Hello Everyone ,
Being new to the net I would like to offer my experiences in this
arena.
We utilize both domestic and offshore sources (Asian and European).
We have had both bad and good experiences offshore a lot of which depends
on the up front work we have put into selecting the suppliers. I am a
Material Quality Engineer and am directly responsible for the development of
our offshore suppliers. It is important to have someone on your selection
team who understands building processes and can realistically evaluate the
ability of the supplier to meet your needs.
We procure both class two and class three product from our suppliers.
We have had issues that have arisen because we deviated from our own
development process.
1. Make your selection team up from both contracts and engineering(
preferably with board building knowledge).
2. Be culturally aware - Train your team
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>From: ipc!ipc.org!TechNet-request
>To: TechNet
>Cc: TAWYEA
>Subject: Re: Offshore procurement of PWB
>Date: Friday, October 20, 1995 12:16PM
>
>
>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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