Trends in PCA Cost of Conversion

The cost of conversion of a printed circuit assembly (PCA) is the difference between the selling price and the purchase order cost of material. CEERIS, an electronics assembly consulting firm, has completed a global research on conversion cost by type of board technology, assembly volume and lot size, business sector, and geographic region. The detailed statistics and analyses are available in the updated report "Cost of Conversion Benchmarks for Printed Circuit Assemblies," referenced CC-2001. Read CEERIS International's latest article on "Trends in PCA Cost of Conversion" at Circuits Assembly's website at http://www.circuitsassembly.com/online/2001/08/0108ceeris.htm

For different types of PCA layout complexity and assembly environments, "the data set provides not only reliable cost information for assessing assembly factory performances, but also is an important tool for budgeting costs for a wide variety of boards," stated Charles-Henri Mangin, President of CEERIS International, Inc. Fine analysis is required to grasp the variations in cost of conversion observed in the industry. By example, for mixed through-hole/SMT PCAs, the average conversion cost early 2001 varies from a low of $0.014 per component for very high volume boards and increases to $0.085 per component for high volume PCAs, $0.160 per component when assembled in medium volumes, and $0.443 per component for low volume boards. The cost differences as a function of volume are even more pronounced when expressed per lead or solder joint, CEERIS� preferred reference since it factors in the impact of high lead count packages. Volume is undoubtedly a key cost of conversion driver, and so are lot size and geographic location.

Detailed PCA profiles and cost data were obtained worldwide from twenty six well-known contract manufacturers and OEMs who each selected a minimum of four PCAs most representative of their board mix for inclusion in CEERIS data base. Selectivity in the choice of the participants and in the identification of the PCAs for the sample enhances the robustness of the statistics.

For further information, either contact CEERIS at http://www.ceeris.com, go directly to the CEERIS Web Page on the 2001 cost of conversion benchmarking study at http://www.ceeris.com/conversion.htm, or contact Charles-Henri Mangin by email at ceeris@aol.com, telephone at 860.434.8740, or fax at 860.434.8742.