[{"data":1,"prerenderedAt":64},["ShallowReactive",2],{"blog-turnkey-vs-consigned-pcb-assembly-en":3},{"title":4,"description":5,"date":6,"lastUpdated":6,"category":7,"image":8,"readingTime":9,"wordCount":10,"timeRequired":11,"htmlContent":12,"faq":13,"tags":29,"slug":33,"sourceLocale":34,"availableLocales":35,"jsonld":40},"Turnkey vs Consigned PCB Assembly: How to Assign Material Responsibility","Compare turnkey, consigned and partial-turnkey PCB assembly by component ownership, usable kit quantity, approvals, shortage response and total cost.","2026-11-05","assembly",null,12,2382,"PT12M","\u003Cp>Choose \u003Cstrong>turnkey\u003C/strong> when the assembler will buy the materials assigned to it, \u003Cstrong>consigned assembly\u003C/strong> when you will supply them, and \u003Cstrong>partial turnkey\u003C/strong> when buying is split. Then define the split for every BOM line. The model name alone does not establish who owns material, who approves a substitute, or what happens when a kit is short.\u003C/p>\n\u003Cp>The practical decision is not simply “who places the order?” It is whether each party has the information and authority to resolve an exception without using an unapproved part, exceeding the budget, or delaying the build while ownership is disputed.\u003C/p>\n\u003Cp>For broader supplier-selection criteria, see \u003Ca href=\"/en/blog/pcb-sourcing/\">PCB sourcing\u003C/a>. For the items that determine an assembly quotation’s scope, see \u003Ca href=\"/en/blog/pcb-assembly-quote/\">PCB assembly quote\u003C/a>.\u003C/p>\n\u003Ch2>The three models are scopes, not automatic obligations\u003C/h2>\n\u003Cp>In a \u003Cstrong>full turnkey\u003C/strong> project, the assembler is generally assigned procurement of the materials defined in the agreement. That scope may include bare boards and components, but the RFQ should name both rather than assume they are included.\u003C/p>\n\u003Cp>In a \u003Cstrong>consigned\u003C/strong> or \u003Cstrong>kitted\u003C/strong> project, the customer supplies some or all materials for assembly. The assembler still needs agreed instructions for receipt, counting, inspection, handling and exceptions. Supplying a kit does not, by itself, define the legal consequences of a loss or quality issue.\u003C/p>\n\u003Cp>In \u003Cstrong>partial turnkey\u003C/strong>, the customer supplies certain materials and the assembler buys the remainder. For example, a customer might provide an allocation-sensitive IC while the assembler sources approved passives. The division can also be made by manufacturer part number, board type or another explicit boundary.\u003C/p>\n\u003Cp>HilPCB’s \u003Ca href=\"/en/products/turnkey-assembly/\">turnkey assembly service\u003C/a> describes kitted, partial and full turnkey options, with BOM review, approved sources and exceptions addressed by project. Confirm the actual buying, assembly and other services in the quotation and agreement.\u003C/p>\n\u003Cp>None of the three labels automatically includes electrical testing, programming, a particular inspection method or a particular ownership transfer. Specify those separately.\u003C/p>\n\u003Ch2>Responsibility matrix\u003C/h2>\n\u003Cp>Use this matrix as a starting point, then replace general descriptions with named responsibilities in the project documents.\u003C/p>\n\u003Ctable>\n\u003Cthead>\n\u003Ctr>\n\u003Cth>Decision or activity\u003C/th>\n\u003Cth>Full turnkey\u003C/th>\n\u003Cth>Consigned or kitted\u003C/th>\n\u003Cth>Partial turnkey\u003C/th>\n\u003C/tr>\n\u003C/thead>\n\u003Ctbody>\u003Ctr>\n\u003Ctd>Buying\u003C/td>\n\u003Ctd>Assembler buys the agreed materials\u003C/td>\n\u003Ctd>Customer buys the agreed materials\u003C/td>\n\u003Ctd>Each party buys its assigned lines\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Approved part and source\u003C/td>\n\u003Ctd>Customer supplies or approves requirements; assembler buys within them\u003C/td>\n\u003Ctd>Customer supplies parts within agreed requirements\u003C/td>\n\u003Ctd>Same approval rules apply to both buying