Electronics OEM equipment manufacturers can expect to see the following EMS pricing breakouts when outsourcing printed circuit board assembly (PCBA) to an electronics contract manufacturing services (EMS) provider.
For more detailed information on how internal provider pricing for these line items is determined visit the additional links at the bottom of this article.
- SMT programming
- Top stencil
- Bottom stencil
- Set up costs (Profiles)
- Back-up plate (2x side only)
- Wave fixtures (#)
- ICT maintenance (+ dev fee?)
- First article inspection (BOM)
- MPI development
- LED pipe fixture(s)
- Inspection template
- ESD PCB Totes (shared?)
The above is then broken down further into separate value add components, so EMS providers can justify pricing per line item, below:
- Kitting: Assembly kit charge
- PCB: Assembly hourly rate + total assy time + hourly labor
- PCB ICT: Test hourly rate + Takt hours
- PCB Func: Test hourly rate + Takt hours
- System assembly rate
- Final systems test
SEE ALSO
How to build costing modelers for contract electronic programs
It’s not unreasonable for all of the above to be presented by contract electronics manufacturers to OEM customer prospects against the following assumptions:
- 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 – collectively, as project life warrants (EMS provider justification through POs)
- Additional box build tooling costs, specific to a particular quote, drawn against ‘reserve’
- ICT not included for module builds
Above all, it’s important to understand everything in an EMS provider’s box build quote is based on understanding internal (EMS) costs which are used for the provider to determine OEM pricing. Read more on EMS pricing drivers and product pricing models.
Get list of EMS manufacturers for your requirements (Its free)
Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.
