IBM s ODM Development Model
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1 July 2011 IBM s ODM Development Model Bruce Smith
2 IBM Corporate Quality Management System (QMS) Quality Policy: IBM has an overriding worldwide commitment to the quality of the products, solutions, and services we provide to our customers. Quality is recognized as a fundamental component of the value customers receive from IBM. IBM is committed to the goals of achieving total customer satisfaction, delivering superior products, solutions, and services, and exceeding customer requirements. Recognizing that the marketplace is the driving force behind everything we do, IBM implements effective business processes that support value creation for our customers and our stakeholders. IBM leaders are responsible for establishing objectives and using measurements to drive continual improvement in quality and in customer satisfaction. All IBMers are expected to contribute to continual improvement as an integral part of our quality management system. 2
3 3 Agenda Why Taiwan? Process Overview Where do the ODM s fit? Model Evolution Result Original Design Manufacturer From Wikipedia, the free encyclopedia An Original Design Manufacturer (ODM) is a company which designs and manufactures a product which is specified and eventually branded by another firm for sale. 3
4 Taiwan Development Lab (TSTL) Value & Role Drive Reductions in Cost & Expense Portfolio Ownership High Volume Servers Pioneer New Development Models Leverage our Development Partners Scale up / SMP computing Modular x3100 X3200 M2 X3400M2 x3500m2 x3650m2 x3550m2 x3450 x3350 x3250m2 x3455 X3620 / x3630 x3655 Leverage Geographic Location Reach out to Customers Support our Sales Organization Competitive Insight Leverage Talent Pool Integral Part of the Global Development Team Collaborate across geographic boundaries Extend contribution beyond product integration Ownership High Volume Portfolio (also Blade, idataplex, High End & Retail Store Systems deliverables) 4
5 Early Engagement w/ Technology Partners Strategy Review Meeting CPU/Chipset s ODM Involvement 5
6 System Development System X World Wide Development Process System X World Wide System Development Architecture Review Boards IBM Standards and the IBM Standards Compliance List Shock and Vibration Disk Drive Rotational Vibration Testing Thermal System X Design Guide and System Design Council Common Building Block, Database, and Expert Common Building Block Owners Detailed Analysis of Critical Design Features Materials Use by IBM Materials Selection Guide, World Wide Sourcing of Qualified Materials Material Use Criteria, Plastic, Sheet Steel, Other 6
7 TSTL Development Model - Today US TSTL China ISC (Procurement) Global Commodity Management ODM selection Award/payment Test/Quality/Mfg Eng ODM Configurator Raw Cards Card Asm & Test Power Supplies Cost Engineering Software BIOS Hardware Adaptation Cross Functional Product Development Team Leads MPM Development Hardware Project Mgmt System Lead Electrical Eng Mechanical Power Thermal Packaging DBCS Hardware Detailed Design Physical Design Bring up Mechanical Power/ Thermal PDM Firmware Proj Mgmt Platform Customization Core Code Network OS Project Mgmt Preload Image Test Building Block Verification Test plan, cases Defect report Linux certification Marketing Technical Project Management TEST Management Test Lead In House Test Performance ECO Templates Lab Operations ID / Pubs Manufacturing System Boards Systems Mass production Market Intelligence Other Labs Architecture Design Guide Architecture Review Boards Software Firmware core architecture Utilities Tools Director Industrial Design & Publications Human Factors Service Finance Service Rep is located in TSTL. Performance Common Building Blocks Storage Memory Network Chassis Power Options Test Storage Blade Server Proven Network Operating System Windows Certification 7 Notes: 1. RTP/TSTL in house testing is lower at Modular/iDataPlex, higher at Blade case.
