service excellence for customers world-wide the cost of test: a perspective from a test service...
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service excellence for customers world-wide
www.atlantic1.co.uk
The Cost Of Test: A Perspective from a Test Service
Provider
SETNET User Group21 February, 2002
London
service excellence for customers world-wide
www.atlantic1.co.uk
Test in House or Contract out ?
Overview
•What is contract Test ?
•Main Factors to consider: In-house vs. Contract out
•How contract test can provide business benefit
•Conclusion
service excellence for customers world-wide
www.atlantic1.co.uk
What is contract test?
Either :- Contracted Test Production
•Test programme and hardware supplied to test house
Or :- Full Solution
•Test Development and contract test (Turnkey)
service excellence for customers world-wide
www.atlantic1.co.uk
Main Factors to consider for outsourcing test
• Costs
• Time to Market
• Quality + Reliability
• Service
• Support
• Security
service excellence for customers world-wide
www.atlantic1.co.uk
Cost (Capital)
Digital Mixed-Signal
High End Digital/FR SOC
RF
Low Cost
Rack & Stack
$(m)
1
2
CapabilityFunctionality
ChannelsSpeed
RF
$(k)
250
500
CapabilityPerformance
VersatilityFeatures
BenchTop
Dedicated
Flexible with vision
Flexible dual/quadsite
Test Systems Handler Systems
service excellence for customers world-wide
www.atlantic1.co.uk
Cost (Others)
•Space ($$$ per square foot)
•Power Requirements
•Maintenance (Hardware & Software)
•Personnel training & skills
•Shift working
•Lead scan and pack requirements
•Logistics
service excellence for customers world-wide
www.atlantic1.co.uk
Cost (Unit test cost)
1000
100
10
1
High end Systems
Mid range Systems
10 100 1000Volume per month (ku)
Units cost(cents)
Typical unit test cost per second
Technology Drivingmore advanced
test needs
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Time to market
• Lead-time for selecting and buying capital equipment
(Typically 40 weeks total)
• Possible need for multiple test platform and handler systems
• Test software & Hardware development times
• Product qualification timescale
service excellence for customers world-wide
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Quality
• Demands for <10ppm Visual/Mechanical & Electrical Quality• Customers want long tern reliability despite shortening life
cycles• Need to consider
– Product Qualification– Product handling (to avoid mechanical problems)– Test Production procedures (to avoid mixing)– Test program quality (to ensure adequate test
coverage)
service excellence for customers world-wide
www.atlantic1.co.uk
Service
• Customers want both flexibility & fast response– Ability to test & Ship with short cycle time – Direct shipment to end customers– Reduced logistics time & test
service excellence for customers world-wide
www.atlantic1.co.uk
Support
• The ability to support the development & production activities:
– Test development– Product & Production support staff– Maintenance staff & full spares capability– Production – 24 x 7
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Security
• IP is becoming more critical for competitive advantage
• Obvious desire to keep all operations in house:– Diffusion– Assembly– Test– Shipping / Logistics
• Need to develop confidence and trust in suppliers/partners
service excellence for customers world-wide
www.atlantic1.co.uk
How Contract Test Can Provide Business Benefit
service excellence for customers world-wide
www.atlantic1.co.uk
Cost (Capital)
• No/Low capital Investment
• Contract test house has full range of test systems and handlers
• Low entry cost
service excellence for customers world-wide
www.atlantic1.co.uk
Cost (Others)
Contract test provides and caters for all:• Space• Power• Maintenance (Hardware and Software)• Personnel Training & Skills• Shift working• Lead Scan and Pack Requirements• Logistics
service excellence for customers world-wide
www.atlantic1.co.uk
Cost Comparison (Unit test cost)
1000
100
10
1
High end Systems
Mid range Systems
10 100 1000Volume per month (ku)
Units cost(cents)
Typical unit test cost per second
High end Systems contract Test
Mid range Systems – contract Test
service excellence for customers world-wide
www.atlantic1.co.uk
Time to Market
• No lead-time for capital equipment – already in place• Multiple system types to cater for all market needs
– Digital high i/o– Mixed Signal– RF– RF & Digital & Mixed Signal (SOC)
• Software and hardware development in parallel with chip design
• Test contractor with full skills and experience in house.
service excellence for customers world-wide
www.atlantic1.co.uk
Quality
• Test contractor has full mature quality system and infrastructure to assure <20ppm visual/mechanical and electrical quality levels
• Reliable Facilities for full product qualification• ISO9000 & QS9000 Certification
service excellence for customers world-wide
www.atlantic1.co.uk
Service
• Contractor can support flexible and fast response by:– 24 hours continuous operations– Large range of installed test and handler systems– On site Assembly facility (<4 Day c/t) feeding
contract test– Direct shipments to end customers (Web-Enabled)– Overall reduction in logistics
service excellence for customers world-wide
www.atlantic1.co.uk
Support
Contractor has full services to support development and production activities:
• Test development (simple digital, RF, SOC)• Production Support• Maintenance (Equipment, software, hardware and product)• Production Personnel• 24 hour operations
• Test development (simple digital & SOC)
service excellence for customers world-wide
www.atlantic1.co.uk
Security
Contractor has systems in place to ensure security:
• Procedures (Audited)• Aviation Security• NDA• Secure system for data transfer• On-Site security 24x7 with cctv• One Entrance/Exit to facility• Locality / Time zone
service excellence for customers world-wide
www.atlantic1.co.uk
Conclusions
Contract test offers big benefits for medium to high volume applications:
• No/Low capital investment• Low consistent unit cost• Cost insulation from market fluctuations• Full turnkey solution• Full infrastructure support• World Class Service (Plus comprehensive assembly facility)• Secure environment