5 ways to cut material costs on electronics assembly lines
Materials typically account for 55% to 70% of the cost of an assembled electronic product. The five approaches below help factories cut spending on tapes, adhesives and ancillary materials while keeping output quality and customer approval documentation unchanged.
Many factories focus only on unit price when negotiating purchases, yet the biggest waste lies in how materials are used: cutting losses, adhesives expiring in the warehouse, excessive dispensing volumes, or defect rates caused by choosing the wrong material. The AMS engineering team has compiled lessons learned from projects supporting SMT lines and final assembly.
Standardize the materials list by application group
An average factory may be using as many as 8–10 different double-sided tape part numbers for nearly identical applications. Consolidating them into 2–3 standard part numbers increases purchase volume per item, secures better pricing and reduces safety stock. Standardization should be carried out together with the R&D department to re-validate requirements for adhesion, thickness and temperature range.
Optimize die-cut tooling and roll specifications
For die-cut tapes and foams, scrap rates between label layouts can differ by 15–25% simply because of how the shapes are nested across the roll width. Ordering slit widths that suit the cutting machine and roll lengths that match the line takt time also reduces roll changes and discarded roll ends.
Control dispensing volumes and shelf life
UV-curing adhesives, two-part epoxies and silicone adhesives all have a short usable life once opened. Scheduling orders in small lots, applying first-in, first-out and recalibrating the amount of adhesive per dispensing point are simple steps that deliver clear results.
- Weigh the dispensed adhesive on 30 consecutive samples to determine the actual consumption rate.
- Use small-volume cartridges at low-consumption stations.
- Label the opening date and remaining usable time at the station.
Comparing the effectiveness of each measure
| Measure | Estimated savings | Implementation time |
|---|---|---|
| Standardize material part numbers | 5–12% | 2–3 months |
| Optimize die-cut tooling | 8–20% of scrap | 2–4 weeks |
| Control adhesive consumption | 10–15% | 1–2 weeks |
| Order in small lots with scheduled deliveries | Less scrapping of expired stock | Immediate |
| Switch to approved equivalent materials | 5–30% | 3–6 months |
The final measure is evaluating alternative materials with equivalent performance. This delivers the largest savings but requires thorough testing and approval from the end customer.
If your factory wants to review its ancillary materials list or needs samples of alternative materials, contact AMS Vietnam for an on-site survey by our engineers.
