100 WAYS TO REDUCE COST
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1 OPTIMUM DESIGN S 100 WAYS TO REDUCE COST COST SAVING TIPS FOR PCB ASSEMBLY Ways to Reduce Cost
2 SUMMARY 57 Ideas For Engineers 16 Things Buyers Can Do Now 32 Ways MFG Can Cut Cost
3 CONTENTS Design... 4 Resistor Nets, Cost Philosophy, Product Design, Mil Spec Job, End of Life, Over Design, DDR3, High Volume Design, Limited Automation, Rework, Manufacturability, Spec Components, Legacy, ENIG vs HASL, Smaller is Better, Mating, Standardizing, Blind & Buried, Layer Count, Special Cuts, Materials, Sourcing Library...7 Provider s Rates, Using a Virtual Library Provider, Library Cost Savings, Scripting/Automating Footprints, Valor Library Check Layout... 8 Layout Providers, IPC Library, Reliable Provider, Placement Review, 24 Hour Service, Buy Direct, Multiple Designers, Mentor Expedition, Faster Design Work, Valor Layout Check, Avoiding Cheap Tools DFM, DFA, and DFT...11 Defect Opportunities, Design for Manufacturing (DFM), Design for Assembly (DFA), Design for Test (DFT), BOM Scrubbing Purchasing Negotiating, Review, Component Pricing, Material Cost, Forecast, Component Descriptions, Min. for Max, Blanket Orders Manufacturing SMT, X-Ray, SPI, Reels, Packaging, Revision Control, SMT vs Through Hole, Avoid Through Hole, Shipping Method, Packaging, First Article, Solder Samples, One Stop Shop, Maintenance Program, Feeders Cost, Effective Shipping Test Complimentary Inspection, Network, Pre-Assembly, Final Testing, KGB, Concurrent Testing, Design Qualification, Sampling, Standardization, Firmware, Flying Probe Quality Non-conformance, Appraising, Requirements, Unipoint, New Product Review, Quality Planning, Capability Evaluations, Buy Direct, AOI, Continuous Improvement, Cost of Quality (COQ), Reworking, Retesting, Rebuild, Training, Attrition
4 Design 90% of Product Cost is Dictated By Decisions Made in the Design Process. Resistor Nets - Use resistor nets where possible to reduce part count and PCB real estate to drive down cost. Cost Philosophy - Effective product cost management requires a design to cost philosophy as it s basis, since 90% of the product cost is dictated by decisions made in the design process. Layer Count - Keep the layer count as low as possible. Less layers = less cost incurred. Mil Spec Job - Never design in mil spec components when a commercial part can do the job. Commercial components are less expensive and more readily available. End of Life - When designing in components always look at end of life. Having to redesign in another component in a production mode is very costly. Over Design - Designers tend to over design creating added cost and complexity. DDR3 - Using DDR3 memory is cheaper to design in than DDR2. It is much easier to layout so it takes less time and is more readily available Ways to Reduce Cost
5 Limited Automation - Common mistakes made in design are choices that limit automation for production. Rework - Keep rework in mind when designing. The part fits, but can it be reworked if needed? Better to rework than to scrap. Spec Components - Always try to spec in components that have a form, fit and function cross available. This is not always possible but a good thing to do if one is available. Legacy - Re-design of legacy products may lower your cost. ENIG vs HASL - PCB surface finish can add cost. You might want to use ENIG for prototypes and move to HASL for production to save cost. Smaller is Better? - Component selection and package options can be cost drivers. Smaller semiconductor package sizes will optimize PCB space but may be more expensive and more difficult to manufacture. Mating - Components with gold plated pins can be expensive. If you only mate one time choose the gold flash option. The more mating cycles the more gold is needed. High Volume - Designing in high volume commercially available components used in the networking, cellular and PC industries is always a cost saver Ways to Reduce Cost
6 Standardize - Standardizing package sizes to lower your placements always results in a cost savings. Blind & Buried - Careful when designing in blind & buried technology as it can add 20% to your PCB costs. Special Cuts - Think twice before adding special cut outs to your board as this is a cost driver. Materials - Do your homework when doing PCB material selection. You might think you need to use Rogers when you can use a higher end FR4 that will get the job done. Sourcing - Try to never design in a single sourced part. Multiple sources are key to a cost effective design. Product Design - In the absence of a structured product design and qualification test process, unnecessary costs are added to the product. Most often the added costs take the form of rework, scrap and warranty cost Ways to Reduce Cost
7 Library A Virtual Library Provider s Rates are 15%-25% Cheaper Than Layout Rates. Provider s Rates - A virtual library provider s rates are 15%-25% cheaper than layout rates. Using a Virtual Library Provider - A virtual library provider can have the benefit of sharing cost for footprints that already exist in their library. Library Cost Savings - A virtual library service provider is a cost saving in itself. You re not paying for tools and expertise you might not need every day. Scripting / Automating Footprints - Scripting / Automating footprints saves time and is more consistent when you do a make from using an existing footprint. It also makes checking the new footprint easier. Valor Check - Using Valor to check your library is key to zero package footprint defects. You can t make a mistake when using Valor Ways to Reduce Cost
