Read more on cost of conversion at the CEERIS Website at http://www.ceeris.com/conversion.htm
Call us at (860)434-8740 if you have any questions.
Cost of Conversion Revisited by CEERIS International Inc.
Apr 24, 2002
Conversion cost includes everything from materials acquisition to the production of a fully populated and in-circuit tested (ICT) functioning PCBA. The transfer price is for captive shops (OEM), while the selling price is for contract manufacturers (CM), which includes profit. The conversion cost per component is a common metric in the industry and is a better reference than the cost measured in dollars per assembly, which is not useful information. Still, a conversion cost per lead or solder joint is the more reliable and preferred measure of performance because it incorporates the impact of high-lead-count components into the cost.
