MPE-EM Workshop Purchasing strategy for electronic modules Betty Magnin 16.06.2016

TE-MPE-EM mandate Provide a CERN central service for the layout, industrialization production of electronics modules based on industrial standards Production of prototypes done at CERN Production of series with the industry current thresholds: RQTD/F: <100 A: 2 V, 190 ms, 100 < I < 350 A: 100 mV, 190 ms, above to be reassessed limit number of trips at 7 TeV  give Rainer all necessary freedom

Which purchasing strategy? Case study: 2015 REG FGC production 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

Single entry or kitting? 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? Leadtime reduced: Most of the PO are <5k or <10k Procurement of material can start without delay Direct control on the procurement of critical parts: 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? MPE-EM is currently considering to work with single- entries 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. 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 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,..

2 contracts with PCB suppliers Purchasing of PCB 2 contracts with PCB suppliers MS initiated early in 2014 2 contracts established in July 2014 3 years and 370k€ each.

Purchasing of assemblies 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: Proximity for urgencies, immature products, heavy logistics, small quantities Larger firms for big volumes of mature products.

Purchasing of assemblies 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 Firms looking as adapted to our requirements are highlighted A first quote is requested to verify if their price is acceptable as compared to those from usual suppliers The firm is then audited to verify on-site their technical capabilities A limited panel of firms is qualified to fulfill our purchasing planning. All large orders are discussed with Purchasing Office before inititiating the DO

Purchasing of assemblies Selection Matrix

Purchasing of assemblies 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

Questions?