8 Layout Utilize Best-in-Class Design Rules for a More Manufacturable Product. One Stop - A PCB layout provider who also provides manufacturing services is more likely to consider and incorporate design for manufacturability. Layout Provider - Time to market is reduced when using a proven design PCB layout provider. No need to budget revisions of your design, it should be done right the first time. Reliable Provider - Most companies have one or two designers that do other things besides PCB layout, and might only do layout a few times a year. A service provider who uses these tools everyday can most likely do it faster and more efficiently, saving time and money. Use Best-in-Class Design Rules - Using a service provider who designs every day, designs for different markets, and keeps up on best-in-class design rules can provide creative solutions to your design challenge including a more manufacturable product, resulting in cost savings. 24 Hour Service - After hours resources available? A good design service provider with a global presence can keep things going 24 hours a day, saving you time & money Ways to Reduce Cost
9 Buy Direct - Buy from the manufacturer when possible. Gets rid of the middle man and their markup. Multiple Designers - If a company has one designer and he gets sick, what do you do then? Using a PCB layout service with multiple designers keeps things up and running. Mentor Expedition - Customer s design tool of choice is often PADS, but it is a low end tool that takes a considerable amount of time. A good design service can use a higher end tool such as Mentor Expedition and then convert to PADS, saving time and most likely providing a better design. Faster Design Work - A design service provider who has multiple designers can complete a design sooner. They can have several designers work on the same project and save time. Valor - Utilizing Mentor Graphics s Valor to check layout designs is key to saving money. Everything is caught up front before the design is released to manufacturing. Avoid Cheap Tools - Cheaper / low end tools don t necessarily save you money, and in the long run they are less efficient. They might lend well to smaller designs but it will take you longer to finish your layout. ODB++ - The ODB++ file format is best for front end engineering/manufacturing use. No time or money spent converting files Ways to Reduce Cost
10 Fiducial Location is Key - There should be a minimum of 8 per board. Some put them on the borders but for best in class registration and best quality throughput they should be 200mls in from the edge of the board. Perfect registration and quality saves time and money in the form of rejects. Borders/Rails - Borders and rails are needed to fit suppliers capital equipment for throughput and repeatability. This saves the cost of fixturing. Panelization - Panelization may be needed to fit suppliers capital equipment. The more up on a panel, the faster the throughput and repeatability. Speed saves money. Complete Data Packages - Manufacturing data packages using the correct formats is key to saving time in front end engineering Ways to Reduce Cost
11 DFM, DFA, and DFT Minimize Your PCB Defect Opportunities. Defect Opportunities - PCBs are increasing in complexity so the number of defect opportunities is growing. Eliminating the most common defects though DFM helps to minimize the cost of rework and scrap in manufacturing. DFM - Valor software can be used in DFM for catching any layout errors before fabrication. DFA - Valor software can be used in DFA for identifying any design rule errors before assembly. DFT - Valor software can aid in DFT by identifying the most efficient test access and coverage. BOM Scrubbing - Scrub your BOM before releasing to manufacturing. Look for end of life, ECNs, RoHS compliancy, crosses and availability using a comprehensive database like Silicon Expert Ways to Reduce Cost
12 Purchasing Are You Utilizing Should Cost Analysis? Should Cost - Understand your material and labor costs before negotiating with your suppliers. Review - Review part specifications. Is it possible to use a less expensive component that will do the same job? This can reduce unit cost with your customers. Component Pricing - Negotiate component pricing during your design and pass that information on to your CM. PCB Cost - Using a reputable offshore PCB supplier can lower that cost. 90% of PCBs today are built offshore. Forecast - Visibility forecasting lends to improved component pricing. Buy in bulk and schedule delivery. Component Descriptions - Bill of materials and AVLs with manufacturing part numbers and complete component descriptions are key and ensure timely procurement. Min for Max - Small lot sizes have a minimum lot charge associated with them. If your order is for 3 pieces but they will yield 9 pieces, you pay the same for 3 as you would for 9. Blanket Orders - Blanket orders provide volume discounts and increased efficiency Ways to Reduce Cost
