Several Technologies Converging to Drive PCBA Industry Demand

Several electronic technologies are converging to increase demand in the PCB Industry over the next several years. The driving opportunity is the explosive demand for smart phones and tablet computers.

Mobile technology is growing faster than any technology in history. Faster than radio, television, computers and the internet. According to Pew Research, as of September, 2013 "63 percent of mobile phone owners now use their phone to go online!"

Mobile is a key category behind the electronics industry rebound from a modest downturn; "North American electronics industry has been recovering gradually from a slowdown that began in December 2013."


There is also good news for the PCB and PCBA industries in the "Internet of Things" (IoT) and the expansion of cloud based computing, both driving increased demand for storage, routers, and servers.


Still another factor that should drive industry growth is the propensity to embed technology into everything imaginable. Intelligence is now being embedded in pills that a patient swallows to take pictures of their digestive tract, they are in cameras that monitor traffic on the highway, there are in appliances that can advise homeowners when they are running low on groceries. Even if the miniaturization itself does not directly impact PCB, it again drives demand for more servers, storage, and routers.

The convergence of smart phones, tablets, the Internet of Things, Cloud based computing, and embedded devices should bode well for every industry that is connected to them.

Complexity Index for PCBA Assembly

Complexity Index for PCBA Assembly

The Complexity Index (Ci) is a method of scoring the manufacturing complexity of PCBA assemblies proposed by Agilent many years ago. It is a useful and accessable method of standardizing approaches to understanding complexity and therefore the appropriate manufacturing and test strategies.

Complexity Index (Ci):

Ci = ((C + J) / 100)) * D * M

Continue reading after the break for a practical example of how to utilize this formula.

Understanding the variables utilized is critical to being able to properly take advantage of the Complexity Index.

To reiterate, Ci = ((C + J) / 100)) * D * M

Where:

C = Number of Components

J = Number of Solder Joints

D = 1 for double-sided, =.5 for single-sided

M = 1 for high mix, .5 low mix


For example, a double-sided board with 125 BOM line items might have 730 components (the sum of each BOM line item times its quantity per), 3300 solder joints, and is high mix (say less than 10,000 per run size). Its Ci would be:

((730 + 3330) / 100 * 1 * 1 = 40.6
Complexity Index Complexity Class
<25 Low
>25 and <75 Medium
>75 High

Do Not Get Burned By Outsourcing Your Product Assembly

Several PCB manufacturing businesses have taken to moving most, if not all, of their manufacturing department overseas to off-shore factories, most of them within China. While the cheap labor costs might bring in a boost in revenue but the affects on the local economy and future revenue is also worth considering when it comes to keeping your business assets safe.

A major manufacturing job which has gone overseas is product assembly, especially for Printed Circuit Boards. However, there are precautions when it comes to off-shoring your assembly to China or other cheap labor countries. Though it may seem impossible not to go overseas for your manufacturing, it doesn't have to be like that any longer. Many product assembly businesses are still United States based and support the growth of their local communities by keeping jobs local. Also, the components being used can be shipped from a reliable source and are less likely to be faulty.

There are many other reasons to not go off-shore with your PCB assembly, not just the risk of faulty parts or ensuring there are jobs in the United States. In fact, SLD talks about a case study which explains the very real problems of outsourcing to China and how a personal paper shredder company saw $168 million in revenue lost simply because of trying to cut corners in labor.

The Problem With Off-shore Parts

PCB and general product assembly has become a booming economy in China over the last few decades, but there have been problems with American businesses shipping off the manufacturing and assembly to a country halfway across the world. Some of those problems include:


Counterfeit parts are a very common problem in assembly. Counterfeit parts could mean faulty parts which won't work and could affect an entire batch of product, meaning a huge recall and reassembling everything with non-counterfeit parts. However, fake parts are so prevalent in China that it can be difficult to find real, reliable components.


