Dragon Sourcing brings to you a case study on PCBA sourcing for the year 2016 in China. For details contact: www.dragonsourcing.com

1. PCBA Supplier Sourcing
Case study
Dragon Sourcing
Your Tailored Sourcing Approach to Emerging Countries

2. 1. Objectives
2. Approach
Agenda
2

3. Objectives
Context
Client overall objectives
• To identify new potential competitive PCBA
suppliers in China
Segments involved:
A. PCBA
DS Supplier Market analysis
Objectives
• Develop the RFI/RFQ document – jointly with Client –
to include all key qualification criteria.
• Identify list of potential suppliers to include in the
RFI/RFQ process by leveraging the web, external
databases, DS knowledge, database and various
networks of experts
• Conduct first phone screening of supplier database to
identify potential suppliers
• Administer RFI/RFQ process to ensure as high a return
rate as possible
• Analyze responses and use balance score card process
to rank suppliers and recommend suppliers
• Audit suppliers to check their capability to meet Client
requirement
3

4. MilestonesStarted FinishedNot-started Delayed
The project is scheduled for 9 weeks period
Steps Who Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
0 Kick off meeting Client / DS
1
Analyze the demand and define criteria allowing to
qualify potential suppliers
DS
2
Develop the RFI/RFQ to include all key qualification
criteria.
Client/ DS
3
Identify list of potential suppliers to include in the
RFI/RFQ process.
Client / DS
4
Conduct first phone screening of supplier database to
send RFI/RFQ
DS
5
Administer RFI/RFQ process to ensure as high a return
rate as possible
DS
6
Develop balance score card to evaluate suppliers
according to RFI/RFQ.
Client / DS
7
Analyze responses and recommend suppliers to take
through the auditing process
Client / DS
8 Supplier auditing arrangement Client / DS
TODAY
4

5. 1. Objectives
2. Approach
Agenda
5

6. Total 276 suppliers identified, total 28 RFI received, 42 RFQ received
Action Supplier quantity
Number of suppliers identified 276
Number of RFI/RFQ sent 231
Number of RFI received 28
Number of RFQ received 42
6

7. Sourcing Response
Analysis of supplier RFI/RFQ Participation
7
1: Cannot produce:
Supplier don't do PCBA
Can't purchase components
Supplier is not able to meet quality requirements
2: No interest:
Unwilling to do OEM manufacturing
Supplier is not really a manufacturer
Supplier don’t want to fill the RFI/RFQ
3: Different products
Supplier focuses on own products
No experience in this kind PCBA
60
84
44
0
20
40
60
80
100
Can't produce No interest: Different products
Suppliers negative response
7

8. Supplier map, 29 in Guangdong, 7 in Zhejiang, the other 7 in another 4
provinces.
Xinjiang
Gansu
Jiangxi
Zhejiang
BEIJING
Jiangsu
Guangxi
Hunan
Hubei
Qinghai
Ningxia
Shaa
nxi
Anhui
Fujian
Neimongu
Shanxi Shandong
Xizang
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
SHANGHAI
Hong Kong
Taiwan
Heilongjiang
CHONGQING
Sichuan
Supplier name Province RFI RFQ BOM Price
1 Supplier 1 Zhejiang Yes Yes Yes
2 Supplier 2 Zhejiang Yes Yes No
3 Supplier 3 Zhejiang Yes Yes Yes
4 Supplier 4 Zhejiang Yes Yes Yes
5 Supplier 5 Zhejiang Yes Yes Yes
6 Supplier 6 Zhejiang Yes Yes Yes
7 Supplier 7 Zhejiang Yes Yes Yes
8 Supplier 8 Shanghai Yes Yes Yes
9 Supplier 9 Shanghai Yes Yes Yes
10 Supplier 10 Shanghai Yes Yes Yes
11 Supplier 11 Shanghai Yes Yes Yes
12 Supplier 12 Jiangsu Yes Yes Yes
13 Supplier 13 Hunan Yes Yes No
14 Supplier 14 Guangdong Yes Yes Yes
15 Supplier 15 Guangdong No Yes No
16 Supplier 16 Guangdong No Yes Yes
17 Supplier 17 Guangdong Yes Yes Yes
18 Supplier 18 Guangdong No Yes No
19 Supplier 19 Guangdong Yes Yes Yes
20 Supplier 20 Guangdong No Yes Yes
21 Supplier 21 Guangdong No Yes Yes
22 Supplier 22 Guangdong No Yes No
23 Supplier 23 Guangdong No Yes Yes
24 Supplier 24 Guangdong Yes Yes No
25 Supplier 25 Guangdong Yes Yes Yes
26 Supplier 26 Guangdong No Yes Yes
27 Supplier 27 Guangdong No Yes Yes
28 Supplier 28 Guangdong Yes Yes No
29 Supplier 29 Guangdong Yes Yes Yes
30 Supplier 30 Guangdong No Yes Yes
31 Supplier 31 Guangdong Yes Yes No
32 Supplier 32 Guangdong Yes Yes Yes
33 Supplier 33 Guangdong Yes Yes Yes
34 Supplier 34 Guangdong Yes Yes Yes
35 Supplier 35 Guangdong Yes Yes Yes
36 Supplier 36 Guangdong No Yes No
37 Supplier 37 Guangdong No Yes Yes
38 Supplier 38 Guangdong Yes Yes Yes
39 Supplier 39 Guangdong No Yes Yes
40 Supplier 40 Guangdong No Yes Yes
41 Supplier 41 Guangdong Yes No No
42 Supplier 42 Guangdong No Yes Yes
43 Supplier 43 Fujian Yes Yes Yes 8

