Outsourcing to Natel

While no two companies are alike, they all share one thing in common: the desire for a perfect balance between design, manufacturing, and cost. This means finding an efficient, cost-effective method of getting a high-end hybrid module from the drawing board to final production, while ensuring product quality and on-time delivery.

Outsourcing is one such method that works.

As producers of advanced modules for fiber optic, telecommunication, military/aerospace, and other high-tech industries search for ways of lowering costs, improving product quality, and strengthening their core business, "outsourcing" is becoming an increasingly popular solution. Outsourcing, a practice that has been in existence for over a century, involves taking your design to an outside manufacturer for production. This practice offers an alternative method of production that has been proven to work for many companies.

More about outsourcing:

• Raytheon and Natel - An Outsourcing Success Story

Outsourcing Benefits

For most companies, the most beneficial aspects of outsourcing with a reliable manufacturer are cost savings, improved quality, and quicker time-to-market.

Production Cost Savings
Outsourcing has been proven to be one of the most cost-effective methods of production available. The reason for this is inherent to the nature of outside production; namely the reduction of overhead, reduced headcount, and elimination of capital equipment and software investments.

Strengthening Your Core Business
Turning the production of a complex module over to an outside vendor leaves you free to focus on your core business and lets you reallocate your time and space to research and development or strengthened marketing efforts.

Higher Yields
Vendors with automated equipment provide greater efficiency and process repeatability for higher yields.

Superior Repeatability
The latest trends in high-end microelectronic module manufacturing involve automated lines that are not only faster, but improve lot-to-lot repeatability. Products are produced in exactly the same manner from day to day, resulting in greater consistency. When the process repeats as described, the end product is virtually error-free and provides higher first test yields and little or no rework.

Better Resources for a Better Product
Microelectronic vendors typically have highly trained people and better equipment, resulting in better upfront product characterization and production methodology.

More Representative Prototypes
Most outside manufacturers will provide prototyping services. Since these prototypes are produced using the same materials, processes, and equipment that will be used for final production, the prototypes are more representative of the end product. This allows for the elimination of false starts and for faster time-to-volume.

Reduced Cycle Times
Because many microelectronic vendors provide automation, they are able to decrease cycle times with reduced manual operations and faster manufacturing processes.

Lower Inventory and Inventory-Related Costs
With reduced cycle times and increased efficiency, vendors offering automation provide lower inventory and inventory-related costs.

Quicker Turnaround
With their automated equipment, increased efficiency, and ability to focus solely on manufacturing, these suppliers are able to provide quicker turnaround. This includes, not only faster time-to-market, but faster time-to-volume, as well.

Is Outsourcing Right for You?

Carefully consider the following questions to determine if outsourcing is a viable option for you. Even if you are just starting out, and are not sure what is involved in the actual manufacturing of your design, review these questions carefully, answer them as best you can, and when researching outside vendors, include them as part of your decision making process.

Define your design

• Do you believe your design requirements are too complex to be handled by an outside source?
• Do you have drawings readily available?
• Do you need packaging and design assistance?
• Do you need prototypes?
• Has your design been bread-boarded?
• Do you perceive that your design will have issues with manufacturability?

What are your manufacturing requirements?

• Do you understand the design rules for manufacturing your module?
• Can all or part of the manufacturing process be automated, or does it have to be done manually?
• Is a particularly complex process involved in manufacturing your module?
• Does your module need to be made in a clean room or a unique environment?
• Do you require specific vendor qualifications, such as AS9100, telecordia, or military certification?

What are the assembly requirements for your design?

• Can you define your assembly requirements?
• Does your design require unique equipment and/or processes?
• Are there other secondary operations required?
• Do you want secondary operations to be completed at one location, by one source?

What are your testing requirements?

• What tests and quality control measures are required?
• Is unique equipment needed for your testing requirements?
• What are your needs in terms of volume and scheduling?
• What are your volume needs for:
  • Prototypes?
  • Pre-production?
  • Full production?
• Are your volume needs such that meeting them in-house poses a significant challenge?
• Are your volume needs such that they justify the existence, or creation of an in-house manufacturing department? (This can include hiring additional personnel, equipment purchasing, ISO certification, and much more.)
• What is your required time-to-market?

If you are currently manufacturing in-house, will you be able to continue meeting your customers' needs?

• Do you have the latest equipment, software, and peripheral technology?
• Does your facility meet your current manufacturing needs and future goals?
• Do you have adequate manufacturing space?
• Is your staff fully trained and qualified?
• Are you over or under-staffed?
• Will you be able to continue to meet the quality, on-time, and price requirements of your customers?

Will outsourcing help you create a balance between the price of your process versus the price of your product?

• Is the cost of keeping manufacturing in-house more than the cost of outsourcing?
• Will the costs associated with in-house manufacturing decrease your gross margins?
• Would the manufacturing space you currently use be more beneficial or more lucrative if used for a different purpose?
  

Choosing the Right Manufacturer

For outsourcing to be successful, the outside vendor must know your industry, share your values with regard to quality and service, understand your design, and offer expert manufacturability assistance. In short, will your vendor act as a manufacturing extension of your own company? When researching vendors, carefully consider the following questions:

Technical Services

• Does the manufacturer offer process design assistance?
• Do they check manufacturability of the part before production?
• Do they provide prototyping?

Quality control

• Is the supplier MIL-PRF-38534 and AS9100 certified?
• Do they meet specific industry standards?
• Do they have the technical capabilities necessary to adequately test your product?

Production Capabilities

• Can they meet complex design parameters?
• Can they handle both high and low volume requirements?
• Do they offer the latest technology, such as super lines and unique high frequency processes?
• Can they meet your quality requirements?
• Can the assembly equipment they have meet your manufacturing needs?
• Do they have clean room facilities?
• Are they able to provide the secondary operations that your design may require?

Customer Service

• Does the supplier offer quick turnaround and on-time delivery?
• How quickly can they ramp up to full production?
• Is the vendor the right size to match your production needs and will they give you the attention you deserve?

Experience

• How long has the vendor been in business?
• Does the staff provide sufficient process engineering and manufacturing expertise?
• How many products are they currently manufacturing?
• What is their experience with products similar to yours?
• Can they provide you with a client list?

If the manufacturer you are considering can meet the major goals you have set for your product, and they share your desire to see it succeed, then the end result will be a top quality part with cost-savings and on-time delivery.