Applying Collaborative Manufacturing - · PDF fileCollaboration is based on a notion of trust and confirmation of events through information ... objectives of building trust, ... This

Applying Collaborative Manufacturing

Case Study:

Milpitas, California

• 2Collaboration Synergies Inc.

360.833.8400 • www.cosyninc.com

Solectron Corporation, with annual revenue of $12 bil-lion, designs, manufacturers and repairs electronic products for brand name companies. You may not see a product with the Solectron name but if you own an electronic product from HP, Cisco, or Sony, it was probably built by Solectron. Solectron, originally formed in 1977, is the world s̓ leading electronic manufacturing services (EMS) provider, an industry that has grown very rapidly by making non-core manufactur-ing needs of other companies their core competency. The company is headquartered in Milpitas, California, with over 60,000 employees and operations in 23 countries serving over 300 customers. Some customers have multiple products and each customer/product is likely to have its own supply chain. In 2002 over 32 billion parts were used in their customer products. The term complexity does not seem adequate to describe the material management or product data management issues their business processes deal with.

Their 300 plus customers can contract for a range of

services that extends from providing contract assembly/manufacturing only to full process management that includes product design, design for manufacturability, supply chain de-velopment and management, prototype building and production ramp up, packaging, shipping, and post-manufacturing services including repair and call centers for end user service.

Manufacturing

CUSTOMER

Development and Design Post-Manufacturing

Development and Design

Building-block technologymodulesCertification processingCircuit test developmentComponent engineeringElectrical designEnclosure designEnvironmental stress testingFunctional design ad testManufacturability designMechanical designPrototype buildQualification testingReliability engineering and testSystems test developmentTestability design

Manufacturing

Backplane assemblyComponent subsystems andsystems assemblyDirect fulfillment and distributionElectromechanical assemblyEnclosure manufacturingand assemblyEngineering changemanagementMaterials and suppliermanagementNew product introductionPCBAPower, packaging and coolingRetail packagingSupply-chain designSystems testingVendor-managed inventorycontrol

Post-Manufacturing

Asset recoveryCustomer contact centerCRMEnd-of-life supportFailure analysisParts managementProduct repairRecyclingRefurbishmentRemanufacturingReturns processingReverse logisticsTroubleshooting supportUpgrades

IntroductionThis is the collaborative era: trust is in and adversarial

contingencies are out; real facts and shared information are the foundation for business decisions and business relationships; estimates or assumptions are regarded as guesses; working to-gether with shared and confirmed information is the norm, not the exception; and supply chains compete against supply chains.

Collaborative manufacturing concepts are based on devel-oping mutual win/win relationships where two or more partners move away from typical business adversarial positions to a mutually beneficial sharing model. There are many business issues driving this process, one of which is the shifting focus to core competencies that is occurring in many major industries. Others include global markets and supply networks that require closer business process ties to ensure product data information and best inventory management practices.

Collaborative manufacturing is not business as usual. Collaboration is based on a notion of trust and confirmation of events through information tools and openness. The effective deliverable is a competitive advantage built on a non-adver-sarial partnership that provides synergism among the partners and improved value for the end customer.

As a supplier of collaborative manufacturing services for over 300 companies Solectron must build and maintain a level of trust with its customers that goes far beyond contractual terms and conditions. In addition to providing manufacturing services there must be tools that allow their customers to participate in a process of confirmation. This study will outline a number of tools that have been put in place to build alignment and to provide performance confirmation between Solectron and their customer/supplier network. Although the alignment and information sys-tems are impressive, tools are nothing more than tools without the management commitment to the higher business relationship objectives of building trust, confirming performance, and deliver-ing a competitive advantage for their customer.

This is a case study of how collaborative manufacturing

concepts are being applied at Solectron Corporation, a mul-tinational provider of manufacturing services. This example provides excellent insight on virtual integration of businesses based on mutually committed assets, aligned interests, and joined business processes. A significant factor in this compa-ny s̓ success is a very strong collaborative culture that has been developed throughout the company. People seem to instinc-tively recognize the need for openness and visibility.



Product Lifecycle ManagementProduct lifecycle management describes collaborative

information systems used to manage the information and events associated with a product from concept through these steps: design, manufacturing, distribution and recycling. The capabilities of an effective system enable interaction between departments within a company or an extended enterprise of value chain partners.

