1. MPE-EM Workshop Purchasing strategy for electronic modules
Betty Magnin

2. 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

3. 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

4. 2015 REG FGC production

5. 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

6. 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

7. 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

8. 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,..

9. 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.

10. 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.

11. 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

12. Purchasing of assemblies
Selection Matrix

13. Purchasing of assemblies
PO by member state over the period –
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.

14. 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

15. Questions?