Expert Details

Expert in Electronics Outsourcing, Selecting Global Contract Manufacturing Services, Litigation Expert Witness

Expert ID: 728307 Washington, USA

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He performs exacting requirements analysis of our client's product sourcing needs to determine specific equipment and process requirements. He also analyzes materials cost savings potential, engineering support, supply chain management and general business strategy to determine comprehensive contract manufacturer selection criteria. He recommends potential suppliers for evaluation based on his extensive global industry knowledge, supplimented as needed with addtional research and industry networking.

His vendor selection work involves in-depth on-site factory audits and due diligence. He can guide creation of request for quotation (RFQ) for client release, then rating and ranking of potential suppliers evaluated. He can also provide implemenation assistance - organization structure, key processes, phased ramp-up plans and initial execution support.

He has conducted in-depth factory audits of suppliers throughout the US, Mexico, China, Taiwan, Singapore, Malaysia, Thailand and elsewhere in the Far East. This international sourcing work includes dozens of “best in class” sub-tier suppliers of precision metals, plastics, cables, etc. and over 100 contract electronics manufacturing company sites such as Benchmark Electronics, BYD, Celestica, Elcoteq, Foxconn, Fabrinet, Flextronics, Venture, Jabil Electronics, Plexus, Sanmina/SCI, Universal Scientific Industrial and SMTC.

His factory audits focus on areas most important to the outsourcing program's success. These areas typically include rigorous audit of vendor quality controls (e.g. SMT set-ups, reflow profiles, PCB and electronic parts handling), 2nd-tier vendor management practices, engineering services (e.g., thermal & reliability modeling) and logistics (e.g., hubs, VMI).

His due diligence surveys are conducted with customers and sub-tier suppliers to further verify site performance and understand improvement needs. The extent of due diligence is needed depends upon outsourcing scope and complexity. Greater due diligence can be conducted and prepared in report form for individual vendors as requested, which might include corporate insolvency risk analysis, future manufacturing capacity risks, country/location risks and end-to-end supply chain risk assessment.

His supplier risk assessment work has helped major corporations save important transition time and resources by identifying suppliers who may appear strong and growing, but have significant insolvency and/or service level risks. For "at-risk" key suppliers he can guide creation of an escrow account plan to include all the necessary documents and software code to allow for self-sustaining support of product design and production.

His proprietary contract manufacturing cost model is used to reliably estimate costs and fair pricing for client's products from contract electronics manufacturers worldwide. Location-specific labor, occupancy, overhead and other data is collected and verified for purposes of global cost benchmarking from many key electronics manufacturing countries. The model is used to help set search vendor search criteria and assess the reasonableness of vendor proposed prices.

His knowledge of electronic contract manufacturing agreements is founded on over 15 years experience in creating and negotiating dozens of supply contracts for leading technology companies. Besides multiple industry experience, he has good country-specific knowledge of best practices and potential pitfalls from helping clients negotiate contracts with key suppliers throughout the Americas and Asia. During contract negotiation, he can act as a facilitator between the two parties or work behind the scenes in an advisory capacity.

He has helped several legal teams assess “share of burden” and monetary damages in commercial disputes between contract manufacturers and their customers - inventory management, excess inventroy, purchase order cancellation damages, product quality problems and other performance issues. He understands the broad range of common industry practices in supply chain management and best practices in assembly, test and quality control.

He has experience as a designated expert witness in trial cases. His litigation consulting work has included preparing for and giving depositions, opine on expert witness disclosure and answering interrogatory questions. Clients have been both customers and suppliers, typically large corporations involving complex disputes and millions of dollars in claimed damages. For example, he is scheduled to testify at trial in early 2012 in a lawsuit involving analysis of nearly 10,000 pages of depositions and 1,000 exhibits.

He performs in-depth investigation of each supplier, stratification of parts and suppliers for differential actions, price re-negotiation strategies, contingent second sources and migration plan. His typical objective is a minimum 5% in BOM cost savings.

Finding the Right Contract Manufacturer: Requirements analysis, RFQ guidance, in-depth factory audits, financial analysis and other supplier risk assessment work to decide between two major Asian EMS providers for a leading storage products company.