Modern applications of product lifecycle management are built around a closed loop process that begins with customer requirements information management and concludes with col-lection and management of customer feedback information to start the process over again. Such systems support and connect global network nodes with proactive system tools that create, store, and manage product and process information across the extended enterprise. The use of the Internet provides a global reach that can include real-time interactive sessions with par-ticipants anywhere.

Product Lifecycle Management

Business ProcessCollaboration

ManufacturingProcessCollaboration

Supply ChainCollaboration

Quality, Test& Genealogy

ServiceRecord

CustomerComments

ProductImprovements

Warehouse& Logistics

Collaboration Environmentand Data Storage Delivery to

Customer

ProductConcept

Engineering

ProductDesign

Engineering

The actual production of design information is usually ac-complished through collecting and blending information from various engineering and design sources. The design competen-cies that might include customers, suppliers, marketing, manu-facturing, and outside designers can be brought together in a virtual conference room to review documents, make changes, and keep current through immediate access to previous session information. Information can be imported from various CAD sources and presented in 3D form providing easier knowledge sharing and a common view. A particularly important part of the process is the ability for manufacturing process and tooling design as well as the participation of other departments in the early phase of product development.

The second major category of product lifecycle management is the management and processing of the product design informa-tion through the production and delivery processes across the supply chain network to customer delivery and product disposal. This includes managing issues across the supply chain such as product change, engineering change orders, product and product information obsolescence, data integration and entry into and from the ERP system, product service and improvement, sourc-ing management and tracking, and material and information flow. Functionality can include collection and distribution of product process data generated during production including who, what, and when for each step in the production process, logistics, deliv-ery, maintenance history, and customer use. In some industries this can include details such the name of an operator at a supplier s̓ plant, laboratory test results for a specific lot, complete genealogy data for each item in the bill-of-material, and it could extend to maintenance information as provided by the end user or a third party service provider.

Product lifecycle information and data management are integral parts of the Solectron relationship with each customer that begins with the usual part drawing and process information on each product. Electronic links are established to provide seamless information transfer between a variety of different customer information sources and types to the appropriate user within Solectron. The system is setup to support either an information push or pull arrangement. In the pull envi-ronment the customer generates the product information and maintains the data hub at their end transferring information to the Solectron data vault when requested. In the push mode the customer generates the product information that is transferred to the Solectron data vault for storage and accessibility. To ease information transfer it is not uncommon for Solectron to place data input stations at the customer s̓ location.



AgileData VaultKey

Solectron

Electronic Data Transfer(FTP Push Model)

Notification

Acknowledgement

Data

TransferDesign MFG

Data Encryption

FIREW

ALL

FIREW

ALL

PKZIP

DataEncryption

& Compression

Key

CaddieProcess

Customer

PKUNZIP

ca-ftp2.ca.slr.com

README

CAD EXT

BOM/AVL

GERBER

FAB DWG

ASM DWG

SCHEM

SPECS

VECTORS

ECO

(encryption IsOptional)

Solectron product data & changes communicated to any set of plants

SupplierCollaboration

Fabmaster

AMLValidation

CAD/CAM Operations

Suppliers

AML Validation

PCA Mfg Files

PCA CAD Files

Solectron Agile Solution ArchitectureCustomer

Customer

Customer

Customer

SolectronSites

Collaborate onProduct Data

& Changes

Customers

Sites split BOM, add site mfg details & execute production(Plant BOM View)

Transmit Customer Packages via FTP or EMS Direct

Original CustomerPackages

Product Data Scrubbing

Agile ManagesProduct DNA

BaaN Service& RepairMES

Supplier Product Data• Fab, Stencil, Test Fixtures

Supply Chain Notification• Part Status Changes• Stop Ships / Purges

• Receive & Track Customer Packages

• Vault All Product Data, Docs, & Files

• Change Control• Check In/Out Files• Maintain History• Remote SLR Access• Remote Customer /

Supplier Access

ParseCustomer Data

Translate & PrepProduct Data

SolectronProduct Data

CustomerProduct Data

Adapter

Unvalidated AML

Validated AML

Agile eHub

Additionally, the system provides full customer and sup-plier access with appropriate security control. Openness, vis-ibility, and connectedness are everywhere.

It is important to note that multiple customer business sys-tems are linked to the Solectron ERP system to electronically receive product information and manage the material, produc-tion, and other business processes. Virtual linking of business processes is a significant tool for manufacturing collaboration.

