Issue link: https://iconnect007.uberflip.com/i/1518339
38 SMT007 MAGAZINE I APRIL 2024 I'm getting a sense that this requires additional skill sets on the manufacturing floor as well as more admin and project management. Yes, specifically in engineering and technical resources. For example, every EMS provider has an SMT line, and when you get a new cir- cuit board assembly, all you're doing is putting that new board on your standard SMT line, which already exists. With box build, you are now creating an indi- vidual work cell around that individual prod- uct. So, there's the design of the cell and the design of the manufacturing space. e testing requirements associated with approving that specific product are unique, so it will need its own functional test, not to mention jigs, test procedures, and unique assembly instructions. at all comes along with the individual box builds and tooling. We needed extra test technicians devoted to the project and supply chain staff to manage the part procurement. In this environment, you don't just go to your typical component distributors to buy standard off-the-shelf parts. Almost everything is custom. You need more commodity experts. When you're doing circuit board assemblies, you don't always need a sheet metal expert. But in box build and product assembly work, you definitely do. After such a significant investment in floor space, equipment, new expertise on staff, planning engineering, admin, etc., how does this improve your margin? At the end of the day, it's a higher margin than a printed circuit board assembly. You're ultimately gaining a larger piece of the value stream. Rather than just providing labor or sup- porting a portion of the OEM's bill of materi- als, you're building the entire BOM. For us, it's about getting more of the larger value stream, which ultimately allows us to be more success- ful as a business. The OEM in this partnership can focus on what they do well, which is designing and innovating because you have the realization of their product under control. Exactly. We can both focus on what we're good at. Another value for the OEM is that they don't have to carry inventory and the overheads associated with doing this as a business inter- nally. ey can outsource that to us. ere's a huge value in that to the OEM as well. Jon, this has been quite enlightening. Thank you. ank you, Nolan. SMT007