In This Page! Selling Advanced Level Services See Related Seminars: |
Our specialty is the research and development of better ways to do things. We constantly seek the next level of advance in any system we design or build, and we seek the most economical means of achieving these ends. Specialty areas are HVAC, refrigeration, heat exchange, pumping, piping, and cooling systems in the semi conductor, food, petrochemical and aerospace industries. Key Benefits
PricingOption #1 Turn key engineering and construction. With a letter of intent to purchase the equipment from us in the event we are the low bidder, we will perform the necessary engineering, provide complete engineered drawings, materials lists, fabrication schedule, and project quote. If we are not the low bidder by at least 10% then there is no charge for this engineering and quote. Our costs for any project in our specialty area can generally be calculated by multiplying the average of the two lowest estimates one receives by 0.8. We bond our work and offer extended systems warranties included in the purchase price. Option #2 Co-op engineering and construction If your firm employs an on site engineering staff, these can be employed in getting your project completed even more cost effectively than in option #1 above. To figure these costs one can generally use a multiplying factor of 0.6 on the average of the lowest two bids from the usual design build engineering and construction firms. This approach is generally limited to smaller above ground systems, not involving building structures, and under a few million dollars in total valuation. Option #3 Project Supervision only. Our most valuable service is project supervision. Especially at the beginning of a project when the options are being considered. Arriving at the most cost effective option, and an option that will improve your company's competitiveness in the industry, is a very important, if not a vital issue. Our fee for this service is generally in 2% of completed project range. Project management and purchasing is generally 10% of the completed project. Our purchasing services, that cut the cost of new equipment, often cover that expense How to get competitive Quotes on your work These days with a severe shortage of qualified technical people, it is becoming increasingly difficult to have someone take the time away from paying jobs to give an estimate. Yet an estimate is often required so the project can be budgeted, funded and managed. The following tips should be useful in getting quotes.
Article Index The longer article is based on what I've learned in 35 years on all sides of the table in this business. First as a contractor, then as a consulting engineer for many industrial manufacturing and engineering firms' nation wide. Then watching marketing, other engineering executives, and top management people in many different situations. This material is presented here for those new to the profession, or and to those who may find it entertaining. 10 ways to boost sales ...and profits, for your firm and the client.
Expand your range of services. By adding purchasing, and project oversight for instance, you materially reduce the chance of error on a project site and are in the best possible position to correct any that are found while the job is in progress, without damage to your firms reputation or added cost to the client. By having all of your staff involved at various levels of the purchasing and project management, they become much more competent that if they never get out of the office.
For complete article, see 'Selling Advanced Level Services' below. Very Best Regards, Philip E Scott Copyright, Philip E Scott, 1/1999, all rights reserved
Selling Advanced Level Services 15 key points: 1. The efficiency, attractiveness, and technical advance of your clients manufacturing process or facility will determine that client's success or failure in business. Most corporate managements are not aware of all of the engineering issues, so delegate these decisions to the engineering departments, who are not aware, it seems, of the larger business and world competitive issues . in most cases. Accordingly engineering services are put out to bid then on the basis of cost, delivery time, with the only questions, will it meet code and 'work'. The larger issues are seldom even recognized. Engineering firms who do not recognize these issues, end up working .inexpensively. This article addresses these and a few other issues, and points to a successful method of resolving them, getting more clients, delivering real value, and at a better profit margin. 2. What do you have to sell a customer, if not a better system? Answer: A lower price, schmooze, and faster service. Thats it. Beating a price is not that difficult, so a firm had better be world class at providing service, at rock bottom price ranges, and schmooze lest not to offend the client who has searched and found ones firm to be one of the cheapest alternatives available. It appears at that point it is a bit late for the posturing, wouldn't you say? This is not the path personal happiness and prosperity. 