For instance, a great new development has been with a new relationship with a supplier that can handle domestic, ITAR, Flex and Rigid Flex PCBs. A Flexible PCB and Rigid Flex PCBs are fast becoming a big part of our product offerings especially now that we can produce them domestically for our Military and ITAR compliant customers…in addition to customers who want their product built in the USA…

In addition to adding to our lineup of domestic resources, we have added expanded capabilities in our off-shore sources as well. One of our long time suppliers has upgraded their factory to the capability of pushing 900k/sq ft of production per month.  With flawless quality, they have produced effortless for our large volume customers for all types of PCB Manufacturing.  As a PCB fabricator, we continue to take pride in pushing our factories to be the best in price, quality and delivery and we are getting that type of performance from our factories month after month.

Our continuous investment in our supply chain is paying off as we are proud to announce that PCB Solutions, LLC had a record Q1 and is on pace for a very solid Q2.  With no debt and positive cash flow, and the addition of several new customers in the past 6 months we are building a foundation for strong future for years to come.

Check out our next blog post this week when we discuss the specifics of our new Flex and Rigid Flex PCB supplier.

James Brown
V.P. of Sales & Marketing
http://www.pcb-solutions.com/contact/801-361-1228

PCB Solutions is a Distributor of Printed Circuit Boards & Custom Fabricated Electronics. Check out our flagship products:

•  Rigid Printed Circuit Boards – http://www.pcb-solutions.com/rigid-circuit-boards/
• Flex Circuit Boards – http://www.pcb-solutions.com/flexible-circuit-boards/
• Rigid Flex Circuit Boards – http://www.pcb-solutions.com/rigid-flexible-circuit-boards/

Flexible circuits can be found in many devices where space and weight considerations are dominant in the design of electronics: in cars, in cameras and video equipment, in mini-computers for athletes or in inkjet printers. And the market continues to grow: according to the business consultancy Frost & Sullivan, sales in this area will grow to more than $16 billion by the year 2014.

At K 2010, the trade fair for plastics in Dusseldorf, Germany, scientists from the IST in Braunschweig will unveil a new reel-to-reel technology for the production of flexible circuits and biosensors; the new technology is known as “P3T”, which is shorthand for “Plasma Printing and Packaging Technology”. The benefits: P3T involves considerably fewer process steps than existing processes, and it conserves raw materials. Unlike previous methods, the researchers do not start with a polymer film metalized over its entire surface from which excess metal is then removed to create the circuits. Instead, to produce flexible circuit boards, they apply circuits made of copper to the film that serves as substrate. In the case of biosensors, palladium is used. They use plasma at atmospheric pressure and galvanization instead of vacuum-pressure and laser-based methods to achieve inexpensive and resource-efficient production.

Dr. Michael Thomas, director of the research group at IST, explains: “During production of circuits for an RFID antenna, you often have to etch away between 50 and 80 percent of the copper used. This results in considerable amounts of copper scrap that either has to be disposed or reprocessed using relatively elaborate methods.” The IST approach is different: there, scientists use the additive process to apply the structures they want directly to the substrate sheeting.

The first two process steps are plasma printing at atmospheric pressure and metallization using well-known galvanization methods. Plasma printing uses the kind of deeply engraved roller familiar from the area of conventional rotogravure printing. During the printing process, microplasms are electrically generated in the engraved recesses of the roller; these microplasms chemically alter the surface of the plastic substrate where the circuits are to be applied later in the process.

The process gas from which the plasma is created is usually a mixture of nitrogenous gases. As IST researcher Thomas emphasizes: “The chemical changes we need begin to form on the surface of the film; these changes ensure that the plastic can be wetted with water in these precise areas and will be metallizable using suitable plating baths. This means considerable savings of energy and material,” Thomas adds. And this is a decisive competitive factor: the prices for raw materials – for copper and palladium, for example – have risen by around 150 percent in the past three years.

In the joint P3T project sponsored by the German Federal Ministry of Education and Research (BMBF) P3T, researchers are currently working very hard to improve the individual processes involved in the manufacture of flexible circuit boards and biosensors. They are closely scrutinizing all of the P3T production steps – from plasma printing to assembly and coordinating all of the processes with one another in a production line.

