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TECHNICAL ARTICLE

Originally Printed in the June 2002 Issue of SMT Magazine
 

SMT PERSPECTIVES COLUMN

The industry has seen an emergence of alliances and partnerships among vendors with varied products and core competencies. Recent vendor alliances and partnerships have evolved beyond reseller agreements, offering the
customer a singular solution with greater capability and value than the mere sum of its parts.

As with most industry trends, customer demand drives change. Electronics assembly equipment technology is maturing, but market conditions continue demanding greater productivity and value from each investment made within the factory. Productivity improvements are not made as easily with investments in new machine technology as they once were. Customers are turning to their suppliers for improved capability, connectivity and information management among existing factory assets; however, they also want the entire solution unified and simplified. Industry vendors have recognized this customer demand and built the concepts for these alliances upon business, technical and market premises.

Perhaps the greatest value of an alliance comes from multiple vendors focusing on their core competencies and delivering an overall solution constructed of high-value components. In the past, vendors would attempt to engineer, market and install multiple machine types as well as proprietary software systems. Unfortunately, the scope of this effort simply is too great, and the result was a collection of offerings that often were less than best-in-class. Another method was to collect systems from multiple vendors perceived as best-in-class, put them together and sell them as a unified solution. This method sometimes failed because, in the absence of a close technical and deployment relationship between the companies, the offering was not truly integrated. However, closely aligned vendors, each working on the technology in which they are best qualified, have the highest potential to deliver a fully integrated solution in which each component is truly best-in-class.

Technical issues also have driven the formation of vendor alliances. The productivity improvements and full integration of varied systems into one solution largely involves software connectivity. To this end, software vendors having the capability and breadth of product to handle this information management have become major participants in alliances. These vendors are tasked with delivering visibility and optimum connectivity not only within the line but also to the factory and manufacturing enterprise.

Alliances offer business advantages for vendors as well as customers. Simplified sales, procurement, deployment and even daily system use are possible in a truly integrated solution.

INTEGRATED SOLUTION BENEFITS
For the first time, the customer is afforded a coherent manufacturing solution rather than a collection of technology components to solve the process, capacity or other problems facing their business. Rather than purchasing individual, disconnected systems to solve point problems, the customer now can procure a single solution with a defined capability.

These solutions also leverage information more effectively than in the past. The customer is no longer burdened with several machine-specific software solutions for programming, monitoring, etc. Information management from integrated solutions extends up to the ERP level, through operations and management, and out to the production floor and into the machinery. This vertical integration from a management visibility level, to the process engineering office, and into the line is possible when the machinery and the software are communicating on a platform created in a multi-vendor environment. The customer can leverage the information to make the lines, factory office operations and management more productive.

Customers also are afforded key business advantages through selecting integrated offerings from multiple aligned vendors. These offerings introduce the concept of plug-and-play capability. Rather than selecting individual machines and software systems to solve point problems and inferring the combined affect on productivity, the customer now selects one solution that is essentially a "product engine." A single line and software offering with specifically defined capability. Procurement, deployment and daily use of this line are simplified as compared to assembling individual products to deliver similar capability. When more capability is required, an additional line is simply "plugged in" to the factory. The capacity is increased and the information connectivity extends to the new line and communicates with the factory information backbone. Enter the easily scalable manufacturing environment.

At the user level, integrated solutions from aligned vendors can even help training and quality. Operators learn a single user interface convention, and have access to information across all machinery to enable them to do their jobs more efficiently. It is only through close cooperation among machine and software vendors that this is possible.

CONCLUSION
The concept of truly integrated offerings from multiple aligned vendors is relatively new. Eventually, as these offerings are adopted in the market, customers will decide the future of the concept. If the simplicity and connectivity gains of such solutions truly deliver the increased productivity the market demands, the industry should see a continuation of this trend toward more vendor alliances and partnerships.
 

Author Information:
Jason Spera, Chief Executive Officer
Aegis Industrial Software Corporation
220 Gibraltar Road, Suite 100
Horsham, PA 19044