SMT007 Magazine

SMT007-Mar2022

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MARCH 2022 I SMT007 MAGAZINE 79 ize in a particular technology. A shop that has always supplied the routine six- to eight-layer PCBs may not be the best choice for an eight- layer HDI PCB. If a customer must seek an additional sup- plier for their changing technology needs, they have a daunting task as everyone claims they are the answer. e roll ups can look like the solution as they have a variety of shops in their portfolio. However, never forget the charis- matic insurance salesman that is confident that their portfolio is "exactly" what you need. Per- haps someone who can look at all portfolios might have more objective advice. Volume vs. High Mix vs. Prototype e equipment and the culture are very dif- ferent between these three types of shops. It can be argued that if the shop is technol- ogy capable, it can certainly provide the pro- totypes and the high mix. ey can provide volume within the absolute panel capacity of the shop. However, the cost model for each of these types of shops is different. In all cases, when a shop steps outside its cost model, it will lose money. I recall an opportunity from an automo- tive Tier 1 for a double-sided PCB. e vol- ume was staggering, and they were willing to sign a multi-year deal. e revenue would have been almost 25% of our gross. e sales team was ecstatic about a huge single-part-number order. Manufacturing was relieved to be able to "just run" the same thing without all the issues of a high-mix shop. Unfortunately, the mar- gin from this revenue was only one half of our usual margin and it consumed 50% of our drill- ing and plating capacity. Basically, within the first year, we would have been out of cash and out of business. e lesson is to properly match

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