3. The immediate future This situation will only get worse as the world gears up to do business over the internet. As things stand today, many of ones competitors are bidding projects substantially below usual costs, hiring a few well spoken American engineers and managers to do the client contact, and then sub contracting the design, engineering and drafting work to Russians, Indians or people in other nations who telecommute the work at $2.00 an hour. 4. A look at what drives the market for professional engineering service. The combination of demands for a lower price, and faster service, drive engineering firm profits down. Many of those seeking 'engineering services', do so as they would shop for lawn mowing services, thinking apparently that all service is more or less equal, except for price and delivery and furthermore, that if the service proves unsatisfactory, they can just switch vendors. Not so with brain surgery or engineering services in the industrial arena at least. ..the client gets to live or die with the mistakes, or the lack of insight, or the use of obsolete tactics. ( The issue of a firm who opts to simply provide designs to meet the building code! Is not addressed here, one hopes however than an educated professional would be able to find more meaningful work.) Corporate bidding practices and policy also have not recognized or defined 'advance' into the service category, just price and speed of delivery. So that becomes what is put out to bid. The tactic has done three things for engineering firms:
5. A solution:
The difference in facilities may be simply that the high yield company had the foresight to provide space for electronic prefilters, reducing the particle count in their clean rooms, to exceed industry standards at the time the clean room was built. Or in the case of the shopping center, if the civil engineer had used his head, and gone with one size of drain piping up, from what some rote calculation indicated might work, or what was called out as a minimum in the UBC, and the architect had asked, how can I make the restrooms an attraction, instead of wasted retail space . Things would have been different you see. The shopping center would have had a fighting chance. All this, can be done by an engineering firm in the same, or less time in some cases, than a rote, unthinking engineering job. And that may be a key point of this article. Providing minimal service, will turn a firm, and its staff into bottom feeders. 6. There are prerequisites to high level performance. There must be more than just an attitude towards advance, but intellect, study, experience and integrity behind that attitude and these characteristics must be firmly rooted with the company management and senior level engineering and marketing teams. Cost of additional engineering to provide the advances mentioned in the above examples, almost nothing, cost of the electronic filters is 1% of increased profits due to higher yield rates in a single month!. Result for the client: 10 to 20% more profit per item than his competitor, and a doubling of sales figures beginning on the day the competitor goes out of business.
7. What to do when the customer's Harvard Engineering School graduate, with two years of experience, knows best. Please have your throwing tomato's ready. I am going to speak heresy now. I am going to say that if you actually operate on the basis that the customer knows best, when the customer is certifiably in error, the rocket is quite likely to blow up on the launch pad. Integrity is not an option when it comes do doing high quality work, one had better not fail to correct the young man .. in one way or another. and one had better not take his direction. If you think catering to this person's error pleases the company's board of directors, I'd suggest you ask them personally, and get to the real crux of the issue. The board of directors will tell you, in no uncertain terms, that you should not apply the 'golden rule of business' in this case . And that they the board of directors, and the stock holders are the customer, and the customer wants the job done right. By catering to a company employee, one is NOT making the customer right . One has simply misdefined the customer, as an excuse to cater to ignorance for short term gain, at the expense of all concerned. They will tell you that you were hired to do a professional job, with the best interests of your client in mind, not kiss the posterior portions of anyone's anatomy. Id agree entirely, and suggest that if you have done your homework, you should be able to educate the young man politely and effectively, with a cc to his senior, and save both the project, the companies viability, and your firms integrity. Lacking this integrity from the original engineering firms on a project, I have been retained to bail out these projects, after failures had almost ruined the corporation. These managements, after the fact, were emphatically not impressed with the application of the lame credo, 'The customer is always right' . And the engineering firms involved lost all future business from these corporations, ended up with a black eye in the industry, and lost millions of dollars of future business, all the result of catering to ignorance. This is the credo required of the mediocre, so as not to offend anyone. At the top levels of a successful company, this is not the effective way to conduct business. And if it is the way the business operates at the top, I'd suggest one find another client. 