dsi Quarterly Tech Review

Volume 2, Number 3, November 2002


Making the Connection
How Clean Is Clean?
Applying Surface Finishes
Using AOI To Improve Quality and Yield
Certifications: FDA Registration
Don’t Just Hunker in the Bunker!

 

Making the Connection

 

 The purpose of the drilled through-hole is to make an opening through the printed circuit board that:
  permits subsequent processes to make an electrical connection between top, bottom, and all internal pathways, and
  allows through-hole components to be located precisely and mounted with structural integrity.
The quality of a through-hole drilled in a circuit board is measured by its ability to support and accept the plating and soldering operations required to form a highly reliable, non-degrading electrical and mechanical connection. When circuit boards had traces on only one side, the quality of the drilled hole was not very important. Later as double-sided boards with plated through-holes became common, drilled hole quality had to improve. Since today's multilayer boards require connections to the inner layers as well as the surface pads, the quality of the drilled hole is paramount in ensuring reliable connections.
Although it is painful to abandon familiar practices, we must recognize when they no longer meet our needs. The circuit board fabrication industry is experiencing rapid technological change. The driving force behind these changes has been the increased use of surface mount technology (SMT) and the consequent need for designers to maximize the use of board real estate. Consequently, the industry has experienced increases in the number of holes per square inch, smaller SMT pads, conventionally drilled vias as small as .0039", increased layer counts, tighter annular rings, as well as blind and buried vias. There is no manufacturing area where these changes have had more of an impact than in the drill room.
James Block, President of Laminating Company of America (LCOA), states that the root cause for as many as 85 percent of all circuit board failures can be traced back to drilling (1). When the entire board manufacturing process is examined, it becomes apparent that many post-drilling operations are corrective measures designed to overcome shortcomings in the drilling process. For example, the use of mechanical scrubbing to remove burrs, chemicals to remove resin smear and bonded debris, etch-back to expose glass fibers, and acid or alkaline cleaners to remove contaminants all are methods for addressing problems that result from the drilling process. Logic tells us that at some point it no longer makes sense to compensate for drilling problems, and that we should shift our focus to address the source of the problems.
Generic drilling practices are no longer acceptable. Specific drilling processes must be developed and validated for each unique type of board technology. A key concern in the change of mindset from applying generic drilling practices to tailoring a specific and unique process for each technology is the selection of consumables used in the drill room. Historically, cost alone determined the selection of supplies for the drill room. However, as technology continues to push the drill room for improvements, the role of consumables can no longer be overlooked. To survive, circuit board manufacturers have had to develop a unique set of processing parameters for each type of printed circuit board. As is often the case when conventional thinking is challenged, innovative fabricators have been rewarded with greater efficiencies, improved yields and reduced costs.
Although there are many items on the consumables list in the drill room, the three most important are:
  drill bits,
  entry materials and
  backup materials.
Choosing Drill Bits
The carbide drill bit is the most critical of these three consumables. Drill bit manufacturers have developed numerous styles and series of drill bits to help support the varied applications in today's board manufacturing environment. Flute length, web thickness, point geometry, and back taper all need to be considered when selecting the right drill bit for the application.
   Mr. Tech Dweeb Tech Tip
Today's typical basic drill geometry incorporates a 15 degree primary angle, a 30 degree secondary angle, a high helix, polished flutes, relieved margins, a back tapered body , and a fine grain tungsten carbide base.
The minimum flute length must equal the total drilled hole depth plus at least .050" of unused drill flute. (The drilled hole depth is the sum of the total laminate thickness, the entry material thickness, and the exit material penetration.) The unused flute measurement is made above the stack while at the bottom of the drill stroke. This extra flute length is necessary to allow debris to be evacuated by the vacuum system. Failure to remove debris from drill flutes can result in degraded hole quality and even drill bit breakage.
To keep drill bits sharp and to avoid breakage, they are generally used for 750 to 1,500 hits on multilayer circuit boards and for 2,000 to 3,000 hits on double-sided boards. Hit counts greater than 3,000 can be realized on single-sided boards.
Drill bits can be repointed from 1 to 5 times depending on the diameter of the bit. Typically from .002" to .005" is removed by grinding during the repointing process. The smaller the bit, the fewer times it can be repointed since smaller diameter holes are more critical and require superior drilled hole quality.
Drill bit replacement and repointing represent substantial expenditures for circuit board manufacturers. Depending on the diameter and style of the drill bit, average prices range from just over $1.00 to more than $20.00 per bit. Therefore proper storage, handling, and inspection are critical to ensure maximum life span and optimum performance, and to contain costs.