The full data collaboration processes are outlined in the next illustration that shows how information is exchanged from customers into the Solectron information system through direct package transmission or through a data scrubbing process that receives customer product data that is then translated and pre-pared for Solectron use. The collaborative system allows the appropriate Solectron participants to

• Receive and track customer packages• Vault all product data, documents, and files• Provide file check in and out • Maintain a complete history of product actions taken

and who participated• Provide tools for change control and

a record of the changes • Manage engineering and manufac-

turing change order broadcast and management

• Gain transmission to and access for Solectron users from remote sites

• Perform approved manufacturer list validation

• Connect to CAD/CAM operations• Provide product data to the Baan

enterprise planning system (ERP)• Send manufacturing execution sys-

tem (MES) information to any set of global facilities

• Provide support for service and repair activities including supply chain management end of life processes, obsolete material disposition, and design reuse.



An important part of the Agile system is the ability to manage the product change process enabling users to create and approve changes on-line. Partners can collaborate in real time providing shorter change-cycle times and reducing time and cost in the manufacturing process. • Create, route, modify, and approve change requests

through a web browser.• Notify reviewers when a change is ready to be reviewed.• Keep partners involved in the process.• Manage and control the change with a workflow system.

The business value of theses systems is broader than the obvi-ous idea of a community of stakeholders sharing information. Solectron has built true business benefits derived through the use of this system.• Companies can develop and introduce new products faster.

With the full product design always up-to-date and avail-able for entities anyplace within the value chain, it is easier to make revisions to products or to authorize changes.

• There is special value during new product introduction and manufacturing ramp-up by maintaining a current da-

tabase of problems, workarounds, and changes with easy visibility. This allows quick information exchange between the manufacturing process and the design team with interac-tive responses from anywhere in the value chain.

• Product shortages and replacement options can be met with a quicker response due to predetermined part com-patibility and source information.

• Engineering change orders can be more effectively issued and tracked across the value chain.

• Part genealogy and production information can be aligned with product ion lots or serialized product-item numbers.

Product lifecycle management processes are aligned through the Solectron Agile eHub providing product informa-tion visibility and management beginning with product design and definition to change management and end of life support processes. Openness, visibility, and proactive business pro-cesses keep each user up to date with the ability to review event history and participate on-line.

ECO Approval

Product Record Update

ECO Approval

Product Record Update

Engineering Change Order (ECO)

Solectron Approves ECO

Engineering Change Request (ECR)

CustomerAgileeHub

CUSTOMER

Customer approvesinternally beforesubmitting toSolectron

SolectronAgileeHub

Update ERPUpdate ERP

ERP UpdatedChangeCut-in

ERP UpdatedChangeCut-in



Synchronized Supply Chain Collaboration

There are a number of programs in place to provide real-time collaboration with suppliers and customers. Imagine 300 customer companies each with their own ideas of how the sup-ply chain should be established and managed. Included in the supply chain are some vendors that are single source due to a number of factors including intellectual property ownership. In some relationships Solectron is responsible for the full supply chain management including product development and mate-rial specifications and in others the customer buys direct from suppliers and has material delivered to Solectron for receiving, inspection, test, and use.

General ManufacturingEnterprise Collaboration

Collaborative manufacturing is an idea that is based on identifying customer requirements and building a competitive advantage that constantly meets or exceeds those requirements through performance that is measurable, open, and visible. The key process in collaborative relationships is alignment of the full expectations of the parties. The alignment process at Solectron is formalized beginning with the Customer Focus Team, a cross functional team of members from all areas of the organization that speak for the interests of the customer who usually has a similar facing team.

Manufacturing

Manufacturing

Quality ProgramManager

Test Acct. Mgmt.

Engineering

ProductionControl Materials

Customer

Manufacturing

The Customer Focus Team is responsible to manage the func-tions and relationship with varying roles and responsibilities.

• Sales o Strategic partnership developmento Voice of the customero Develop the business relationshipo Customer insight

• Project Engineero Customer interface on technical issueso Responsible for process and quality improvement

• Production Control o Production planning and schedulingo Material coordinationo Coordinate delivery to match customer demand

• Qualityo Understand customer quality expectations and

communicate it to the teamo Track and audit manufacturing and

information feedback• Program manager

o Customer interface focal pointo Overall business managemento Maintain business relationshipo Grow the business

• Testo Customer interface for test issueso Responsible for all test related items