13 Manufacturing One Stop Shop = One Overhead and One Markup. Fixtures - When running a very thin board though SMT, a support fixture might be needed. The better the support the better the registration, resulting in less defect opportunities. Inspection - Utilizing AOI & X-Ray for first article inspection, rework inspection, and of course production inspection saves time and takes human error out of the scenario. SPI - Utilizing solder paste inspection (SPI) equipment provides increased throughput and quality. Most SMT defects can be traced back to solder paste. Reels - Loading reels of SMT components into feeders is the quickest and easiest way to set up your project. Buying strips of SMT components takes much more time to load the feeders resulting in longer set up times. Revision Control - Document revision control must be maintained. Building to the wrong documentation is a waste of everyone s time & money. SMT vs Through Hole - Designs using SMT devices in place of through hole components reduces labor time in manufacturing by a factor of 10. Packaging - Packaging is key to cost savings. If your PCB is packaged properly, it will make it to the destination without any damage Ways to Reduce Cost
14 Shipping Method - An attentive CM will adjust the customers shipping method to save cost when shipping early. First Article - First article every operation before running the entire order. You do not want to find a problem after you have run the entire lot. Solder Samples - Providing solder samples to your manufacturing team is a must. Using solder samples for heat profiling before running any job will prevent solder issues in manufacturing. One Stop Shop - Pick a CM who can provide a one stop shop. This saves money in the form of mark up if using several suppliers. Maintenance Program - Use a CM who has a capital equipment maintenance program in place. Having your line down when you need your product is unacceptable and costly. Feeders - Fixed feeders save a lot of time in manufacturing set-up. Keeping standard package size feeders loaded and ready to go with common resistors and capacitors improves efficiency Ways to Reduce Cost
15 Test Streamline Testing Through Complimentary Inspection. Redunant Fixtures - For volume throughput, invest in multiple test stations to save time in manufacturing. Network - Network based data including test data, bare board data,specifications, and product history, should be available in manufacturing. This data streamlines all manufacturing processes and saves valuable time. Pre-Assembly - Have your PCB s tested before assembly. You do not want to find a defect after they have been assembled. KGB - Providing a known good board (KGB) also known as a golden board to your test provider will streamline test optimization & programming time. Sampling - ESS sampling during product life cycle eliminates surprise product performance degradation. Flying Probe - Using a Flying Probe tester for NPI builds reduces cost as it utilizes soft tooling Ways to Reduce Cost
16 Design Qualification - Design qualification testing ensures electrical performance margin and shock & vibration at field environment extremes for both end use and shipping. Concurrent Testing - It s best to develop a product test plan concurrent with product design. You can then optimize self-test capability and minimize product test time. Final Testing - Final system test is always importent for identifying any problems before shipping to the customer Ways to Reduce Cost
17 Quality Quality Improvement Comes Via Simplification of Design, Manufacturing, Layout, Processes, and Procedures. Requirements - Failing to meet requirements always means higher cost. Unipoint - Using a robust quality system such as Unipoint gets waste out of your quality system and results in increased customer satisfaction. New Product Review - To prevent costs a new product review is essential. Quality Planning - Quality planning results in lower cost of quality. Capability Evaluations - Process capability evaluations also result in lower quality cost. Continuous Improvement - Use a supplier with a continuous improvement quality program. Improvements always save money. Reworking - The reworking of a manufactured item increases cost of quality. Compare cost of rework to cost of improving process or design. Rework costs greater than 10% are unacceptable Ways to Reduce Cost
18 Retesting - The retesting of an assembly increases the cost of quality and introduces opportunity to create defects. Invest in more robust test methods or fixtures to eliminate retesting. Rebuild - The rebuilding of a tool will increase the cost of quality. Take the time to produce robust fixtures and test beds. Training - Quality improvement team meetings, education, and training are always helpful to reduce cost. AOI - High end inspection capital equipment such as AOI & X-Ray identify problems that can t be seen by the naked eye and streamlines the inspection processes Ways to Reduce Cost
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