It can be harder to track all of the parts to make sure they are compliant and working up to spec, making the entire rework process potentially difficult and even more costly in the long run.


With regards compliance, most parts need to have certain compliancy measures that might not be found in parts not passed through a United States based assembly team.

Bringing It Back To The United States
Going back to the case study by SLD of a personal shredder company called Fellowes Inc., this is an unfortunate example of a business nearly going out of business simply because of outsourcing. Fellowes developed a joint venture with a Chinese company to build a factory in China, the contract stating that all tooling and intellectual property within the factory are Fellowes' property. The Chinese company, Shinri, was owned by brothers and eventually leadership of the company passed on to a different brother who decided to take control of everything, including the Fellowes contract.

What happened next is Fellowes trying to sue Shinri in Chinese court with very little success and a loss of millions in revenue, nearly going bankrupt in the process. The problem with a joint venture in a different country is that the contract is still affected by that country's law, and if they are not enforced, then any resulting broken contracts prove to be fruitless.

However, your assembly production can be brought back to the United States under U.S. business law, protecting all of your intellectual and manufacturing property without the threat of a sudden change of power and glaring illegal tactics to usurp all property. And the costs of bringing it back to the United States doesn't have to mean a huge loss for your business, product assembly can still be relatively inexpensive with newer technology being implemented, such as CNC and robotics.

Start seeing real, quality results when you start choosing American based product assembly, not faulty and counterfeit parts or a threat of your entire business going bankrupt.

Best Assembly Solutions: Exceed Your Requirements, Not Your Budget

Printed Circuit Board (PCB) solutions, you want the best quality without having to go over budget and lose money. While it may seem like an impossible feat, it doesn't have to be with the help of assembly solutions out there that aren't just out for your money with the worst quality service offered. What kind of solutions are there? And how can they help you save money?

Don't Go Off-shore

Most assembly companies outsource their assembly line to other countries, like China. However, the end result might turn out to be a product that doesn't work or has a less than average lifespan that could mean a faulty warranty. While it might be difficult to budget in United States based assembly, it is well worth it in both the long and short run. Try to choose a PC board assembly company which keeps everything in the United States, from design to assembly to implementation. You will be feeding into the economy and seeing a higher grade of PCB products.

Keep An Eye Out For Counterfeit Product

A very common problem with PCB assembly, especially when outsourcing and going off-shore, is the volume of counterfeit product that could mean a bad product that doesn't work, and reassembling an entire shipment. When looking into assembly solutions, it is best to find solutions which promise non-counterfeit products and have the ability to test to make sure the components are verified.

CNC Assembly Solutions

Recently CNC machines have been making a big splash with an ever-growing community of CNC manufacturers and hobbyists creating all sorts of different products, especially with the popularity of the Internet. However, it can also be a viable solution for small to medium production tasks with the right kind of cutter and miller. Because of its popularity, budgeting in CNC created products is becoming easier to do too.

SMT For Your PCB Needs

Also simply known as Surface mounted technology, a surface-mounted device in the PCB world is probably the most common assembly type that many different companies utilize for an inexpensive price. Most businesses prefer these types of components because they're smaller, can hold more on the board, and the parts for an SMT assembly costs less than other alternatives.

Robotic Assembly

Because most components are becoming smaller and harder to assemble by hand, most companies are using robotic hands to do the assembly work while humans still do the testing and rework should there be any problems with the parts after assembly. Because robotics in the assembly industry has become a common staple for smaller PCB's, using robotic assembly with human testing doesn't have to force you to go over budget.

Through-Hole Assembly Solutions

For those interested in having a stronger PCB than the ones created through SMT, through-hole technology is an option to consider. However, out of all these solutions listed, through-hole can still be on the pricey side and should be reserved with businesses with higher budgets to spend on assembly. Regardless, through-hole is best for electronics that need a stronger PCB, such as semiconductors.

