depending on what we're doing. There is nothing equivalent to our standard machines (for hard drive head stack measurements), so all the experts are in-house people who have learned on the job. On the custom machines, it varies; some are more unique than others. It's quite possible that NONE of the companies bidding are experts at building the customer wants built.

It's also harder to judge ahead of time what will be the best approach for a given set of requirements, especially since the customer requirements sometimes changer AFTER the machine has been built.

However, there are several tactics that we do use to reduce risk. Basically, we're system integrators, putting together complete solutions (standard hardware + software components, tied together by our custom hardware and software into a complete machine).

So our vendors are a big source of help. Factory automation vendors charge a hefty premium over the cost of materials; the good ones, like Adept Robotics, provide excellent support. If we can buy a standard product to do the job, we'll do that instead of building it ourselves. And if there's a subsystem that is out of our expertise, we'll subcontract out that subsystem.

Even though we don't like it when vendors spec equipment, they can have good reasons for doing so, because they have to live with the machine, maintaining it and sometimes upgrading it (for custom machines, the cost includes the control software source). So, for example, if all the other machines in their factory use Allen-Bradley, they'll probably spec Allen-Bradley, even though A-B is several times more expensive than Automation Direct, because it saves on spare parts and their technicians already know the Allen-Bradley controllers. Or there can be regulatory reasons; A-B is qualified for use in medical systems (FDA approved), while I don't believe Automation Direct is. Of course, if we get a sales lead from a manufacturer (e.g. Adept), we have to use their equipment.

As far as being an experts, well, that does depend on the area. We are experts in metrology (because of our parent company). I'd say we're experts in certain areas of automation. If we get into an area that was close enough so we're comfortable we can do it in-house, we'll use the a combination of our learning + vendors. If it's beyond what we're comfortable with, we'll either subcontract out a subsection, hire a contractor, or hire a new employee.

Basically, our business is different from yours. In most cases, it makes more sense for us (existing engineers) to learn the new areas, rather than hiring experts. So I place a higher premium on ability to learn AND experience (and wide experience helps, too, especially during project definition).

I do agree with most of what you say, especially on topics such as knowledge transfer. It's extremely important spread knowledge around in-house so that no one is indispensable.

Tony