In this weblog I continue to explore the three C's that drive and shape the electronic manufacturing industry.
This weblog is focused at examining the first C – Change.
If nothing changed at all in electronics, the job of assembling printed circuit boards and putting them into products would be difficult enough. But put the same task against a backdrop of constant and constantly accelerating change, and the challenges go exponential. For manufacturers, change comes from all directions:
Technology Change
New software, new placement, processing, test and inspection systems emerge virtually every day, from hundreds of vendors – each convinced that their new technology is the golden solution. Spend a few hours at any of the major trade shows and the sheer pace of innovation can make your head spin. For electronics manufacturers, ignoring all this innovation is not an option. Standing still is the fastest way to fall behind.
But just staying on top of all this new technology can be a full-time job. Not to mention evaluating, selecting, implementing and integrating it.
Market Change
As an industry, our customers want different things from us today than they did yesterday. Once homogeneous consumer markets are splintering into discrete segments, each with its own needs. Unpredictable demand drives new levels of supply-side volatility. New brands shake up established markets as innovators pioneer completely new ones. While we only had to master the television, our children have become adept at the PC, DVD, camera phone, MP3 player and Internet. The highly visible changes in the consumer and industrial markets make violent, unseen impacts on the electronics manufacturers who supply them. Shorter product lifecycles are shrinking order sizes. Long, high-volume runs are giving way to short, high-mix runs.
Add to this, ever more extensive BOMs and component variety, increasing demands for regulatory compliance, traceability and quality control and you can see how electronics manufacturing can never stand still.
Process Change
Just as the things we’re asked to do are changing, the ways that we do them are changing, too. Supply chains, outsourcing, scheduling, inventory management, testing and inspection, manual processes… very few operations in a typical electronics manufacturer are done the same way today as they were even two years ago. And when processes change, people are affected.
So bring on the re-training, re-structuring and re-evaluation of the entire workforce.
Between technology change, market change and process change, the typical electronics manufacturer isn’t just aiming at a moving target; he’s aiming at nineteen exploding targets while bouncing along on a speedboat. In an industry that depends so much on planning, scheduling, forecasting and budgeting, change presents an incredibly thorny challenge.