9. Battery account for 30% value, top 8 components account for 83% value, the
other 35 components account for 17% value.
10.05
5.53
3.10
2.62
1.95
1.71 1.69 1.68
5.75
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Battery U1 U10 PCB U3 U9 U5 U6 The other 35
BOM Average price (RMB)
9

10. Components price including all , average price RMB 34.63
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Components cost
10

11. 0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Assembly cost (RMB)
Assembly cost, Average RMB 7.11
11

12. Score card template
Company background Weight Scoring Max Score
Max
Point
Weight
Turnover in 2012 ? 10%
1= Less than 2 million
2= 2-10 Million
3= More than 10 million
3 0.3
10%
Employee No. 5%
1= Less than 100 staff
2= 100 to 200 staff
3= More than 200 staff
3 0.15
EMS industry experience? 25%
1= Less than 5 years
2= 5 to 10 years
3= More than 10 years
3 0.75
Experience of assembling for
European customer?
25% 0= No, 1= Yes 1 0.25
Can you do OEM? 25% 0= No, 1= Yes 1 0.25
Profile of Top Customers 10%
1=Unknown/Not provided
2=Local brands
3=International Brands
3 0.3
Subtotal 100% 14 2 10%
Production Capabilities Weight Scoring Max Score
Max
Point
Weight
Is the supplier able to produce
PCB in house?
5% 0= No, 1= Yes 1 0.05
20%
Assemble 0201 2% 0= No, 1= Yes 1 0.02
Assemble 0402 5% 0= No, 1= Yes 1 0.05
Assemble QFN packages 2% 0= No, 1= Yes 1 0.02
Assemble BGA-packages 2% 0= No, 1= Yes 1 0.02
Is the supplier able to support
client in product design?
15% 0= No, 1= Yes 1 0.15
Comply with IPC-A-600. 5% 0= No, 1= Yes 1 0.05
Comply with IPC-6012. 5% 0= No, 1= Yes 1 0.05
Comply with IPC-A-610. 5% 0= No, 1= Yes 1 0.05
SMT in house 5% 0= No, 1= Yes 1 0.05
Reflow soldering in house 2% 0= No, 1= Yes 1 0.02
Wave soldering in house 2% 0= No, 1= Yes 1 0.02
Wire bonding in house 10% 0= No, 1= Yes 1 0.1
Manual solder, insert &
assembly in house
10% 0= No, 1= Yes 1 0.1
Plastic injectin in house 10% 0= No, 1= Yes 3 0.3
What's the monthly assemble
capacity of
FR-4, double layer PCB?
15%
1= Less than 50,000
2= Between50,000-200,000
3= More than 200,000
3 0.45
Subtotal 100% 20 1.50 20%
Quality and Test Control Weight Scoring Max Score
Max
Point
Weight
Does the supplier have ISO 9001? 30%
0= No
1= Yes
1 0.3
30%
Does the supplier have ISO 14000? 5%
0= No
1= Yes
1 0.05
Does the supplier have RoHS test? 5%
0= No
1= Yes
1 0.05
Does the supplier have ICT test? 10%
0= No
1= Yes
1 0.1
Does the supplier have AOI test? 10%
0= No
1= Yes
1 0.1
Does the supplier have aging test? 10%
0= No
1= Yes
1 0.1
Is the supplier able to support client in
setting up new testing process?
30%
0= No
1= Yes
1 0.3
Subtotal 100% 7 1.00 30%
Price Competitiveness Weight Scoring Max Score
Max
Point
Weight
Is quotation competitive compared to
other suppliers?
50%
1= Lowest 1/3 competitive
2= Middle 1/3 competitive
3= Top 1/3 competitive
3 1.5
25%Provided break down details? 25%
0= No
1= Yes
1 0.25
Does the supplier provid all
components price?
25%
0= No
1= Partially
2= All
2 0.5
Subtotal 100% 6 2.25 25%
Compliance & Cooperation Weight Scoring Max Score
Max
Point
Weight
Is the supplier willing to sign a
confidentiality agreement?
20%
0= No
1= Yes
1 0.2
15%
Cooperation during RFI/RFQ 50%
1= Poor
2= Satisfactory
3= Excellent
3 1.5
Can you source and purchase
components for client
30%
1= Poor
2= Satisfactory
3= Excellent
3 0.9
Subtotal 50% 4 1.70 15%
Total scoring 51 8.45 100.00%
12

