODMs, and reconsidering regionalization builds (aka reshoring). This is a multi-step process that will take several years, says Charlie Barnhart, but it also is “a very definitive trend.”

Barnhart made his comments the Outsourcing Navigator Council meeting May 30 at Teradyne in suburban Boston. (I was fortunate to be invited to moderate a panel on EMS after-market service trends; more on that later.) Barnhart is a bit of an industry gadfly, but he’s provocative and willing to buck the conventional wisdom when his data (and his gut) tell him so. If he’s right, expect upheaval, and expect it soon.

We can’t say we haven’t been expecting this.

After the Product Build

Posted on May 30, 2012 by Mike

Some very interesting developments in after-market services these days.

One major player, Celestica, has been expanding its AMS for the past several years as it seeks higher margins. Higher-value services now represent roughly 5% of the company’s revenue, according to Deutsche Bank. (AMS in this case consists of everything from logistics to in and out of warranty repair.)

Skip Boothby, Celestica’s director of Global Services (which includes AMS), says they see two primary trends:

1. Postponement regional configure to order: Celestica sees order fill rates falling because the decision (forecast) is made too early in the product life cycle. The response is that the product is built to the lowest common denominator and shipped to a lower cost region where it is then built to order.

2. Direct order fulfillment: Here, Celestica sees product being built in a low cost region and shipped direct to the customer within a couple days. An example is Apple building PCs at Foxconn in China. The opportunity for the EMS is to add the transportation element which, if it can master, adds a new profit center.

Boothby says Celestica is trying to execute a “control tower” strategy whereby they oversee everything from rework/repair to logistics/reverse logistics to warranty and field service. He said their transportation management service is “very profitable” (but didn’t put a number on it).

They currently sell these services a la carte. They have considered developing a licensing arrangement or other pricing models. They want to make it affordable for startups and companies where their client relationship is in the “low millions.” This is just starting to be rolled out. The average AMS account is $7 million, all of which is value-added (labor, not materials). Most customers are not existing PCBA manufacturing customers. Most AMS work is one-off.

Boothby’s comments came during the Outsourcing Navigator Council meeting, produced by Charlie Barnhart Associates and hosted at Teradyne. If you’ve never attended one of these meetings (they host one or two a year), they really are very valuable, and draw a good cross-section of supply chain executives. I’ll have more on this shortly.

Missing CAD

Posted on May 25, 2012 by Mike

Am I the only one concerned that on the recent analysts call with Mentor Graphics, not once were the company’s printed circuit board design tools mentioned?

The conversation, both from the company and the analysts, revolved solely around the company’s semiconductor design and emulation product lines.

If analysts are focused only on the semi side, then that’s how they will value the company. And the company will orient its internal efforts to align with the analysts.

This bears watching.

A ‘Hall’ of a Man

Posted on May 24, 2012 by Mike

We are thrilled to announce the launch (opening?) of the PCD&F Hall of Fame for PCB Design.

Actually, that’s a misstatement: It’s not called the PCD&F Hall of Fame. It’s the Dieter Bergman Hall of Fame. We are naming it for the longtime technical director of the IPC, and perhaps the leading advocate over the 40 years for the printed circuit board designer. Dieter has led the efforts for a number of design standards, including those for bare board layout, land patterns, data transfer and other critical aspects. More important, he was a vital cog in getting designers the recognition they deserve within their companies, helping to launch and promote the Designer Certification program, and teaching hundreds of workshops around the world.

I recall — it was around 1995 — working the IPC booth at the PCB Design West trade show. I came to man the booth one morning, and noticed some of the standards we left in it the night before were missing. I groused about the sticky fingers that apparently were attending the show. Dieter shook his head. “These designers,” he said, “they are just so thirsty for knowledge.” It didn’t matter if they walked off with some materials without paying; they did so because they wanted to be better at their jobs, and that made it OK.

Dieter’s unwavering loyalty and respect for the profession really opened my eyes. He was right then, and he’s still right now.

CAD tools make design easier and faster, but good design is not button-pushing. Rather, it’s understanding the tradeoffs of materials properties and electrical continuity and speed and manufacturability, and getting the right mix in the most expeditious timeframe possible. A former designer himself, Dieter understood this and has always been willing to speak up to help. It’s an honor to name the Hall after him.

Malaysia v. China

Posted on May 22, 2012 by Mike

Don’t laugh: When it comes to manufacturing competitiveness, the divide between the two nations is not so wide.

