Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
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METHOD OF ALLOCATING COST SAVINGS
ASSOCIATED WITH A MANUFACTURING PROCESS
BACKGROUND OF THE INVENTION
1. Field of the Invention
The present invention relates to a method of allocating cost savings
associated with a manufacturing process and, more particularly, to a
method of allocating cost savings extracted by a downstream entity to an
upstream entity in the printed circuit board value chain.
2. Description of the Prior Art
A printed circuit board value chain includes a fiber glass yarn
manufacturer which sells fiber glass yarn that includes a starch/oil coating
to a fabric weaver. The fabric weaver applies another coating, referred to
as a slashing sizing, to enhance the abrasion resistance of the fiber glass
yarn. Thereafter, the fabric weaver weaves the fiber glass yarn into a
fabric, removes the starch/oil coating and the slashing sizing and applies a
resin-compatible sizing to the fabric. Thereafter, the fabric weaver sells
the fabric to a laminator who impregnates the fabric with standard and
specialized epoxy resins to form laminate. The laminator sells the
laminate, by itself or as copper-clad laminate cores, to a printed circuit
board (PCB) manufacturer. The PCB manufacturer processes the copper-
clad laminate cores to make rigid printed circuit boards or combines layers
of laminate and copper-clad laminate cores to make multi-layer PCBs. The
PCB manufacturer etches circuit designs onto the surface of the PCBs,
and drills and plates through-holes in the PCBs to make electrical
connections to original equipment manufacturer (OEM) customers'
specifications.
The printed circuit board value chain described above includes
approximately 2,000 PCB manufacturers worldwide. At the fiber glass
yarn manufacturer, fabric weaver and laminator levels, the printed circuit
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board value chain includes four to five major participants at each level
supplying a majority of the market demand for their respective levels.
However, at each level in the printed circuit board value chain each
participant is horizontally and vertically fragmented from the other
participants in the printed circuit board value chain.
In the typical printed circuit board value chain, material flows
downstream toward the OEM customer and capital, e.g., dollars, flow in a
reverse direction, i.e. upstream, with each participant in the printed circuit
board value chain purchasing material only from an adjacent upstream
participant and/or selling material only to an adjacent downstream
participant. In this respect, each participant in the printed circuit board
value chain communicates primarily with an adjacent upstream participant
and/or an adjacent downstream participant.
Presently, OEM customer demands for lower total system costs are
producing a ripple effect through the printed circuit board value chain,
resulting in a projected 7 to 9% annual decrease in the price of materials
supplied to each participant in the printed circuit board value chain,
particularly laminates. Consequently, the pricing environment within the
printed circuit board value chain is intense, and any price increases or
products sold at price premiums, regardless of product performance, are
almost completely ignored. This problem is exasperated by the current
worldwide overcapacity for materials, particularly fiber glass yarn, fabric
and laminate.
The foregoing pricing environment and the horizontal and vertical
fragmentation of the printed circuit board value chain coact to produce an
environment where there is little or no incentive to produce and sell new
materials or products, such as fiber glass yarn, that will benefit the OEM
customers while at the same time not increase the market price paid by
the PCB manufacturer for laminate. Hence, within the current printed
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circuit board value chain the producer of a new material must settle for
market share gain in an effort to recover costs and realize a profit.
It is, therefore, an object of the present invention to overcome the
above problems and others by providing a method of allocating cost
savings realized by a participant in a value chain to other selected
participants in the value chain, and more specifically a method of
allocating to an upstream participant in the printed circuit board value
chain cost savings realized and extracted by a downstream participant in
the printed circuit board value chain so as to share a portion of the cost
savings with the upstream participant. It is also an object of the present
invention to provide a business structure that encourages new product
development and which provides for cost recovery of new product
development from savings realized by downstream participants in a
fragmented and cost-sensitive processing chain. Still, other objects of the
present invention will become apparent to those of ordinary skill in the art
upon reading and understanding the following detailed description.
SUMMARY OF THE INVENTION
The present invention provides a method of cost savings feedback
in a printed circuit board value chain comprising the steps of (a) having a
controlling entity; (b) causing a laminate incorporating a fiber glass yarn to
be delivered to an entity that causes the manufacture of a printed circuit
board (PCB); (c) causing the manufacture of PCBs; and (d) allocating at
least a portion of cost savings realized from the manufacture of the PCBs
to the controlling entity. In one embodiment of the invention, the causing
step (b) is controlled by the controlling entity. The method can further
include the step of determining cost savings realized from the
manufacturer of PCBs utilizing the laminate in step (b) versus utilizing
laminate different from the laminate of step (b).
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The present invention also provides a method of cost savings
feedback in a printed circuit board value chain comprising the steps of:
(a) having a controlling entity; (b) causing a fiber glass yarn in a
predetermined form to be delivered to a printed circuit board (PCB)
manufacturer; (c) the PCB manufacturer causing the fiber glass yarn to be
incorporated into a laminate; (d) the PCB manufacturer causing
manufacture of PCBs; and (e) allocating at least a portion of cost savings
realized from the manufacture of PCBs to the controlling entity.
