An empirically based analytical approach to process technology and international location choice for electronics assembly

Abstract

An attempt is made to determine the potential impacts of modern technologies and managerial procedures on printed circuit board assembly operations in lesser-developed newly industrializing and developed countries. This is done to assess implications for global competitiveness. Empirical data on manufacturing operations were gathered, and analytical factory models created. Manufacturing costs and performance characteristics were assessed in each country type at several process technology levels. The results of implementations of managerial practices and technologies such as just-in-time or higher levels of automation were assessed. In general, newly industrializing countries (such as Singapore or Korea) were found to produce the lowest cost products; however, developed countries (such as the USA) could compete in other ways, including high product value arising from advanced technology usage and reduced product cost arising from the use of design-for-manufacture principles.<>