Flextronics, Celestica, Plexus, Beyonics and other major EMS companies are heavily invested in Malaysia. Plexus’ largest factories are there, and the company has expanded of late. Flextronics has 11 factories alone in the country. Four of Beyonics’ six plants are there.

As Flextronics’ VP of supply chain Mark Shandley explains in this article today, customers like Malaysia for its lower and less complicated tax structure, the superior IP protection, and competitive labor rates (although Malaysia, like China, is experiencing large hikes). Sharp differences in attrition are noted as well.

Future Shock in Modern Times

Posted on May 16, 2012 by Mike

By the time we round the corner into 2013, I will enter my 20^thyear in the PCB and electronics industry. I find myself often gravitating to others like me (50 years and older) to swap nostalgic war stories of days gone by. My journey in the industry, unlike my cronies, is marked by a 12-year hiatus that began around 1998 when I made the decision to stay home and raise my two young daughters full time. I resurfaced in 2010, with nearly grown kids, totally clueless about the state of an industry that I had all but forgotten.

For this reason, I possess a rather unique perspective, not unlike that of Rip Van Winkle waking from a prolonged slumber. Some things have changed dramatically, while other things seem unaltered. The greatest “future shock” that I experienced upon reentry was the fact that people had all but ceased to speak to each other or meet face to face (apart from coworkers) preferring rather the more efficient use of emails and texts. The sophistication of voice mail systems had evolved so radically that they secured decision makers into cozy office-bunkers. Phones rang far less, and real-live receptionists had nearly gone extinct! I quickly adapted to the brave new world and became a speed-typing, computer-dependent, Linked In guru. I am now fully integrated into the modern day business sensibilities of 2012. Phew!

Last week Transline was exhibiting at the Del Mar Electronics and Design show, and I was asked to do a one-hour talk. I decided my topic would be How to Fall in Love with Your PCB supplier. I meant it to be a tongue-in-cheek comparison to John Gray’s relational model of Mars and Venus, and how suppliers and customer relationships contain a similar tension. I sought to identify the areas of disparity and offer ways to reconcile these differences—noting that much of these are a result of poor communication and not talking to each other! For research, I went on Linked In and asked people what they loved and hated about working with PCB suppliers. I received some excellent feedback and blended that with my near 20 years of experience, having worn my share of hats and gaining multiple perspectives—including my Rip Van Winkle viewpoint.
I would like to share some of the input I received along with the input of the dozen or so folks that showed up for my talk. I hope you will find it as fascinating as I did! I will also chime in with my own opinions for what attributes add up to a really effective “lovable” PCB supplier. I will also attach a paper I wrote with the culmination my findings. Until next time … Live long and prosper!

— Judy

A Short History of PCB Design

Posted on May 9, 2012 by Mike

The death of PADS Software founder Gene Marsh last Friday has prompted me to — at long last — update the PCB design industry timeline on the PCD&F website.

From the 1800s, when photosensitive coatings were perfected, enabling use of photoengraving and setting the stage for future copper etching processes, to the present day, we’ve tried to fill in all the blanks, from the start of companies like Scicards and Racal, who were the pathfinders, to the ingenuity of John Cooper and Dave Chyan, the autorouter specialists, to the rapid merger and acquisition activity that turned almost everyone into a one-time colleague or coworker.

Are there omissions or — gasp! — errors? Most certainly. But that’s where you come in. Please feel free to email me at [email protected] about anything you see that’s amiss. We want this to be complete, and we want it to be accurate.

DfM Chat

Posted on May 8, 2012 by Mike

Who better than a fabricator to explain design for fabrication?

Join Sunstone Circuits CAD/EDA manager Nolan Johnson this Thursday for a one-hour chat on DfM. Trained as a software engineer, Johnson wrote applications software for Mentor Graphics before transitioning into technical marketing roles. He managed Mentor’s OEM verification development projects, including Dracula and CheckMate. Johnson then concentrated on operating technical training centers for semiconductor manufacturing and telecom analysis equipment at both Electro Scientific Industries and Tektronix.

At Sunstone Circuits, Johnson has assisted in the many successful initiatives of its core product line, including an integral role in the development of the PCB123 design software, including enhancing the software’s schematic functionality and Live BOM (Bill of Materials).

Nolan’s chat takes place May 10, 2 to 3 pm Eastern time at PCB Chat. There is no charge to participate.

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