Pragmatic Hardware Outsourcing

TMC Pizzasession:
Outsourcing, everybody does it,
but how to do it pragmatic
Designing the Cocoon Box outside the Box

Jelle Haandrikman
23rd February 2011

www.tmc.nl Iedereen ondernemend

About me

> Jelle Haandrikman
> jhaand


What could possibly go wrong with
outsourcing?


This could go wrong


The MD Eleva X-ray system from Philips

MD Eleva
> Project
> Product
> Process
> Problems
> Conclusions


MD Eleva: Basic Layout


Basic Architecture

20 m
Stand Power
30 m
Geometry PC
X-ray tube Geo Drive
Detector X-ray gen
IP
Monitors
Ceiling 30 m


Project: DAM replacement


Product: Cocoon Box (external)


Product: Cocoon box (internal)


Traditional outsourcing

White box and black box mostly don't work as intended.
White-box: Outsource partner has invested in toolchain but no design transfer.
Black-box: The local designer has a copy of design docs in his drawer.


Process: Outsourcing / Co-creation
in a nutshell
> Know what you want:
- Which level of outsourcing → What kind of deliverable, scope of outsourcing.
- High Level Design → High Level Specification.
- Review → Add quality to the specification.
- Rapid Prototyping → Validate the specification, get something to wrap your
hands around.
> Outsource:
- Ask quotation → Takes time, but is give a good indication of rest of the
development cycle.
- Agree on deliverables → It ain't over t'ill it's over. No last moment changes, or
use change control.
- Collaborate → Although you're far apart, Communication remains crucial.
> Finish:
- Validate → Did we get what we asked for. Does everything work?
- Rework → Get the final nuts and volts right.
- Archiving → We need to get everything back after 10 years of production.
- Order → After a prototype, 1st of a kind and limited delivery. It's time for regular
delivery. (RfVLD)

Process: What kind of outsourcing?

> What level of outsouring.
- Designed and engineered by PH, Built by Supplier
- Designed by PH, Engineered and Built by Supplier
- MOTS (Modified Of The Shelf)
- COTS (Commercial Of The Shelf)

> Who are you going to outsource to.
- Known partner (ask Manufacturing)
- Known supplier (ask Purchasing)
- Technology expert (ask Collegue)
- Company agreement (The project leader will tell you)


Process: High level design

> Normal design process applies (eliciting requirements, visualising them, etc.)
> You use your own design process
> The supplier can use their own design process and documentation.

> The information with which you communicate is a lot more strict:
- Both parties must be able to write, read, process and archive it.
> The requirement specification:
- Keep it short ( =< 70 pages)
- To the point and on a need to know basis.
- Use as much references as possible. (Prevents requirement updates)
- More info: Course on requirements engineering or a good book on the subject.


Know what's In-House or on the Market

> Re-use known parts: (cocoon: 24V power supply, Ethernet switch)
> Use the speciality of your possiblee partner (Kontron: Embedded PC's)
> Regular quality, cost, EMC, internal standards,
Obsolecence and Safety issues do apply. As an OEM, you remain responsible.


Get it all in one specification

> Specifications should be set up the same as for a regular in house development.
> But add references to the “standard” In-house items to prevent making the
specification too large or unmaintainable.
> Also take the follow up into account:
- Packaging
- Handling
- Testing (EMC, Safety, lacquer, bump and vibration)
- Service items
- Everything else during the life time of the project the outsource partner has to
handle.
> For a high level specification: Bring all the necessary information, but don't take it
too far, to prevent an overlap, double work or limit creativity.
> Engineering: The outsource partner will create engineering documentation.
> Review the specification.


Peer Review the specification

> Peer reviews give the biggest boost in quality in early stages. Get most of the
defects out in an early phase.
> CMMi standard peer review inspection is very effective, but also very heavy and
slow. A formal inspection can take up to 2 weeks.
> Involve everyone:
- Other engineers
- Project leader (Moderator)
- Safety
- Manufacturing
- Service
- Possible manufacturers
> Rework the specification (takes time)
> Submit specification to archive after verification


Rapid Prototyping

> Get a feel for the product your designing, concerning manufacturbility, servicability.
> Do some testing (EMC, Power consumption, thermal behaviour)
> Let other disciplines see what your working on. (Software, System engineering)
> Preliminary test of your specification
> Tape, tie-wraps, nuts and bolts are your friends
> Outsource to the Workshop / Modelshop on-site.

“Plan to throw one away. You will anyhow.”
F. Brooks (The Mythical Man-Month)

Supplier management

Specification

Quotation
Deliverables

Customer Philips Supplier(s)


Collaboration

6 weeks

< 24h
Planning


Finishing Design and Engineering

Deployment
Testing

Solve CR's and PR's Archive


Outsourcing PCB's

BOM

Reqs


Outsourcing Mechanics


Outsourcing Cables


Q: When not to outsource?

A: When it's not worth the trouble.


Conclusions

Outsourcing saves effort and makes things possible you
normally couldn't realize internally within your
organization.
> But:
- It still takes effort
- You have to explain everything to everybody.
> So:
- It will costs time and a lot of money


And Finally....

Co-creation
How to take
Outsourcing Obsolecense
even further?? handled by
supplier?

On-site warehouse
upgrade
Train outsource partners???


Pragmatic Hardware Outsourcing

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