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Building Diagnostic Technical Repair Capability

by Bryant Underwood, Foxconn

Reverse Logistics Magazine, May/June 2007

When developing RL solutions, the portion of the work that focuses on inventory control and logistics or that provide screening and testing, tend to be processes that are relatively easy to implement, well developed and consistent. For most clients, the scope of their needs extends far beyond these basic services. If you are an RL service provider, at some point in the process, solid depot repair capability will need to be developed internally or found through partnerships.

When I speak with other RL Operations Managers, the number one topic by far is how to setup and configure the technical side of the RL operation that will be performing the component level repair. For many, this becomes so difficult a proposition that in an effort to overcompensate for technical gaps, so much staff and equipment gets loaded into the planning that pricing exceeds market acceptable ranges or the RL vendors just reduce their scope to Level 1 and 2 types of repairs and refurbishment. Let me share some thoughts on how to bring structure and order to solutioning highly technical repair operations and greatly improve the value add you can provide.

In order to bring clarity and structure to addressing depot repair, we need to do some simplifying of the chaos and complexity that exists. Some points to keep in mind as we build our outline are:

With these points in mind, let’s talk about how to structure the toughest part of RL supply chain--Component Level Repair (AKA Level 3 or Level 4 Repair). If you are starting up a Component Level Repair Service from scratch then you need good engineering management resources to help in the screening process to find the right technical staff. If you are not a strong technical manager, do not try to do this yourself. Get someone with a high degree of technical knowledge and experience in this industry. What level of technical knowledge am I speaking to? A typical question that I might ask of a technician candidate during an interview for hire as a Level 3 technician might be, “ why would a totem pole drive configuration be used to control a MOSFET in a switch mode power supply and how would you diagnose a failure in that drive circuit?” If that sentence makes sense to you, your good to go for technician screening interviews.

Now that you know how to find the right technicians, what should the line configuration and mix look like? For most products, there are three categories of staff skills needed for the component level repair portion of an RL Operation:

The reason for this structure is based on the assumption that most products are well designed. This level of solid engineering we see in the marketplace on electronic products tends to produce failures modes that are predictable with a trend that can be documented. The trends even have a high degree of consistency across product lines. The typical Pareto of failures for 5000 units to benchmark a startup operation against can be seen in the following chart.

What you will notice from the chart is how many of the failures really do not require a highly skilled diagnostic technician. This is why the mix of staff with these skills is targeted to just ~20% in the Level 3 production line. Too many of these staff adds unnecessary cost and since they have high skills you need to keep them tasked and busy. Some of the most poisonous work environments I have ever seen are caused by having high skills technical staff with too little work to perform. The Diagnostic Technicians are an absolute requirement, just be sure to get the highest skills and watch your staffing mix to ensure you can keep them busy.

Once you have a reasonably well functioning diagnostic repair operation in place, then you need to be looking at the data. The failure modalities, parts usage, labor minutes per unit; these are all critical metrics that allow you to keep the process in control. Various drivers of the failures WILL CHANGE over time and you must be looking at the data. This is the only way to keep training up to date and keep quality and costs under control. In addition, distilling data into information will ensure you become a critical partner for your client. By forwarding as much of this information as possible upstream, your client will have much better tools for their own business control. Notice, I said information not data. Clients have little need for data. Data just means more work needs to be done--information on the other hand has immediate value and demonstrates a thoughtful purpose and message. This will be treated like gold by your clients. I recall from the last RLTS Conference in Las Vegas, Gailen Vick asked the question of the audience at the keynote address, ‘who here is happy with their IT system?’ Only one person raised their hand. This just further emphasizes the need to collect good data and USE IT to provide closed loop control of the process and to drive actionable information back into your client’s hands.

Reverse Logistics Magazine, May/June 2007


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