The present invention further provides a method of cost savings
feedback in a printed circuit board value chain comprising the steps of:
(a) having a controlling entity; (b) causing fiber glass yarn to be
manufactured; (c) causing the fiber glass yarn to be woven into fabric; (d)
causing the fabric to be incorporated into a laminate; (e) causing the
laminate to be delivered to an entity that causes the manufacture of
printed circuit boards (PCB); (f) causing manufacture of PCBs; and
(g) allocating at least a portion of cost savings realized from the
manufacture of PCBs to the controlling entity. In various embodiments of
the invention, at least one of steps (b), (c), (d) and (e) are controlled by
either the controlling entity or the PCB manufacturer.
The present invention also provides a method of cost savings
feedback in a printed circuit board value chain that includes a yarn
manufacturer which manufactures fiber glass yarn, a weaver which forms
the fiber glass yarn into a fabric, a laminator which forms the fabric into
laminate and a printed circuit board (PCB) manufacturer which forms the
laminate into a PCB which the PCB manufacturer sells to an OEM
customer, the method comprising the steps of (a) having a controlling
entity; (b) transferring to the controlling entity at least partial control of
fiber glass yarn manufactured by a yarn manufacturer; (c) causing the
fiber glass yarn to be delivered to a weaver for weaving into fabric;
(d) transferring to the controlling entity at least partial control of fabric
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formed by the weaver; (e) causing the fabric to be delivered to a laminator
for laminating; (f) transferring to the controlling entity at least partial
control of laminate formed by the laminator; (g) selling the laminate to a
PCB manufacturer at a market price for other laminate formed from other
fiber glass yarn; (h) causing the laminate to be delivered to the PCB
manufacturer;(i) determining cost savings realized by the PCB
manufacturer in response to forming PCBs utilizing the laminate versus
utilizing the other laminate formed from the other fiber glass yarn; and (j)
allocating at least a portion of the cost savings to the controlling entity.
In one embodiment of the invention, to determine the cost savings
realized by the PCB manufacturer from forming PCBs utilizing the laminate
versus utilizing the other laminate, the PCB manufacturer forms a first
plurality of PCBs utilizing the laminate, forms a second plurality of PCBs
utilizing the other laminate, determines cost savings from forming the first
plurality of PCBs utilizing the laminate versus forming the second plurality
of PCBs utilizing the other laminate, and applies the determined cost
savings to third and subsequent pluralities of PCBs formed utilizing the
laminate.
The present invention also provides a method of new product cost
recovery in the production and distribution of fiber glass yarn to be formed
in printed circuit boards (PCBs), the method comprising the steps of: (a)
transferring at least partial control of fiber glass yarn from a first, fiber
glass yarn-producing entity to a second, controlling entity; (b) transferring
possession of the fiber glass yarn to a third, fabric-producing entity at the
direction of the second, controlling entity; (c) forming the fiber glass yarn
i..to a fabric; (d) transferring possession of the fabric from the third
entity
to a fourth, laminate-producing entity at the direction of the second,
controlling entity; (e) forming the fabric into a laminate; (f) transferring
possession of the laminate from the fourth entity to a fifth, PCB-producing
entity at the direction of the second, controlling entity; (g) forming the
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laminate into PCBs; 1h) determining cost savings realized by the fifth
entity in response to forming the PCBs utilizing the laminate versus
utilizing another laminate formed from another fiber glass yarn; and (i)
allocating at least a portion of the cost savings to the second, controlling
entity. In one embodiment of the invention, the determination of cost
savings can be realized from, among other things, extending drill-bit life,
increasing laminate stack-up height, reducing laminate waste, reducing
laminate utilization due to increased density of component mounting,
reducing migration of metal adhered on the laminate versus laminate
formed from the other fiber glass yarn, improving through-hole positioning
tolerance and/or improving PCB manufacturing productivity.
The present invention further provides a method of sharing with an
upstream entity in a value-added processing chain cost savings extracted
by a downstream entity in the processing chain, the method comprising
the steps of: (a) producing a material in a first form; (b) supplying the
material in the first form from a first entity to a second entity;
(c) processing the material from the first form into a second form having
greater commercial value than the first form; (d) supplying the material in
the second form to a third entity; (e) processing the material from the
second form into a third form having greater commercial value than the
second form; (f) quantifying cost savings realized by the third entity in
response to processing the material from the second form into the third
form versus the third entity processing another material from the second
form into the third form; (g) extracting the cost savings; and (h) allocating
at least a portion of the extracted cost savings to the first entity.
The present invention also provides a computer-implemented
method for allocating cost savings associated with a manufacturing
process, the method comprising the steps of: (a) realizing a cost savings
associated with using a process for manufacturing a product from a
starting component associated with a source as compared with using the
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process for manufacturing the product from a different starting
component; and (b) allocating at least a portion of the cost savings to the
source.