        
    Drill Bit Geometry
    Based on a figure in: Vandervelde, Hans. PCB Handbook. McGraw-Hill, 2001.
  
Determining the Best Entry Material
The second most important drilling consumable is the entry material. The main purpose of the entry material is to prevent drill breakage by centering the drill bit. In addition, the entry material helps avoid copper burrs, reduce contamination in the hole and on the drill bit, and prevent pressure foot marks from the drilling machine.
Many types and thickness of entry material are available on the market today. Aluminum composite, solid aluminum, melamine products, and aluminum-clad phenolics are the most common.
Selecting the right entry material requires a thorough understanding of the drilling application for which it is to be used. Although aluminum composites are typically the most expensive, they do a tremendous job improving accuracy and dissipating heat. In addition, they leave no hole contamination. Phenolic materials are less expensive, but often warp and can contaminate the hole wall, possibly resulting in problems during subsequent processes. Solid aluminum provides good burr suppression and no contamination, but increases the risk of drill bit breakage for small diameter bits.
A lot of work is being done to develop a new generation of lubricated entry material to help further reduce heat generated during the drilling process. Heat generated during the drilling process destroys the optimal condition of the hole wall. When a hot drill bit is extracted from a hole, there is a risk of smearing melted resin over the inner layer attachment pads. Although the amount of heat generated during drilling can be minimized by controlling infeed rates and drill speed, the selection of proper supplies for the application is essential.
Proper selection of entry material for a particular drilling application is very important due to the wide range of cost for different materials. Costs can range from 33 cents per square foot for a phenolic material to around $4.00 per square foot for a specialty product.
Selecting the Appropriate Backup Material
The third most important drilling consumable is the backup material. The purpose of the backup material is to prevent exit copper burrs on the underside of the drilled stack and to provide adequate space for drill stroke termination. An acceptable backup material does not contaminate the hole and helps cool the drill bit, thereby improving hole quality.
There is a great variety of backup materials available on the market today. Selecting the appropriate "backer" requires extensive testing and qualification since few of the products marketed as backup material were engineered specifically for circuit board drilling. Typical materials include aluminum-clad wood core composites, melamine-clad wood core composites, solid phenolics, and even paper-resin hard board.
The backer deemed appropriate for a particular drilling process must also have a tight thickness and flatness tolerances. It should contain no abrasives that would increase drill wear or contaminates that could be evacuated through the drilled hole. The surface should be smooth and hard to properly suppress exit burrs.
As with the choice of entry material, it is important to match the backup material to the application since the cost of backup materials ranges from about 25 cents per square foot for hard board to around $6.00 per square foot for a specially engineered, lubricated backer.
Finding the Right Combination
The great variety of materials available and the wide range of their cost create a multi-dimensional matrix of possible solutions to the dilemma of choosing the optimal combination of drill bits, entry material and backup material for a particular application. Proper selection can be made only through continuous testing, a thorough understanding of the technology employed in the application, and an unswerving commitment to quality. The drill room must keep up with the processing requirements of today's circuit boards, and keep in touch with customers' demands regarding quality, technology, and cost.
Future articles in the dsi Quarterly Tech Review will examine other variables that affect the quality and cost of the drilling process.
Sources:
  1. Vandervelde, Hans. PCB Handbook. McGraw-Hill, 2001.
  2. Goulet, David. Bare Board Drilling: Trends and Developments in Printed Circuit Board Drilling. Miller Freeman Books, 1992.
 