• Mfg Managemento Execute to the commitmento Responsible for manufacturing efficiency and

the people• Materials

o Assures material to support the scheduleo Responsible for all material issues



The second piece in the alignment process is the Customer Expectation package that outlines in detail what will be mea-sured and how. It is here that the customer interests are defined, not in Solectron terms, but in the terms and description of the customer. The agreed metrics form the backbone of the per-formance agreement with the customer and every member of the organization can see and identify with the performance re-quirements. The customer expectations are formally measured weekly using a weighted Customer Satisfaction Index scorecard that is reviewed by management. Included in the measurement program is a Customer Complaint Resolution Process that can begin with an inadequate score on the Customer Satisfaction Index or a complaint by a customer. Weekly open meetings that

can include company members, customers, and suppliers are held to review performance and customer complaints. Perfor-mance that falls short of the agreed objectives follows a formal Customer Complaint Resolution Process that can be initiated by a below par CSI performance measurement or a complaint by the customer.

Most companies have programs that provide measurement and accountability. What seems unique here is the unrelenting use of customer expectations as the metric that all can see, perform to, and be measured against. It is openness and visibility that drives collaboration among the participants. Alignment with the customer provides the direction.

Communicate first 4 of the 7 steps to the customer and site coordinator, and

present in CSI review

Completedwithin 3 working

days?

Communicate all 7-step action form information

to customer and site coordinator

Completed within7 additional working

days?

Escalate to Sr.Management


Closure acknowledgedby customer

Yes

No

SCI Scoreof “B-” or less, sever or

repeated complaint

Customer Complaintthrough CSI

Customer CSI

Customer Complaint Resolution Process

• Base on our integrate Six Sigma Lean

• Presented by a member of Sr. Management

CSI coordinator logsCCRP

Functional ManagementACKNOWLEDGES

Complaint to Customerwithing 24 hours


Yes

No

Yes

No



One of the most significant collaboration tools within Solectron is the virtual factory website [email protected]. The MyFactory portal is a continual work-in-progress that is adapted to fit the requirements of customers, suppliers, and the Customer Focus Team with a home page that reflects information of a specific customer. Through access from an internet browser a customer can view a number of processes via a Global Desktop that has been customized to fit the spe-cific customer profile and alignment features. The following illustration provides a view of a typical entry screen. Since Solectron may build products for companies that compete it is necessary to build in full security measures to ensure all prod-uct and process information is protected.

The MYFACTORY@Solectron is not just a pretty tool to entertain the customer. The full purpose behind the pre-sentation is to build bridges of trust among participants in the value-chain. It is not enough to tell the customer what is or will occur. It is important to back the planned event information with confirmation of what is actually taking place on the plant floor. Trust is the fundamental element between collaborative partners. Confirming events with real-time information builds trust.

Current applications on this customer s̓ home page include: VISTAS Virtual & Integrated System Test Application Suite

VISTAS is a web based product test reporting system that provides detail test information by unit or by specific report format. The customer or other user with appropriate security clearance can scan the system for in-depth visibility of test processes and results.

Typical information items include: Unit Completion Report List All Units List Passed Units List Failed Units First Pass Yield Test Averaged Times Test Cycle Times Floor Snapshot Process Discrepancy Operator Notes

SOARS Solectron On-line & Automated Reporting System

SOARS is a self service tool that allows personalized on-line quality reports. This allows participants to format their own personalized views of product quality information. The system provides visibility through a global self-service data warehouse for mining and trending, ad-hoc reporting and

mailto:[email protected]

mailto:[email protected]



search, in-process data validation, and traceability for RC and CA failures. The key element is the global self-service aspect that allows collaboration openness and access

GRANTS Global Return Automation & Tracking System

GRANTS is used to track and manage the business issue side of product returns including return material authoriza-tion, transportation, receiving, work-in-process, shipping and transportation back to the customer. This provides a full view of where a particular item of returned material is physi-cally located within the product and rework system. Within the GRANTS framework is the CATSweb corrective action tracking system that manages the technical failure information for returned material.

CATS Corrective Action Tracking System

CATS is a global web based proactive corrective action tracking system that is used to manage product issues and problems from identification through disposition and corrective action. The system provides a central repository of informa-tion regarding the incident, the steps taken toward resolution, who participated, and an escalation process that pushes for resolution. Access to this collaborative system includes the end customer, the OEM, Solectron, and suppliers, providing full visibility of issue genealogy from incident initiation to disposi-tion. In addition to providing real-time status and reporting, automatic e-mail notification provides built in traceability.