13. COMPANY INFORMATION
Company Name xxx
Address xxx
Town Hangzhou
Province Zhejiang
Company Website xxx
CONTACT PERSON INFORMATION
Contact Person xxx
Title Oversea Sales Manager
Email xxx
Tel xxx
Fax xxx
Mobile phone xxx
BUSINESS INFORMATION
What date was your company founded? 1997
How much is your registration capital
(USD)?)
3.49 million
Is company manufacturer or trading
company?
Manufacturer
What's the nature of your company?
(Private, state owned, joint venture, etc
）
Joint venture
What is your turnover in million USD ?
2015 ( to
date )
2014 2013 2002
82 80 81 79
What is the percentage of turnover
distributed to:
Domestic
Western
Europe
North America Rest of the World
% 62 5 12 18
Who are your top 3 Clients? Customer name Country Industry
% of
sales
1 xxx Japan Controller 9
2 xxx Italy Controller 8
3 xxx Taiwan Controller 9
How many square meters(m²) does
your factory occupy ?
20,000
Total Employee Production PE/IE R&D
Quality
Control
Manage
ment
Sales
907 633 35 80 54 57 48
How many employees can
communicate in English?
278
Do you have own finished product? If
yes, what's it?
No
How many years of EMS experience do
you have?
16
Yes/No If yes, please fill out client name.
Can you do OEM? Yes
Can you do ODM? Yes
How do you manage customer IP
proctection? Please give examples.
Manage customer IP procection
What's your company's position
considering price competition? ( High,
Middle, Low)
Middle Price as High level Quality
What's your company's position
considering quality competition? ( High,
Middle, Low)
High
Which industry is your product used in?
controllers for air conditioners, refrigerators, microwave ovens,
water heaters, kitchen range hoods and electric cookers，
Automotive
Do you assemble for European
customer?
Yes
If yes, please provide 3 customer
reference we can contact:
Customer
name
Country
Type(Asse
mble /end
user)
Contact Tel Email
1 Xxx Italy Assemble
2 Xxx German Assemble
3 xxx France Assemble
Does your company have export
license ?(yes or no)
Yes
How many years of export experience
do you have?
10
Does your company have experience to
provide stock for your client?
Yes
2 weeks 1 month 2 months
> 3
months
If yes, usually you will keep stock for
your clients:
45% 25% 20% 15%
Do you have an organization chart?
(Yes/No
Yes If yes, please provide organization chart
Company Profile
xxx
13