channels\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Title and custody\u003C/td>\n\u003Ctd>Defined by the purchase agreement and transfer points\u003C/td>\n\u003Ctd>Title may remain with the customer while the assembler holds the kit; confirm in writing\u003C/td>\n\u003Ctd>Define title and custody for each supply stream\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Incoming usable quantity\u003C/td>\n\u003Ctd>Assembler checks its purchases under the agreed receipt process\u003C/td>\n\u003Ctd>Assembler and customer agree how kit counts and holds are reported\u003C/td>\n\u003Ctd>Apply the same usable-quantity definition to both streams\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Shortage response\u003C/td>\n\u003Ctd>Assembler reports options; purchases or changes follow agreed authority\u003C/td>\n\u003Ctd>Customer normally directs replenishment or another approved action\u003C/td>\n\u003Ctd>The assigned buyer and approvers act for the affected line\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Excess and held material\u003C/td>\n\u003Ctd>Define return, retention, purchase or other disposition\u003C/td>\n\u003Ctd>Define return or other disposition, including material on hold\u003C/td>\n\u003Ctd>Record disposition separately for customer-supplied and assembler-purchased stock\u003C/td>\n\u003C/tr>\n\u003C/tbody>\u003C/table>\n\u003Cp>The matrix deliberately separates \u003Cstrong>buying\u003C/strong>, \u003Cstrong>title\u003C/strong> and \u003Cstrong>custody\u003C/strong>. A party can purchase material without retaining title throughout the build. Likewise, physical custody does not automatically mean the holder owns the material or bears every risk associated with it.\u003C/p>\n\u003Cp>The agreement should also address risk of loss, damage, discrepancies, insurance and any lien or return conditions where relevant. Do not infer those terms from the sourcing model.\u003C/p>\n\u003Ch2>Build a BOM-line handoff worksheet\u003C/h2>\n\u003Cp>A BOM tells the assembler what goes on the board. A handoff worksheet adds the decisions needed to obtain and use each line. It is particularly useful for partial turnkey, where two people may otherwise assume that the other is buying the same part—or neither is.\u003C/p>\n\u003Cp>The following is a reusable worksheet, illustrated with a hypothetical customer-supplied component line. Replace the example assignments with the actual project’s names and agreement terms.\u003C/p>\n\u003Ctable>\n\u003Cthead>\n\u003Ctr>\n\u003Cth>Worksheet field\u003C/th>\n\u003Cth>Example entry or instruction\u003C/th>\n\u003C/tr>\n\u003C/thead>\n\u003Ctbody>\u003Ctr>\n\u003Ctd>\u003Cstrong>BOM line and revision\u003C/strong>\u003C/td>\n\u003Ctd>X1; identify the released BOM revision, reference designators and quantity per board.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Buyer\u003C/strong>\u003C/td>\n\u003Ctd>Customer buys and supplies this line. Name the purchasing contact and required delivery destination.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Approved part and source\u003C/strong>\u003C/td>\n\u003Ctd>Record the exact manufacturer part number and approved purchasing source before ordering. List any permitted alternates explicitly; do not substitute based on a generic description.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Technical approver\u003C/strong>\u003C/td>\n\u003Ctd>Customer’s named engineering contact approves changes to the part or application. Record how approval is documented.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Title\u003C/strong>\u003C/td>\n\u003Ctd>Customer retains title to the supplied material under the project agreement. State any agreed transfer point rather than relying on the word “consigned.”\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Custody\u003C/strong>\u003C/td>\n\u003Ctd>Assembler takes physical custody on documented receipt. Address risk of loss and damage separately in the agreement.