Cost Inputs EMS Manufacturers Use to Quote Circuit Board and PCB Assembly Programs

Cost Inputs EMS Manufacturers Use to Quote Circuit Board and PCB Assembly Programs

Electronics product and equipment companies intending to source their printed circuit board assembly (PCBA) and box build integration programs to EMS manufacturers can expect to receive quotes from EMS manufacturers broken down into a list of cost inputs, looking similar to the numbered items, below.

  1. SMT programming
  2. Top stencil
  3. Bottom stencil
  4. Set up costs (Profiles)
  5. Back-up plate (2x side only)
  6. Wave fixtures (#)
  7. ICT maintenance (+ dev fee?)
  8. First article inspection (BOM)
  9. MPI development
  10. LED pipe fixture(s)
  11. Inspection template
  12. ESD PCB totes (shared?)

The above program is then typically broken down further into separate value-add, additional pricing input components, similar to the items, you see below:

  • Kitting: Assembly kit charge
  • PCB: Assembly hourly rate + total assembly time + hourly labor
  • PCB ICT: Test hourly rate + takt hours
  • PCB Functional: Test hourly rate + takt hours
  • System assembly rate
  • Final systems test

For interested companies, I can explain in detail how EMS manufacturers determine internal costs when quote pricing fees and services. Please contact me here.

Reasonable Assumptions for EMS Manufacturers

Meanwhile, the final quote presented by EMS manufacturers will come with assumptions.

Some EMS industry assumptions to support the PCBA and box build systems integration work above are listed below, and considered reasonable by most people in EMS industry, depending on the program.

  • All programmable parts to be pre-programmed by OEM customer
  • Minimum SMT programming cost: $x
  • EMS provider to procure, house, maintain all wave fixtures for business (best)
  • $x for ICT fixtures - to cover EMS provider procurement, set-up, and 'on-site' weekly maintenance
  • One-time power installation requirements ($x) covered by OEM
  • All OEM customer builds requested of EMS provider, following parties' agreement and not billed previously, to be billed accordingly at EMS provider's discretion
  • NRE, etc... Rates at least equal to above related charges
  • Infrastructure estimate charges to be initially set at $x, with potential to exceed, as OEM program life warrants, with EMS manufacturer justification through purchase orders)
  • Additional systems integration and box build tooling costs, specific to a particular quote, are drawn against 'reserve'
  • ICT not included for module builds

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