8. How does one manage to sell this higher level engineering service? First the firm must have something of intellectual quality and integrity to sell, then that becomes the obvious and visible character of the company. Only at that point, will a client see the fruits of the exceptional insight, and the list of advanced projects, research, and recognize, and pay, for that level of service. One raises the issue of research early with a client. Research is the key to advance. In the medical and engineering professions, these seem to be left to the universities and private industry for the most part... Only from there do the results of that research filter back to the practicing professional, if he or she has time to read the research, or even trade journal summaries of it. Most it seems, do not. This works well enough for many commercial applications . and often poorly for industrial and process engineering. The larger engineering firms of course know this well. They develop and maintain advanced research departments, often in conjunction with their larger clients. The chemical and petrochemical process industries are the best examples. Many develop and sell the patented processes as a package with the engineering services required to build a facility ..a very profitable pass time. Most engineering firms however do not maintain any semblance a research division, and are apparently not aware of the potential in working with a client on research, and sharing the benefits there of. The client gets a state of the art advance, and a competitive advantage, often a completely industry dominating advantage, and the engineering firm gets a patented process or system to sell, a happy client, and recognition for excellence in the industry, all of which drives new clients more interested in quality than price to his offices. Firms without this research capability or even an intent to read up on an industry and practices, prior to doing the engineering work, end up with very little to offer, save low prices, and a promise to print the drawings out on expensive paper. These must sell their services in the price competitive markets. 9. The following steps need to be taken if there is to be progress in these areas:
10. The intangible issues If your firm is 'thinking in a box' ..that is presenting without adequate insight, or research or experience, and trying to make it appear that you do have these, when in fact your firm does not .or you have the experience, but none of it is advance type work. Your client will pick up on that, consciously, or subconsciously. You will not be able to sell a project much above the lowest going rate in these circumstances. If you have done the research, ongoing for years in many different areas, and are looking to the broader issues, the clients world wide competitive requirements, the dynamics of that industry, etc. Then the customer will be looking at these issues also. Its as simple as that. I guess one could say that real competence, breeds real confidence, and when you say then that a good engineering job will require some research and development of the issues, you firm will be paid for that service. 11. Some projects lead to more and bigger projects, others are just headaches If you want the project on profitable terms, and you want a completed project that can showcase your company's capability, and you want a client who will tell the world what a great job you did just being the lowest bidder will not achieve those ends. Ask a client to fill you in on the project. First a written report. Some sketches, a walk through. Then have a meeting . Get everyone involved, as many hidden players as possible need to be there, or at least named. A copy of the client firm's organizational chart is useful in this regard .you can ask at the meeting , "what does the VP of marketing think about this situation". Get all the data. Probe for all of the considerations involved in the decisions to go forward with a project. Then investigate the industry, talk to vendors who sell to these people, survey the equipment operators many of whom have worked for many different companies. Probe until you fully understand the issues. The client's competitive issues, the marketing issues, the technical issues, etc. Now you are ready to help the client with a plant or process design. There is almost a 100% chance that the basis on which the project has been decided on is not entirely sound. The costs have been grossly underestimated, the competitions current approach is not often well known, and the competitions plans are often totally unknown yet these bear heavily on the viability of the current project. If you wish to differentiate your offerings from those of the lower priced engineering firm, this apparently is what it takes. 12. Differentiation: Its the oldest of marketing tools, yet it seems many engineering firms are so focused on the technology, or the politics or the day to day management, that they fail to use these basic approaches to differentiate themselves from the competition and sell a value added product (at a value added price). I will just list a few of the more common value added deliverables here:
These and other value added services make a job a complete package, reduce or eliminate surprises, and work that ends up at counter purposes. This strategy can reduce overall project costs significantly, and all but eliminate cost overruns, some times in the 100 to 200% range, not a minor issue. When a client sees a truly complete engineering package like this, with total project costs for less money than a less well engineered and coordinated project, he or she will gladly pay you an extra 5% of the job for engineering. (that increases the engineering fee by 50%, or so however). This is called, delivering a value added product. You will need to hire first class management and engineering talent to pull this off though two guys from Greenland and a drafter from St. Petersburg are not going to be able to do this quality of work. 13. How to provide advance, lower costs, and gain a significant sales advantage. A tall order, but it is possible. ...summarize briefly:
14. Successful actions Hire, reward, and retain those demonstrating by their product, results, actions, and intellect an advanced mind set. These people don't 'drone' too well, treat them accordingly. Expect the world, demand better than the best, but let them telecommute at will, and save 2 hours a day in traffic. Arrange office hours to fit flexible schedules. Provide a quiet space so they can work without distraction. And above all, you be truly interested in advance, and able to recognize it, and ask for it, and demand it, and sell it to a client. Then, with all this in place, you will have advanced level services to sell a client that help him succeed across all categories of the bottom line. Philip E Scott Copyright, Philip E Scott, 1/1999, all rights reserved
Since the early 80's, Mr. Scott has been senior mechanical or project engineer on many semi conductor fabrication facilities, for National Semi Conductor, AMD, IBM, Monolithic Memories, Intel and many other firms in Silicone Valley as chief engineer for A and A Mechanical. 1989 a study, analysis and remedial recommendations of the new IBM RISC chip facility in Burlington Vt. 1995- 1998, many projects for Texas Instruments in Dallas and other sites around the world detailed on resume, and client list. Clean rooms, UHP piping, Liquid Nitrogen, Acid exhausts, labs, tool hook up, and extensive project management services. He has written the following out line of what he sees as key facilities engineering issues. Regionally, there have been different approaches taken in building these facilities. On the west coast a service tunnel design seems to be predominant. This has the advantage of placing vacuum pumps and the like in sight of tooling. It tends to cramp and limit equipment space however, this can severely restrict fab operations and breaks up the floor space with service aisles, one gets less fab space per acre of land with this strategy. In Texas, and many Asian countries, a stacked approach is most common, with the piping and process support equipment in the basement, the fab on the first floor, the air handling , duct work and small volume specialty scrubbers on the third floor, with the fourth floor used for employee support areas, and offices. Primary scrubbed exhaust systems on the roof or at ground level to the side of the building. This leaves an open 'ballroom' where equipment can be placed to both optimize production, and to allow ease of maintenance, and refitting the fab for new production. And on the east coast one sees mostly a mix, the fab and service tunnels on the first floor, and a second floor for air handling equipment, but that is changing, lately, as fabs get larger, there is a trend to the stacked configuration world wide. Trends: Building Configuration: The latest advance is to a stack on an open grid structural concrete waffle. This leaves the entire area below the raised floor wide open for piping, wiring and duct runs. It also makes the inevitable and extensive retooling much faster and less expensive. See photo's attached. The earliest stacked configuration in the United states is the 'South Building' at Texas Instruments site in Dallas, with 12 feet floor to bottom of waffle grid (closed waffle) .. this was suitable when this facility was built in 1965, today more floor to ceiling clearance is required. The latest stacks are 20 feet floor to bottom of waffle and in many case the waffle is open. ( 6'open waffle between columns on 30' centers). The floor over the fab of course must be solid. Some facilities provide lift out panels, 10' x 10', in the main aisle areas so that if necessary large tooling can be placed into a fab through the ceiling. This also allows for a ceiling air plenum space eliminating then need to duct each HEPA filter module. The primary error one sees today is lack of a comprehensive plan for hierarchical arrangement of the various utilities through out the facility. Seldom is adequate room allowed to parallel existing utilities as new services are required. Lack of such a plan results in the trades making expedient decisions. This can make a facility extremely difficult to retrofit later. (see photo's of well designed utilities in open waffle configuration) Raised flooring: The old standard, 12" to 18" has proven marginal at best in today's fabs, unless an open waffle is used to support the raised floor. Over a solid floor I recommend 24", with an assigned hierarchy for electrical, cabling, 25 different piped utilities, and 4different ducted utilities. This approach will reduce construction costs considerably and make retrofit and retooling much more viable. With a ceiling height of 12 to 14' or more in new fabs to accommodate the larger tooling, and 3' minimum air plenum space we get a minimum floor to bottom of beam space of 20', which is becoming fairly common. HVAC Destructive particles are introduced several ways, by humans, equipment, process water and fluids, and from the outside air. The bulk enter through the make up air system, air required to replace what exhaust hoods take out is a considerable, hundreds of thousands of cubic feet a minute in many cases. The HVAC system must reduce this particulate to almost zero ..99.9999% free of particles above 0.5 microns in diameter. There