Multi-year contract manufacturing agreement negotiated for favorable pricing, upside flexibility, product engineering support, excess inventory and counterfeit components risk mitigation, co-location of support personnel, etc. Analysis of IBM supplier contract requirements and implications (key customer).

Carrier-class Telecom Equipment: Recommended revised manufacturing strategy and contract manufacturer selection criteria for a leading telecom equipment company. Evaluated 12 advanced SMT sites in the US, Mexico, China and S.E. Asia.  Developed a “first-of-its-kind” analysis of SMT process quality and test capability showing considerable performance differences. Guided the RFQ process, landed cost analysis and recommended a new strategy for significant product cost reduction.

Medical Analytical Equipment: Assessed feasibility of medical contract manufacturing of finished products to low cost countries for a leading medical device company. Helped develop a global sourcing strategy for component parts, including high precision machining, plastics, stampings, metal fabrication, PCB assembly, cables and harnesses, and other custom / semi-custom components. Bench top and floor standing models weighing over 1,000 lb.

Used his global production cost model to estimate offshore material cost and value-add cost. Helped identify “first-cut” medical contract manufacturing options for evaluation. Led factory audits and comprehensive due diligence. Facilitated request for quotation (RFQ) process. Determined total landed costs including new costs. Helped prepare economic financial incentive applications related to medical device contract manufacturing for countries of interest in Asia. Created comprehensive net cash flow model for transition. Identified operating risks for contract manufacturing of assembled and tested finished equipment vs. components and sub-assemblies only.

Recommended sourcing framework and created opportunity matrix to show likely parts for practical global sourcing. Identified most suitable medical device suppliers for high precision, clean room assembly.

Outsourcing Feasibility (make or buy) - Component Stereo Finished Products: Benchmarked client's true internal costs of manufacturing using his proprietary global benchmarking cost model. Conducted factory audit survey of client manufacturing site to assess cost and quality improvement opportunity. Estimated raw material cost savings through outsourcing and "best-BOM" procurement methods. Recommended organization structure that would be required to manage contract manufacturer relations, annual landed cost and transition investment.

Identified $20 million annual outsourcing net landed cost advantage. Recommended potential electronics contract manufacturing sites in Mexico and Asia with relevant, specialized capabilities. While CMC does not always recommend outsourcing in our make or buy analysis, in this case we showed relatively low risk and favorable operating conditions.

Consultant / Expert Witness: He created an innovative “backward-looking” material requirements planning (Expert) model to determine what sub-tier vendor actions a contract manufacturer could have taken for each product component to mitigate excess inventory damages resulting from their customer’s (client) forecast reduction. This claim was settled in line with his recommendation, saving the customer (client) over $6 million in damages claimed by the contract manufacturer.

Other work on this assignment included: study of manufacturing agreements between the parties and order execution documents; research and document chronology of events and communication history; visit to the Asian contractor site to audit survey relevant operating processes.

Expert may consult nationally and internationally, and is also local to the following cities: Seattle, Washington - Tacoma, Washington - Bellevue, Washington - Everett, Washington - Federal Way, Washington - Kent, Washington - Bellingham, Washington - Lakewood, Washington - Renton, Washington

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Year Degree Subject Institution
Year: 1976 Degree: MBA Subject: General Management Institution: Stanford University
Year: 1974 Degree: BS Subject: Industrial Engineering & Operations Research Institution: University of California, Berkeley

Work History

Years Employer Title Department Responsibilities
Years: 1999 to Present Employer: Undisclosed Title: President Department: Responsibilities: Founder, general manager and principle consultant. Consults to leading electronic products companies on key issues related to contract manufacturing. Occasionally serves clients in other industries.
Years: 1996 to 1999 Employer: Solectron Corporation Title: New Business Development Manager Department: Everett Division Responsibilities: Set regional sales strategies and negotiated contracts with key accounts for this division of a major electronic manufacturing services company (since merged with Flextronics). Managed eight program managers who were responsible for ramp-up and maintenance of assigned customer programs. Coordinated multi-regional service needs with Solectron sites internationally.

Career Accomplishments

Associations / Societies
Surface Mount Technology Association
Publications and Patents Summary
He makes technical presentations at industry conferences and is quoted in industry publications on topics related to supply chain management and outsourcing of electronics products. He is an occasional guest speaker at industry association meetings and university seminars.

Fields of Expertise

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