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How Clean Is Clean?

 

 How clean is clean? Three test methods for determining cleanliness are commonly used in the electronics industry:
  visual examination,
  solvent extraction, and
  surface insulation resistance (SIR) measurement.
Visual Examination
This method entails inspection of circuit boards under an optical microscope at 2X to 10X magnification in order to identify flux residues and other contamination. The main limitation of this method is that flux residues trapped under large components cannot be identified microscopically.
Solvent Extraction
The solvent extraction method involves immersing the circuit board in a test solution and then measuring the ionic conductivity in terms of micrograms of NaCl equivalent per square unit of the board area. For this method to be effective, the test solution, typically isopropyl alcohol and deionized water, must remove the contamination from under every component. Solvent extraction is commonly used to monitor the cleanliness of conventional assemblies. J-STD-001 requires ionic contamination to be less than 10.06 μg/in˛ (1.56 μg/cm˛). This standard applies to all fluxes, including no-clean fluxes.
   Mr. Tech Dweeb Tech Tip
The NaCl equivalent standard was developed to allow one test measurement to yield a value with a common meaning no matter what type of contaminant is present. The value is a calculation of the amount of NaCl that, if dissolved in the solution, would produce the same measured resistivity. The value does not mean there is necessarily any NaCl in the solution. dsi ’s standard for assemblies is less than 0.5μg/cm˛.
The solvent extraction process is widely employed primarily due to its simplicity. The equipment to perform this test is inexpensive and does not require a highly skilled operator. Consequently, this test is often used at the end of a process line to characterize the cleanliness of a board. In itself, the figure (μg/cm˛ of NaCl) is not directly translatable to a specific contaminant. However, if the process has been approved for use with a NaCl equivalent cleanliness test, then the number generated by the cleanliness test can be used as a process indicator for total cleanliness and a range of acceptability can be established.
Surface Insulation Resistance Measurement
SIR measurement is widely used for determining the insulation resistance of laminates, assessing the compatibility of fluxes with circuit board material, and testing the cleanliness of circuit board assemblies. The equipment used to measure SIR values consists of a high resistance meter, generally referred to as a megohm meter, and a humidity chamber.
The primary advantage of the SIR measurement method is that it is direct and quantitative. It provides useful results when applied to boards with an aggressive flux. SIR tests also flag problems with adhesive curing. If an adhesive is cured rapidly, voids are generated that may entrap flux. Inspection and extraction methods cannot adequately detect flux entrapment, but SIR measurement can.
The major disadvantage of SIR measurement is the need to design additional circuitry on the surface layers of the circuit board to conduct the measurements effectively. Another limitation of this approach is that the trace pattern must be standardized to either a “Y” or a “comb” pattern. Differing component sizes on the board can make it difficult to standardize one particular SIR pattern. Also, to obtain a representative indication of the contamination under the components, the selected SIR pattern must appear in all areas of the board.
Selecting the Right Method
The two test methods described in this article can generate very useful results if they are interpreted properly. The SIR approach yields a figure that can be correlated directly to the concentration of a specific contaminant. However, the test equipment is sophisticated and does not lend itself to the factory floor. Further, the product must have been designed to accommodate this test. In contrast, the solvent extraction method is a representation of total cleanliness and does not give specific information. However, this test is ideally suited for inclusion in a process line and does not require advance planning to test the product. Failure of the solvent extraction test clearly indicates that the process is out of control and the product should not be shipped.
Sources:
  1. IPC. Post Solder Aqueous Cleaning Handbook. IPC-AC-62A, 1996.
  2. Prasad, Ray P. Surface Mount Technology: Principles and Practice, Second Edition. Kluwer Academic Publishers, 1997.
 
