Case Study: Illumina Reinforces Manufacturing Foundation with Paramit

Leading Developer of Life-Sciences Systems Goes Beyond Increased Yield with Paramit, from Test to Engineering

Illumina is a leading developer, manufacturer, and marketer of next-generation life-science tools and integrated systems for the large-scale analysis of genetic variation and biological function. Researchers at genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, and biotechnology companies use Illumina's tools to perform the billions of genetic tests needed to extract valuable medical information from advances in genomics and proteomics.

Challenges and Opportunities

In 2008, several contract manufacturers (CMs) supplied Illumina with printed circuit board assemblies (PCBAs) for the company's genetic analysis tools. These components were essential to the company's development of new products, which were in turn a key driver of its aggressive growth plans. Given the importance of continuous innovation to its business, Illumina scrutinized its existing CMs and decided to search for a replacement that could not only deliver immediate superior results, but also better support its future strategic requirements and next level of expansion. 

Some of Illumina's top criteria for a new contract manufacturer included an accessible management team; design capabilities for PCBAs; and facilities and processes that could scale as the CM demonstrated competency and reliability. Illumina wasn't simply looking for a basic outsourcing solution, but rather a long-term partner with complementary skills, experience, and goals.

The Solution

Using a comprehensive scorecard comprised of several dozen metrics, Illumina evaluated four different electronics manufacturers that spanned a broad range of sizes, qualifications, and specialties. Paramit was initially considered based on a recommendation from one of Illumina's employees, who had previously worked with Paramit while at another company.

During the evaluation process, Paramit scored well across all of Illumina's criteria and was selected with one other candidate for further consideration. Illumina's Manufacturing Engineer Tom Chung noted that, "Paramit's President and management team showed a high degree of engagement from our very first meeting, and their infrastructure appeared to be the best." Illumina was also impressed with Paramit's electro-mechanical capabilities and its backbone for optical components. At the end of its review, Illumina awarded its PCBA business to Paramit and the two companies began the intricate step of transitioning Illumina's circuit board assemblies to Paramit's operation.

Results

Since starting their work together in Q4 2008, Illumina has realized a number of benefits from Paramit's engineering, test, and manufacturing capabilities. Illumina's yield on PCBAs has increased to nearly 100%, and Paramit now oversees production of all PCBAs for the company. Recent delivery schedules have also been consistently 100% on time, improving Illumina's ability meet its own customers' expectations. Illumina's team is well informed about every project through Paramit's weekly tracker that shows key metrics at a glance.

Several months into the relationship, Illumina expanded Paramit's role to include mechanical assemblies for multiple products. "Paramit's 27-step Quality Inspection process and responsiveness helped us reduce defects down to zero," said Tom Chung, "and gave us the confidence to entrust Paramit with assemblies beyond the original PCBAs." During these projects, Paramit demonstrated that it could work well beyond the typical level of a contract manufacturer, through contributions in test development and mechanical engineering.

Most recently, Illumina has increased Paramit's responsibility again by assigning system-level work for one of the company's products. Although Paramit had prior experience in complex box builds for industrial and medical industries, this latest project presented a new challenge: instrumentation using fluidics. Facing a steep learning curve, Paramit applied its proven processes for continuous improvement to gain the required expertise in pumps, temperature, pressure, and very low fluid volumes. During Q3 2009, Paramit reached another milestone by delivering these system-level products 100% on time and defect free.

Paramit's current role within Illumina's operation illustrates how successful Illumina was in its original, overall objective: to partner with a contract manufacturer that could grow into something far greater. Illumina and Paramit's engineers and technicians work closely with one another, ensuring prompt resolution of issues and improved product reliability. As such, Paramit has helped to reduce much of the engineering complexity that Illumina faced previously when working with disparate CMs. By eliminating the gaps that traditionally exist between OEMs and their contractors, Illumina and Paramit have laid the groundwork for new accomplishments in the future.