Finding the appropriate partner to manufacture your electronic products may be a significant challenge for a company.
The electronic manufacturing process can be a challenging one for those who do not have extensive experience in doing so. The differentiating factors from one organization to another may be hard to identify.
When selecting an electronics manufacturing partner it is critical that enterprises not simply engage someone who has experience managing contract manufacturers, but people who have managed the actual production of electronics. There are many ways that manufacturers will hide their defects and it takes a keen eye to identify and challenge specific issues. If you do not plan to hire someone who meets this requirement for your own staff, be sure that you contract someone who is capable of doing so as you go through this process.
We offer the critical expertise required to help you to evaluate a new contract manufacturing partner. If you are not in a position to hire an expert, we can step in and help you through this process. This is a brief guide to what we consider as you search for a new vendor.
Business Size
The first consideration should be the size of the business: where would you fall in their ‘focus’ if your business would be added to their portfolio? You should have the goal of never being more than 30% of the total business of the manufacturer and never less than 10%. This is the ‘sweet spot’ in which you are afforded their focus, but are not the major financial contributor to their success.
Review their available capacity. If an entity is running at 80% capacity and your additional business will add 10% to their capacity, you will have a problem. Most operations run between 80% and 90% of capacity on a regular basis. If you do not fit into that model, make sure to challenge them on how they will meet the demands of your additional volumes. Make sure that there are benchmarks that are clearly communicated (and perhaps contractually obligated) to ensure your volumes are manageable.
Lead Times and Inventory Holding Policies
Lead times are an important factor to consider when choosing a PCBA supplier, as they can impact the overall timeline for your project. It is important to ask the supplier about their lead times and how they are calculated, as well as their delivery schedule and any potential delays that may impact the lead time. Additionally, it is important to understand the supplier's capacity and capability to meet your production needs, as well as their ability to ramp up production quickly if necessary.
Inventory holding policies are also an important consideration when choosing a PCBA supplier, as they can impact your overall supply chain management and cost. It is important to ask the supplier about their inventory holding policies, including their minimum order quantities, lead times for reordering, and any fees associated with holding inventory. Additionally, it is important to understand the supplier's capacity to manage your inventory and provide real-time updates on stock levels, as well as their ability to support your production needs by keeping sufficient inventory on hand. A supplier with a robust inventory holding policy can help you manage your supply chain and reduce the risk of disruptions or delays.
Component Shortages
Managing chip shortages is an important challenge for many companies in the electronics industry, and it is important to consider this when choosing a PCBA supplier. When evaluating a supplier, it is important to ask about their processes for managing chip shortages, including how they identify potential shortages and take proactive measures to mitigate their impact. A supplier that has a strong understanding of the supply chain and a good relationship with component suppliers can be better equipped to manage chip shortages and minimize the impact on your production.
In addition to asking about their processes, it is also important to understand a supplier's capacity to quickly adjust to changes in the market, such as a sudden shortage of a critical component. This may include their ability to source alternative components, modify their processes, or even temporarily halt production until the shortage has been resolved. A supplier that has a flexible and adaptive approach to chip shortages can help minimize the impact on your production and ensure that your projects are not delayed. Furthermore, having a reliable and experienced supplier can help you to mitigate the risks associated with chip shortages and provide peace of mind knowing that your supply chain is in good hands.
Technical Capabilities
The next section of your review should be the technical capabilities: Ask about the manufacturer's technical capabilities and if they were able to produce PCBAs that met the client's specifications and requirements. This may include a full review of the manufacturing processes. For example, if you have a product that includes significant through-hole soldering, it may be critical that your vendor has a wave solder machine. Testing equipment is also critical, but will be addressed below.
Quality Control
Quality Control should always be a deal breaker for anyone looking for a contract manufacturer and especially one who is manufacturing electronics. Quality and testing, while often combined under one organizational group, should be very different topics when discussing a new vendor relationship. These will be addressed in the below sections.
Factory Tour
To ensure that quality is sufficient there are a number of things that need to be reviewed and verified. I always suggest a tour of the facility in which any product will be produced. Sometimes, large organizations will shift work from one plant to another. Not all plants in an organization will be run at equal levels. It is critical to contractually identify the facilities that will be producing your product.
During your tour, you should review the following items:
- Production Process: Observe the production process to see how PCBAs are manufactured, including SMT placement, soldering, and inspection.
- Equipment: Look for high-quality equipment, such as pick-and-place machines, reflow ovens, and inspection equipment, to ensure the manufacturer has the capability to produce high-quality PCBAs.
- Cleanliness and Organization: Check for a clean and organized factory environment, which indicates the manufacturer's attention to detail and commitment to quality.
- Quality Control Processes: Observe the quality control processes, including incoming material inspection, in-process inspection, and final inspection, to ensure the manufacturer has a robust system in place to produce high-quality PCBAs.
- Staff Expertise: Interact with the staff to gauge their expertise and knowledge, as well as their willingness to work with clients to produce high-quality products.
As a follow-up to your tour, ask for references and case studies: Request references from previous clients and review case studies of similar projects to gauge the manufacturer's track record in delivering high-quality PCBAs. Things that should be reviewed during the reference interviews are items such as:
- Quality of products: Ask about the quality of the PCBAs produced, including if they met specifications and requirements, and if there were any issues during production.