8 ODM Business Model - High Level Overview Development model CM JDM ODM White Glove Product Marketing IBM + Solution IBM + Solution IBM + Solution ODM + Solution System Architecture IBM IBM IBM off-the-shelf Technical Direction / CBB IBM IBM IBM IBM + Vendor Detailed Design / PD / Simulation / SI IBM IBM + Vendor Vendor + Solution provider Vendor Bring-up IBM IBM + Vendor Vendor Vendor PP&C IBM IBM IBM + Vendor Vendor ESW IBM IBM IBM + Vendor IBM + Vendor Validation IBM + Solution IBM + Solution IBM + Vendor +Solution IBM + Vendor +Solution Systems Management / IBM IBM IBM IBM Tools System Board Mass Vendor Vendor Vendor Vendor Production System MFG IBM IBM IBM Vendor High Touch model TSTL Model Strategic Outsourcing Develop strategic, long term partnerships to produce product families to achieve efficiency & productivity growth 8 Develop supplier capability on technology family products to reduce IBM effort & Expense Provide incentives to supplier to invest capital on required equipment for development & testing Share resource (both IBM and supplier) in product family development/test. Drive common technical designs for product families to save Development $ s, product cost and fulfillment cost
9 Optimal Processes / Best Practices Smart Touch Development Model is continually evolving Challenge Continue to drive Development Model Efficiencies while protecting Brand Image / Value Evolutionary Process (today s smart touch model will be different from tomorrows) Model will vary depending on product positioning / complexity / value attributes etc Maximize/leverage supplier capability (as it develops) Provide IBM Value Add on top of industry standard designs Today Suppliers do not yet have end-to-end Development Capability IBM must bridge the gaps IBM must continue to support / grow supplier capability IBM Value add today requires some customization (not Industry Standard based) 9
10 Sub-Tier Management Process Philosophy Determine Supplier s capability and process to manage their sub-tier suppliers Based upon ISO 9001 and CMM (Capability Maturity Model) used in evaluating the maturity level of an organization Eight categories are defined and evaluated Ratings are in 5 levels (like the 5 maturity levels in CMM), 1, 2, 3, 4, 5 Process Review / Measure Client/Supplier measures results Client/IBM review results Progress reports & feedback Develop new action plans Action Plan / Services Create a action plan focused on the lowest scoring categories (gap analysis) Deploy the actions Utilize IBM Service offerings to achieve targets Education Educate Client/Supplier on the process, it s contents, and the procedure Sub Tier Supplier Quality Management System Self Assessment Client/Supplier performs a selfevaluation Audit IBM does an evaluation using the same criteria Review Jointly agree on the scores for each category 10
11 The Result Right products at Right Time Identifying & Protecting Brand Attributes Selecting the right Partner Establishing Balance Point Tactical vs Strategic Relationship Picking the team Effective Management System Communications / Trust / Integrity Establish Clear Goals / Expectations Managing Change IBM Introspection Right Cost & Expense Structure Maximize Re-use (Common building Block Strategy) Enablement for Success Eco System Teamwork / Attitude 11
12 Questions 12
13 System Development TSTL ODM Partner System & Electrical Product specification and architecture Relationship with RTP CBB owners Guidance on IBM unique requirements Review design correctness and quality Detailed planar design (schematics/pd) Relationship with component suppliers Pilot-run, bring-up and mass-production Take conformance measurements Power ACDC: power supply (PWS) specs DCDC: technical direction on design ACDC: IBM buy direct from PWS supplier DCDC: design to meet power envelope Mechanical & Packaging Technical direction, high-level design First Article Inspection (FAI) Detailed drawings and implementation Tooling and modifications Thermal & Acoustic Technical direction and supervision Simulation and cross-check validation Fan curves and acoustic tuning Heatsink samples (on-planar) Validation and design improvements Fan curves and acoustic tuning Defects Technical resolution of system defects Coordination with RTP CBB owners Gauge severity level of each defect Technical resolution at planar level Joint defect ownership with TSTL Gauge severity level of each defect Technical Schedule Owns master schedule Drives internal stakeholders Coordinate SDV/SIT build Intel Samples Commits to API dates Manage detailed build/tooling dates SDV build Documentation IBM internal (PSRB, ERO, epep) System spec, pubs, various CDs Schematics and engineering drawings Evidence of design integrity MFG enablement Maintain system BOM EC/CTO/FRU release Potential BOM co-ownership Obtain secured access to IBM databases Lifecycle Support Support PE at GA+90 RMA and warranty coverage 13
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