Manufacturers across industries are fully aware of the importance of total cost of ownership (TCO), equating to the combination of the bill of materials (BOM) and manufacturing costs, and understandably forms a key element of their pricing strategy. Of course, reducing TCO via higher manufacturing yields is a primary objective, as manufacturers are all too conscious of the detrimental financial consequences that can come with low yields.
It is however the case that not only do low yields have fiscal implications, but they are also afflicted by excess environmental costs. The need to buy more components creates an impact on sustainability due to the carbon footprint needed to ship items from one place to another. Higher yields therefore create both financial and environmental benefits. With sustainability a key aim for manufacturers, a focus on reducing scrap in the manufacturing process will help reduce e-waste while also assisting in bringing down both production costs and total cost of ownership.
It’s increasingly clear that sustainability and profitability go hand-in-hand for manufacturers, but achieving this equilibrium will also hinge on upcoming legislation. New rules being implemented in summer 2021, no doubt a key date pencilled in the diary for manufacturers, will make it a legal obligation for spare parts for products to be made available to consumers for a period of ten years. As a result, manufacturers are undoubtedly looking towards longer warranty periods to protect brand image and avoid the issue of consumers attempting to fix products themselves. This will lead to additional manufacturing costs associated with more spare parts needed in that warranty period, leading to an ultimate rise in TCO.
Utilising liquid protection solutions
Producing products with a longer lifespan will help reduce the need for repairs and spare part demand, assisting in the reduction of both TCO and a manufacturer’s environmental footprint. Key to ensuring that robustness in production is the utilisation of longer-lasting protection. It is here where liquid protection plays a key role. According to a recent P2i survey, 83% of R&D professionals polled said that the product with the largest production volume designed within the last two years would have failed within the first year without such protection. Manufacturers know all too well the issues that would arise should this happen to an electronics product with a warranty extended over a much longer five-year period.
Damage from liquid ingress is also very expensive to remedy. Extensive damage can cause vital components within a device to suffer from corrosion, making them unusable and ultimately unrepairable, adding to landfill and damaging the environment.
Prioritising both profitability and sustainability
P2i’s liquid protection solutions make it possible for manufacturers to prioritise both profitability and sustainability, and picking the right method allows reduction of scrappage in the manufacturing process. This also helps manufacturers in their own reworkability processes to improve efficiencies, plus helping to lower their carbon footprint and prolong the life of their products, all while helping to keep repair costs low and enable waste regulations to be met. Our liquid protection technology mitigates the dilemma for manufacturers of having to choose between sustainability and ROI, ultimately ensuring that a positive brand image with customers can be maintained.