The Number That Is Never on the Quotation
Two suppliers quote 1.10 and 1.18 for the same transformer. The procurement decision usually goes to 1.10 and is recorded as a saving. Eight months later there is a rework line at the contract manufacturer, a scrap rate nobody budgeted for, and a field return that costs more than the entire annual price difference. Cost of poor quality is the part of the price that is paid later, in someone else’s budget.
Where Magnetic Components Lose Money After Delivery
| Failure | How it appears | Typical downstream cost |
|---|---|---|
| Inductance out of tolerance | Converter fails efficiency or stability test at the CM | Rework of finished units, engineering time, shipment delay |
| Leakage inductance over the limit | Ring or overshoot, EMC retest failure | Board redesign, filter cost, delayed certification |
| Poor solder joint / termination | Open or intermittent in thermal cycling | Field returns, warranty, brand damage |
| Wrong insulation system | Hipot failures in production, or a safety review finding | Lot rejection, re-qualification, safety compliance risk |
| Creepage or clearance shortfall | Found at certification, not at incoming inspection | Redesign of the part and the PCB keep-out |
| Moisture or crack in the core | Noise, loss rise, or failure after reflow | Scrap at the CM, unexplained yield loss |
The pattern is consistent: the cost is not the part, it is the disruption. A single lot rejection at a contract manufacturer can idle a line for a shift, and the accounting usually lands in a different cost centre from the one that booked the saving.
Making It Measurable
Three numbers turn this from an argument into a comparison, and all three can be requested before the order:
- PPM and the definition behind it. Ask what counts as a defect and whether the figure includes outgoing inspection failures. A supplier quoting 200 PPM that only counts final-test rejects is not quoting the same thing as one that counts in-process scrap.
- First-pass yield at the supplier. A wound component that requires a re-wind step is not a stable process. Ask for the rework rate on comparable parts, not the average across the plant.
- Field return rate on similar products. The most useful question is not the number but the trend: what failed, and what changed as a result. A supplier that can describe its last failure mode honestly is usually the safer one.
The Contract Levers That Actually Work
- Charge-back clause for avoidable defects, with the inspection standard defined in the PO rather than left to discussion after the lot arrives.
- Change control: core grade, wire supplier, varnish and winding machine named in the drawing, with re-approval required for any of them.
- First-article approval before volume, with the report contents agreed in advance — otherwise the report that arrives is the one the supplier prefers.
- Annual quality review with the PPM, the rework rate and the field return data on the table, not just a certificate renewal.
The Honest Arithmetic
If a 1.18 part reduces the CM’s rework by one hour per hundred units, the higher price is usually the cheaper option. The comparison only works if the rework hours are counted, which means procurement and manufacturing engineering have to look at the same sheet. That is the real reason quality discussions stall: nobody owns the total.
Related reading
- Supplier Scorecard: What to Measure
- What Must Be on a Test Report
- Supplier Audit Checklist
- First Article Inspection Reports
Ask us for the PPM definition, the first-pass yield on comparable parts and our last three corrective actions — we send them before the quotation, not after the complaint. sales@sirui-tech.com.