When it comes to your own printed circuit boards, it is best to use your own judgement on these things. However, there are some requirements to consider for any project and budget, including if the company is United States based or there are counterfeit parts being used. The others include:

Product testing is a requirement, so don't skimp out on testing to try and get the most product.

If possible, look into green services so your parts are RoHs compliant.

Always use analysis for compliance, systems, and components. Just like with final product testing, don't cut corners with an analysis.

How to get an instant PCB online quote?

Printed circuit board technology deposition makes industry highly developed. The PCB quote comes to be transparent. PCB industry profits come to be averaged. During past a couple of months, being impacted by current global economic recession, a variety of PCB manufacturers have been withdrawing from this market, in particular the small business providing low manufacturing capabilities and without scale and outstanding services. Regarding online quote, currently many PCB makers can do this, because PCB is likely to be standard product, although the manufacturing process should be customized.

To get an instant PCB quote, you have to provide some basic info: layer(s), size, laminate, surface finish, test requirements. But in terms of special requirements such as impedance, limited line spacing and width, blind via, buried via etc., engineer has to figure out the quote through more efforts.

During the process of calculating total cost, upstream laminate price is becoming transparent, so PCB makers only have to work out cost of labor, water, electricity, workshop rental, pollution management, wastage, machinery depreciation and then figure out the BEP (Break-Even Point). For online PCB quote, price of common double layer is about $50~90 USD/m2, but $90~100 USD/m2 for PCBs with special manufacturing requirements. Of course, the price discrepancy depends on processing, quality and services of the PCBs.

5 Crucial Aspects of PCBA Quality Control

The incremental need of electronic products propels rapid expansion of electronic manufacturing industry, involving upgrading technology deposition. With popularity of smart phone and wearable devices, there are refined and high requirements of manufacturing capabilities, which contributes quality control concerns of PCBA manufacturers. Here are 5 crucial aspects of PCBA quality control.

1. PCB Fabrication

There are huge many factors to impact PCB quality, the most important are laminate, dusty-free exposure and copper plating. Rather than factory facilities and environment, we should look into these quality controls. Laminate grade starts from A to C with big price difference. We also know the purity management of dusty-free plant through third-party documents. PCB copper plating has high requirements of consistency and uniformity, regular exchange management of solution and equipment maintenance. Also, copper plating process should be enhanced during practice of a variety of projects.

2. Components Sourcing

Original branding components are crucial to surface mounting technology, which can prevent batch defects from the source. Electronic Manufacturing Services (EMS) enterprises should set IQC (Incoming Quality Control) position to ensure all incoming materials in consistency and uniformity. IQC will manage sample-check of components shape, default value and error limit. Also, EMS enterprises should continually optimize components sourcing channels.

3. Surface Mounting Technology

During PCB assembly process, EMS enterprises should confirm the solder paste in consistency and uniformity, set SMT programming properly to ensure high precision of IC and BGA assembly. It is necessary to put all PCBs to 100% AOI (Automatic Optical Inspection) and (IPQC, In-Process Quality Control). Meanwhile, we should fulfill strict management of tray and verify stack list.

4. PCBA Test

Test points are generally reserved by design engineer and relative test plan will be passed to PCBA manufacturer. Circuit voltage and current curve will be analyzed during ICT (In-Circuit Test) and FCT (Function Circuit Test). A collection of these results will be reviewed according to assigned test plan, then confirm the acceptance area, as well as customer future improvements.

5. Managing People

For PCBA manufacturers, well-equipped machines are only small part, the big part is the people management. Manufacturing management team should figure out scientific work flow and monitor the operation guides are handled properly.

In fierce competition of PCBA market, manufacturers should constantly optimize their internal quality management. The refined manufacturing management will adapt market demand and could be the lifeline of PCBA manufacturers.