The present invention further provides a computer-implemented
method for allocating cost savings associated with a manufacturing
process, the method comprising the steps of: (a) monitoring a process for
manufacturing a product from a starting component associated with a
source and generating cost data associated with the process;
(b) comparing the generated data with stored data reflecting a cost of
manufacturing the product from a starting component that is different
from the starting component used in the monitored process; and
(c) allocating at least a portion of a cost savings associated with the
monitored process based on the comparison to the source.
The present invention further provides a computer-implemented method
for allocating cost savings associated with a manufacturing process, the
method comprising the steps of: (a) monitoring a process for
manufacturing a product from a starting component associated with a
source and generating cost data associated with the process; (b) realizing
a cost savings associated with employing the monitored process as
compared with another process for manufacturing the product from a
starting component that is different from the starting component used in
the monitored process; and (c) allocating at least a portion of a cost
savings to the source.
The present invention also provides a computer-implemented
method for determining cost savings associated with a manufacturing
process, the method comprising the steps of: (a) receiving data reflecting
a first process of manufacturing a product from a starting component
associated with a source; (b) comparing the received data reflecting with
stored data reflecting at least one other process of manufacturing the
product from a starting component that is different from the starting
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component used to manufacture the product of the first process; and (c)
allocating at least a portion of a cost savings associated with using the
first process based on the comparison to the source.
BRIEF DESCRIPTION OF THE DRAWINGS
Fig. 1 is a flow chart of a prior art printed circuit board value chain
with exemplary revenue amounts for discussion purposes;
Fig. 2 is a flow chart of a printed circuit board value chain in
accordance with one embodiment of the present invention;
Fig. 3 is a flow chart of a printed circuit board value chain in
accordance with another embodiment of the present invention;
Fig. 4 is a flow chart of a printed circuit board value chain in
accordance with yet another embodiment of the present invention; and
Fig. 5 is a flow chart of a value chain similar to Fig. 3.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
With reference to Fig. 1, a prior art printed circuit board (PCB) value
chain 2 includes a fiber glass yarn producing entity or a manufacturer 4,
which produces continuous strand fiber glass yarns that are marketed and
sold to a fabric weaver 6, which weaves the yarn into a fabric that is sold
to laminate producing entity or laminator 8, which forms prepregs and
laminates that are sold to a PCB producing entity or manufacturer 10
which forms printed circuit boards. For the sake of clarity, as described
herein, product moves through in the value chain from an upstream entity
toward a downstream entity. For example, in Figure 1, the fiber glass
yarn manufacturer 4 would be an upstream entity relative to the weaver
6, laminator 8 and PCB manufacturer 10. Furthermore, the weaver 6
would be a downstream entity relative to the fiber glass yarn
manufacturer 4 and an upstream entity relative to laminator 8 and PCB
manufacturer 10.
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The fiber glass yarns produced by the fiber glass yarn manufacturer
4 typically include a starch/oil coating that provides protection against
interfilament abrasion and contact abrasion during weaving of the fiber
glass yarns into electronic grade fabrics. The starch/oil coating also
enables the yarns to be woven at high speeds, for example on air jet
looms, by providing high air drag at low air pressure and high contact
lubrication to offset friction between the fiber glass yarns and rapid-action
loom-feeding mechanisms.
Fabric weaver 6 typically coats the fiber glass warp yarn with a
secondary coating in a process known in the art as slashing. This
secondary coating, or slashing sizing, is formed over the starch/oil coating
on the fiber glass warp yarns received from the fiber glass yarn
manufacturer 4 and improves the abrasion resistance of the fiber glass
warp yarn during weaving of the yarns into fabric.
Once the slashing sizing has been applied, fabric weaver 6 weaves
the fiber glass yarn into fabric. The fabric is then heat cleaned or
chemically cleaned to remove the starch/oil coating and the slashing
sizing. The cleaned fabric then receives a resin-compatible sizing and is
thereafter supplied to a laminator 8 for lamination.
Laminator 8 processes the fabric through treaters that impregnate
the fabric with standard and specialized resins, and in particular epoxy
resin. Laminator 8 then sells the impregnated fabric after it is partially
cured directly to a PCB manufacturer 10. Laminator 8 can also adhere
sheets of copper, or other electrically conductive material, to one or both
sides of a impregnated fabric or to a stack of impregnated fabric to form
copper-clad fabric-impregnated cores which are utilized by PCB
manufacturer 10 to form multi-layer PCBs.
PCB manufacturer 10 processes copper-clad laminate of one or
more impregnated fabrics to make rigid printed circuit boards or combines
sheets of impregnated fabric and copper-clad fabric impregnated cores to
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make multi-layer PCBs. PCB manufacturer 10 etches the circuits onto the
surface of the PCBs, and drills and plates through-holes in the PCBs to
make electrical connections.
As shown in Fig. 1, each participant in PCB value chain 2 adds
value to the fiber glass yarn. Specifically, fiber glass manufacturers,
represented by fiber glass yarn manufacturer 4, realize about 5500 million
in annual revenue worldwide from producing continuous strand fiber glass
yarns that are marketed and sold to weavers of electronic grade fabrics.