- Lead time: Inquire about the manufacturer's lead time and delivery schedule, including if they were able to meet deadlines.
- Customer Service: Ask about the level of customer service provided by the manufacturer, including their responsiveness and willingness to work with clients.
- Cost: Inquire about the cost of production and materials, as well as any additional fees or charges.
Quality Documentation
When visiting a potential supplier, it is important to ask about the quality documents they provide, including inspection reports, test results, and process control documentation. These documents will give you a clear understanding of the supplier's processes, procedures, and the quality of the final product.
It is also important to ask about the supplier's quality management system, including their processes for ensuring consistent quality across all production runs and their approach to continuous improvement. You can also ask about their process for managing non-conformances, including how they identify, track, and resolve any quality issues that may arise.
Having access to detailed and accurate quality documents is critical in ensuring that the final product meets your expectations and that your investment in the project is protected. It will also give you confidence in the supplier's commitment to quality and their ability to produce consistent, high-quality products. By evaluating quality documents at a potential supplier, you can make an informed decision about the quality of their products and their ability to meet your requirements.
The most critical step in Quality Documentation is to contractually identify what information will be provided with each of your shipments. These additional requirements may add cost, so it is critical to understand what you need from your vendor.
Certifications
Check for certifications: Look for certifications, such as ISO 9001, which indicate the manufacturer's commitment to quality control and management. These certifications require regular audits. You may want to ask to see copies of their audit reports.
Testing
Evaluating testing at a potential PCBA manufacturing partner is an important step in ensuring that the final product meets your quality and performance requirements. When visiting a potential supplier, it is important to observe their testing processes and ask about their testing equipment and procedures. This will give you an idea of the level of quality control the supplier has in place and the accuracy of their testing methods.
It is also important to ask about the types of tests the supplier conducts, such as functional testing, environmental testing, and reliability testing. You can also ask about their process for documenting and recording test results, including how they ensure the accuracy of their data and how they store and retrieve test results. Additionally, it is a good idea to ask about the supplier's process for addressing and correcting any defects or issues that are identified during testing, and if they have a system in place for tracking and resolving these issues.
Having a thorough understanding of the supplier's testing processes and procedures will help you make an informed decision about the quality of their products and their ability to meet your requirements. It will also give you confidence that the final product will perform as expected and that your investment in the project will be protected.
- Types of Tests Conducted: Ask about the types of tests the manufacturer conducts, including incoming material inspection, in-process inspection, and final inspection.
- Testing Equipment: Inquire about the type of testing equipment used and if it is high-quality and up-to-date. Automated optical inspection equipment is much better than manual, visual inspection. Know the difference and know what you want and need.
- Test Procedures: Ask about the manufacturer's test procedures, including how they ensure accuracy and consistency in their testing processes.
- Defect Detection: Ask about the manufacturer's defect detection processes and how they identify and correct defects in the PCBAs.
- Documentation: Inquire about the documentation the manufacturer provides, including test results and inspection reports, and if they are readily accessible to clients.
- Testing Frequency: Ask about the frequency of testing, including if the manufacturer conducts regular tests to ensure quality control.
Warranty
Get a warranty or guarantee: it is important to ask about their warranty policies and understand the terms and conditions of their warranty. This will give you an idea of the level of protection you can expect for your investment and help you assess the level of risk associated with the product.
It is also important to understand the supplier's process for handling warranty claims, including their procedures for diagnosing and resolving any issues that may arise. This may include the supplier's capacity to repair or replace faulty products, their turnaround time for resolving warranty claims, and any fees or costs associated with warranty repairs or replacements.
Having a clear understanding of the supplier's warranty policies and processes can help you make an informed decision about the level of protection you can expect for your investment. It can also give you peace of mind knowing that your products are backed by a robust warranty, reducing the risk of unexpected costs or disruptions to your production. A strong warranty policy can also be an indicator of the supplier's commitment to quality and their ability to produce reliable and high-quality products.
Post Production Support
Post-production support: Inquire about any post-production support provided, such as warranty or repair services.
- Repair Services: Inquire about the manufacturer's repair services, including what types of repairs they offer and the cost of those repairs.
- Technical Support: Ask about the manufacturer's technical support and how they can assist clients with troubleshooting and resolving technical issues.
- Availability of Spare Parts: Inquire about the availability of spare parts and if they are readily available for clients who need them.
- Returns and Refunds: Ask about the manufacturer's returns and refund policy, including the process for returning products and any conditions that must be met.
- Upgrades and Enhancements: Inquire about the manufacturer's policy on upgrades and enhancements, including if they offer any upgrades or enhancements to their products.
- Ongoing Maintenance: Ask about the manufacturer's ongoing maintenance services, including if they offer regular maintenance checks and what they include.
- Overall experience: Ask the reference about their overall experience working with the manufacturer and if they would use their services again in the future.
Finding the right partner to manufacture your electronic components is a complex task that requires a careful evaluation of different factors. Business size, lead times and inventory holding policies, component shortages, technical capabilities, quality control, and factory tour are just a few of the critical aspects to consider. It is important to engage an expert who can provide the critical expertise required to evaluate a new contract manufacturing partner. A reliable supplier with a good understanding of the supply chain, flexible approach, technical capabilities, and high-quality equipment will ensure your supply chain is in good hands and minimize the risk of disruptions or delays. Email us today to set up your free first visit with us to see how we can help you through this process.