Oct 30, 2001
CEERIS just released its 2001 analysis of PCA cost of conversion, which is defined as the difference between transfer/selling price of an ICT-functioning PCA minus the cost of material. Two cost drivers are most essential: geography and volume. By example, if the assembly of a component for a high volume board costs $0.10, it will be only $0.06 in a very high volume environment, but almost forty cents if low volume. Very high volume applies to boards which assembly amounts to more than one hundred million components per year and typically corresponds to a continuous assembly processes. High volume boards are defined by the yearly assembly of ten to one hundred million components per board part number, and a low volume board is less than one million components per year.
As a product transitions from lower to higher volume assemblies, substantial cost savings might be expected. If such a product is moved from a high labor cost jurisdiction to a low labor cost region, further cost reductions should be anticipated. Of course, in that case, logistics should be thoroughly monitored. These are some of the analyses CEERIS� 2001 report �Cost of Conversion Benchmarking Study� reviews. If you need further information, please visit http://www.ceeris.com/conversion.htm and notice that for purchases before December 31, 2001, you will be entitled to a 25% discount and CEERIS shall donate 10% of its revenues to victims of the September 11 attack. CEERIS International�s website is http://www.ceeris.com.