Fabric weavers, represented by fabric weaver 6, realize about S 1.1 billion
in annual revenue worldwide from forming the continuous strand fiber
glass yarns into fabric. Laminators, represented by laminator 8, realize
about S5 billion in annual revenue worldwide from forming the fabric into
laminate and/or copper-clad fabric-impregnated cores. Lastly, PCB
manufacturers, represented by PCB manufacturer 10, realize about 533.2
billion in annual revenue worldwide from manufacturing PCBs to OEM
customer specifications and selling the PCBs to the OEM customer or its
contract assembler. As shown in Fig. 1, the flow of value-added fiber
glass yarn is downstream in PCB value chain 2 while the flow of capital,
e.g., dollars, is upstream, with each participant of PCB value chain 2
delivering product to and receiving capital from only its immediately
preceding downstream participant.
Currently, there are approximately 2,000 PCB manufacturers
worldwide. In contrast, at the fiber glass manufacturer, fabric weaver and
laminator levels, the PCB value chain 2 includes four to five major
participants at each level supplying a majority of the market demand for
their respective segments of PCB value chain 2.
OEM customers of PCBs pressure the PCB manufacturers to reduce
the total cost of systems produced by the PCB manufacturers. This
pressure has impacted every participant of PCB value chain 2 with a
resulting projected 7 to 9% annual decrease in the price of PCB
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components, particularly laminates. Hence, there is little or no incentive
for any participant in PCB value chain 2 to introduce new materials or
products at price or cost premiums, since OEM customers purchasing
PCBs will not tolerate these increases and a producer of such new
materials or products will not be compensated for their development
efforts or realize a profit thereon. In the present PCB value chain 2, the
OEM customer and ultimate consumer do not benefit from the
introduction of new and improved products. Further exasperating this
problem is an increase worldwide in new capacity that has resulted in
industry overcapacity for fiber glass yarn, fabric and laminate.
With reference to Fig. 2, and with ongoing reference to Fig. 1, the
present invention is a method of allocating or distributing cost savings
associated with a manufacturing process and more particularly, a method
of allocating cost savings realized by a downstream participant to an
upstream participant in a PCB value chain 2' so as to share least a portion
of the cost savings with the upstream participant. This allocation of cost
savings enables the upstream participant to produce new material or
products that benefit downstream participants or customers of PCBs
while enabling the upstream participant to share at least part of the
benefit realized by the downstream participants. In the method, PCB
value chain 2 shown in Fig. 1 is adapted to PCB value chain 2' shown in
Fig. 2 by including in PCB value chain 2 a PCB value chain controlling
entity 12 (hereinafter "controlling entity") that is designated or identified
to manage the movement of the fiber glass through at least a portion of
the PCB value chain. As will be discussed later in more detail, in the
present invention, cost savings associated with a process of
manufacturing printed circuit boards from a starting component (e.g. a
new fiber glass yarn) associated with a source (e.g. controlling entity 12)
as compared with using the process for manufacturing printed circuit
boards from a different starting material are realized and at least a portion
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of the cost savings is allocated to the source. Without limiting the
present invention, in one particular embodiment, controlling entity 12 is a
subsidiary or division of fiber glass yarn manufacturer 4. However,
controlling entity 12 can be established as an entity related to fabric
weaver 6, laminator 8 or PCB manufacturer 10, or unrelated to any
participant of PCB value chain 2'.
Initially, fiber glass yarn manufacturer 4 produces a new fiber glass
yarn having improved performance characteristics (described hereinafter)
over conventional fiber glass yarns. In PCB value chain 2 of Fig. 1, fiber
glass yarn manufacturer 4 would not be able to realize a return on
investment, or a profit, from producing the new fiber glass yarn.
However, the improved performance characteristics enable cost savings to
be realized by participants downstream in PCB value chain 2' shown in
Fig. 2. In the embodiment shown in Fig. 2, controlling entity 12 causes
the fiber glass yarn to be manufactured, e.g. by entering into an
agreement with the fiber glass yarn manufacturer 4, whereby controlling
entity 12 purchases the new fiber glass yarn from fiber glass yarn
manufacturer 4 at market price for the new fiber glass yarn.
Controlling entity 12 then causes the yarn to be formed into a
fabric, e.g. by entering into a tolling agreement or contract manufacturing
agreement with the fabric weaver 6, whereby fabric weaver 6 receives
the new fiber glass yarn from controlling entity 12, forms the new fiber
glass yarn into fabric and supplies the fabric to controlling entity 12. In
consideration for forming the new fiberglass yarn into fabric, controlling
entity 12 pays fabric weaver 6 an agreed-upon tolling fee. Preferably, this
payment releases any lien fabric weaver 6 may have on the fabric for
increasing the value of the new fiber glass yarn by forming it into the
fabric and the controlling entity 12 will have physical possession of the
fabric as well as complete control over and ownership of the fabric.
