Non-recurring engineering (NRE) is a broad term referring to a one-time cost to develop, design, or manufacture a new product. It can mean different things in different industries, depending on the product, process, and even supply chain strategy. In the PCB industry—especially in pull-based contract manufacturing—NRE refers to specific setup costs for manufacturing a newly introduced PCB assembly.
Offshoring to China is now more expensive than building in the United States (for the United States). Using objective 3rd party databases and actual prices we demonstrate why building "in region for region" is now the hottest trend in outsourcing.
One of the most important ways to prevent PCB defects is controlling factory environmental conditions. If the manufacturing floor’s humidity and temperature levels are not properly controlled, very expensive components—and possibly entire assemblies—could be damaged, resulting in quality issues and unnecessary costs.
A BOM scrub is the act of scanning a Bill-of-Materials (BOM) to clean off any inconsistencies, errors, or potential risks. It allows program managers and purchasers to align the customer’s order with the manufacturer’s capabilities. BOM scrubbing is one of the most important processes in the contract manufacturing business, and it is essential to lean front end processing and proactivity.
When procuring components, it’s important to pay attention to packaging type. Most component distributors offer the same components in a wide variety of packages to accommodate different pick-and-place loading preferences. The main options are: cut tape, reel, tray, tube, and batch. Each packaging type has its benefits, though it can be difficult to determine which type of packaging is the most appropriate for a certain job.
A solder sample is non-usable board that represents a usable PCB during test processes. It can be used to test virtually every process on the assembly line. Although many manufacturing engineers may take it for granted, this extra fab – which is identical to the usable board in every way – is essential for streamlining production, improving an assembly’s quality and dramatically impacting cost.
When a PCB is thin, small, oddly shaped, or requires SMT components near its edges, chances are these kinds of boards won’t fit properly into your pick-and-place, reflow oven, or automated inspection machines. That's why many manufacturing engineers use fixtures to secure and support these kinds of PCBs. But the cost of fixtures can add up. A new, custom fixture must ordered for every new design, and there’s usually a 3-4 day wait for it arrive. It ends up costing more for the customer, without adding significant value to the end product.
For small to medium size CMs, the cost of RoHS compliance can be high—5.2% of annual revenue, by some estimates. This figure factors in the cost of higher priced materials (solder paste and laminates), higher cost of manufacturing, increased administration and testing, as well as a lengthier exemption process. But a growing number of CMs are now learning how to manage those costs and, in some cases, reduce it.
For mid-size EMS providers, costs of rework can add up quickly. By some estimates, rework alone could result in tens of thousands of dollars in annual losses. Yet these costs aren't as high as completely scrapping a board, which can be almost triple the annual costs of repair. In terms of cost, the question of whether to repair or scrap is relatively simple: It's almost always worth it to repair.