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Incoming usable quantity\u003C/strong>\u003C/td>\n\u003Ctd>Record physical receipt, accepted usable quantity, quantity held, units of measure and the reason for each hold. For the example below: 260 received, 246 accepted and 14 held.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Shortage action\u003C/strong>\u003C/td>\n\u003Ctd>Notify the customer with the affected line and quantity. Customer decides whether to resolve the hold, supply more or authorize another approved action.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Expense approval\u003C/strong>\u003C/td>\n\u003Ctd>Customer’s named commercial contact approves any additional purchase or handling expense before it is committed, according to the agreed process.\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>\u003Cstrong>Excess disposition\u003C/strong>\u003C/td>\n\u003Ctd>At reconciliation, identify usable excess, material still held and any actual losses. Customer directs return or another disposition under the agreement.\u003C/td>\n\u003C/tr>\n\u003C/tbody>\u003C/table>\n\u003Cp>Add columns for target receipt date, lot or traceability requirements, packaging, and special storage conditions when they matter to the line. The buyer and technical approver may be different people: permission to spend does not automatically authorize a part change, and technical approval does not automatically authorize additional expense.\u003C/p>\n\u003Cp>For BOM preparation and procurement checks, use the \u003Ca href=\"/en/blog/bom-error-checking-component-procurement/\">BOM error-checking and component procurement guide\u003C/a>. Release the BOM revision together with its approved exceptions so that an obsolete spreadsheet does not quietly become the purchasing instruction.\u003C/p>\n\u003Ch2>Calculate usable quantity, not just pieces shipped\u003C/h2>\n\u003Cp>A consigned kit can arrive with enough pieces on paper and still be short for production. Receipt quantity is a physical count; \u003Cstrong>usable quantity\u003C/strong> is the amount accepted for the agreed build after applicable holds and checks.\u003C/p>\n\u003Cp>Consider this hypothetical build:\u003C/p>\n\u003Cul>\n\u003Cli>The order requires \u003Cstrong>120 finished boards\u003C/strong>.\u003C/li>\n\u003Cli>The component appears \u003Cstrong>twice per board\u003C/strong>.\u003C/li>\n\u003Cli>The build plan allows \u003Cstrong>8 devices for feeder losses\u003C/strong> and \u003Cstrong>2 devices for test-related losses\u003C/strong>.\u003C/li>\n\u003Cli>\u003Cstrong>260 devices are received\u003C/strong>, of which \u003Cstrong>14 are held\u003C/strong> and not yet released for use.\u003C/li>\n\u003C/ul>\n\u003Cp>The arithmetic is:\u003C/p>\n\u003Cpre>\u003Ccode class=\"language-text\">Devices fitted to 120 boards:       120 × 2 = 240\nHypothetical feeder-loss allowance:              8\nHypothetical test-loss allowance:                2\nRequired usable quantity:                       250\n\nReceived:                                       260\nLess held, not yet usable:                       14\nAccepted usable quantity:                       246\n\nShortage against usable requirement:       250 − 246 = 4\n\u003C/code>\u003C/pre>\n\u003Cp>The project is therefore \u003Cstrong>four usable devices short\u003C/strong>, even though the physical receipt exceeds the calculated requirement by ten.\u003C/p>\n\u003Cp>The two loss categories are illustrative assumptions, not observed losses or a universal spare percentage. In this example, the test allowance means two extra devices for possible replacement during the agreed build and test process; it does \u003Cstrong>not\u003C/strong> assume that two complete boards will be destroyed. If test failures instead require whole-board replacement, the plan may need additional bare boards and other components as well. Testing and repair must themselves be agreed in the project scope.