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.

BY Buzz Hofmann, Lennart Pitzele, and Howard Cyker

The tremendous decline in U.S. manufacturing in favor of foreign manufacturing in Mexico, Eastern Europe, and Asia has been fueled by the presumption that lower costs are achieved in those locales. Military and other government customers, however, would prefer U.S. manufacturing for reasons regarding security, confidentiality, and compliance.

The oft-cited rationale for foreign manufacturing is lower labor cost. Additional factors, such as proximity to source of component supply, less onerous government regulation, financial incentives, and costs of construction are also mentioned, but to a lesser degree. Taking China as an example, there is little argument that unskilled workers are in plentiful supply and cheap, but this labor sector comprises only one facet of manufacturing needs. If your product requires a significant amount of hand-touch labor, there may be real savings to be had, yet in many cases, automation significantly reduces and, at times, eliminates the need for unskilled workers and the financial benefits of this factor are significantly reduced.

Moreover, those companies that have done significant work in China know that while low-paid unskilled workers are plentiful, the same is not true of support engineers and other highly skilled professionals, whose salaries in recent years have increased substantially as U.S. companies compete for them. This segment of the work population is highly mobile, with workers continually changing jobs for small increases in pay. Not only is the economic benefit of lower professional salaries in decline but the disruption to a company’s production is high as there is an ongoing need to recruit and train replacement technicians and engineers.

To combat the resulting loss of institutional memory, the company must often resort to transplanting a significant domestic professional and management staff to maintain continuity of production, at great cost.

From an aerospace and defense contracting perspective, one of the greatest disadvantages to foreign manufacturing is lack of control. The separation of primary design, mechanical, and process engineering resources from the factory floor on a real-time basis leads to inefficiency, delays in closing feedback loops, and cost. While attempts are made by many companies to re-locate engineering and technical resources to factories in China, generally only a few resources are made available at the local level and those only for temporary service to train foreign workers.

The balance of the interaction is significantly impeded by 12-hour time differences, long delays for in-person interaction, and language barriers. This problem can be exacerbated when manufacturing is outsourced to a contract manufacturer.

How can U.S. manufacturing compete?

U.S. manufacturing can compete with foreign manufacturing on cost by being smarter. By implementing smarter manufacturing processes, U.S. manufacturing becomes more flexible, produces product of higher quality at a lower cost, reacts to problems more quickly, and has tighter controls. Asian manufacturers are generally high-volume, low-mix factories. Military manufacturing is high mix, low volume, more sensitive to yield issues and process problems, and is more demanding of exacting quality. Cost savings in a high-mix, low-volume environment is not a strength of foreign manufacturers and this difference can lead to opportunities for smart U.S. manufacturers.

Automation requires foresight and planning. Instead of automating every task, or purchasing numerous odd form component placement machines to address specific assembly tasks, factories can use a modular approach. Standardized platforms allow for flexibility products and how to design equipment and the manufacturing environment. Each investment also requires a comprehensive return-on-investment analysis done jointly with sales and marketing teams. Not complete automation; smart automation.

At SynQor in Boxborough, Mass., close integration and collaboration of the design team with manufacturing and quality teams enables the design of products for manufacturability and deals with problems quickly. This process can get products into production more efficiently and yields the ability to institute product changes more rapidly. Flexibility is key to high mix manufacturing.

Manufacturing Software

Problems arise in manufacturing, and the solution often is to build intelligence into the manufacturing environment to identify problems in-process and in real time–not in finished goods inventory. Home-grown manufacturing process management software can track components through the factory floor and enable operators and technicians to analyze real-time data, flag and isolate production units, and trace components back to individual component lots.

It helps contain non-conforming units immediately, and defective units can be re-routed to re-work without disruption to the flow environment. An investment in manufacturing software also means fewer people dealing with data collection and a higher level of accuracy in data analysis and record keeping–all of paramount importance to the military customer. Investments in integration with third party SMT, ATE, AOI, and other test and measurement equipment enables faster implementation of machine programming and optimization. This provides more data for analysis and immediate feedback for continuous improvement. Finally, there is often potential to integrate manufacturing with ERP systems. Successful integration means less time planning and managing the factory.

