Branded or nonbranded PCs: An increasingly tough choice
By Zatni Arbi
JAKARTA (JP): Another friend from The Jakarta Post recently asked for my help in putting together a PC for his family. I checked the latest prices of components in Glodok, West Jakarta, and did some arithmetic. Of course, a small fee for the job that I'd have to do and the support I'd have to provide -- which would be long-term support -- was also included in my calculations.
When I added the total figure, I came back to him and said, "Look, I could assemble a very good home PC for you, something that I would enjoy very much using myself. It would have a 166 MHz Intel Pentium processor, a fast 1.7 GB Fujitsu hard disk, an original Creative SoundBlaster sound card and a 12-speed CD-ROM drive, plus 16 MB of RAM. The only thing is its price would be comparable to a Compaq Presario 4128 with the same features. So, the choice is yours and you can think it over." Two days later he called me back and told me that he had decided to go for the Presario, then we went to Glodok together to get one for him.
Although free trade is not there yet, we already began to feel the impact. Just imagine, a good brand-name computer can cost as much as one I could assemble myself using quality components. That was not the case one or two years ago, when brand-name PCs carried steep prices. How do global PC vendors manage to cut their prices? Do they use cheap components to make their PCs affordable today? Certainly big players such as SNI, HP, IBM and Compaq, who rely so much on their brand image, will not do that.
One thing they can do is to ensure the highest efficiency in their supply chains, manufacturing and distribution. And talking about manufacturing, I was very lucky to have the opportunity to visit Siemens Nixdorf Informationsysteme (SNI) manufacturing plant in Augsburg, Germany, in March, to see for myself how a brand-name computer is made.
Just outside the old, pretty town of Augsburg in southern Germany, a huge structure encompasses SNI's largest manufacturing plant where they make their servers, PCs and notebooks. A staff member took me and some other guests from BCA to where they made motherboards, keyboards and other parts, also to where they assembled PCs and packaged them for shipment. PCs for the entire European market were shipped directly out of this plant.
Just like in the automotive industry, no PC company in the world today produces all of the component that go into their machines. Therefore, although SNI manufactures their own motherboards in the Augsburg plant, the components come from all over the world. The plastic moldings for the motherboards, for example, come all the way from Taiwan and Singapore. The various chips on the motherboards may come from halfway across the globe.
This manufacturer is a good example of how computer makers use efficiency in making their products competitive in the market. Among other things is the acquiring of components in bulk right from the sources so that prices can remain very low. That's also why I can't beat the price of a brand-name PC -- I buy only one unit of each component, while brand-name PC manufacturers buy thousands of pieces in a single order.
For certain types of motherboards, the production line is fully automated. Everything is done by machine, including the soldering of chip circuitry. For some other types of motherboards, the chips are still manually placed on plastic moldings. The chips themselves are stored in bins arranged in tall shelves where storage and pickup operations are also fully automated. Several robots go back and forth along marked lanes on the floor, carrying fresh supplies of chips and other microelectronics directly from unloading docks. It was just amazing to see how the robots knew exactly which bin a particular chip should fall into. It's not really surprising when you realize that Siemens is already a strong player in industrial automation as well.
Keyboard
SNI also makes their keyboards in Augsburg. Their keyboard is a good example of how products can be made cheaper with simpler technology. Unlike my own treasured keyboard -- an original IBM keyboard -- in which I'm sure there are thousands of small components, there are only seven parts in a typical SNI keyboard. Even the springs are replaced with a rubber mat. Therefore, the cost of making one is much lower, but the quality of the keyboard is not sacrificed.
Furthermore, if you take a close look at a conventional keyboard, you'll see that the manufacturer has engraved and painted every single one of the keycaps to ensure that you can see clearly which key you're hitting. At SNI, all the keys are marked using a laser inscription method. Not only does it take a shorter time to produce a keyboard, but it also is very flexible in that they can modify the layout any time to meet their customer's need for custom keyboards. Besides, again, it makes the cost of manufacturing a keyboard cheaper. Monitors are not made in Augsburg, but they are made in other places including Fuqing, China.
PCs are a highly volatile commodity. It's hard to predict when demands will jump or slump. Therefore, at this plant, employees are hired on a contract basis according to demands. When orders rise, the manufacturing management, who already has a list of efficient workers, would contact these people, and when orders fall, these people will have an unpaid holiday. It's a flexible working arrangement.
Testing is a very important part in the assembling process. Thorough testing will result in lower manufacturing defect rates and will reduce the cost of repair and support at the distribution level. Therefore, testing is done at almost every stage at the manufacturing plant, and when an assembled component doesn't work as expected, it is immediately sent to an expert technician whose job is to pinpoint the problem. Usually the nonworking part is replaced, and after it passes the test, the assembled unit goes on to the next step.
Emission test
A very interesting unit at the Augsburg plant is its emission testing facility. As you can see in the accompanying picture, it has an impressive and expensive room with cones protruding from all four walls. I felt as if I was inside a large torture chamber when I entered the room. The cones are needed in order to absorb and dissipate all interference from outside the room.
All products sold in the European Union (EU) must comply with EU's strict standards of electromagnetic emissions. Not only do they have to bear a CE label, they also must be accompanied by a Certificate of Conformity stating that their products comply with electromagnetic compatibility (EMC) regulations.
In this anechoic chamber, there were antennas and measurement equipment that measured not only the level of electromagnetic emissions from the PC to its surroundings, but also the effect of external interference on the PC (immunity test). With good shielding, you can be sure that your PC won't suffer from interference by electromagnetic forces emanating from nearby electronic equipment. Certainly, more important than that is that your health won't be affected by the electromagnetic bombardment from your PC.
In case you ask, they do not test every single unit that comes out from the production line. They just do a random sampling to ensure that all products conform as faithfully as possible to the stringent emission standards that they have to comply with. SNI also provides its certification service to other PC and electronic manufacturers. Products to be sold in the United States can even get their FCC certification at this state-of-the- art facility as well.
So, back to the "branded vs nonbranded" question. There may not be much incentive left for us to buy jangkrik (local term for home-assembled) PCs -- unless, of course, we choose to cut a lot of corners in order to get a very low price. For example, we can slash the price of a PC we build drastically by buying a locally made housing that has no electromagnetic shield whatsoever. Another point that tilts toward buying brand-name PCs has always been their better integration, as components are thoroughly tested in their labs for compatibility before they are put together. The manufacturer ensures that, for example, the sound card will work flawlessly with the motherboard. In addition, they are safer in terms of electromagnetic emissions.
About the only benefit there is for building our own PC is the inherent flexibility. When one component breaks down -- say the motherboard burns out, we can readily buy an off-the-shelf replacement and install it without having to rely on a brand-name PC service center, where we would typically have to stand in a long line to get it repaired.