Issue link: https://iconnect007.uberflip.com/i/1372612
70 PCB007 MAGAZINE I MAY 2021 volved in this case was that the IRS was using my book to make their case. e lawyers for the OEM contacted me and wanted to know if I was quoted correctly by IRS. I was not. ey quoted only part of a paragraph that dealt with the DFM and conveniently forgot to mention additional paragraphs that discuss the impor- tance of other variables such as manufacturing processes, documentation, and training. I visited and audited all the major suppli- ers in the U.S. and overseas who built this board, looking at quality results on this prod- uct. e finding, to my amazement, was that all the U.S. suppliers except one had higher de- fect rates than their own overseas subsidiary. is was a complicated product with fine pitch devices and no-clean flux—a relatively lead- ing-edge technology at that time. e reason their own subsidiary had much better results than anyone one else was because of a well- trained workforce, great documentation, and a focus on continuous improvement—essential- ly a world-class manufacturing operation that deserved the same if not more for producing higher quality product. Selling price is not de- termined by your cost but your quality. Selling price is determined by the market. Cost and quality are determined by the company. To make a long story short, aer two years of investigation and a trial, the government not only lost the case, but was required to pay a $21 million refund because the OEM claimed overpayment of taxes. at more than covered their cost of suing the IRS. Conclusion Quality and on time delivery are the two main challenges in a manufacturing operation. Having a strong internal manufacturing infra- structure is the key. It involves selecting the right equipment, working with your suppliers and customers, developing company-specific design and process documents, and training of personnel at all levels to produce high quality product on a consistent basis. Having a strong internal infrastructure of written, internally developed design and process documentation is the foundation you need to optimize your process. Producing good quality on a consis- tent basis requires a strong internal manufac- turing infrastructure to succeed in a competi- tive global economy. PCB007 Ray Prasad is the president of Ray Prasad Consultancy Group and author of the textbook Surface Mount Technology: Principles and Practice. Prasad is also an inductee to the IPC Hall of Fame—the highest honor in the electronics industry—and has decades of experience in all areas of SMT, including his leadership roles implementing SMT at Boeing and Intel; helping OEM and EMS clients across the globe set up strong, internal, self- sustaining SMT infrastructure; and teaching on-site, in-depth SMT classes. He can be reached at smtsolver@rayprasasd.com and offers in-depth SMT classes. Details about classes can be found at rayprasad.com. To read past columns or contact Prasad, click here.