Using the same production resources and equipment in the development of its new products enables development of tooling and programming during the product design phase that can then be used immediately for manufacturing. This reduces the time and cost to help new products make the transition into manufacturing.

Modular design topologies, component commonality, and design for manufacturability are key design concepts that affect the manufacturing environment and the cost of manufacturing. This requires direction from management and buy-in from the research and development engineers and the procurement department. You can’t build everything in a cost-effective manufacturing operation. Be selective, and be smart.

Manufacturing Data

One way to compete effectively with high-volume foreign manufacturers is to apply non-military manufacturing data, as well as component usage, throughput, and node yields to the high-mix, low-volume military environment so long as core products are related. All manual entry of data can be eliminated by use of bar code scans, automated program downloads, and pick lists. The safekeeping of confidential information and compliance with regulatory restrictions, such as ITAR, is far more easily managed with the manufacturing facility and data in the U.S.

Many Asian manufacturers solve lead time problems by purchasing raw materials in large quantities and building finished goods inventory. This is a very expensive approach. A different approach is build to order. A robust supply chain and a well-designed manufacturing process with fast cycle times through the factory and high yields can produce short lead times and no need to build to stock. This also greatly reduces the level of raw materials needed on hand. Reducing raw material and finished goods means greater flexibility, less money tied up in inventory, and greater inventory turns. Having a global sourcing strategy means you don’t need to relocate to China to be near your source of supply.

Why test, inspect, and rework in multiple iterations until you achieve high shipped quality when you can design quality in initially? There are upfront and on-going costs but they pale in comparison to the hidden costs of repeated testing, inspection, and re-work–all of which increase the potential for field failures. Building in quality starts with design, continues with component selection, and ends with manufacturing processes. Keeping engineering community close at hand helps to respond quickly to problems and resolve issues to root cause. This can help engineers spend less time and money responding to quality issues and customer complaints and more time designing and selling products. Focus on the total cost of ownership, not just lower labor rates.

Optimize the factory

Lower costs involve more than paychecks to personnel; it also involves how best to run the factory. Incorporating manufacturing process design into product design reduces manufacturing costs. For example, SMT machine set up times can be reduced with optimized off-line setups and by dedicating technicians to product change-over. Sophisticated software developed in-house can help optimize the table set ups and sequencing of product through the factory. Redesigning the product flow from a linear configuration to a re-circulating configuration can make the most of production equipment, reduce the size of the assembly lines, and boost capacity within the factory area available.

Manufacturing in the U.S. can succeed on a cost-competitive basis with Asian or other foreign manufacturing and with significant additional benefits for aerospace and defense customers. The high mix, low volume manufacturing environment has significant challenges but none that can’t be overcome through automation, robust manufacturing processes and controls, standardization and modularity in products and equipment, and high-quality process standards. Having manufacturing lines close at hand to your design, mechanical and process engineers and technical personnel results in significant advantages such as tighter controls, greater flexibility and increased first-pass yield which leads to lower scrap rates and lower costs.

BUZZ HOFMANN is executive vice president at power electronics specialist SynQor Inc. in Boxborough, Mass. LENNART PITZELE is the company’s principal engineer, and HOWARD CYKER is SynQor’s process owner of quality and reliability.

PCB Solutions continues to bring as much manufacturing as possible to the U.S. by working with the highest quality and best priced U.S., commercial and military suppliers.  Please inquire with one of our sales staff about a domestic Rigid, Rigid Flex or Aluminum based PCB.

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.

When doing business in China, unlike in the U.S., you may never know what you are getting. This statement comes from over 10 years of experience dealing with the Asian suppliers. The key to dealing with Asian suppliers is to have complete control over your supply chain; if you don’t, you have now idea what you are getting.

Understanding this principle stems from the knowledge that the Asian businessmen will say YES to almost every request. It is not in their gene pool to say no. “Yes- we can do it” is said more in the Asian culture than “what’s on TV” in American. The challenge for American Printed Circuit Board buyers is where and from who is your product coming from. The Asians are excellent logistics and networking specialists. They either have a family member or a friend in the business of something and YOUR product may go to anyone of them.