6 Untapped Sales Thoughts Before Starting Your Business

If you don't know how to sell, starting your own business must be a risk thing. How opportunity comes? It is actually driven by customer demands. As long as we can keenly look into customer demands and then think about how to notify the customers and convey excellent experiences, profits come subsequently.

In terms of sales, many guys think more complexly. In summary, you have to remember only 3 words: pain spot, tickle spot and excitement spot. Let us see simply definitions.

1.    Pain spot

What problems customer has, which makes him sleepless and annoying. These pain spots are what we should solve for customer.



2.    Tickle spot

Uncomfortable factors making customer in a dilemma. Customer needs somebody to scratch the tickle.


3.    Excitement spot

The excitement that makes customer shout “WOW” and stay in pleasure.


How are 6 cases to impress you. Hope you can be inspired through them.
ONE: Accurate Customer

Taxi driver is easily afflicted with hemorrhoids due to sitting for long time. If we can push audio or text advertisement of hemorrhoids drug by using taxi App under the downtown district, this is absolutely accurate marketing. It is said that there are 5 people replying to one message. When you pay no attention to this, others have been doing for long.

[Tips] Beyond surface, we can find taxi drivers’ pains such as hemorrhoids, lumbar disease and then dig customer demands for making a deal.


TWO: Increase Profits

You are shopping apples and asking “how much?”
Seller: “$1 USD for this stack”.
You: “How about apples on the other side?”
Seller: “$1.5 USD”.
You: “Why it’s more expensive?”
Seller: “Looks better”.
You decided to buy apples on price $1.5USD.
Afterwards, seller divided the apples as 2 stacks and sold them on price $1.5USD very soon.

[Tips] This is customer excitement spot. When you have only one price, customer decides to buy or not; When you have two prices, customer decides to buy the good or better. Actually, more customers buy better commodities, which will directly increase your profits.


THREE: Promote Customer Repeat Purchase

A fine menswear shop launched member service of dry cleaning of the clothes for FREE every month. Regular member: 1 time/month; Silver member: 2 times/month; Golden member: 3 times/month. The amazing happened. Customers will take their clothes to the shop for dry cleaning and look around new arrivals while waiting for their clothes. You know, more clothes were sold. Look, free gift or service is so powerful.

[Tips] Launch low cost value-added service, which can activate customer repeat purchasing.


FOUR: Strengthen Your Customer Relationship

Customer does not need your weekly greeting, postcard or SNS sharing. It’s terrible that you think your customer can remember you. These actually seem to be annoying. So please do NOT waste time on this. The right way is to analyze where your customer stands and learn how to pay and gain. For example, you can prepare a small bunch of flowers for lady customer every week. It is not expensive and will show your sincerity. More importantly, your customer likes it. You can prepare high end liquor for gentleman customer. You should also make your customers feel honored while picking up them. Besides material needs, we have to pay attention to their spiritual needs, such as mutual communication of interests and useful suggestions.

[Tips] You have to pay before gaining what you want and focus on customer spiritual needs more.


FIVE: Enhance Brand Awareness Through Place

After initial access to local market, a commodity maker did a weird thing that they placed first retail store in high-cost downtown and near big brand: Chanel. At the very beginning, many people confused about it, but gradually understood the reason. Customers probably think that a brand neighboring Chanel must be high-end brand. The smart manufacturer quickly promote brand awareness with cost of opening a direct store.

[Tips] Your brand place in customers’ heart is determined by whom you stand nearby. You can build brand awareness by marketing big brands.


SIX: Sales Psychology

A lady loved to buy delicate tableware, but her husband denied due to high price. At this moment, the shopping guide stepped forward and said only one sentence. After that, the husband went to cash counter to pay immediately. Do you know the reason of the man’s quick turn? The shopping guide said “Your wife would not ask you to wash the expensive tableware.”

[Tips] Customers don’t buy because they have no pains. So we only have to explore what customers think and their pains.

The last important thing is: just do it now. The author comes from NOD Electronics, a PCBA provider.