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How to OEM request PCB assembly quotes (RFQ) for EMS manufacturing

By VentureOutsource.com Staff

PCB_Assembly_ServicesYour current contract electronics provider just missed a shipment to one of your important customers because of ongoing, internal EMS systems test yield issues. You indicated this recent quarter was important and they promised you your delivery schedule would be met. You suggested the current EMS provider and now your company’s reputation, and possibly your career, is on the line.

You now have to revisit your request-for-quote process and prepare RFQ letters for your program’s BOM, PCB assembly and box build and look for alternative EMS provider services.

RELATED READING
14 Steps for OEMs selecting EMS manufacturers
RFP/FRQ best practices
OEM new product launch specs with EMS partners

Below is an actual example of a OEM letter sent to an alternate EMS provider requesting quote pricing for PCB assembly.

 

[Dear EMS Provider]

[OEM] latest product line, code named “Davos,” was initially released in [date]. It has been received with tremendous interest and orders from top investment firms, hospitals, and the U.S. government. Now, with our design stabilized, and the shipments increasing 35% to 50% quarter-on-quarter, we are looking into positioning our product to meet our future demands, pricing needs, quality level, and supply chain management abilities. In our planning discussions, we have identified [EMS Provider] as a potential candidate for moving forward with our growing production needs.

Our product is currently sourced with an electronics manufacturer that is not positioned ideally to support our strategic direction. This quote package is not the full product offering, but representative of the business that potentially could be awarded.

Our intent with this package is to validate the business assumptions on our strategic direction and select the suppliers to discuss our comprehensive agreement.

Product description

[OEM’s] product is a “blade” PC that will allow a company’s computers to [product value proposition]. Please visit our web page at [www] for further information on the product and our customers.

[INSERT YOUR SYSTEMS CHASSIS IMAGE/s]

 

Description of the parts in this quote package

There are 14 different PCBAs in this quote package ranging from a small daughter card PCB board to our motherboard. This quote package is a request for pricing at the PCBA level. In this package, [OEM] has provided overall material costs, and we are only looking for the pricing of the card assemblies to include detailed information of assembly labor, machine labor, test, burdens, markups, SG&A, and profit.
Program volumes

For quoting purposes we are stating volumes of 1,000 to 2,000K-2K [product] per month. By the end of [year] we anticipate shipping 4,000 to 5,000 [product] per month.
Program timeline

The deadline for quote submittal is [month, day, year, time].

Documentation

The zip file contained with this RFQ contains the documentation required to quote this package at the PCB assembly level only. The primary data are BOMs for the boards to give part count and insertion types, silk screens for visual reference, and material costs to use for material markups.

SEE ALSO
OEM Feasibility and due diligence for EMS manufacturing
Identifying labor costs for EMS manufacturing pricing

We expect assembly per IPC Class 2.

Also attached is an NDA. Please return the NDA with submission of the quote.

OEM contact/information

Please forward all quotes and questions to [OEM executive name] at [OEM].

  • Name
  • Title
  • Email
  • [OEM company name]
  • Address
  • Telephone

In summary, we expect your quote submission to have the following:

  • Quotes on the fourteen PCBAs per quantities shown
  • See following Excel file embeds below for format

Definitions

Material burden
The amount ($) that will be added to the actual material cost to cover overhead and carrying costs.

Assembly labor
The amount ($) that will be added to cover all assembly labor including machine time, hand place, and mechanical assembly. This number does not include test or burden.

Assembly burden
The amount ($) that will be added to the cost to cover the assembly overhead.

Test labor
The amount ($) that will be added to cover the test charges per the test times supplied bY [OEM].

Test burden
The amount ($) that will be added to the cost to cover the Test overhead.

Total
The amount ($) that the entire PCBA would be sold to [OEM].

Search SMT/PCB assembly services
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In your search results, you will be able to further target provider options by choosing End Markets and/or Services.


Below is detail for your motherboard, one of 14 PCB assemblies.

Motherboard [P/N Rev-B]

  • Approximate vol 15K – 30K
  • Material cost: $XXXX.xx
  • ICT Test Time (minutes): 1.3
  • ICT Yield: 91%
  • FCT Test Time (minutes): 1.8FCT Yield: 98%
  • Run Quantity Batches: 500, 1000, 2000
  • Material Burden ($):
  • Assembly Labor ($):
  • Assembly Burden ($):
  • Test Labor ($):Test Burden($):
  • SG&A ($):
  • Profit ($):
  • Total ($):

[INSERT YOUR PCB ASSEMBLY IMAGE/s ]

Request a custom list of EMS providers matching your program needs

OEM professionals can request a custom list of electronics contract EMS manufacturing providers matching your program requirements by clicking on the links below.

Request list of EMS provider facilities in Asia
Request list of EMS provider facilities in Europe
Request list of EMS provider facilities in Silicon Valley
Request list of EMS provider facilities anywhere (worldwide)

Manufacturing labor costs and wage comparisons

[Hourly] Manufacturing wages: Asia nations v developed economies
[Annual] Manufacturing worker cost: Asia nations v China




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