By Pamela J. Gordon

For SMTA Silicon Valley Expo & Tech Forum

November 29, 2017

Best Practices for Responsible, Efficient Technologies When Outsourcing Design and Manufacturing

The electronics industryhas been outsourcingmanufacturing for decades.

And we’ve always beentechnology leaders.

So what has changed?

What Has Changed?BEST PRACTICES FOR RESPONSIBLE, EFFICIENT TECHNOLOGIES WHEN OUTSOURCING DESIGN AND MANUFACTURING

1Antea USA, Inc.

2Antea USA, Inc.

What Has Changed?

Best Practices

Responsible, Efficient Technologies

Customers and Governments Demand New Levels of Responsibility

WHAT HAS CHANGED, #1

3Antea USA, Inc.

Circular Economy

Restricted Materials

Extended Producer

Responsibility

Packaging Directives

Power Efficiency

Zero Waste to Landfill

No Export of Waste

Fair Labor Practices

Eco Design

Each affects product design

OEMs More Often Outsource Design(in addition to manufacturing)

WHAT HAS CHANGED, #2

4Antea USA, Inc.

OEM Product Concept

OEM Design TeamOEM Supply

Chain Organization

Contract Manufacturer

CustomersCustomers

determine post-use destination

Outsource Manufacturing with In-House Design

OEM Selects ODM and Product

Platform

Design Modifications (if any) with ODM

ODM Manufacturers

ProductCustomers

Outsource Design and Manufacturing

Customers determine post-use destination

Responsible, Efficient Technologies Fall to the ODMOEMs MORE OFTEN OUTSOURCE DESIGN (IN ADDITION TO MANUFACTURING)

5Antea USA, Inc.

OEM Product Concept

OEM Design TeamOEM Supply

Chain Organization

Contract Manufacturer

CustomersCustomers

determine post-use destination

Outsource Manufacturing with In-House Design

OEM Selects ODM and Product

Platform

Design Modifications

with ODM

ODM Manufacturers

ProductCustomers

Outsource Design and Manufacturing

Responsible and Efficient Design

ODMs Use Different Priorities for Responsible and Efficient Design

Customers determine post-use destination

What Underlies the Different PrioritiesODMs USE DIFFERENT PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN

6Antea USA, Inc.

Brand Promote, protect Typically less visible

Product Stewardship Resources More ability to invest Lower margins hinder investment

Training and ToolsEco-Design training, Life CycleAssessments (LCA)

Rare to offer Eco-Design training orconduct LCAs

Found through efficient designs andtake-back

Cost Savings Found through economies of scale

Corporate and consumer customers,investors, NGOs, Board of Directors,regulators

Stakeholders’ Demands Fewer demanding stakeholders

DirectRegulatory Responsibility andRepercussions

Indirect

Factors Affecting Degree of Responsibility and Efficiency in Designs

ODMsOEMs

What Underlies the Different PrioritiesODMs USE DIFFERENT PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN

7Antea USA, Inc.

Brand Promote, protect Typically less visible

Product Stewardship Resources More ability to invest Lower margins hinder investment

Training and ToolsEco-Design training, Life CycleAssessments (LCA)

Rare to offer Eco-Design training orconduct LCAs

Found through efficient designs andtake-back

Cost Savings Found through economies of scale

Corporate and consumer customers,investors, NGOs, Board of Directors,regulators

Stakeholders’ Demands Fewer demanding stakeholders

DirectRegulatory Responsibility andRepercussions

Indirect

Factors Affecting Degree of Responsibility and Efficiency in Designs

ODMsOEMs

OEMS that had internally prioritized Responsible and Efficient Designmiss communicating Eco-Design priorities to ODM

Impacts to Business, Society, and EnvironmentTHE GAP BETWEEN OEMs AND ODMs PRIORITIES FOR RESPONSIBLE AND EFFICIENT DESIGN

8Antea USA, Inc.

BUSINESS SOCIETY ENVIRONMENT

Surprise to internal andexternal stakeholders

Design jobs reduced or moved

Less visibility to suppliersdesign gates

Slowed momentum orslippage in Eco-Design

advances, interrupted LCAmeasurements

“Our executives made a business decision to use an ODM’s design. Suddenly all of our Eco-Design improvements dropped out of our products.”

–Silicon Valley Product Compliance Leader

9Antea USA, Inc.

What Has Changed?

Best Practices

Responsible, Efficient Technologies

Selection and PrioritiesBEST PRACTICES

10Antea USA, Inc.

• Choose ODMs with leadership-level designs for responsibility and efficiency

• Consider ODMs used by the OEMs leading the industry in responsible, efficient technologies

• OEMs’ design requirements for responsible, efficient designs is an A priority

Training and ToolsBEST PRACTICES

11Antea USA, Inc.

• Train or require training in Eco-Design

• Provide or approve an Eco-Design Scorecard

• Provide or require Life Cycle Assessment Tools

Photos by Michael Kirschner

Partnerships and AssessmentsBEST PRACTICES

12Antea USA, Inc.

• Set reductions for CO2 emissions in some or all of the 5 life cycle stages, based on LCA

• Add assessment of responsible, efficient technologies in all QBRs

• Reward innovation

13Antea USA, Inc.

What Has Changed?

Best Practices

Responsible, Efficient Technologies

Technology Examples

14Antea USA, Inc.

Energy Efficiency, Power Grid Modernization

Smaller, energy efficient, lighter, reduced need for cooling power devices

Opcondys’ Opticondistor (OTV) power switching device

Zero Waste to Landfill Water-soluble silicon

Prompts for Responsible andEfficient Designs

CompaniesDesigns

Aging Infrastructure Additive technology approach to paving roads

Advanced Paving Technologies Inc.

Still in research (Univ. of Illinois and Tufts)

RESPONSIBLE, EFFICIENT TECHNOLOGIES

Technology Examples

15Antea USA, Inc.

Restriction Against Exporting Waste

Materials in demand as feedstock for local business

Celestica (Ontario): compost from cafeteria to local pig farmer

Fair Labor Practices Codes of Conduct (RBA) plus Automation

Apple robotics; Jabil 3D printing and robotics

Prompts for Responsible andEfficient Designs

CompaniesDesigns

RESPONSIBLE, EFFICIENT TECHNOLOGIES

Technology Examples

16Antea USA, Inc.

Power Supply, Energy Efficiency

Portable, high electronic efficiency

Pikip Solar Speakers: 100% solar powered

“Road to Zero” Goal Use of recycled plastics

Prompts for Responsible andEfficient Designs

CompaniesDesigns

Sony speaker boxes & sound bars use <71% recycled plastics

Electric Car Batteries Graphene-based batteries Graphenano graphene-polymer car battery: 500 mile range

RESPONSIBLE, EFFICIENT TECHNOLOGIES

17Antea USA, Inc.

What Has Changed?

Best Practices

Responsible, Efficient Technologies

What will you do tomorrow for Eco-Design?

THANK YOU!

B E T T E R B U S I N E S S , B E T T E R W O R L D℠

A n t e a G r o u p O f f i c eS i l i c o n Va l l e y

1155 North First StreetSuite 201San Jose, California 95112, USA

P a m e l a J . G o r d o n

Senior Consultant+1 (510) 406-9460Pamela.Gordon@anteagroup.com