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Applying Surface Finishes

 

 The base metal conductor used in the fabrication of printed circuit boards is copper. Although copper is an excellent conductor of heat and electricity, it is also a very active metal that quickly oxidizes in the presence of air and water. If a copper surface is not coated or treated with a protective agent, the exposed area rapidly becomes unsolderable using conventional assembly processes. For this reason, all printed circuit boards use some form of a surface finish on the exposed pads to which electronic components will be soldered.
Current manufacturing processes typically also require circuit traces to be protected with a masking material, called soldermask. The soldermask is relieved only where a subsequent operation, such as soldering of electrical components, requires electrical access to the circuitry. The relieved areas, which are not covered with soldermask, need to be protected with some form of a surface finish.
The role of the surface finish is to coat the copper pads and exposed traces in order to protect them between the time the board is manufactured and when it is assembled. By protecting the copper from oxidation, the surface finish ensures that the board can be soldered successfully later during the assembly process.
The three most prevalent surface finish processes are:
  hot air solder level (HASL)
  immersion precious metal plating
  organic surface protectant (OSP) coating.
Hot Air Solder Level
The hot air solder level (HASL) process entails the application of tin/lead solder to exposed copper. The solder and exposed copper form an intermetallic chemical bond that protects the copper from oxidation.
To prepare circuit boards for solder coating, the boards are first processed through a flux containing amine hydro-bromide flux activators in a polyglycol carrier. A solder bath is prepared using a tin/lead alloy, normally 63 percent tin and 37 percent lead, heated to 500°C. In a vertical process, the “fluxed” boards are immersed in the solder bath. The solder coats the areas not covered by soldermask. The boards are then withdrawn from the solder bath while hot air knives remove or level the excess solder.
The resulting solder thickness can vary due to gravity, surface tension, and the geometry of the circuit board pads. The use of a vertical process results in some droop or meniscus of solder on the bottom side of the pads. This meniscus can be a problem if the board requires high density chip placement (pitch spacing below 20 mil).
HASL is still the most common coating applied to protect copper pads and exposed traces. It provides good solderability and excellent shelf-life for the circuit board.
There has been much discussion in recent years about banning the use of tin/lead coatings. However, at this time regulatory agencies have granted specific exclusions from lead-free restrictions for most high-reliability applications due to the lack of a proven alternative. For this reason, HASL continues to be used far more extensively than the coating alternatives described below.
Immersion Precious Metal Plating
The immersion process uses ion displacement reactions to plate the circuit board surface. When the surface metal finish (nickel/gold, silver or tin) has been deposited, the source of electrons is used up and the process is complete. The process is self-limiting because the copper forms an intermetallic layer that inhibit the immersion reaction.
Immersion coatings have become popular as circuit densities have increased and the pitch of surface mount technology (SMT) components has decreased. A flat attachment pad is paramount in achieving a reliable solder joint with fine pitch parts. Although the solderability of each coating is different, all immersion coatings provide a very flat attachment surface.
The electroless nickel / immersion gold (ENIG) finish is the most expensive and also the most solderable over the widest range of conditions. This coating ensures minimal long-term degradation of solderability prior to assembly and excellent immunity to corrosion from environmental exposure in the field. The nickel/gold coating ranges from 3 to 10 µin in thickness and costs about twice as much as HASL.
Silver is the next most costly metal finish and is only slightly less solderable than nickel/gold. Deposited to a thickness of 5 µin, the cost of silver is only about one and a half times the cost of HASL.
Immersion tin has gained popularity because its cost is favorable compared to the cost of HASL. However, the long-term solderability of immersion tin is questionable and highly dependent on the process controls of the fabricator. The plating is a tin oxide formed from stannous fluoborate in an acid suspension. About 50 µin thick, tin plating costs about 1.3 times as much as HASL.
OSP Coating
The process for applying an organic surface protectant (OSP) coating does not require electron exchanges since the circuit board is coated upon submersion in a chemical bath. A nitrogen-bearing organic compound allows adhesion to the exposed metal surfaces and is not absorbed by the laminate or soldermask. Although coating adhesion levels vary according to the type of organic compound, the process is self-limiting and results in a typical coating thickness of .5 µin. Organic coatings are equivalent in cost to HASL and provide relatively flat pad topography. However, these coatings break down during thermal cycles in assembly and are not recommended for double-sided circuit boards (boards with SMT components on both sides). Furthermore, these coatings do not hold up very well to long-term storage. Boards with an organic coating must be kept sealed in a stable environment and used very shortly after application of the coating.
   Mr. Tech Dweeb Tech Tip

Although customer specifications vary, typical coating thickness are shown in the table below.

