EBN Article- August 7, 1995
Issue 967, page 46
Section: Computer Subsystems

Modernizing Motherboards

By Steve Eliscu

The build-to-order (BTO) approach offers many advantages for personal computer makers, including reduction of the cost of managing product lines and carrying inventory, as well as limiting exposure to the effects of changing customer demands. You can cut inventory to only one type of PC motherboard using BTO, as long as the motherboard accommodates a full range of functional plug-in modules.

With sockets for the processor, RAM, and a cache memory module, the almost-bare motherboard is inexpensive and versatile. Except for the relatively inexpensive basic chip set, the motherboard can contain only sockets. You can wait to fill those sockets until system integration time, when you add the components your customers have ordered. Until then, you don't have to inventory the most expensive components.

The socketed motherboard is only the first step in the BTO approach. Suppliers must be willing to provide modularized components (like dynamic RAM or a cache subsystem) that will plug into your motherboard's sockets and work with your chosen chip set. In addition to allowing PC makers to configure systems just before shipping them, the use of modules is an industry trend as they permit module suppliers to assume some of the risks and burdens. System manufacturers are using modules for the same reasons they off-load board manufacturing to outside companies.

Suppliers must also deliver the modules on a just-in-time basis. Otherwise, you would end up "inventorying" the motherboard and its modules as before, but in different places.

From a buyer's viewpoint, just-in-time procurement is the most important BTO element. With vendors supplying modules exactly when you need them, you save on the cost of maintaining inventory as well as the expense of managing it. Additionally, you acquire components direct from their manufacturer, rather than from an outsourced motherboard maker who adds in extra expense.

Because your vendors must cooperate rigorously with your manufacturing operation to deliver just in time, they have to be willing to put aside traditional competitive attitudes to develop a close relationship with your company. In fact, IDT's experience with supplying components for BTO programs at Dell, Apple, Intel, IBM, HP, and other PC makers has shown that this is really a service business. Manufacturing the right high-quality components is the first step. Then the vendor must supply them when and where you need them on a reliable basis-a feat that demands a dedicated service-oriented attitude.

Perfecting the ability to support a BTO program can take years. To fulfill the requirements reliably, vendors must have a strong infrastructure and control over their manufacturing schedules so that they are always in synch with your schedule. For semiconductor vendors, this usually means having their own fabrication lines.

Even without just-in-time module delivery, BTO dramatically improves flexibility. When Intel introduces a faster Pentium, for instance, you can immediately plug it into your motherboard socket and sell it. Or more accurately, you sell it first, then plug in the chips.

Cache memory offers another example. Users are increasingly aware of the performance advantages offered by larger caches, and a new type of cache (pipelined burst) promises better performance at the 256-K level. For now, however, asynchronous cache continues to offer better value.

By including a socket on your motherboard for a cache module, you gain flexibility in the cache sizes you offer, as well as open the way for adoption of pipelined burst cache when it becomes available. Then you will be able to sell pipelined burst as a feature and plug new modules into the existing cache module socket as you need them, all with minimum procurement effort.

BTO focuses on gaining maximum flexibility with minimum effort and overall expense. Companies need all these advantages to compete in today's PC market.

Steve Eliscu is subsystems marketing manager at Integrated Device Technology Inc., Santa Clara, Calif.

Copyright 1995 by CMP Publications. All rights reserved.