Hello everyone,
If you know, could you tell me the pitfalls and costs of procuring PWB
offshore.
Larry Tawyea
Larry,
One of my many responsibilities as PCB Project Engineer is Domestic
and Global Procurement of PCBs. The justification of my job solely
relies on how much product I can procure less than Japans cost
(including duties, shipping burden rates). Here is some info to
provide you with a litte background about Japanese procurement, in
this case Hitachi (HICAM).
>Most HICAM commidities can be procured, unless otherwise stated from
mother Japan.
>If not Locally Procured, it is sent to us in Sakaban kits, or known
as consignment in the states.
>Long term and Extreme evaluation tests and processes that confirm
quality and reliability with each vendor.
In many cases our PCB test specifications for determining the long
term reliability of bareboards exceed Mil-P-standards (55110, 13949)
and Bellcore standards (TR-TSY-000078).
>After our evaluations are complete (Cost Matrixs and Enviromental
testing out the rear) we submit the information to Japan for review
and sometimes duplication testing for verification.
>etc etc etc ...... I can elaborate further via telecon.
So as you can see, I must justify the Domestic and Global procurement
in many ways.
Back to your question.....
About five years ago many US companies were offshoring their PCB
procurment in Southeast Asia and around the Pacific Rim (excluding
Japan, where cost is outrageous). Soon after they encountered these
and many other issues:
>extreme lack of communication (language barriers)
>low quality levels (Class 1 or lower)
>the ability to build a high technology boards (5/5, 4/6, 6/6, .020 or
less QFP pitch, and so on - I can elaborate via telecon).
>2 to 3 different time zones that does allow you to speak to the
person in charge or someone who knows whats going on.
>shipping, import duties, customes,
>lack of automated fabrication, in-turn, low quality
>lack of quality equipment
>lack of quality trained operators
>etc etc etc ...... I can get into many no, no's
This is not say that all Asian (if your definition of offshore is in
Asia) are terrible. I was born in Bangkok, Thailand and visit family
and friends (MCI) often and when there I get a chance to talk PCB shop
with individuals at local companies. Some of the PCB shops are quite
impressive, while others have long ways to go. For obvious reasons
the bigger corporations that have their on CAPTIVE shops tend to be
the movers and shakers.
The questions you have to ask yourself are:
1. What type of quality can you accept?
Class I, II, III
2. What technology level are your boards?
3. Investigate Domestic sources that are high on quality and low on
cost. Bigger is not always better.
4. Whats the cost of quality?
5. Whats your definition of quality?
6. Will you have to increase your AQL?
7. Do you have send shift engineers that can answer PCB design and
fabrication issues efficiently?
8. Again there are many variables, I would rather discuss these
issues via telecon.
I oversee an annual PCB LP project of 2 million dollars. I consider
that small potatoes to what I am use to. I have also evaluated
10 PCB vendors. I tend to rank my vendors in two catagories, small to
medium and medium to large volume. Prior to presence at HICAM,
several large PCB shops were chosen incorrectly, based on dollars and
size. Since my arrival, I have weeded out some and brought on small
to medium vendor. I prefer to be 10 to 15% of some business instead
of 1/10 of 1% as one vendor rudely explained to me in meeting.
There are a variety of PCB vendors with excellent quality and low cost
that are soliciting new business. As you may already know, it is a
PCB fabricators market, their lead times have pushed out to 12 weeks
versus 6 to 8 just 6 mths ago. Don't let the current industry trend
discourage your domestic procurement. PCB vendors attitudes will
quickly change as the market softens.
If I can assist you further, email me at [log in to unmask]
should you have specific questions or call 405-360-5500 x634. Thanks.
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