Coating Thickness (microinches)
HASL 200 to 300 µin
ENIG 100 to 250 µin of nickel 3 to 10 µin of gold
Tab nickel/gold* 100 µin of electroplated nickel
30 to 50 µin of electroplated gold
Silver 8 to 20 µin
Immersion tin 30 to 70 µin
Organic surface protectant 0.4 to 0.6 µin

* Tab nickel/gold plating is applied using an electroplate process that results in a harder and thicker coating than the ENIG process. Tab nickel/gold is used only for areas of a circuit board that will be inserted into a connector.

The fabrication industry developed the immersion process to address the anticipated environmental mandate to eliminate lead, even in alloy form (tin/lead is an alloy and has no free lead), from the manufacturing process. However, exclusions given to military hardware, implanted medical devices and critical automotive systems have delayed the lead ban until an unspecified future date. As a result, the need for flat pad surfaces, rather than the need to eliminate lead, has become the driving force behind the development of alternative coatings.
   Mr. Tech Dweeb Tech Tip

Cost comparisons of various coating options are difficult since two of the metals (gold and silver) are sold by the troy ounce. However, for a typical board with approximately 15 percent exposed soldering surfaces the following table provides a good comparison, using HASL as the baseline.

Coating Cost Factor
HASL
1.00
ENIG
2.00
Silver
1.36
Immersion tin
1.30
Organic surface protectant
1.05
 
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Using AOI To Improve Quality and Yield
 

 The process of attaching surface mount components entails a series of mechanical (solder stenciling and component placement) and metallurgical (solder fusion) operations. Consequently, it is possible for components to be misaligned or missing upon completion of the process. While good process control can reduce the incidence of these problems, some form of inspection is still required. In a high-mix manufacturing environment, the availability of good statistical data is limited since the entire output for a particular circuit board often is assembled in one lot. Therefore, the use of Automated Optical Inspection (AOI) systems is a very efficient way to supplement process control and improve quality levels.
The advantages of AOI systems include:
  AOI systems can identify process problems resulting in missing and misplaced components. AOI Systems are ideally suited for inspecting passive components (1206, 0805, 0603, and 0402 package types), which generally have the highest defect rate. Use of an AOI system to inspect such components can improve first-pass yields by 20 to 25 percent.
  AOI systems can point out equipment problems such as misaligned or insufficient board supports and bent nozzles. AOI data can reveal patterns of problems that can be traced to particular pick-and-place machines, indicating maintenance needs.
  AOI data indicate areas for process improvement. For example, based on measurement information obtained from an AOI system, pick-and-place machines can be recalibrated to bring component placements closer to computer-aided design (CAD) data.
  Use of AOI systems can result in process enhancements that reduce the time circuit boards spend in inspection and minimize the volume of product requiring repair. Using component failure information obtained from an AOI system, operators can more quickly track missing parts, offset errors and polarity defects. Also, if quality levels drop below a prescribed percentage or if multiple errors of the same type are found on consecutive boards, the manufacturing process can be halted immediately and corrective action taken.
  AOI data can be used to establish a capability baseline for the process. A typical baseline is defined by determining the X, Y, and Z (theta) movement after reflow for: 1206, 0805, 0603, and 0402 passive components; 50 mil pitch small outline integrated circuits (SOICs); and 20 mil pitch quad flat packs (QFPs). These package types can then be placed on a test capability outline board (48 are required for a full DOE) and inspected to create a capability baseline.
   Mr. Tech Dweeb Tech Tip
The acronym “DOE” is often used in place of Design of Experiments. DOE is a structured methodology for establishing process variability and capability by tabulating the data from successive passes through the process. Engineers use this data to determine whether the process can meet the customer’s requirements.
Selecting the AOI System Right for You
When choosing an automated optical inspection (AOI) system, it is important to first define and understand your company’s manufacturing process needs. The system that you select should help to identify deficiencies in your process and result in improved product quality. It is best to begin with a survey of your current process. Focus on determining the most common types of component placement defects resulting from your process. When comparing AOI systems, evaluate which system has the imaging technology and features best suited to identify and remedy problems with your company’s manufacturing process.
Implementation of an AOI system should focus on:
  improving assembly line process control,
  ensuring high first pass yields and
  establishing measurable benchmarks across all assembly lines.