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Controlling entity 12 then causes the fabric to be incorporated into
a laminate, e.g. by entering into a tolling agreement or contract
manufacturing agreement with the laminator 8, whereby laminator 8
receives fabric from controlling entity 12, forms the fabric into laminate
and/or copper-clad laminate cores (hereinafter collectively referred to as
"laminate") and supplies the laminate to controlling entity 12. In
consideration for forming the fabric into laminate, controlling entity 12
pays laminator 8 an agreed-upon tolling fee. Preferably, this payment
releases any lien laminator 8 may have on the laminate for increasing the
value of the new fiber glass yarn by forming the fabric into laminate and
the PCB value chain controller 12 will have physical possession of the
laminate as well as complete control over and ownership of the laminate.
Lastly, controlling entity 12 causes printed circuit boards to be
manufactured, e.g. by selling the laminate to PCB manufacturer for
processing into PCBs for OEM customers. Without limiting the present
invention, in one embodiment, controlling entity 12 sells the laminate to
the PCB manufacturer 10 at a market price which is equal to the price
typically paid by the PCB manufacturer 10 for laminates incorporating
conventional starch/oil sized glass fibers. The payment received by
controlling entity 12 is used to pay the tolling fees to fabric weaver 6 and
laminator 8 and to pay fiber glass yarn manufacturer 4 for the new fiber
glass yarn.
Although not required, preferably, controlling entity 12 purchases
the new fiber glass yarn from fiber glass yarn manufacturer 4 and retains
ownership of the new fiber glass yarn and product incorporating the fiber
glass yarn until the laminate is sold to PCB manufacturer 10.
As discussed above, the new fiber glass yarn purchased by
controlling entity 12 preferably has properties, i.e., improved performance
characteristics, that enable fabric weaver 6, laminator 8 and/or PCB
manufacturer 10 to realize cost savings versus utilizing conventional fiber
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glass yarn. Although not limiting in the present invention, these improved
properties can result from the fibers being a new glass composition and/or
applying a new coating or sizing composition to at least a portion of the
surface of the glass fibers after they are formed and/or applying a new
coating composition to at least a portion of the surface of the fiber glass
fabric. For example, the assignee of the present invention produces a
new fiber glass yarn, referred to as "HybonTM RCY Yarn". Laminates
formed from Hybon RCY Yarn have the potential to reduce metal
migration, improve flexural strength, improve hydrolytic stability, improve
shear strength and improve time-to-blister. Moreover, laminates formed
from Hybon RCY Yarn also have the potential to reduce drill-bit wear,
improve drill hole positioning tolerance and improve manufacturing
productivity. The foregoing reduction and improvements enable one or
more participants of PCB value chain 2, particularly PCB manufacturer 10,
to realize cost savings from using laminates incorporating the new fiber
glass yarn versus using another laminate incorporating conventional
starch-oil sized fiber glass yarn.
In order for controlling entity 12 to realize income from cost savings
realized by PCB manufacturer 10 from using laminate incorporating the
new fiber glass yarn, such as Hybon RCY Yarn, controlling entity 12 and
PCB manufacturer 10 enter into an agreement whereby controlling entity
12 sells laminate to PCB manufacturer 10 at market price for conventional
laminate and PCB manufacturer 10 allocates at least a portion of any
realized cost savings to controlling entity 12. More specifically, the
agreement between controlling entity 12 and PCB manufacturer 10
provides that controlling entity 12 receives additional payment from PCB
manufacturer 10 only if PCB manufacturer 10 realizes cost savings from
using the laminate incorporating the new fiber glass yarn. Hence,
controlling entity 12 realizes operating revenue and profit from a portion
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of the cost savings realized by PCB manufacturer 10 in the forming
laminate incorporating the new fiber glass yarn into PCBs.
In order for fiber glass yarn manufacturer 4 to recover the cost of
developing and producing the new fiber glass yarn and to realize profit
thereon, controlling entity 12 can allocate part of the cost savings
received from PCB manufacturer 10 to fiber glass manufacturer 4 in order
to further share this cost savings.
It should be appreciated that if desired, a portion of the cost
savings can be allocated with other participants in value chain 2' in order
to further share the cost savings. Without limiting present invention, this
can be done, for example, by the controlling entity 12 allocating or
distributing a portion of the cost savings received from the PCB
manufacturer 10 to other selected participants, or the agreement between
the PCB manufacturer 10 and controlling entity 12 can allocate a portion
of the cost savings to selected value chain participants.
PCB manufacturer 10 and/or controlling entity 12 quantify or
determine the cost savings PCB manufacturer 10 will realize in response
to forming PCBs using laminate formed from the new fiber glass yarn
versus using another laminate formed from conventional fiber glass yarn.
