Optimum Design Associates Blog



Should Cost Examples For PCB Assembly

Here's a pocket guide to printed circuit board assembly (PCBA) prices in China, Mexico, and the United States. Our pocket guide gives a quick view of expected prices for PCBA's based on region, value, and number of component placements. 


How To Get Suppliers Costed BOMs


OEM's that employ strategic sourcing techniques often find contract manufacturers are reluctant to supply costed bill's of material. Here are 2 good reasons and 2 bad reasons for this reluctance. Understand the differences then use our 3 secrets to getting the costed BOMs.


Offshoring to China More Expensive Than United States

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.


How are Electronics Components Priced? [Podcast]


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


Quick and Easy Should Cost Analysis

Conducting a should cost analyis can seem daunting but is actually very achievable for most OEM's outsourcing electronic assemblies. Use this quick and easy guide to benchmark your current price for an individual pcb assembly and determine if it is competitive.


Contract Manufacturing Price Model: Cost Plus [Podcast]


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. 


Fixturing vs. Paneling in SMT


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.


Reducing the Cost of RoHS Compliance


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. 


1 Minute Guide To Supplier Management

Supplier Management starts with cultivating a relationship with your suppliers that will strengthen both businesses and create mutual profits. In 1 minute, here are 5 keys to consider for creating a prosperous business relationship between you and your suppliers.


Managing SMT Attrition

Purchasing extra components to keep surface mount technology (SMT) production lines running is the main focus of attrition. During SMT manufacturing some components will be lost. Attrition ensures that the contract manufacturer has enough usable components to complete the job without costly machine stoppages.