\u003C/p>\n\u003Cp>The 14 held devices are \u003Cstrong>not automatically scrapped\u003C/strong>. They may be awaiting resolution of an identification, documentation or other incoming exception. If four are subsequently released as usable, the accepted quantity becomes 250 and the calculated shortage is covered; the remaining ten still need a hold decision. Alternatively, another supply of four usable devices could cover the arithmetic shortage, provided its packaging and introduction to the process do not create additional requirements.\u003C/p>\n\u003Cp>The worksheet should record who can release the held material, who can approve a replacement purchase, and whether the build may proceed while the shortage remains open. If actual losses or the production plan change, recalculate rather than treating the original allowance as a guaranteed outcome.\u003C/p>\n\u003Ch2>Define packaging and the incoming exception process\u003C/h2>\n\u003Cp>An exact part number is not the whole purchasing instruction. Placement equipment and the assembler’s handling process may impose requirements on carrier type, orientation, strip length, labeling or preparation. Ask the assembler for the actual project requirements before ordering or shipping consigned stock.\u003C/p>\n\u003Cp>Texas Instruments’ \u003Cstrong>Carrier packaging options\u003C/strong> FAQ describes options including full reel, custom reel, cut tape, tray and tube, and notes that material may be supplied in multiple strips. That is an example of how a manufacturer may package orders—not a universal statement that every format is suitable for every assembly line.\u003C/p>\n\u003Cp>For each sensitive line, agree on:\u003C/p>\n\u003Col>\n\u003Cli>\u003Cstrong>Identification and count:\u003C/strong> manufacturer part number, quantity, unit of measure and package labels.\u003C/li>\n\u003Cli>\u003Cstrong>Condition and documentation:\u003C/strong> what the receiving party checks, and what places material on hold.\u003C/li>\n\u003Cli>\u003Cstrong>Usability:\u003C/strong> the procedure for accepting, releasing or rejecting material, including any packaging-related preparation.\u003C/li>\n\u003Cli>\u003Cstrong>Escalation:\u003C/strong> the contact, required evidence and decision authority for a discrepancy.\u003C/li>\n\u003Cli>\u003Cstrong>Reconciliation:\u003C/strong> how accepted, held, consumed, lost and excess quantities will be reported.\u003C/li>\n\u003C/ol>\n\u003Cp>Do not count held material as usable merely because it is physically present. Equally, do not treat it as defective or disposable until the agreed review and disposition are complete.\u003C/p>\n\u003Cp>The placement data should support the same released design. Use the \u003Ca href=\"/en/blog/pick-and-place-file-checklist/\">pick-and-place file checklist\u003C/a> to check that placement information aligns with the board and BOM revisions sent for assembly.\u003C/p>\n\u003Ch2>Handle substitutions and shortages without losing control\u003C/h2>\n\u003Cp>A shortage may arise from an insufficient kit, a hold, a purchasing constraint or a higher actual requirement than planned. The response should be tied to the affected BOM line, not a blanket instruction to “use equivalents.”\u003C/p>\n\u003Cp>A workable exception request identifies:\u003C/p>\n\u003Cul>\n\u003Cli>The BOM revision, line and affected assembly quantity.\u003C/li>\n\u003Cli>The required usable quantity, available usable quantity and shortage.\u003C/li>\n\u003Cli>The proposed action: release held stock, replenish the approved part, change source, approve an alternate, or revise the build plan.\u003C/li>\n\u003Cli>Technical information needed to assess a proposed change.\u003C/li>\n\u003Cli>The cost or other commercial consequence requiring approval.\u003C/li>\n\u003Cli>The person authorized to approve each decision and how the approval will be recorded.\u003C/li>\n\u003C/ul>\n\u003Cp>A different purchasing source and a different manufacturer part number are not necessarily the same kind of change. Define whether each requires approval. An alternate can affect fit, function, reliability or downstream documentation even when its description looks similar.\u003C/p>\n\u003Cp>If the parties choose to start a partial build, document which boards or stages are authorized and how incomplete work will be identified and controlled. Starting work does not itself resolve the material shortage.