getting stuff mass produced

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Getting Stuff Mass ProducedElaine ChenMarch 2017

Stuff I’ve helped people make

Product Development ProcessHT Harald Quintus-Bosz

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From Concept To Mass Production

http://hardwareproduct.info

A Story from the field: The Zeemote ($6.50 FOB HK)

Magic?

MagicTons and tons of detailed work

Let’s demystify this

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Beyond engineering design

• Alphabet soup: EV, DV, PV, MP, RTM• Sourcing prototype parts• Sourcing mass produced finished goods• Calculating Cost of Goods Sold (COGS)• Selecting a contract manufacturer (CM)• Cash flow management

EV: Engineering Validation

EVT: Engineering Validation Test

RTM: Release to Manufacturing

DV: Design Validation

DVT: Design Validation Test

PV: Process Validation

PVT: Process Validation Test

MP: Mass Production

1. Who builds it?2. How are the parts made?3. How many units typically?


EV: 1. Your engineers2. Prototyping

processes3. <20



processes3. <20

DV: 1. CM builds it2. Mixture of processes3. <20



processes3. <20


PV: 1. CM builds it2. Production

processes3. <50



processes3. <20


PV: 1. CM builds it2. Production

processes3. <50

MP: 1. CM builds it2. Production

processes3. Weekly run rate

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Sourcing prototype parts

Mechanical§ SLA/SLS (5-10)§ 3d Printing (various processes) (5-10)§ Urethane casting (for 50+ parts)

Electrical§ Perf boards for prototyping§ Prototype 2 layer custom form boards

(PCBA)§ Hand soldered cables / hand crimped

connectors

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Sourcing mass produced finished goods

COTSpartssuppliers Custompartssuppliers

Offtheshelfmechanical

parts

Offtheshelfelectricalparts

Customplasticparts

CustomMetalParts

Finalassembly

Actuatorsandsensors

Fasteners

…

Criticalcomponents(e.g.

Microprocessors,radios,etc)

Commodity

…

Injectionmolded

Cast

Thermoformed

…

CNC

Sheetmetal

Diecast

Investmentcast

Sandcast

…

Inhousemfg

Contractmfg

…

Packaging

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Zeemote, again

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COTS parts: Critical Components

• Combination Microprocessor and Bluetooth radio IC ($1.5 at 100k/y volume)

• 2-axis gimbal joystick (2 suppliers)

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COTS parts: Commodity components

• Caps, inductors, resistors, tact switches (3), LEDs, battery contacts – all go into a custom Printed Circuit Board Assembly (PCBA)

• Fasteners

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Custom parts: Mechanical

• Injection molded housing• Clamshell

enclosure • Button

actuators• Gimbal joystick

cover• Battery door

with snap feature

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Custom parts: Electronics

• Custom PCBAs (2)• Cable harneses

with connectors

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Custom parts: Packaging

• Structural components for shock absorbance

• Printed and coated box with branding and product art

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Zeemote supply chain

COTS parts suppliers

Custom parts

suppliers

Final assembly

Various COTs suppliers

Injection molding supplier (China)

PCBA supplier (China)

Cable harness supplier (China)

Third Party Logistics

(3PL)

Packaging

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This one is more complex – but the same principles still apply

Apply common sense

<0.25lb$6.50FOBHK

Zeemote

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Calculating COGS (Cost Of Goods Sold)

BOMCost LaborStandard

TestStandard

Cost of all components for a given lot size

$ / hour X

# hours

$$ / hour X

# hours

+ + X Profit = COGS

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Calculating COGS (Cost Of Goods Sold)

BOMCost LaborStandard

TestStandard

Cost of all components for a given lot size

$ / hour X

# hours

$$ / hour X

# hours

+ + X Profit = COGS

Beware “MOQ” (Minimum Order Quantity”)

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Selecting a contract manufacturer

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This story is about setting up mass production in China

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Step 1: Partner with a sourcing specialist who has great relationships with CMs in China

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Step 2: Fly to Asia (This picture is at a night market in Taiwan)

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Step 3: Go on a road show to visit CM’s

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Step 4: Administer a competitive RFP / RFQ process where you ask multiple CMs to propose how they might work with you

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Step 5. Analyze responses, follow up calls

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Step 6: Pick the best partner

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Kickoff


Step 7: Kickoff (what is wrong with this picture?)

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KickoffLetterofintent


Step 8: Schedule pressure sometimes makes you do things out of order…

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KickoffLetterofintent

CMcontract


Step 9: Nail down terms, IP, exclusivity etcASAP

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Cash flow management

$$$ For components

$$$ tied up in inventory

$$$ For tooling

$$$ CM

$$$ stuck on a boat

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$$$ For components


$$$ For components

$$$ CM

$$$ stuck on a boat

The $450,000 call


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$$$ For components


$$$ For components

$$$ CM

$$$ stuck on a boat

The $450,000 call


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Cash

=

Oxygen

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Any questions?

Thank you

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@chenelaine blog.conceptspring.com

getting stuff mass produced

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