The cost savings can be determined in a number of ways. For example,
and without limiting the present invention, PCB manufacturer 10 monitors
the costs associated with forming a first plurality of PCBs utilizing
laminate formed from the new fiber glass yarn. PCB manufacturer 10 also
monitors to costs associated with forming a second plurality of PCBs
using the other laminate formed from conventional starch-oil sized fiber
glass yarn. It should be appreciated that the costs associated with the
manufacture of PCBs using laminate formed from conventional starch-oil
sized fiber glass yarn can also be based on historical data previously
collected by the PCB manufacturer 10. Next, PCB manufacturer 10
determines cost savings from forming the first plurality of PCBs utilizing
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the laminate formed from the new fiber glass yarn versus forming the
second plurality ofi PCBs using the other laminate formed from
conventional fiber glass yarn by comparing the data generated while
monitoring the manufacture of the PCBs. The determined cost savings
are then applied to third and subsequent pluralities of PCBs formed by
PCB manufacturer 10 utilizing laminate formed from the new fiber glass
yarn. Pursuant to the agreement between PCB manufacturer 10 and
controlling entity 12, PCB manufacturer 10 shares the cost savings with
controlling entity 12 by allocating at least a portion, e.g. 50%, of the cost
savings to the controlling entity 12.
The cost savings and allocation can also be determined and
implemented by other methods, such as but not limited to, estimating
manufacturing costs or using a computer-implemented method that
monitors a process for manufacturing a product from a starting
component associated with a source and generates cost data associated
with the process, compares the generated data with stored data reflecting
a cost of manufacturing the product from a starting component that is
different from the starting component used in the monitored process, and
allocates at least a portion of a cost savings associated with the
monitored process based on the comparison to the source. In an alternate
embodiment of the present invention, the computer-implemented method
monitors a process for manufacturing a product from a starting
component associated with a source and generates cost data associated
with the process, realizes a cost savings associated with employing the
monitored process as compared with another process for manufacturing
the product from a starting component that is different from the starting
component used in the monitored process, and allocates at least a portion
of the cost savings to the source. In yet another embodiment of the
invention, the computer-implemented method receives data reflecting a
first process of manufacturing a product from a starting component
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associated with a source, compares the received data with stored data
reflecting at least one other process of manufacturing the product from a
starting component that is different from the starting component used to
manufacture the product of the first process, and allocates a cost savings
associated with using the first process based on the comparison.
Although not limiting in the present invention, with respect to the
embodiments of the invention disclosed above, "a process for
manufacturing a product" is the process for manufacturing printed circuit
boards, "a starting component" is the new fiber glass yarn, and "a
source" is the controlling entity 12.
The cost savings in manufacturing the printed circuit boards can be
allocated to the controlling entity 12 in any convenient manner. For
example, and without limiting the present invention, the controlling entity
12 can receive a payment prior to the actual realization of the cost
savings based on the estimated cost savings, or the controlling entity 12
can receive payment based on anticipated or actual savings on a per
laminate basis (for example, a royalty), or the controlling entity 12 can be
paid after the actual cost savings are realized. In addition, the cost
savings can be allocated using a combination of these payments. For
example and not limiting in the present invention, the controlling entity 12
can receive an initial payment from the PCB manufacturer 10 based on a
portion of the anticipated savings and a second payment based on a
portion of the actual savings.
Another embodiment of PCB value chain 2" in accordance with the
present invention is shown in Fig. 3. In this embodiment, controlling
entity 12 purchases and therefore takes at least partial control of the new
fiber glass yarn from fiber glass yarn manufacturer 4. More specifically,
the controlling entity 12 takes ownership of the new fiber glass, yarn but
does not take physical possession of the new fiber glass yarn. Rather, the
controlling entity 12 directs fiber glass yarn manufacturer 4 to deliver the
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new fiber glass yarn to fabric weaver 6. When fabric weaver 6 completes
processing the new fiber glass yarn into fabric, controlling entity 12 pays
fabric weaver 6 the agreed-upon tolling fee for forming the new fiber glass
yarn into fabric and gets at least partial control, i.e. ownership of the
fabric, while the fabric weaver 6 maintains physical possession of the
fabric. This payment releases any lien fabric weaver 6 may have on the
fabric.
Next, controlling entity 12 causes the fabric to be delivered from
the fabric weaver 6 to laminator 8, for processing into laminate. When
laminator 8 completes forming the fabric into laminate, controlling entity
12 pays laminator 8 the agreed-upon tolling fee for processing the fabric
into laminate and gets at least partial control, i.e. ownership of the fabric,
while the laminator 8 maintains physical possession of the laminate. This
payment releases any lien laminator 8 may have on the laminate.
Next, controlling entity 12 causes the laminate to be delivered from
laminator 8 to an entity that causes the manufacture of a printed circuit
board, e.g. PCB manufacturer 10, pursuant to a sale of the laminate from
controlling entity 12 to PCB manufacturer 10. In response to receiving
the laminate from laminator 8, PCB manufacturer 10 pays controlling
entity 12 market price for the laminate. As discussed above, the market
price paid by PCB manufacturer 10 for the laminate can be equal to the
price typically paid by the PCB manufacturer 10 for laminates
incorporating conventional starch/oil sized glass fibers and is used by
controlling entity 12 to pay the tolling fees to fabric weaver 6 and
laminator 8, and to pay fiber glass manufacturer 4 the market price for the
new fiber glass yarn.
