# S1 E4: Cracking the Code of Hardware Manufacturing with Scott Miller

- Show: [The Builder Circle](https://hardwarepodcasts.com/podcast/the-builder-circle)
- Published: 2023-05-15
- Length: 1h 14m
- Page: https://hardwarepodcasts.com/podcast/the-builder-circle/2023-05-15-s1-e4-cracking-the-code-of-hardware-manufacturing-with-scott-miller
- Listen: https://rss.com/podcasts/thebuildercircle/950074

## Summary

Scott Miller, a hardware expert who worked on the early Roomba program and Dragon Innovation, explains how startups should navigate manufacturing decisions, emphasizing that the first 100 units should be built in-house to capture domain knowledge before outsourcing. He advises startups to target tier-two or tier-three contract manufacturers, use dual-sourcing for leverage at $50 million in business, and treat factories as partners by sharing founder bios and VC backing to mitigate their risk. Miller also details the importance of robust Manufacturing Service Agreements (MSAs), lifecycle testing, and quality assurance to avoid catastrophic field failures like the Roomba's early optical encoder dust issue.

## Outline

1. Introduction: Scott Miller's Background and Roomba Experience
2. Insourcing vs. Outsourcing: The First 100 Units Rule
3. Selecting Contract Manufacturers: Tier Two and Three Fit
4. Dual Sourcing and Leverage at Scale
5. Hardware Horror Story: Roomba Optical Encoder Failure
6. Manufacturing Service Agreements (MSAs) and Payment Terms
7. Sourcing Components: China, Taiwan, and Local Options
8. Quality Assurance, Lifecycle Testing, and Safety

## Topics

- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Quality & yield](https://hardwarepodcasts.com/topic/quality-and-yield)
- [Design for manufacturing & NPI](https://hardwarepodcasts.com/topic/design-for-manufacturing)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- iRobot (company)
- Roomba (product)
- Dragon Innovation (company)
- Dyson (company)
- SpaceX (company)
- Alibaba (other)
- Flex (company)
- Foxconn (company)
- Hasbro (company)
- Commonwealth Fusion Systems (company)
- Bolt (company)
- Freight Farms (company)
- Proto Labs (company)
- Dragon Ventures (company)

## Related episodes from other shows

- [#032 - Why manufacturing in USA vs China is becoming interesting, with Scott N. Miller of Dragon Innovation, USA](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-07-05-032-why-manufacturing-in-usa-vs-china-is-becoming-interesting-with-scott-n-mille) (The Hardware Entrepreneur)
- [An Interview with Scott Miller - Sudden SinoAmerican Synthesis](https://hardwarepodcasts.com/podcast/the-amp-hour/2012-09-17-an-interview-with-scott-miller-sudden-sinoamerican-synthesis) (The Amp Hour)
- [064: Preparing and Executing Your Product's First Production Run](https://hardwarepodcasts.com/podcast/product-startup/2021-02-23-064-preparing-and-executing-your-products-first-production-run) (Product Startup)
- [#134 How to Make and Scale Your Product with Jamie Valenti-Jordan, Catapult Commercialization Services Part 2](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2024-03-21-134-how-to-make-and-scale-your-product-with-jamie-valenti-jordan-catapult-commer) (The Startup CPG Podcast)
- [Transition from Prototype to Mass Manufacturing with Scott Miller of Dragon Innovation](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-03-12-transition-from-prototype-to-mass-manufacturing-with-scott-miller-of-dragon-inno) (Predictable Designs Podcast)

## Citing this page

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