Dan,
 
Thank you for the nourishing additional mental morsels!  I agree with all you say and we are doing much of this.  Where I hadn't 'gelled' my position was with regard to the last point:
 
At what point/product type/product complexity does expecting the supplier to
provide 100% good parts fail or become unreasonable?
"As you might surmise from the previous comments, this is a very complex question with the cost of detecting defective material and the cost of shipping defective material becoming part of the answer.  This means that the answer is individualized for each situation."
I have been working up different scenarios with respect to cost of returns, cost of inspection, acceptable risk, etc.  I appreciate the discussion and "sanity check" it provided me. 
 
My thanks to all who commented on this thread ... including Earl!  Sometimes this list is almost as interesting as my dog list!
Jana Carraway
 
-----Original Message-----
From: TechNet [mailto:[log in to unmask]]On Behalf Of Don Vischulis
Sent: Thursday, January 03, 2002 4:55 PM
To: [log in to unmask]
Subject: Re: [TN] Final Audit/Inspection

Dear Jana,
 
I've been lurking long enough.  Just have to put my 2 cents in.

What if:
you are not in the commercial market, and
there are few companies capable of manufacturing your designs, and
the design specifications are required for the end product, and
it's a specialty product, so it is not IBM or Cisco volumes, hence your
vendor pool is small, and
the supplier has not been able to meet the yields they initially projected
for such designs, and
then on top of all that...it's flex...
Without regard to the board type - if you're trying to work with the supplier (DFM/CE - partnership, etc.), you should sit down with them and determine why the yields are below expectations.  Based on that review there may be several outcomes.  Those outcomes include requests for design changes, supplier process improvements, and/or an acceptance of the lower yields with a possible price concession (if you want them to build more).  It's essential that one is aware of industry wide process capabilities (benchmarking) for that product.  There is competition in the low volume/tight tolerance marketplace as well as the high volume market, and all suppliers do not have identical capabilities.

A design can only be tweaked (real word? spelling?) or DFM'd within the
required technology design limits.  If we designed for 100% yield, we could
not build the products.  I think that's real life for many people.  We
accept, and the manufacturer accepts, that the product yield will be greatly
less than 100%.  Okay, that's life with these products.
This is where the Moonman is coming from with DFM/CE.  The design process is iterative.  That is, you work with your supplier, built a prototype, evaluate the results, and make adjustments.  All parties must work to understand the root causes for any problems.  If a design is pushing the capability envelope, concessions must be made.

So, then we go back to the basic question(s), what is reasonable to expect
at incoming - a)100% good product in the door, b) perform an AQL, c) perform
100% inspection, or d)other...?
From a quality perspective, the answer depends on what the end user finds acceptable.  You can expect 100% good product at the door but somebody has to take steps to ensure that it really is 100% - even 6 sigma quality has a few parts per billion defective.  If you can't accept any defects, sampling inspection is not acceptable.  You must 100% inspect/test the incoming product.  Remember that AQL is the acronym for Acceptable Quality Level - by definition the acceptable percentage of incoming defective product that is acceptable to the production floor.  Formulas exist to estimate the percentage of defective product that the manufacturing floor will see given the percent of defectives shipped from the supplier and the inspection plan used at incoming inspection.

Perhaps something you've been saying has more impact than I realize, as I
think about it - contract negotiations.  If the supplier signs up to meet
design/product criteria and doesn't, my options are:
a)change suppliers,
b)if a is not possible, negotiate incremental improvements with the goal of
meeting the specifications?
IMO one must do one or the other (unless the corporation enjoys suffering).  The process where one determines the best practices available is called benchmarking .  Once the best capabilities available are determined, the choices are living with the status quo, working with the current supplier base to improve capabilities, or changing suppliers.  The caveat is that perfection does not exist - the lowest absolute purchase price (not total cost of ownership) and the most capable process do not often reside within the same walls.  When they do, the world beats a path to their door.

At what point/product type/product complexity does expecting the supplier to
provide 100% good parts fail or become unreasonable?
As you might surmise from the previous comments, this is a very complex question with the cost of detecting defective material and the cost of shipping defective material becoming part of the answer.  This means that the answer is individualized for each situation.
I hope that these additional mental morsels provide nourishment for you.  (Translated - I hope that this gives you some food for thought.)
 
Don Vischulis
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