Issue link: https://iconnect007.uberflip.com/i/1523387
64 SMT007 MAGAZINE I JULY 2024 foster ing a more secure and reliable supply chain. How do you quantify a return on investment? Quantifying the return on investment (ROI) for counterfeit electronics training within an electronics manufacturing services (EMS) company can be complex. Factors such as company size, industry served, and existing counterfeit-related risks all influence the potential benefits. However, several key areas offer potential cost savings: • Reduced repair costs: By mitigating counterfeit parts, companies can significantly reduce the costs associated with repairing or replacing defective products. • Minimized product recalls: Early detection and prevention of counterfeit components can help avoid costly product recalls, safeguarding brand reputation and customer trust. • Lower warranty claims: Implementing robust counterfeit prevention measures can lead to fewer warranty claims, reducing financial burdens and improving customer satisfaction. Training can also con- t r i b u t e t o e n h a n c e d c o m pliance, improved rep- u t a t i o n , a n d i n c r e a s e d o p er at ional ef f ic ienc y. By r e d u c i n g t h e i n c i d e n c e o f counterfeit parts, companies can streamline production processes, minimize d e lay s , a n d i m p r o v e o v e r a l l o p e r a t i o n a l efficiency. W h e n w e e s t i m a te t h e ROI of counterfeit electron- ics training, we consider: • Cost of training: Determine the total cost of the training program, including materials, instructor fees, and participant time. • Net benefit: Calculate the net benefit of the training, which includes cost savings from reduced repair costs, recalls, and warranty claims, as well as improvements in compliance, reputation, and operational efficiency. • ROI calculation: Divide the net benefit by the cost of training and multiply by 100 to arrive at the ROI percentage. By carefully analyzing the potential cost savings and benefits, EMS companies can demonstrate the significant value of investing in counterfeit electronics training, ultimately contributing to a more secure and profitable business. What is the timeframe for the next class, and where do we get information? e next training session is scheduled to begin in August and is affiliated with IPC. For more information about the program and IPC, please visit ipc.org. Tony, this training program appears to address a critical need within the industry. I agree, Nolan. ank you for your insights. SMT007