\u003C/p>\n\u003Ch2>Compare total cost on the same scope\u003C/h2>\n\u003Cp>Turnkey and consigned quotations can look different because costs appear in different places. A consigned assembly price may exclude customer purchases; a turnkey price may include them. Neither label establishes which project will cost less or finish sooner.\u003C/p>\n\u003Cp>Compare the options against the same board quantity, BOM revision, approved parts, assembly operations, inspection and test scope, packaging requirements, and delivery terms. Then account for costs wherever they fall:\u003C/p>\n\u003Ctable>\n\u003Cthead>\n\u003Ctr>\n\u003Cth>Cost or exposure\u003C/th>\n\u003Cth>Questions to compare\u003C/th>\n\u003C/tr>\n\u003C/thead>\n\u003Ctbody>\u003Ctr>\n\u003Ctd>Components and bare boards\u003C/td>\n\u003Ctd>Who buys each item? Are the same part numbers, sources and quantities included?\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Procurement and administration\u003C/td>\n\u003Ctd>Who handles ordering, source checks, exceptions and coordination? Are charges included or separate?\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Freight and receipt\u003C/td>\n\u003Ctd>Who pays shipping, duties or taxes where applicable, and who handles incoming discrepancies?\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Assembly and agreed verification\u003C/td>\n\u003Ctd>Are the same assembly, inspection, test, programming and repair activities included?\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Losses and shortages\u003C/td>\n\u003Ctd>What quantities are planned, and how are actual losses or replenishment approved and charged under the agreement?\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd>Excess and holds\u003C/td>\n\u003Ctd>Who owns remaining stock, and what return, storage or disposition arrangements apply?\u003C/td>\n\u003C/tr>\n\u003C/tbody>\u003C/table>\n\u003Cp>Also compare what happens when the assumptions fail. A low assembly-only quote is not a like-for-like total if another option includes material purchases or an agreed test operation. Conversely, adding services to a turnkey comparison that the consigned project does not require distorts the decision.\u003C/p>\n\u003Ch2>What to release with the RFQ\u003C/h2>\n\u003Cp>To obtain comparable responses and avoid unresolved handoffs, include the following with your \u003Ca href=\"/en/quote/\">quote request\u003C/a>:\u003C/p>\n\u003Cul>\n\u003Cli>Required finished-board quantity and the current board, BOM and assembly-data revisions.\u003C/li>\n\u003Cli>A line-by-line designation of customer-supplied and assembler-purchased material, including bare boards.\u003C/li>\n\u003Cli>Manufacturer part numbers, quantities per board, approved sources and the alternate-approval process.\u003C/li>\n\u003Cli>Planned usable-quantity allowances and the assumptions behind them; distinguish those from material already received or held.\u003C/li>\n\u003Cli>Packaging, labeling, storage and traceability requirements applicable to the parts.\u003C/li>\n\u003Cli>Named technical and commercial contacts, including authority for substitutions and additional expense.\u003C/li>\n\u003Cli>Requested assembly, inspection, test, programming and repair scope, if applicable.\u003C/li>\n\u003Cli>Receipt, shortage notification, title, custody, risk, excess and held-material terms to be agreed.\u003C/li>\n\u003C/ul>\n\u003Cp>If a field is not yet known, mark it as an open decision rather than leaving the supplier to infer it. For questions about assigning the scope before submitting the package, \u003Ca href=\"/en/contact/\">contact HilPCB\u003C/a>.\u003C/p>\n\u003Cdiv data-component=\"BlogQuickQuoteInline\">\u003C/div>\n\u003C!-- faq:start -->\n\u003Ch2>Frequently Asked Questions\u003C/h2>\n\u003Ch3>Does turnkey assembly mean the assembler owns every component?\u003C/h3>\n\u003Cp>Not necessarily. Turnkey describes an assigned sourcing scope; title and transfer points depend on the project agreement.