Printed Circuit Board Assembly & PCB Design SMT Electronics Assembly Manufacturing Forum

Printed Circuit Board Assembly & PCB Design Forum

SMT electronics assembly manufacturing forum.

Cost Per Placement

Views: 780



Cost Per Placement | 1 October, 2018

Hello All,

I'm looking at performing a cost analysis to calculate cost per placement at SMT. I've read articles and many suggest simplifying it to labour cost (hourly rate x # of operators) / # of placements per hour.

Other angle to this is evaluating BOM reduction. I'm looking at reducing the number of unique part numbers if there are duplicates (ex: Three different 0402 packages with the same resistance and power rating). I want to evaluate the cost save of reducing 3 different part numbers down to 1 part number. The savings would be in reduced cycle time, feeder, part purchase and inventory.

Any advise on how on formulations that you might have used will be helpful.


This message was posted Add this forum to your site! Click to learn more. the Electronics Forum @ SMTASMTA

reply »


Cost Per Placement | 2 October, 2018

Now you are going too deep. Purchasing should have nothing to do with your placement cost. Reducing part numbers too. These are separate processes and should be evaluated separately. You have:

1. Machine time and cost -utilities -maintenance -consumables 2. Labor time and cost -Salaries from purchasing to the cleaning person 3. Building costs -rent -utilities -maintenance

Add all these and divide on your number of placements. That will be you total cost/placement.

For SMT - subtract the factors that don't apply. You will end up with: -operators salary(setup and machine) -machine maintenance and utilities costs -number of components per hour

reply »



Cost Per Placement | 12 October, 2018

Thanks Evtimov.

I was actually looking for both.

1. Cost per placement For SMT: Your proposal is the following?

(Hourly labour rate of operator + hourly machine & maintenance cost + hourly utilities cost) / # of components placed per hour

2. This is a separate project but also related to the first one. Idea here is that if I reduce the number of unique part numbers on an assembly, the cost of assembly should reduce. For example: reducing 100 unique part numbers to 95 unique part numbers. The number of placement will not reduce as the replaced part number will be substituted by another part number but the overall cost should reduce of the assembly because I'm setting up 5 less parts on the line.

Thanks for your feedback.

This message was posted Add this forum to your site! Click to learn more. the Electronics Forum @ SMTASMTA

reply »


Cost Per Placement | 12 October, 2018


On your cost per placement: Will the through-put of this new placement machine be greater than the current lowest through-put machine on your line? The lowest through-put machine should be your focus.

On your reducing the BOM: Reducing setup time is a worthwhile activity

reply »


Cost Per Placement | 15 October, 2018

You see, if you can optimize your product setup that will be the best. Back in the days, engineers used only standard values. For resistors for example I used to build boards having 100, 330, 470, 1k, 3.3k.....Sometimes that means you might end up with more part placements, but that's the way it was - simple setups. Now you have to pick from resistors with 0.0001 ohm accuracy, so people end up having 300part number setups....In manufacturing is so much easier to use simple, smaller setup(less time, less space, less errors)

reply »

Nitrogen Capable SMD & BGA Rework Station

fluid dispensing robots - techcon