A turnkey project is the construction of infrastructure or other engineering projects under a cooperation contract. Once the design and construction project is completed, including equipment installation, commissioning, and initial operation, the “key” of the ownership and management of the assets or project is handed over to the other party, and the other party starts to operate. Therefore, turnkey projects can also be considered a special contract management form.
In practice, having a consistent, standard turnkey project contract is difficult because each industry must have many unique features. Turnkey PCB Assembly is one of the electronic industry’s most popular global trade methods. Turnkey represents the subcontractor’s or contract manufacturers’ ability to deliver the product’s electronics continuously. Specific to the product, turnkey means Eashub handles every aspect of PCB Assembly and Manufacturing solutions, including components sourcing, PCB fabricating, PCBA manufacturing, and box build. Essentially, Full Turnkey PCB Assembly frees customers from complex manufacturing and massive investment in equipment, and the customer only needs to focus on product design or even partially outsourced. It is the most popular and favorite solution for small and middle-size customers, especially for customers that are far away from its manufacturing partners. Eashub is famous for leading one-stop turnkey PCBA services, especially for medium and small enterprises, labs, and design houses.
There are two business models of PCB Assembly: Consignment PCB Assembly and Turnkey PCBA Assembly.
Partial turnkey is only a transitional business model because it is constrained by a few components with a special purpose, like IP control and un-fix design. The proportion of these components is usually not high, so we also classify Partial Turnkey PCB Assembly as Turnkey PCB Assembly. And strictly speaking.
Consignment PCB Assembly
It is a tailored Turnkey PCB Assembly business model. The biggest difference between the two is under Consignment, the contract manufacturer or subcontractor is responsible for offering production fields, labor, and general equipment such as SMT, wave soldering machines, etc. The customer will own and control the rest. The responsibility of the contract manufacturer or subcontractor can be viewed as only a small process of the total supply chain. It does not involve any decision-making and does not provide value-added services besides manufacturing. The income of the contract manufacturer can be calculated as direct labor price and processing fees. The subcontractor is passively executing a customer’s production order, not engaging with any supply chain decision. This business model is more suitable for the following area:
– In Domestic short-distance trade, the customer is very close to the manufacturing facility, which is convenient for material transfer and timely engineering support,
– Subcontractors cannot establish an efficient supply chain;
– Customers want full control but do not want to big CAPEX on manufacturing equipment.
Turnkey PCB Assembly
In the Turnkey PCB Assembly business model, the tremendous challenge is establishing an efficient, flexible, and cost-advantaged supply chain besides workshop management. Efficiency, flexibility, and cost are inherently conflicting. You can imagine the difficulty of Foxconn or Flextronics offering competitive costs to meet the monthly order of only 100PCS of industrial products or an unknown EMS to meet the quality standards and product traceability for these 100PCS products. But this is not difficult for Eashub because Eashub has solved these problems by restructuring the supply chain of each electronic product. Our diverse supply chain systems can support our customers’ demands for quality, flexibility, and cost at the same time.
Eashub has more than ten years experiences of offering customers fast, reliable, turnkey PCB assembly services worldwide. To our partner, we are not only a contract manufacturer but a reliable, fast PCB Assembly supply chain platform.
We have dedicated project managers for each customer and support customers from the product concept stage, EVT, DVT, PVT, MP, until EOL. We want to contribute to our customers in the below spaces:
Shorten Lead Time
As the elemental type of electronic/electronics assembly, Turnkey PCB Assembly contains a few classical phases: PCB fabrication, components sourcing, PCB Assembly, and even box building. Traditionally, Customers should interlock and engage with dozens of components sales, software, hardware, even system engineers, contract manufacture in parallel and separately. Tons of work on RFX, RFI, price comparing, analysis, summary, and award that only request dozens of employees but cost months, Full-turnkey PCB assembly is the most efficient model. Once a full-turnkey business decision is made, an RFQ of high-level products together with a summary of outstanding will be highlighted. So the complex communication matrix can be cut into a simple communication chain. More Eashub will optimize critical paths and offer faster delivery based on customer schedule requests.