The level of inspection accuracy and repeatability provided by the AOI system must be suited to your manufacturing process. Inspection accuracy for resistor and capacitor chips is usually not as critical as for leaded devices, and different systems offer different capabilities in this regard. For example, some systems attempt to identify defects based on the use of a “golden board.” These systems compare the circuit board that is being inspected to the “golden board” and identify all differences, regardless of whether the differences represent real defects or just harmless variations. In contrast, AOI systems that provide position measurement data offer superior defect detection and process control for component placement. In addition, it is easier to verify that the performance of these AOI machines meets industry measurement standards (i.e., IPC-A-610c and J Standard 001).

A critical aspect of any inspection system is its robustness. Designs often have 500 or more components per board side. If the inspection process results in too many false calls, line operators will have to re-check the results too often and will quickly lose confidence in the accuracy of the results. Poor robustness in the inspection of component placement is often caused by cosmetic variations in the board or its components. An AOI system that is sensitive to changes in the color or finish of a circuit board, or that relies too heavily on special lighting techniques, may have problems with variations in the board finish, lighting, and board or component color.
False calls include defects identified as good placements and good placements identified as defects.

At a minimum, an AOI system should measure the position of each component along its X, Y and theta dimensions, and should check that the component’s polarity is correct. Actual component positions should be compared to computer-aided design (CAD) data to see whether each component position is within acceptable tolerances. Components positioned outside of tolerances should be identified and the measurements should be used to update statistical process control (SPC) charts.

Inspection Technology
There are two main types of technology for performing automated optical inspection (AOI) for component placement:
  camera-based systems and
  laser-based systems.
Most systems use either gray-scale or color charge-coupled device (CCD) cameras. The cameras collect images of the circuit board, and the images are analyzed to determine whether there are any defects in each area of the board. Camera-based systems can be very fast, but because they rely on the brightness of light reflected from the board, they can be sensitive to changes in lighting conditions and materials. Most systems that rely on cameras for image collection have a programmable lighting feature for creating optimal images of each site or component. However, as board complexity increases, problems with lighting contrast or shadowing may arise. As images become more complex, the image processing becomes more difficult and inspection cycle times can drop.
Laser-based inspection systems for component placement use a laser scanner to create a 3-D image of the circuit board. This 3-D image is based on the height of the board surface and its components, and is much less sensitive to changes in component color. Laser scanning systems also can create a 2-D gray-scale image, similar to the image from a CCD camera. This image can be used to identify objects where there is little height contrast, such as board fiducials, and to detect component leads in solder paste. Laser scanning provides accurate position measurements of components, resulting in fewer false calls and the type of information needed for optimal process control.
   Mr. Tech Dweeb Tech Tip
dsi uses AOI to inspect all SMT assemblies. On a typical day over 250,000 components are scanned for acceptance.
 
