Best Practices for Responsible, Efficient Technologies When Outsourcing Design and Manufacturing
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The document discusses the evolving best practices for responsible and efficient technologies in the electronics industry, particularly in the context of outsourcing design and manufacturing. It highlights the increasing demand from customers and governments for sustainability and eco-design, emphasizing the importance of collaboration between OEMs and ODMS. The document also outlines strategic recommendations for training, partnerships, and technology implementations to enhance eco-design efforts.
Best Practices for Responsible, Efficient Technologies When Outsourcing Design and Manufacturing
- 1. By Pamela J. Gordon For SMTA Silicon Valley Expo & Tech Forum November 29, 2017 Best Practices for Responsible, Efficient Technologies When Outsourcing Design and Manufacturing
- 2. The electronics industry has been outsourcing manufacturing for decades. And we’ve always been technology leaders. So what has changed? What Has Changed? BEST PRACTICES FOR RESPONSIBLE, EFFICIENT TECHNOLOGIES WHEN OUTSOURCING DESIGN AND MANUFACTURING 1Antea USA, Inc.
- 3. 2Antea USA, Inc. What Has Changed? Best Practices Responsible, Efficient Technologies
- 4. Customers and Governments Demand New Levels of Responsibility WHAT HAS CHANGED, #1 3Antea USA, Inc. Circular Economy Restricted Materials Extended Producer Responsibility Packaging Directives Power Efficiency Zero Waste to Landfill No Export of Waste Fair Labor Practices Eco Design Each affects product design
- 5. OEMs More Often Outsource Design (in addition to manufacturing) WHAT HAS CHANGED, #2 4Antea USA, Inc. OEM Product Concept OEM Design Team OEM Supply Chain Organization Contract Manufacturer Customers Customers determine post- use destination Outsource Manufacturing with In-House Design OEM Selects ODM and Product Platform Design Modifications (if any) with ODM ODM Manufacturers Product Customers Outsource Design and Manufacturing Customers determine post- use destination
- 6. Responsible, Efficient Technologies Fall to the ODM OEMs MORE OFTEN OUTSOURCE DESIGN (IN ADDITION TO MANUFACTURING) 5Antea USA, Inc. OEM Product Concept OEM Design Team OEM Supply Chain Organization Contract Manufacturer Customers Customers determine post- use destination Outsource Manufacturing with In-House Design OEM Selects ODM and Product Platform Design Modifications with ODM ODM Manufacturers Product Customers Outsource Design and Manufacturing Responsible and Efficient Design ODMs Use Different Priorities for Responsible and Efficient Design Customers determine post- use destination
- 7. What Underlies the Different Priorities ODMs USE DIFFERENT PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN 6Antea USA, Inc. Brand Promote, protect Typically less visible Product Stewardship Resources More ability to invest Lower margins hinder investment Training and Tools Eco-Design training, Life Cycle Assessments (LCA) Rare to offer Eco-Design training or conduct LCAs Found through efficient designs and take-back Cost Savings Found through economies of scale Corporate and consumer customers, investors, NGOs, Board of Directors, regulators Stakeholders’ Demands Fewer demanding stakeholders DirectRegulatory Responsibility and Repercussions Indirect Factors Affecting Degree of Responsibility and Efficiency in Designs ODMsOEMs
- 8. What Underlies the Different Priorities ODMs USE DIFFERENT PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN 7Antea USA, Inc. Brand Promote, protect Typically less visible Product Stewardship Resources More ability to invest Lower margins hinder investment Training and Tools Eco-Design training, Life Cycle Assessments (LCA) Rare to offer Eco-Design training or conduct LCAs Found through efficient designs and take-back Cost Savings Found through economies of scale Corporate and consumer customers, investors, NGOs, Board of Directors, regulators Stakeholders’ Demands Fewer demanding stakeholders DirectRegulatory Responsibility and Repercussions Indirect Factors Affecting Degree of Responsibility and Efficiency in Designs ODMsOEMs OEMS that had internally prioritized Responsible and Efficient Design miss communicating Eco-Design priorities to ODM
- 9. Impacts to Business, Society, and Environment THE GAP BETWEEN OEMs AND ODMs PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN 8Antea USA, Inc. BUSINESS SOCIETY ENVIRONMENT Surprise to internal and external stakeholders Design jobs reduced or moved Less visibility to suppliers design gates Slowed momentum or slippage in Eco-Design advances, interrupted LCA measurements “Our executives made a business decision to use an ODM’s design. Suddenly all of our Eco-Design improvements dropped out of our products.” –Silicon Valley Product Compliance Leader
- 10. 9Antea USA, Inc. What Has Changed? Best Practices Responsible, Efficient Technologies
- 11. Selection and Priorities BEST PRACTICES 10Antea USA, Inc. • Choose ODMs with leadership-level designs for responsibility and efficiency • Consider ODMs used by the OEMs leading the industry in responsible, efficient technologies • OEMs’ design requirements for responsible, efficient designs is an A priority
- 12. Training and Tools BEST PRACTICES 11Antea USA, Inc. • Train or require training in Eco-Design • Provide or approve an Eco-Design Scorecard • Provide or require Life Cycle Assessment Tools Photos by Michael Kirschner
- 13. Partnerships and Assessments BEST PRACTICES 12Antea USA, Inc. • Set reductions for CO2 emissions in some or all of the 5 life cycle stages, based on LCA • Add assessment of responsible, efficient technologies in all QBRs • Reward innovation
- 14. 13Antea USA, Inc. What Has Changed? Best Practices Responsible, Efficient Technologies
- 15. Technology Examples 14Antea USA, Inc. Energy Efficiency, Power Grid Modernization Smaller, energy efficient, lighter, reduced need for cooling power devices Opcondys’ Opticondistor (OTV) power switching device Zero Waste to Landfill Water-soluble silicon Prompts for Responsible and Efficient Designs CompaniesDesigns Aging Infrastructure Additive technology approach to paving roads Advanced Paving Technologies Inc. Still in research (Univ. of Illinois and Tufts) RESPONSIBLE, EFFICIENT TECHNOLOGIES
- 16. Technology Examples 15Antea USA, Inc. Restriction Against Exporting Waste Materials in demand as feedstock for local business Celestica (Ontario): compost from cafeteria to local pig farmer Fair Labor Practices Codes of Conduct (RBA) plus Automation Apple robotics; Jabil 3D printing and robotics Prompts for Responsible and Efficient Designs CompaniesDesigns RESPONSIBLE, EFFICIENT TECHNOLOGIES
- 17. Technology Examples 16Antea USA, Inc. Power Supply, Energy Efficiency Portable, high electronic efficiency Pikip Solar Speakers: 100% solar powered “Road to Zero” Goal Use of recycled plastics Prompts for Responsible and Efficient Designs CompaniesDesigns Sony speaker boxes & sound bars use <71% recycled plastics Electric Car Batteries Graphene-based batteries Graphenano graphene-polymer car battery: 500 mile range RESPONSIBLE, EFFICIENT TECHNOLOGIES
- 18. 17Antea USA, Inc. What Has Changed? Best Practices Responsible, Efficient Technologies What will you do tomorrow for Eco-Design? THANK YOU!
- 19. BET TER BUSINESS, BET TER WORL D℠ Antea Grou p Office Silicon Valley 1155 North First Street Suite 201 San Jose, California 95112, USA Pamela J. Gord on Senior Consultant +1 (510) 406-9460 Pamela.Gordon@anteagroup.com