As discussed above with respect to value chain 2', prior to
receiving the laminate formed from the new fiber glass yarn from
laminator 8, PCB manufacturer 10 and controlling entity 12 enter into an
agreement whereby, in consideration for paying market price for the
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laminate, PCB manufacturer 10 allocates to controlling entity 12 at least a
portion of any cost savings realized from using the laminate formed from
the new fiber glass yarn. Controlling entity 12 realizes operating revenue
and profit from the portion of the cost savings received from PCB
manufacturer 10. In order for fiber glass yarn manufacturer 4 to recover
the cost of producing the new fiber glass yarn and to realize profit
thereon, controlling entity 12 can allocate part of the cost savings
received from PCB manufacturer 10 to fiber glass manufacturer 4 in order
to share the cost savings with the fiber glass manufacturer 4.
Another embodiment of a PCB value chain 2"' in accordance with
the present invention is shown in Fig. 4. In this embodiment, controlling
entity 12, as an agent of fiber glass yarn manufacturer 4, enters into the
tolling agreements with fabric weaver 6 and laminator 8 on behalf of fiber
glass yarn manufacturer 4. Moreover, fiber glass yarn manufacturer 4
retains ownership of the new fiber glass yarn, as well as ownership of the
fabric and laminate, until the laminate is sold to PCB manufacturer 10,
while physical possession of the yarn, fabric and laminate passes from the
yarn manufacturer 4 to fabric weaver 6 to laminator 8, respectively. Fiber
glass yarn manufacturer 4 pays the tolling fees to fabric weaver 6 and
laminator 8 at the direction of controlling entity 12, thereby, releasing all
liens by fabric weaver 6 and laminator 8 for forming the new fiber glass
yarn into fabric and the fabric into laminate.
A communication line 14 from controlling entity 12 to fiber glass
yarn manufacturer 4 represents the right of controlling entity 12 to direct
fiber glass yarn manufacturer 4 to deliver the new fiber glass yarn to
fabric weaver 6. A communication line 16 represents the right of
controlling entity 12 to direct fabric weaver 6 to deliver fabric to laminator
8. Lastly, a communication line 18 represents the right of controlling
entity 12 to direct laminator 8 to deliver laminate to PCB manufacturer
10. Communication line 14 also represents the right of controlling entity
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12 to direct fiber glass yarn manufacturer 4 to pay the tolling fees to
fabric weaver 6 and laminator 8.
In response to receiving laminate formed from the new fiber glass
yarn, PCB manufacturer 10 pays controlling entity 12 or fiber glass
manufacturer 4 market price for the laminate. If controlling entity 12
receives the market price payment from PCB manufacturer 10, controlling
entity 12 forwards this payment to fiber glass manufacturer 4.
Thereafter, PCB manufacturer 10 allocates to controlling entity 12 a
portion of the cost savings realized in response to forming PCBs utilizing
laminate formed from the new fiber glass yarn versus using other laminate
formed from conventional starch-oil sized fiber glass yarn in order to share
the cost savings with the controlling entity 12. Controlling entity 12
realizes operating revenue and profit from the portion of the cost savings
received from PCB manufacturer 10. Controlling entity 12 shares a
portion of the cost savings received from PCB manufacturer 10 with fiber
glass manufacturer 4 by allocating a portion of the cost savings to the
fiber glass manufacturer 4.
As discussed above, PCB value chain controller 12 is preferably an
entity such as, without limitation, a division, subsidiary or agent of fiber
glass yarn manufacturer 4. However, controlling entity 12 can also be an
entity separate from fiber glass yarn manufacturer 4, or fiber glass
manufacturer 4 can incorporate the functions of controlling entity 12
within its operations. Where the functions of controlling entity 12 are
incorporated within fiber glass yarn manufacturer 4, the communication
lines 14, 16 and 18 in Fig. 4 can be eliminated and fiber glass yarn
manufacturer 4 receives directly the market price paid by PCB
manufacturer 10 for laminate and the portion of the cost savings realized
by PCB manufacturer 10.
Based on the foregoing, it can be seen that the present invention
enables new fiber glass yarns to be produced and introduced into PCB
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value chains 2', 2" and 2"' at current market prices while enabling fiber
glass yarn manufacturer 4 to realize a payback and other economic
benefits for producing and introducing the new fiber glass yarn.