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Certifications:  FDA Registration
 

 
Medical device manufacturing represents approximately 30% of dsi’s revenue and is one of five industry segments in which we operate. (Automotive, Telecom, Military/Aerospace, and General Industrial are the others.) dsi maintains the audited certifications for every industry segment in which we participate. According to the IPC, dsi is the only member holding all major quality certifications.
All medical device manufacturing companies (including contractors) are required by the Food and Drug Administration (FDA) to maintain a quality system that complies with its Current Good Manufacturing Practice (CGMP). These requirements govern the methods and controls used in the design, manufacture, packaging, labeling, storage, and shipment of all medical devices intended for human use. Their purpose is to ensure that these devices will be safe, effective, and in compliance with the Federal Food, Drug, and Cosmetic Act as appropriate.
Medical device manufacturing companies are required to renew their registration on a yearly basis. The registration renewal process may involve an unannounced audit by FDA inspectors. The FDA audit includes verification of CGMP compliance regarding document control, production and process control, identification and traceability, purchasing control, inspection, corrective and preventive action, labeling and packaging control, nonconforming product control and other aspects of production. Compliance with these comprehensive requirements promotes consistency in quality, safety and efficacy of medical devices.
Through its strong commitment to quality, dsi ’s management ensures the corporate-wide implementation of these rigorous regulations. As part of our ongoing effort to maintain the highest levels of customer satisfaction and to meet our business goals, dsi renews its registration annually, guaranteeing uninterrupted service to the medical device industry. Our most recent registration renewal from the FDA covers dsi through the year 2003.
 
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Don’t Just Hunker in the Bunker!
 

 
Stanley Bentley,
President of
dsi

During my travels over the past several months, I have been asked many times what I think is happening in our industry and what will occur in the fourth quarter. On an intellectual level, I think everyone knows that if I (or anyone) had such insight, we wouldn’t be out calling on customers. However, it is certainly nice to be asked!

What I have discovered in my travels is that overall business levels are OK, margins stink, and very few people are willing to make major capital investments or take any risks. We have gone from the Dot Com euphoria to an almost Depression Era mindset.

Most certainly, to err on the side of caution is prudent. However, if you take no risk, you can’t expect to reap much reward. You will simply mark time. Our economy is driven by investment and risk, so marking time also stalls our economy. I wouldn’t presume to tell anyone how to run their business since they alone must live with the consequences of their decisions. (Consultants, however, are seldom burdened with conscience.) I can tell people what dsi is doing and what strategy we are employing.

We have the fortunate circumstance of being profitable and having a positive cash flow. (Before Enron, profitability implied positive cash flow.) Investment accounts aren’t paying even enough to keep up with inflation, so cash accumulation beyond that needed for working capital represents a lost opportunity. Everything is on sale right now, from stocks to capital equipment. Consequently, dsi is using cash to make strategic investments that will improve our technology, our efficiency, and our speed. We may get a corollary increase in capacity, but that isn’t a primary objective of our investments. We are taking this opportunity to upgrade our processes, our equipment, our systems, and our training.

We have funded a revamped website with a secure customer log-in feature for access to information about the status of orders. Our secure website also provides design tools to help our customers’ engineers with technology decisions by allowing them to cost out various design options. We are implementing new front-end software for change management, material sourcing, planning/scheduling, and enterprise resource planning (ERP).

We also have upgraded our testing capabilities and are now offering flying probe testing for rapid-turn assemblies. We have added an automated alternative finishes line for gold, silver and tin. Manufacturing has been charged (and funded) with the responsibility of accelerating our technology roadmap. Project management has been tasked with enhancing our ability to absorb new high-mix customers. Quality has reviewed all of our certifications for compliance with the new standards, and has even submitted for Ford Q1.

Although we haven’t added debt, we have used our resources to position dsi to rapidly respond should there be a significant up-turn in the economy or to profitably deliver the services needed by our customers should the economy continue to run in “low gear.” We don’t believe that the need for technology will decrease in either case. New product development and introduction is the engine that drives consumption. Even though I’m an engineer rather than an economist by training, even I know that consumption drives investment. Although I can’t predict the timing or the shape of the recovery, I do know that those who have the infrastructure in place to rapidly respond will benefit the most. So, don’t just hunker in the bunker; get out and kick some butt!

Stanley L. Bentley

 
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diversified systems
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