IPC International Community magazine an association member publication
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110 I-CONNECT007 MAGAZINE I JUNE 2026 As manufacturers, we need to up our game to de- liver value to our customers. Total value management (TVM) is an approach to the quality-versus-cost balancing act that integrates components of total quality management (TQM) and Lean manufacturing. Like those other method- ologies, TVM prizes customer focus, continuous im- provement, and employee empowerment. TVM applies all these qualities and improvement- focused concepts to PCB production. A TVM solu- tion partner is collaborative, innovative, nimble, and resourceful. They will be able to help you formulate the best path forward for your PCB prototyping and manufacturing, be it domestic or offshore. For customers facing increased decision-mak- ing complexity and evolving financial risk and reward models, it helps to focus on traditional value propositions: • More effective, easier communication with the fabricator • Reliable, dependable delivery • Higher yield, better quality • Smooth, faster production • Reduced risk Value at Each Stage of Production Manufacturing value starts before the first blank board begins its journey through the production fa- cility and continues well after the final products are shipped. The first opportunity for manufacturers to deliver value is at the initial point of contact, when many customers are addressing the global ques- tion: Where should I manufacture? Providers of both domestic and overseas manu- facturing solutions are well-positioned to objec- tively consult with customers to solve the domestic vs. offshore equation, an equation more compli- cated than simply calculating the per-unit pricing. When you factor in yield, reliability, and durability, domestic PCB manufacturing can often be the most cost-effective choice even for higher volume proj- ects. You have to identify variables and run all the numbers to find out. With larger production volumes, even modest per-unit savings often associated with offshore production can appear attractive on the surface. However, those savings paint only half the picture. Our experience tells us that less easily quantifiable cost drivers pose greater obstacles to offshoring than just volatile import taxes and port delays. It is the value equation that tells the story. Is the risk associated with a globally sprawling supply chain offset by the value of slightly cheaper boards? Can you cost-effectively warehouse a suffi- cient supply to be resilient? Can delays and cost variances from shipping, tariffs, and transport fees be absorbed? How much will a lower yield or quality issues affect the cost savings? These are the indirect costs associated with offshoring that may minimize or even eliminate potential savings. It still might be the right deci- sion to go overseas, but a value-based partner can work with you to see clearly which path brings the most value. Best Practices for Total Value Manufacturing Total value—delivered to the customer through support, on-time delivery, quality boards, and high yield—is how manufacturers can support customer needs for PCB production in all circumstances. Its foundation is quality. Schedule Adherence It does not matter how good the boards are if they are not available for production of the electronic device they were built for. If a manufacturer ships an average of 1,000 orders per day, the difference between 95% and 97% on-time delivery annualizes to over 5,000 additional late shipments per year. Every late delivery has a cost. Because it affects each customer's bottom line, manufacturers focus on total value work every day to improve their on- time delivery rate. Design Adherence The key question facing every designer: Can the manufacturer build the board I designed? Designs with manufacturability issues can cause production delays and drive up costs. Design adherence helps the design team concentrate on C O N N ECT T H E D OTS