MPE-EM Workshop
Purchasing strategy for
electronic modules
Betty Magnin
16.06.2016
TE-MPE-EM mandate
Provide a CERN central service for the
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layout,
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industrialization
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production of electronics modules
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based on industrial standards
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Production of prototypes done at CERN
Production of series with the industry
Which purchasing strategy?
Case study: 2015 REG FGC production
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•
•
•
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28 different types of boards
3594 boards in total
> 200 DAI, MAG
A predicted cost of ~1’100 kCHF (based on the
previous productions)
An actual cost of 630 kCHF
2015 REG FGC production
Cost breakdown
120,947
20%
COMPONENTS
38,174
6%
PCB
MECA
ASSEMBLY
61,186
10%
394,797
64%
Single entry or kitting?
Single Entry

1 purchase order
 1 contact
 The firm making the assembly has to engage ~4 times
the cost of his added value (financial risk)
 Leadtime increased (MS+IT)
 Material procurement starts when the firm gets the PO
 Quality management of the purchased parts through
the firm.
 The firm might make savings on the purchased parts
Single entry or kitting?
Kitting

Leadtime reduced:
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
Direct control on the procurement of critical parts:
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•



Most of the PO are <5k or <10k
Procurement of material can start without delay
Components : official distributors, no brokers, no «hybrid
supplier»
PCB : from qualified and validated firms
Mechanics managed by EN-MME (opportunity to buy to
poorly balanced countries)
Number of PO increased (~10x)
Workload to find available parts through distributors
Single entry or kitting?
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MPE-EM is currently considering to work with singleentries in order to reduce the workload. This is
applicable for standard deadlines and when the risk on
components is limited (low-cost, passive or simple
active components). The objective is to establish one or
two contracts with suited firms.
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For the other cases, kitting is the common rule. The job
is split into 4 categories: components, mechanics, PCB,
assembly.
•
Components are bought by official distributors whereas
mechanics is handled by EN-MME
Purchasing of PCB
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•
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The PCB is the most critical component of an assembly,
if it fails, the whole board is lost.
The PCB must withstand the assembly process (RoHS)
and CERN safety rules (halogen-free)
It is important to have trusty suppliers who have the
whole process under control.
2 suppliers give some flexibility and help for load
balancing
The cost of a PCB can easily be determined with a
pricing model, based on batch size, lead time and
technical parameters: size, layout count, holes, track
width,..
Purchasing of PCB
2 contracts with PCB suppliers
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MS initiated early in 2014
2 contracts established in July 2014
3 years and 370k€ each.
Purchasing of assemblies
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Pricing model is not as trivial as for PCB
Not all firms can make every type of assemblies
A firm able to make complex assemblies will not be
competitive for simple ones
Projects have different context requiring different solutions:
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Proximity for urgencies, immature products, heavy logistics, small
quantities
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Larger firms for big volumes of mature products.
Purchasing of assemblies
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A survey of the market is regularly done with inputs from ILO’s, previous
professional experience, other CERN groups, Purchasing Office,
exhibitions at CERN or in dedicated fairs, adverts in specialised
newspapers and websites
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Firms looking as adapted to our requirements are highlighted
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A first quote is requested to verify if their price is acceptable as
compared to those from usual suppliers
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The firm is then audited to verify on-site their technical capabilities
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A limited panel of firms is qualified to fulfill our purchasing planning.
All large orders are discussed with Purchasing Office before inititiating
the DO
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Firm
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Country
FR
FR
FR
DE
BE
FR
CH
DK
NO
UK
IT
UK
DK
GR
SP
CH
Volume
Proximity
Box build
Cabling
Flying Probe
Though Hole
AOI
Fonctionnal
PressFit
Selective wave
SMD
Wave
Manual
SMD BGA/LGA
Complex QFP/QFN
Simple ≥0402
Purchasing of assemblies
Selection Matrix
Tests
Purchasing of assemblies
Country
DAI
Cost (kCHF) Cost/DAI (kCHF)
NO
1
46
46
BE
4
66
17
DK
24
236
10
DE
6
24
4
GR
14
51
4
UK
7
20
3
ES
31
64
2
TOTAL Unbalanced
87
507
6
IT
CH
FR
TOTAL Balanced
5
118
176
299
15
212
494
721
3
2
3
2
PO by member state over the period 03.2012 – 03.2016
The message is to place large orders to unbalanced countries, but the ratio
small/large orders and some special cases (QPS crates, orders of assembly done
in the past by a French firm specialized in complex assemblies) biais the figures.
Conclusion
There is no single answer to the question
single entry or kitting.
Kitting is a valuable solution to provide volume
in a tight leadtime with a control on critical
components
Single entry is more suited to small volumes of
simple modules
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Questions?