Description

Altech UEC South Africa’s digital satellite decoder First-Time Pass Rate came under
threat due to the commodification of the digital satellite television decoders that has driven
Altech’s design and manufacturing business into a space where having proprietary
Intellectual Property no longer differentiates itself from the competitors. Altech, previously
a world leader in the digital satellite decoder arena, now faces the reality of losing market
share due to cheaper imported Chinese satellite decoders. In order for Altech to retain and
grow its customer base, they adopted a Joint Development and Manufacturing strategy by
partnering with larger Chinese Set Top Box developers, gaining access to the faster
Chinese product development cycle and cheaper component supply chain. A negative
aspect of the partnership was a reduction in the First-Time Pass Rates of the electronic
assembly, specifically related to the central processor units Ball Grid Array solder joint
connectivity to the printed circuit board.
The DSD 4136 decoder model, which was developed through the Joint Development and
Manufacture partnership, was evaluated in order to determine if there is a geometrical
variance between Ball Grid Array’s Solder Mask and non-Solder Mask defined pads. A
geometric variance was identified and in order to determine the effect it has on the First-
Time Pass Rate, sample printed circuit boards, whose Ball Grid Array Solder Mask defined
pads were adjusted to have the same geometric attributes as the non-Solder Mask defined
pads were developed. Prior to the surface mount assembly process, the blank sample DSD
4136 printed circuit boards were chronologically stacked amongst the blank reference DSD
4136 printed circuit boards in order to ensure that both sample and reference printed circuit
boards are assembled under the same surface mount technology parameters.
Both sample and reference printed circuit board assemblies were tested for full
functionality using the standard Altech UEC South Africa test fixtures. The reference DSD
4136 batch produced a two percent failure that was attributed to a Solder Mask defined
Ball Grid Array solder pad. The sample DSD 4136 batch produced zero defects where all
the sample assemblies passed. The findings have identified that Solder Mask defined Ball
Grid Array pads are more likely to produce defective solder joints which will require
human intervention in order to repair the assembly. The cost of the repair includes not only
the labour cost, but also a second central processor unit and a percentage of failed units
that will be scrapped due to irreparable printed circuit board damage caused during the
repair process.
By entering into a Joint Development and Manufacture venture with a Chinese partner,
Altech UEC South Africa has gained time to market and a competitively priced bill of
material. It has however also created a platform on which Chinese manufacturing
methodologies of not viewing in-process defects act as a negative cost driver to enter its
South African manufacturing plant whose product margins are highly sensitive to in process defects. In order to create a successful Joint Development and Manufacture
Chinese partnership, it is recommended to enter into an inclusivity programme where all
the Altech UEC South Africa stakeholders are identified. These stakeholders are then
introduced to the systemic failure, its effect on the business and ability to honour the
shareholders Return on Investment. The required outcome of the inclusivity programme is
a team that has an overall holistic understanding of the product manufacturing
requirements, the adverse financial long-term impact on the business and the local
community that provides the labour force to the Altech UEC South Africa high volume
manufacturing plant.