are several problems in this regard. While 99.9999% is pretty clean, it is still ONLY a percentage number. If for instance, there were 1,000,000 particles per cubic foot in the outside air, 0.5% or larger, then 99.9999% efficient filtration would still leave 10 to 100 particles per cubic foot in the supply air to the clean room, border line for a class 100 clean room, and considering particle generation inside a clean room, not sufficient for a class 10 clean room by any standard. And this has been the situation in all too many fabs today. When the weather turns dusty, or at peak traffic hours particle counts rise dramatically, the straight HEPA, or ULPA filter approach becomes entirely insufficient, yield rates are reduced dramatically in these circumstances. There are many factors. Carbon particles for instance will go through a mechanical, or charged filter much more readily than say dust or pollen will . That is because the carbon atom with a valence of 4 is relatively stable and does not attract or hold a static charge well. So it goes right through a filter. This combined with the fact that much air born carbon is atomically disbursed, means a lot of carbon gets through the filter over a years time. This carbon then tends to plate out on surfaces where it agglomerates into larger particles, that when dislodged can contaminate a process. Solutions: Prefiltration with adhesive coated fiberglass, and or automatic wash down electronic filters is a good step towards reducing particle counts. It prolongs the life of the HEPA filters in the process. These measures however do not retrofit well, and should be designed into a new facility from the start, or at least provision made for prefiltration from the start, then if it is needed later, it can be viably added. The open ballroom, running at class 10 to class 100 levels (at 0.5 microns) with closed process tunnels, or microenvironments is also viable. This approach has the advantage that no people are in the final process environment, a significant advantage, and the wave of the future, this can achieve class 1 to 10 levels at 0.12 microns. (below 0.12 particle counting is difficult, and the particles tend to flow like gasses, that is evenly disperse in a space, even against air flow) The Future With line widths approaching a few gold atoms, and many layered VLSI scale semi conductors, screens and devices, even particles as small as 0.12 microns will become a serious problem. The degree to which a company can control particles in this range will determine its success into the next century. Open ballroom fabs, with an open waffle under the raised floor, and sealed processing tunnel environments, will be the wave of the future. Companies that build fabs to accommodate this approach will do well , those who do not will be slow to adapt, and be required to build new fabs instead of retrofit existing ones as process technology changes. Designing a Fab to Accommodate Retrofit As mentioned earlier, the open waffle, stacked design, is most amenable to fast and efficient retooling operations. Additionally with this layout, and with micro environments in place, retooling can take place while the rest of the fab is in production in many cases .a very important issue. There are many other design considerations in this area. Bearing strength of floors, vibration transmission, ambient noise (now and projected), and foundation issues to mention a few. All of these must be taken into account when designing an optimum fab building that one hopes will be useful over the next 5 to 10 years and longer, as chip geometry gets progressively tighter. De Ionized water Generically the problems are similar to make up air, as ambient conditions change, so do the cleaning tactics and requirements. This can become quite complex. Beyond this issue is the choice of materials, piping loop, purge strategies, and polishing system configurations. Among the senior issues are:
There is much written on these and other issues, high and ultra high purity gas piping, double contained acid piping, acid, toxic and silane exhaust systems etc. I have just touched on a few of the key issues here. As good as current practices are, the fact remains that these systems will be grossly unsatisfactory for the next generation of semi conductor manufacturing process's . And this situation should be a great concern to any company building a fab today. Construction Firms that use in house directed construction methods, and a high percentage of directly hired construction staff and foremen, tend to get their clean room facilities built for substantially less money, and less risk of cost over run, than firms who put the project out to bid. This package of materials includes notes on this approach. Also available by email, on request, is an article written for CE Weekly Magazine a few years back on the subject "How fail and what you can do about it.". This article has received wide acclaim, the approach has been successfully used in projects nation wide. Summary I recommend that a company hire the most qualified and experienced semi conductor facility engineers and consultants, allow a significant excess of fab and equipment space in the original design, and then design for ease of access, retrofit, and expansion .. this way, as processes and systems become obsolete, they can be more easily replaced or upgraded without having to build a new facility. Philip E Scott copyright 1/1999 all rights reserved
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