Electronics Manufacturing Services - how to reduce costs?

Manufacturing efficiency can be understood as the maximum production output with the minimum amount of resources. This means that decreasing electronics manufacturing costs does not necessarily have to affect the quality of goods negatively. Meanwhile, increasing production efficiency is one of the key ways to strengthen the competitiveness of an Original Equipment Manufacturer (OEM).

Impact of materials and components on electronic manufacturing costs

The total product cost consists of over 70% of the price of its materials, so this component of your project is the most obvious point to cut expenses.

It is sensible to consider possibilities for saving by reducing the amount of material required for production or using cheaper alternatives, however, the decision for modifying materials for your product should be made very carefully to avoid the decline of the device quality.

While some properties of materials and electronic components are extremely important for the quality of a final product, for instance, the board thickness for PCB assembly, other elements can be modified without affecting quality.

Decreasing expenses with automation

Automation has long been used for manufacturing cost reduction. While surface-mount technology (SMT) is currently a prevalent method for PCB assembly due to the ease of automation, there is still a variety of options that might not be offered by all of the EMS providers. For instance, if a project is based on assembling the type 0201 components, an OEM should make sure an EMS provider can indeed automate such projects.

Automation is also required for the supply chain management. For example, Poland-based Assel has successfully incorporated modern enterprise resource planning (ERP) systems for streamlining its supply chain, which in turn has reduced the costs of its services.

Leverage electronics manufacturing services for cost reduction

An OEM is responsible for the requirements of one’s project and therefore has a direct influence on the product costs. Still, it is possible to minimize the expenses with a proficient provider of electronics manufacturing services who has not only mastered the current production technologies but also established contacts with trustworthy material and component suppliers who provide desired quality for appealing prices.

Additionally, a good EMS provider is keeping a finger on the pulse of technological innovation and aware of any new possibilities for decreasing the electronics manufacturing costs.

Reducing electronics manufacturing costs – conclusions

An OEM can decrease the costs of a project with the help of an experienced provider of electronics manufacturing services. Assel has been present on the market of electronic manufacturing for over 40 years and has developed great competence in production and supply chain management that helps its clients to use resources more effectively and subsequently decrease costs. To learn more, visit asselems.com.