14. PRODUCTION
Does your company produce PCB in
house? (Yes/No)
Yes
If yes, can you produce FR-4, 2 layers
PCB?(Yes/No)
Yes
Maximum Layers your company can
produce：
4
How do you control PCB quality? TS16949
Does your company do PCBA in house?
(Yes/No)
Yes
If yes, can you assemble FR-4, 2 layers
PCB? (Yes/No)
Yes
Minimum line width(mil) n/a
Minimum hole size on a 1.6mm
board(mm)
n/a
Maximum PCB Layers your company
can assemble：
n/a
Can your company assemble below
components?
Yes / No Size ( inch )
Type of
equipment
Equipment quantity
0201 No
0402 Yes
QFN-packages Yes -
BGA-packages Yes -
Does your company have MRP？
(Yes/No)
Yes
Can you source and purchase
components for client? （Yes/No)
Yes
Can you support client in product
design? （Yes/No)
Yes
Can you support client in production set
up? (Yes/No)
Yes
Can you support client in set up new
testing process ? (Yes/No)
Yes
Does your company comply with IPC-A-
600 acceptability standard for printed
circuits?
Yes
Does your company comply with IPC-
6012?
Yes
Does your company comply with IPC-A-
610 ?
Yes
How many years ROHS product
experience do you have？
14 years
Please respond to questions for the
following technologies：
In house or Subcontracted
If in house,
please prvide
Brand/Type
If in house,
please provide
number of
Machines
SMT In house
Yamaha,Samsu
ng
14
Reflow soldering In house Nuosida 7
Wave Soldering In house Ridong 11
Wire bonding In house
Manual solder, insert & assembly In house 28
Plastic injection Subcontracted
<25 cm2
25-50 cm2
50-100 cm2
>100 cm2
What's your monthly assemble capacity
of right listed FR-4, double layer PCB?
(pcs)
200k
What's your capacity utilization？(%) 90%
How many shift does your company work
per day?
Two shifts,
How many hours per shift? 8
How many days per week does your
company work?
5-6 days
What's your standard inventory level? n/a
What tools do you use to manage
inventory? FIFO, LIFO, other?
FIFO
Company Profile
xxx
14

15. CORPORATE RESPONSIBILITY
Do you adhere to all rules and
regulations in respect to child
labour?(Yes/No)
yes, respect to child labour
How many hours per week, including
overtime are your employees working
on a regularly scheduled basis?
48 hours-56hours
Do you have any Ethical and
Environmental Policies with
independent verification of these
policies? (Yes/No)
Yes, Ethical and Environmental Policies with independent
verification
Does your company have social audit
by your client? If yes, What's their
name?
Yes, we have social audit by client Electrolux,Sakura
Are you willing to sign a confidentiality
agreement?(Yes/No)
Yes
QUALITY CONTROL
What quality and environmental
registrations do you have?
Yes / No
Date of
Certificate
Certifying Org. Date of Expiry
ISO 9001 Yes 13/04/2011 13/04/2018
ISO 14001 Yes 27/10/2011 27/10/2018
Others (please list) TS16949 02902/0 27/10/2021
Do you have the equipment in
house?(Yes or No)
If yes, please provide equipment
description and brand
ICT Yes Delvtai
AOI Yes Fuxing
ROHS Yes
Others equipment (please list)
Does your company have in house
reliability/aging assessment?
Yes
If yes, please describe the protocol you
use.
TS16949
What's your production defective rate?
(%)
2500ppm
What's the defective rate claimed by your
customer? (%)
500 ppm,some less than 100 ppm
How do you control the incoming material
quality?
IQC Checking
How do you control incoming material
warehouse condition, like tempreture,
humidity?
tempreture-5-35C , humidity:25-85%
How do you control finished product
warehouse condition,like tempreture,
humidity?
tempreture-5-35C , humidity:25-85%
How long do you keep QC records for? 2-5 year
Company Profile
xxx
15

16. 16
Factory entrance Workshop Finished goods warehouse
R&D SMT Reflow soldering
Wave Soldering Manual solder, insert & assembly Plastic injection
Factory Pictures
xxx
16

17. Supplier profile score out of 100
94
90 90 89 88 86 85 84 83 83 82
79 78 77 76 75
73 73 73
70 69
66 65 64
60 60 58
0
10
20
30
40
50
60
70
80
90
100
Supplier profile score out of 100
17