It should be appreciated that although the yarn manufacturer 4,
fabric weaver 6, laminator 8 and PCB manufacturer 10 as discussed
above are presented as separate and distinct entities, two or more of
these entities may be controlled by and/or be part of a single larger entity
so that the controlling entity 12 need only cause delivery of the fiber glass
in a predetermined form to the single larger entity. For example, and
without limiting the present invention, the controlling entity 12 can deal
with an entity that is vertically integrated to the extent that it controls
its
own weaving, laminating and PCB manufacturing operations. In such an
instance, controlling entity 12 would only have to deliver or cause to be
delivered to the single entity the new fiber glass yarn. Transfer of the
new fiber glass yarn and associated products through the value chain
would be handled internally by the single entity. In a manner similar to
that discussed earlier, the controlling entity 12 and single entity would
enter into an agreement whereby the single entity would allocate at least
a portion of the cost savings realized by the single entity which are
attributable to the use of the new fiber glass to the controlling entity 12
so that the controlling entity 12 could share in the cost savings. If the
single entity included only laminating and PCB manufacturing capabilities,
the controlling entity 12 need only cause delivery of the fiber glass yarn in
the form of a fabric to the single entity.
The invention as discussed above focuses on the cost savings by
the PCB manufacturer 10. However, it should be appreciated that
controlling entity 12 can also share in the cost savings of the other
entities in the value chain. For example and without limiting the present
invention, the fabric weaver 6 may realize a cost savings in weaving fabric
incorporating the new fiber glass yarn because there is no need to apply a
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slashing size to the warp yarn prior to weaving, nor is heat cleaning of the
woven fabric and subsequent application of a resin compatible sizing
required. The fabric weaver 6 and the controlling entity 12 can enter into
an agreement which allocates a portion of the cost savings realized by the
fabric weaver 6 which is attributable to using the new fiber glass yarn to
the controlling entity 12.
The present invention as disclosed above is discussed in the
context of a controlling entity 12 in a PCB value chain sharing in the cost
savings of a PCB manufacturer 10 by allocating at least a portion of the
cost savings to the controlling entity 12. However, it should be
appreciated that the method of allocating cost savings realized by a
participant in a value chain with other selected participants in the value
chain, and more particularly allocating cost savings extracted by a
downstream entity with an upstream entity as disclosed herein is not
limited to the particular value chain discussed above. More particularly, as
illustrated in Figure 5, a controlling entity 100 controls a new material that
when used by manufacturing entity 102 at the end of value chain 104 to
manufacture a final product will result in cost savings by manufacturing
entity 102. In order for the material to be used by manufacturing entity
102, it may be required to go through a series of processing steps
whereby the material is initially made by a first entity 106, passes through
the value chain 104 and is converted bjr a second entity 108 and if
required a third entity 1 10 into different forms. Although not required,
each time the material is converted to a different form, it has a
commercial value at least equal to and preferably greater than its previous
form. The progress of the material through the value chain 104 is
controlled by controlling entity 100 and can be effected in a manner
similar to that discussed earlier with respect to Figures 2-4. Although not
limiting in the present invention, the control by controlling entity 100 as
illustrated in Figure 5 is similar to that disclosed earlier in connection
with
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value chain 2" and Figure 3. The converted material is delivered to
manufacturing entity 102 in a desired form under an agreement between
controlling entity 100 and manufacturing entity 102 whereby
manufacturing entity 102 pays a predetermined price for the material and
further agrees to allocate at least a portion of any cost savings realized by
manufacturing entity 102 resulting from its use of the material to
controlling entity 100. In this manner, controlling entity 100 can share
the cost savings attributable with its product with a downstream user of
the material.
As discussed earlier, several of the intermediate processing steps of
the material can be controlled by a single entity as indicated by dotted line
102'. In this type of value chain, controlling entity 100 would deliver the
material or cause the material to be delivered to entity 102' who in turn
would perform the necessary material conversions) and allocate a portion
of any cost savings realized by entity 102' in the manufacture of the final
product to the controlling entity 100 so that the controlling entity 100 can
share in the cost savings.
It should also be appreciated that controlling entity 100 can deliver
new material which will result in cost savings directly to a processing
entity, e.g. a customer (not shown), who uses the material in its process
to manufacture a final product without any prior conversion or
modification of the material. More specifically, controlling entity 100 and
the processing entity enter into an agreement whereby the processing
entity purchases the material at a predetermined cost, e.g. the cost of
conventional material, and any cost savings realized by the processing
entity attributable to its use of the material will be shared with the
controlling entity 100 by allocating at least a portion of the cost savings
to the controlling entity 100. For example, and without limiting the
present invention, the controlling entity 100 can be a fiber glass
manufacturer that sells a new type of chopped fiber glass strand to an
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extruder. The new fiber glass strand has properties that makes it less
abrasive in a compounding and extrusion operation than conventional
chopped fiber glass strand. As a result, there is less wear on the
compounding vessel, mixing blades and extruding equipment, as well as
less metal contamination in the compounded material and extruded parts.
At least a portion of the cost savings realized by the extruder are allocated
to the chopped strand supplier.
The invention has been described with reference to the preferred
embodiments. Obvious modifications and alterations will occur to those
of ordinary skill in the art upon reading and understanding the preceding
detailed description. For example, combinations of the embodiments
shown in Figs. 2-4 can be utilized to satisfy requirements of the various
participants in the PCB value chain. It is intended that the invention be
construed as including all such modifications and alterations insofar as
they come within the scope of the appended claims or the equivalents
thereof.
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