Case In Point: Years ago, when entering the Chinese manufacturing market, we had a trusted relationship (or what we thought was a trusted relationship) who was a PCB supplier actually give us documentation for supplier A. They stated they were the factory and were owners and part of the relationship. It soon came to our knowledge they had fudged the UL logo from another factory along with all the paperwork. It turned out that they claimed the PCBs were built in one factory but in fact were built in another factory with the original factory’s UL logo on the PCB and paperwork were doctored. Needless to say we terminated that relationship. It was a brutal awakening to the methodology of how the Chinese go business. There are thousands of middlemen in China shipping out your product to any type of supplier that can meet the price and delivery. You will not know until it is too late if you are really dealing direct!

It is key that if you are sourcing anything from Asia that you have control over you supply chain. PCB Solutions visits China up to, and sometimes more than 4 times per year. We review IPC1710 documents. We conduct quality audits on the factories. We meet the president of the suppliers and insist on following our product through the process flow- forced Honesty and Integrity if you will. We negotiate payment terms (typically unheard of in working with Asian suppliers). We meet the staff and set our expectations…

So the next time you get the itch to get rid of that U.S. based middle man and play roulette with suppliers emailing you daily, think about what happens when a significant quality issue arises or if you have paid 50-100% of the cost of the product upfront and you have no leverage for a return. Did you consider the cost of wire transfer fees into your costs? How about exchange rates, shipping costs, supply chain control, customs, duties, communication, English skills of the supplier, engineering support, quality of the factory, etc…on and on.

Let our 9 + years of experience work for you. We can, source, stock, label, inventory and even provide secondary inspection on your product if necessary. We lend ourselves to being experts in sourcing Asian based products…don’t get caught trying to learn to be one and spending your quality time fixing problems. Trust the middleman!

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.

As far as Asian based suppliers, they are still fully loaded and working at capacity. Our last blog so Copper Clad Laminate slowing down in Asia generally but all our suppliers still maintain strong demand and factory levels for Printed Circuit Boards and Flexible PCBs.

Look for more data next month as we move out of the typically slower month of August.

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.

As the global economy recovers, the international financial market goes stable, Orders shift crisis also comes to PCB industry for many PCB makers in China. On one hand, the middle-small PCB makers rely on OEM are unable to afford the pressure of cost rise by financial crisis.; on the other hand, serious shortage of workers bring many enterprise embarrassment of shut down. At the same time, with growth of workers wage cost, increase the pressure of the enterprise’s operation. It becomes the question for PCB manufacturers to think how to solve the new crisis.

Besides shortage of workers, PCB makers developed rely on OEM need to afford the affect of financial crisis and the price rise of material, source, energy shortage and high consumption. All this make the process cost rise in China, the price advantage is being eroded. Some international companies already shift the order to the low-cost Southeast Asian, South Asian countries like Vietnam, Cambodia, Bangladesh and Thailand. Under the situation of no significant decline in market demand, cancellation of orders in China, will inevitably be supplemented in other places.

The survey show, Japan IT enterprises have shift their PCB order to Thailand, PCB manufacturing companies in Thailand are also increasingly competitive Data shows PCB industrial value in southeast has already been 3-3.3 billion dollars, Thailand accounts 30-40% of the total. While the famous company like Gree, Supor, Media, Glanz , Canon and so on have already built their own production plant in Vietnam.

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.

CCL makers posted mixed results for July 2010, with Elite Material (EMC) and Taiwan Union Technology (TUC) seeing revenues continue to move upward, while Iteq suffered a decline in revenues.

TUC saw its consolidated revenues grow 7.5% sequentially to NT$970 million (US$30.41 million) in July, while peer company EMC saw revenues edge up 2.5% sequentially to NT$1.18 billion during the same month. Iteq’s revenues were down 6% to NT$1.77 billion.

However, TUC expects its revenues to continue to grow in August due to new capacity contributed by its new plant in Zhungshan, China. TUC will have total capacity of 1.5 million CCLs by the end of 2010.

Please visit our home page at: www.pcb-solutions.com We are a supplier of Domestic and off-shore Rigid, Rigid-Flex and Flex Printed Circuit Boards (PCBs), Domestic Military PCBs, Domestic Tier I PCBA, Domestic Sheet Metal, Domestic Injection Molding and other Custom Fabricated Services.