Another advantage of the full-turnkey PCB Assembly is the price contribution. Customers can share Eashub’s contract price that Eashub maintained long with components suppliers. Additionally, customers can save a lot of unnecessary costs out of its core business, like freight, package cost, warehouse, and storage. Eashub has volume business already. Even though we charge a premium on those, the customer can’t complain.
Eashub can provide delivery flexibility according to the customer and industry needs. When we reach an agreement with the customer, we have defined the final turnkey business model with the customer, including the demand flexibility management, PO/forecast model, key parts management, and demand-driven approach. All these methods are based on the most cost-effective way to achieve. In addition, our big data system can also offer rapid price comparison and material acquisition in response to customers’ needs for urgent PCB Assembly prototypes.
Saving Capex on factory
All Eashub’s facilities pass the ISO9001 certification, while the leading plant owns certifications for TS16949, ISO13485, ESD2.0, etc… Customers can contact us if they want an on-site visit to get in touch with their products in the manufacturing process. Eashub can arrange customer on-site audit support for Mega customers. That means the customer will not invest but can have a qualified factory partner.
Review your resources on PCB Assembly, especially for some small and medium-sized enterprises. You should ask if you plan to invest a lot of money and own a PCB Assembly factory for a long time? If not, outsource your PCB Assembly business to a contract manufacturer and concentrate your resources on the design.
Define Turnkey PCB Assembly Supplier standards
The standards must prioritize industry common or special requirements, such as industry-specific certification, traceability request, environment standards, and business criteria, including supply flexibility, cycle time, industrial experience, and a reasonable target price. We have encountered obstacles to cooperation caused by customers’ unreasonable or fake target prices. It is a credit issue that will affect subsequent cooperation.
NDA Sign Off
NDA must be signed off to protect the necessary information, engineering experience, technical design, and information need to be protected of both parties. If a candidate refuses to sign off the agreement, we strongly suggest terminating the process;
It is the foundation of selecting a contract manufacturer. Price inquiry is only one aspect. During the process, customers need to observe the whole quotations response from the candidate suppliers. Including but not limited to response to engineering queries, project management, and supply chain management capability shown during the quotation. As the initiator, preparing RFQ documents must be sufficient, and more detailed RFQ information is possible. The higher quality RFQ response obtained, the RFQ documents generally include but are not limited to PCB Gerber, coordinate file, PCBA BOM list, AVL, Assembly instruction, technical request, target price, lead time, etc.
Total Solution Comparing and Award
An award of PCB Assembly business must not only be based on price alone; otherwise, it will be a disaster. Customers need to evaluate the professional capabilities reflected in the RFQ response process. These capabilities should take the majority of the weight of the award. It includes supply chain management capabilities, technical strength, engineering capabilities, and rapid response capabilities. Balanced scorecards are a good tool to assess the contract manufacturer comprehensively.
Trail Run Evaluation
One or more rounds of trial production are necessary to evaluate the manufacturing capability of the subcontractor. This process is used to check the contract manufacturer’s manufacturing capabilities, project management capabilities, and basic supply chain management capabilities.During this period, it is reasonable there occurs a few failures.
Long-term Supply Chain Model Negotiation
After accepting the trial run samples, it is critical to negotiate a long-term business cooperation model, which most customers often ignore. Problems, such as price increases, quality defects, or lack of delivery flexibility, will frequently occur after the award; it is caused by a lack of evaluation of consistent supply chain management capabilities during the awarding process. But this the one of the proficient area that EASHUB own. EASHUB will recommend the most competitive and effective supply chain model to customers.
You can understand Eashub as the second generation or the EMS of the Internet age. For the complex industrial products with a monthly demand of 100PCS mentioned above, we can provide faster RFQ response and quick delivery than JABIL or Foxconn, and our prices are also more friendly. On the other hand, our factory also meets the requirements for traceability. Eashub makes a difference against others on Turnkey PCB Assembly solution by offering below unique
For small and medium-sized enterprises, laboratories, research institutions, and design houses
Theoretically, Jabil and Foxconn have such hardware, but they have limited interest in this business, and their processes are complex and difficult to support; also, the Price is extremely high. Eashub’s supply chain can be reorganized flexibly by balancing quality and cost. Our vision is to help and grow together with thousands of small customers.
