Supply Chain Development Telecom Equipment Manufacturing Kakkar - Vihaan926.pdf · 2018-09-02 · CII Seminar –31 July 2012 ... Successfully executed USOF project in BSNL network

1CII Seminar – 31 July 2012

Company Confidential | © 2012 VNL

Supply Chain Development – Telecom

Equipment Manufacturing

Sanjeev Kakkar

Chief Strategy Officer



VNL – An Introduction



VNL – An Introduction An Indian technology Initiative Started in 2004

Indigenously designed & developed End-to-End GSM

infrastructure solutions.

Solution includes BTS, BSC , MSC , Integrated backhaul , OMC

and power solution.

Totally solar operated and optimized for the bottom of the pyramid.

First of its kind effort in the country

Successfully executed USOF project in BSNL network in

Rajasthan circle.

Successfully commercialized in global market

WiFi Broadband and Range of wireless products.

Product portfolio includes range of router and switches and

security surveillance solutions.



Strong R&D and product Innovation

In-house R&D , recognized by Department of

Scientific & Industrial Research (DSIR).

Substantial investment in creating :

Strong R&D infrastructure to support the complex Telecom

product /technology development programs.

Team of highly competent domain experts.

Current Engineering manpower of over 300 engineers in

development centers in India & overseas.

Complete control on product design and manufacturing

processes.

Filed IPRs in India and overseas.

CII Seminar – 31 July 2012

Company Confidential | © 2012 VNL 5

WorldGSM™ VNL- Innovation

End to End GSM based

infrastructure solutions

including BSS, core

Network, OMC and back

haul.

Highly power efficient

Runs on Renewable energy

Provides Voice and Data





NTP2012 – Setting the Vision for Domestic

Telecom Equipment Manufacturing



National Telecom Policy - 2012

Telecom Equipment Manufacturing – Mission

To make India a global hub for telecom equipment

manufacturing to achieve self sufficiency while squarely

addressing security and strategic concerns.

Objective

Promote the ecosystem for design, Research and

Development, IPR creation, testing, standardization and

manufacturing i.e. complete value chain for domestic

production of telecommunication equipment to meet

Indian telecom sector demand to the extent of 60% and

80% with a minimum value addition of 45% and 65% by

the year 2017 and 2020 respectively.



Telecom Products are uniquely different

from the Mass market IT products because

of inherent security considerations and

other imperatives.



Traditional model – Mass Assembly

Manufacturing of mass-market IT products , EMS model

Assembly and testing of products based on OEM/ODM

design.

Large-scale factories , leveraging low labor cost.

Ability to handle multi product /technologies across verticals

for customers across globe



Apple's long-awaited white iPhone 4, which hit stores April 28, is

expected to be another smash for Steve Jobs. But how much will

it benefit the American economy? Though invented in the U.S.,

the iPhone is manufactured in China, so, ironically, iPhones sold

in the U.S. add to the trade deficit with the Middle Kingdom. Yet

China contributes almost nothing to the value of an iPhone; it does

little more than assemble parts from elsewhere. A host of other

countries, including the U.S., benefit more from producing the

world's hottest gadget.

WHERE THE PARTS FOR A $500 IPHONE ARE MADE

$61 – JAPAN : It doesn't innovate as much as the U.S., but its

tech prowess means a lot of high-end manufacturing value stays

there

$7 – CHINA : Often more of an assembly line for other nation's

wares, work here accounts for only 3.6% of an iPhone's

production cost

$48 – UNSPECIFIED :

$11 - U.S. : While America doesn't make much of what goes into

the iPhone, it's always better to innovate than to fabricate; just see

Apple's profit

$30 – GERMANY

$23 - SOUTH KOREA

iPhone retail price $500

Parts and assembly -$179

Apple's profit $321

An Illustration – Apple iPhone



Contributes insignificant value add !



Move Up the Value Chain!



Development of High End Telecom

Manufacturing - way to meet the NTP Vision

To build the High Tech Manufacturing

Move up the value chain.

To aim at moving from conventional assembly & testing of

products to more advanced innovative product design &

development and manufacturing model.

Way forward for Self Reliance in high tech strategic sector

Opens the huge opportunity for large pool of engineering

professional



Typical Product Life Cycle

Value Chain Functions

IdeationProduct

ArchitectureSoftware

DesignHardware

DesignUnit Testing

System Integration

New Product Introduction

ComponentsBoard

ManufacturingBoard Testing

(PTS)

System Assembly

System PTS PackagingDispatch &

Logistics



Typical HW BOM – Component Break Up

Class A / IC's30%

Mechanical Assy Set14%

Class B/ Other Semiconductor14%

PCBA Assembly8%

System Testing7%

Other components7%

Bare PCB5%

PCBA Testing4%

Cable Assy Set3%

Class C / Passives3%

System Assembly3%

Packing2%

BOM Cost

Class A / IC's

Mechanical Assy Set

Class B/ Other Semiconductor

PCBA Assembly

System Testing

Other components

Bare PCB

PCBA Testing

Cable Assy Set

Class C / Passives

System Assembly

Packing



Wireless Infra products-Typical HW BOM

Class A, semiconductors ~ 30% (Imported)

Class B , electronics / Diodes, Transistors ~ 14% (Partial domestic)

Mechanicals – Sheet metal, Casting, Plastics ~ 14% (Domestic)

Other components – H/w, Cable Harness etc ~ 10% (Domestic)

Bare PCB ~ 4% (Partial domestic)

Passive components ~ 3% (Imported)

Packaging material ~ 2% (Domestic)

Cable / Wire Harness ~ 3% (Domestic)

PCB Assly, PCBA Testing, System Assly,] ~ 20% (Domestic)

System Testing & Packaging ]



30-40% of HW BOM, which mostly

includes mechanical parts , PCBs,

cables & harneses & packaging

material can be sourced domestically.

About 10- 20 % of HW Cost goes

towards its assembly, testing and

system build.



Major components of value chain :

Hardware Design & development

Software design ,future releases for inhancement and

sustenence .

IPR’s related to Product development , process innovation etc

Design validation ~ ITT, Field trials, IOT

DFx (Design for Manufacturability, Assembly,Testability) &

design improvements

Reliability Testing & FA (Failure Analysis)

Excess, Alternate, Obsolescence management

Traceability system (Manufactured Product Sr No / Lot to

component level) for field upgradation / postive recall

BOM cost optimization, an on-going need!

Telecom Manufacturing – Real Value Creation



The emphasis on high value creation thru

design , development , IPR creation and

ownership in the country only will

enable meet the ambitious target as set

in NTP12 with real value creation.

Self Reliance in Telecom will only help

tackle security challenges.



Thank you.

Supply Chain Development Telecom Equipment Manufacturing Kakkar - Vihaan926.pdf · 2018-09-02 · CII Seminar –31 July 2012 ... Successfully executed USOF project in BSNL network

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