Optimum Design Associates Blog

In this episode of Outsourcing Things You Should Know you'll learn about:

Three types of price for electronic components

1.  Book Price

2.  Broken Price

3.  Direct Price

The cost of printed circuit board assemblies (PCBAs) is usually dominated by the component costs when outsourcing. But how are those costs determined? The production price you see from distributors is controlled by the manufacturers through a system called "ship from stock and debit."

 Xilinx vs. Flextronics Article: http://blog.optimumdesign.com/xilinx-v-flextronics-insight-to-a-gray-market

Materials is the root cause of at least 80% of missed delivery commitments. The only way to effectively drive consistent on-time delivery performance is by ruthlessly focusing on materials. Fortunately, material processes are very data-driven and can be successfully managed with a just a handful of crucial KPIs. The 4 crucial KPIs are:   

          1.  Late Buy Actions

          2.  Items in Compression

          3.  Late Vendor POs

          4.  Push/Pull/Cancel Messages

Ever wonder how electronic contract manufacturers come up with their prices? Simple: they estimate their costs, then add profit. This method is called “cost plus”; cost plus profit.