Diversity Supply Chain Scenario
Unlike Foxconn and Flextronics, it is difficult for them to provide delivery flexibility to customers. In contrast, Eashub’s rapid response supply chain can support customers to respond quickly and at the lowest cost. The core competency of Eashub lies in the deep understanding of customer needs and the redesign of the supply chain. On the supply side, our factories offer manufacturing experiences in diverse industries, including industrial, medical, communications, aviation, consumer electronics, etc. Our supply chain model supports both High-Mix Low-volume and high volume low mix; our business models are flexible with Full turnkey PCB Assembly, Partial turnkey assembly, and consignment PCB assembly. Our planning model divides into BTO (Build to Order) and BTS(Build to Stock). Our key sourcing methods include traditional agent channels and advanced big data supply chain tools. Any needs can be fulfilled through our service matrix portfolio.
Industry Experience Sharing and Application
Eashub and its manufacturing facilities own the manufacturing experience for dozens of global brand customers in different industries. For our customers, these valuable experiences can be applied under the premise of protecting intellectual property rights. Our turnkey PCB Assembly industrial experience covers the below industries: Medical, Automotive, Telecom Infrastructure, Telecommunication, Consumer Electronics, Industrial control, Instruments, etc. as a supplement service, Eashub also offers the customer mature ODM PCB Assembly solutions by utilizing the resources at the bay areas.
Free DFX Services:
Eashub provides customers free DFX services for each Tunrkey PCB Assembly product.
DFS (Design for Sourcing): Through BOM analysis, Eashub recommends better price components, components with flexible delivery and an emergency drop-in replacement.
DFM(Design for Manufacturing): DFM starts by improving the manufacturability of parts, making parts and various processes easy to manufacture at low manufacturing cost and better reliability.
DFL(Design for Logistics): Eashub provides customers with free packaging designs suitable for products and transportation, including turnover boxes for short-distance transportation and carton and wooden box designs for long-distance transportation.
Eashub will assign a dedicated project manager to each customer. The project manager’s responsibility covers from the product concept stage to the end of life of products. PM will regularly provide a project charter with a project progress summary based on each order, whatever the order quantity is. Before the stage of MP, including the EVT, PVT, and DVT stage, a gate review of each stage is mandatory. DFM is one of the outputs that benefit customer design the most; as whole dedicated project management is one of the leading advantages of Eashub. Ensure the smooth transition among product stages and maintain high-quality performance consistency for the turnkey projects.
According to the above information, you will find that Eashub will be your long-term electronic processing partner. You can choose Eashub in the following areas：
-Lack of necessary PCBA and electronic product
manufacturing experience, need suppliers to provide one-stop turnkey manufacturing service and product management service for the whole life cycle – Eashub is a professional, one-stop service platform that provides services for small and medium customers;
-Meet leading certificaiton
Like Foxconn or Flextronics, suppliers need leading manufacturing capabilities and qualifications to ensure product quality while providing quick responses and competitive prices. – our strategic factories have leading qualifications and systems, such as certification in the medical and automotive industries. Still, we will optimize part of the supply chain to improve response speed and reduce prices.
-Pursuing the ultimate low cost
While facing fierce competition in the consumer electronics market – Our low-cost supply chain supply base in western China can provide low-cost turnkey PCB Assembly services.
-The conflict between High Mix Low Volume Products and High Inventory Risk
All Eashub factories have complex High Mix Low Volume production capabilities. Our smart supply chain tools will assist the analysis and help maintain the flexibility of product delivery at the lowest inventory cost.
-Seeking mature ODM product processing solutions
Agent service is also one of Eashub’s complementary services; there are thousands of design companies and mature solutions in the Bay Area. Eashub can quickly lock down the candidate solution and offer the customer with one-stop turnkey solution from design to manufacturing.