PCBA Tech - How to control the processing cost of SMT circuit board

There are many reasons for the differences in processing costs in the same region. The processing costs of the same PCA products in different regions of the world are still very different, and this phenomenon is not unique to the United States. With the accelerated development of the business-to-business transaction model in the Internet, the bidder with the lowest bid can obtain the PCA order with a bill of materials (BOM). The PCB mounting industry has not yet begun to simplify, and the existing problems have become more complex.

The SMT printed circuit board manufacturing industry has many definitions for the processing cost of printed circuit installation (PCA). Generally, the processing cost is defined as the difference between the price of the PCA and the cost of the materials purchased in each batch of purchase orders. Processing costs include all expenses, such as: materials, installation and testing, SG&A, all daily expenses, and the profit of the contract electronics manufacturer. Specific processing costs to each component does not necessarily provide reliable cost data. Even if the factory calculates costs based on operating activities, individual costs may be difficult to calculate, and they are not distinct from other payments.

Installation and testing costs cannot estimate the impact of design on production costs, but simpler and more reliable scales based on physical units can be used. The incomprehensiveness of single item calculation of processing cost is that both consumers and sellers pay the total processing cost, not single payment. Even though there may be some randomly set up departments within a factory or organization, the manufacturing chain from components to PCB finished products is integrated, rather than a series of discrete events.

In order to measure cost benchmarks, budgets, and total factory management costs, the cost of each pin, that is, the PCA processing cost allocated for each pin or each solder joint, is the most reliable measurement scale. Since the mid-1980s, with the popularization of surface mount technology, in the process of calculating the cost of each pin, it is allowed to consider the impact of multi-pin packaging and related installation complexity, testing and repair. The cost of each pin is also a component of the cost of each I/O material, and it is an important indicator for optimizing the design and component selection process. Different levels should be distinguished in the comprehensive calculation of processing costs. Because the processing cost will vary significantly with the difference in circuit board processing technology, quantity, batch number and production area. The cost change caused by each factor is an important reference basis. The processing cost of each different circuit board processing technology is an important benchmark for factory performance evaluation or processing cost budget. Processing costs include material procurement, installation, and testing. Material procurement is the main part of the total processing cost. In other words, small-batch installation is not the main driving force for converting the processing technology. Improving the installation process is the key.

For the same kind of PCA, comparing two American companies that compete with each other and have considerable production capacity, it can be seen that their production costs are 0.012 US dollars and 0.018 US dollars per pin. In Mexico, production costs are usually only two-thirds of those in the United States. In Asia, the cost is only 50% of Mexico's. The mid price is the CIF in the United States, so freight will not cause deviations in cost calculations.