\u003C/p>\n\u003Ch3>Can I consign only one component and have the assembler buy the rest?\u003C/h3>\n\u003Cp>Yes, as a partial-turnkey scope. Identify that component and assign buying responsibility for every remaining BOM line.\u003C/p>\n\u003Ch3>Are held components included in the usable kit quantity?\u003C/h3>\n\u003Cp>Not until they are released under the agreed incoming process. A hold is not automatically a rejection or scrap decision.\u003C/p>\n\u003Ch3>Who approves a substitute when the approved part is unavailable?\u003C/h3>\n\u003Cp>The project’s designated technical approver should authorize the change. A separate commercial approver may need to approve its cost.\u003C/p>\n\u003Ch3>Does consigned assembly include testing?\u003C/h3>\n\u003Cp>Not automatically. Define the required inspection, test, programming and repair activities in the RFQ and agreement, regardless of the sourcing model.\u003C/p>\n\u003C!-- faq:end -->\n\u003Csection class=\"related-links\" aria-label=\"Related\">\u003Ch3>Related links\u003C/h3>\u003Cul>\u003Cli>\u003Ca href=\"/en/blog/pcb-sourcing/\">How to Source PCBs and Choose Reliable Manufacturers\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/blog/pcb-assembly-quote/\">PCB Assembly Quote Guide: Files, Cost and Comparison\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/products/turnkey-assembly/\">turnkey assembly service\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/blog/bom-error-checking-component-procurement/\">BOM error checking for component procurement: MPN matching, aliases, and lifecycle triage\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/blog/pick-and-place-file-checklist/\">Pick-and-Place Files: CPL Fields, Rotation and BOM Matching Checks\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/quote/\">quote request\u003C/a>\u003C/li>\u003Cli>\u003Ca href=\"/en/contact/\">contact HilPCB\u003C/a>\u003C/li>\u003C/ul>\u003C/section>",[14,17,20,23,26],{"question":15,"answer":16,"answerText":16},"Does turnkey assembly mean the assembler owns every component?","Not necessarily. Turnkey describes an assigned sourcing scope; title and transfer points depend on the project agreement.",{"question":18,"answer":19,"answerText":19},"Can I consign only one component and have the assembler buy the rest?","Yes, as a partial-turnkey scope. Identify that component and assign buying responsibility for every remaining BOM line.",{"question":21,"answer":22,"answerText":22},"Are held components included in the usable kit quantity?","Not until they are released under the agreed incoming process. A hold is not automatically a rejection or scrap decision.",{"question":24,"answer":25,"answerText":25},"Who approves a substitute when the approved part is unavailable?","The project’s designated technical approver should authorize the change. A separate commercial approver may need to approve its cost.",{"question":27,"answer":28,"answerText":28},"Does consigned assembly include testing?","Not automatically. Define the required inspection, test, programming and repair activities in the RFQ and agreement, regardless of the sourcing model.",[30,31,32],"turnkey vs consigned pcb assembly","PCB manufacturing","PCB assembly","turnkey-vs-consigned-pcb-assembly","en",[34,36,37,38,39],"de","cn","fr","ru",{"blog":41,"breadcrumb":50},{"@context":42,"@type":43,"headline":4,"description":5,"url":44,"datePublished":6,"dateModified":6,"timeRequired":11,"keywords":45,"articleSection":7,"author":46,"publisher":49},"https://schema.org","BlogPosting","https://hilpcb.com/en/blog/turnkey-vs-consigned-pcb-assembly/","turnkey vs consigned pcb assembly, PCB manufacturing, PCB assembly",{"@type":47,"name":48},"Organization","HILPCB",{"@type":47,"name":48},{"@context":42,"@type":51,"itemListElement":52},"BreadcrumbList",[53,58,62],{"@type":54,"position":55,"name":56,"item":57},"ListItem",1,"Home","https://hilpcb.com/",{"@type":54,"position":59,"name":60,"item":61},2,"Blog","https://hilpcb.com/en/blog/",{"@type":54,"position":63,"name":33,"item":44},3,1793866861527]