Re: Cost of solder joint rework

I found a reference to Cost of Conversion earlier this year. Basically, the average cost to convert a single component from raw materials to assembled goods is $.08, just after pick and place. After placement and before reflow, repair (solder paste repair, realign or replace) is 10x more cost or $0.80 per single component. After reflow, repair is 10x more or $8.00 per component. After test, repair is 10x more or $80.00 per component. Field returns are 10x more or $800.00 per component.

I believe I found this information from Ceeris, who survey the entire industry for lots of data.

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Just short note to say Hi.Please send me your private e-mail address. Regards Mark Alder

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Ray, I don't know for sure what exact data Ceeris used to come up with their figures. Did they account for shipping? Was the rework done by expensive equipment? When I read your thread I couldn't help but think there are so many factors. Our shops are not all the same. I have very low over head in my shop. If I add a very high priced piece of rework equipment than surely that has to be factored in. But did I use it to replace that one resister? I can replace resisters and caps all day at .20 cents apiece and make a profit, provided I don't have to test each board. If the test procedure is lengthy than the cost goo's up. but if it is quick than it will cost less. How much the rework costs in my opinion should very from shop to shop. I really believe that some simple job costing formulas can be applied that would work across the whole industry. But the figures should all be different. If I where to find out that it cost you the same to do rework as it did me than I would be interested in knowing how similar our shops are and what factors made the figures come out the same. Especially if there is a large difference in our companies. To figure out the cost of rework I would use the same formula that I used to figure out the cost of building any board in my shop, cause it uses the same factors of burden and over head. Lets face it, if we all charge the same than where's the American way of competition come into the picture? We can't use the same figures but we can use the same formulas. So go ask your bean counters in accounting for a quick and dirty formula. You could get real good at it too. You could determine the cost difference between a BGA and an 0805 resister. over a period of time the data collection would give you figures for any type of rework. If a new piece of equipment comes along you'll know how to factor it in. That's what job costing programs are for! Wow, there's my two cents worth of morning coffee. Hope it was of some value............................................Jeff Sanchez

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