SFDM Shop Floor Data Management This system provides current information on work-in-

process, released orders, open orders, shop floor planning, and other information pertaining to orders released for manufac-ture. Specific reports include:

o Component Usage Reporto WIP Aging Report by Shop Ordero WIP Aging Report by Operationo Active Work Listo Latest List of Shop Orders

LIVECAM If you are having a sleepless night or some production con-

cern it is possible to turn on a camera that will provide a live view of your products being manufactured anywhere in the world.

AGILE PDMSThis is the entry into the product data management system

to view such items as engineering change orders, approved manufacturer list, product data, and other specific product data management issues. A key element with the system is the ability to distribute and manage engineering change order requirements through collaborative workflow tools. This in-cludes process and product change as well as revision control and management. The system is global and real-time providing every participant access to the latest information.

DOCSThis area is a repository for general information including

assembly and test process instructions.

Currently in use by many Solectron facilities and cus-tomers is Active Business Partners (ABP), another tool that provides deeper information access. ABP is a web based system providing a centralized self-service information center for customer orders, shipment tracking, invoices, build plan shortages, work-in-process data, and team contact information. All status information is provided in standard views that can be downloaded by the user. This portal allows customers access to the Customer Satisfaction Index (CSI) described earlier. The CSI functionality provides easy entry and reporting against the standard categories of quality, delivery/responsiveness, com-munication, service/flexibility, and technical support, as well as additional subcategories, if desired. There is also a docu-ment management function that supports the need for Solectron and partners to jointly post, share, and maintain commonly exchanged documents within a centralized repository. The application has a portal feature that provides the capability for setting up a centralized single sign-on to other common appli-cations used by Solectron and its partners.



The Active Business Partners program is accessible through the home page that allows partners to view pertinent details regarding all projects within the system. Generally a project is a contract with a customer at a location. “My Proj-ects” allows the user to view all projects they have access to. “My Applications” allows users to access miscellaneous web-based applications. The “Message Center” box displays “Alerts” and “Messages” for which immediate attention is needed. Alerts are automatically generated by the system. Alerts are proactive messages that are generated to cause an action or to deliver operational information such as past due invoices, orders on hold, shortages, etc. There is also a tool that is used to generate messages for all users, customers, Solectron employees or Solectron team members.

The ABP is the primary access for the Customer Satisfac-tion Index process. The system provides full visibility for all participants to enter and respond to CSI issues including view-ing guidelines and reports. There is a Document section that is a storehouse of version controlled files where Documents users can share information with each other and upload or post files. The ABP system has built in security levels that restrict the ability to change files.

There are many more details of the system that provide us-ers with the normal everyday information that makes a business run, most of which is not important until you need it and when you need it, tomorrow will not suffice. It is the ready access to the widest world of potential users that makes the Active Busi-ness Partners program effective as a collaboration tool.

As you read this case study you might often react with the thought, “we do that too” or “how important can that be”. It is important to look at how each piece contributes to the full pic-ture. Collaborative manufacturing is not one giant step. Rather it is the process of many steps that are aimed, formally or infor-mally, at building closer relationships for the full value-chain that begins with the end user and continues through the nth tier supplier. It is the non-adversarial people-centric orientation of the process that makes collaborative manufacturing something different from historical management processes.

Solectron has many examples of tools that have been established to continuously build trust as a fundamental business strategy. This strategy has developed a significant competitive advantage for the company and their partners, provides a major tool for employee empowerment, and con-tinuously builds and supports bridges with customers based on trust and long term commitments.

Manufacturing at this company is never business as usual or just part of the process. Manufacturing is Solectron s̓ core competency and it is done using modern business methods and an adaptive attitude that allows them to be “your manufacturing plant”. There is a constant vigilance and awareness that to suc-ceed their performance must be better than the OEM customer could do it themselves. Solectron must exceed the trust require-ments that they will serve the end user interests as well as the OEM whose name goes on the product and the shipping carton. Collaboration of many perspectives is a major key ingredient in every day-to-day business activity.



The study was written by Michael McClellan of Collaboration Synergies Inc. based on interviews at Solectron Corporation. Mr. McClellan has had many years experience in manufacturing industries with responsibilities ranging from CEO to officer level operations responsibility. He has written two books on manufacturing including Applying Manufacturing Execution Systems and Collaborative Manufacturing: Us-ing Real-time Information to Support the Supply Chain.

He is currently President of Collaboration Synergies Incorporated of Vancouver, Washington, a provider of advisory services to manufacturing companies in the areas of manufacturing execution systems and col-laborative manufacturing concepts.
