Manufacturing

Turnkey vs Consignment PCB Assembly: Which Model Fits?

By Hire PCB Designer engineering team · Updated · 8 min read

In full turnkey assembly the manufacturer buys the components, builds the boards and carries inventory risk; in consignment you supply the parts and the assembler only builds. Turnkey saves effort and suits most production runs, while consignment gives control over scarce, expensive or customer-owned parts. Many projects use partial turnkey, mixing both, and the right choice depends on BOM quality and project stage.

What do turnkey, partial turnkey and consignment mean?

Full turnkey means the assembler handles everything: purchasing every component on the bill of materials, fabricating or buying the bare boards, assembling, testing and shipping finished boards. You provide the design data and approve the build, and the assembler carries the sourcing work.

Consignment, also called kitted assembly, reverses that. You or your own buyers procure the parts and boards, send a kit to the assembler, and pay for the build labour. Partial turnkey sits between the two: the assembler buys most parts, while you supply selected items such as a scarce microcontroller, a costly module or customer-owned stock.

Who sources components and who carries the risk?

In turnkey, the assembler's purchasing team sources through distributors and, for hard-to-find parts, sometimes the open market. That is convenient, but state your sourcing rules in the quote request, such as authorised channels only, so that a shortage is not solved with a risky substitute.

In consignment you carry the inventory risk. If a kit is short of a part, the line waits, and you must plan extra quantity for small parts that are lost or damaged on the machine. Lead time shifts as well: turnkey lead time includes purchasing, while consignment lead time depends on how quickly you can assemble a complete kit.

Counterfeit and mislabelled parts are most likely in the open market during shortages. Whichever model you choose, insist on traceability, such as supplier invoices and lot or date codes, and avoid buying critical parts from unknown brokers. Consignment gives you direct control over provenance, but only if you exercise it.

How does cost behave at prototype versus volume?

Prototype runs are dominated by setup: stencils, programming, line changeover and engineering time. A turnkey assembler may be bound by minimum order quantities and reel or tube sizes, so a small build can require buying many more parts than you use. Consignment can avoid that waste if you can buy cut tape or small quantities yourself.

At volume, turnkey tends to benefit from the assembler's purchasing leverage, consolidated freight and managed buffer stock, and it saves your own team's time. Consignment can still win where you hold negotiated pricing on key parts or where customers supply parts by contract. Compare total landed cost, including your own purchasing effort, rather than the assembly line price alone.

How do the two models compare side by side?

The table below summarises the practical differences. Real quotes vary by assembler and by project, so treat it as a checklist of questions rather than a ranking.

Turnkey and consignment PCB assembly compared
AspectTurnkeyConsignment
Component sourcingAssembler buys the BOMYou buy and deliver a complete kit
Inventory and shortage riskMostly with the assembler, until you approve substitutesWith you; a short kit stops the build
Counterfeit controlDepends on the assembler's sourcing rules and traceabilityYou choose the suppliers and keep the records
Lead time driversPurchasing time plus build timeTime to complete the kit plus build time
Prototype cost behaviourMinimum order quantities can leave unused stockSmall quantities possible, but more of your time
Volume cost behaviourPurchasing leverage and consolidated freightGood for strategic or pre-negotiated parts
Your effortLower: review quotes and approve alternatesHigher: purchasing, kitting and shipping
Typical fitStandard BOMs, pilot and production runsScarce parts, customer-owned stock, first prototypes

Why does BOM quality decide how smoothly either model runs?

A bill of materials is only buildable if each line identifies a part unambiguously. Give a manufacturer name and manufacturer part number, reference designators, quantity, value and package, and avoid generic lines such as a 10k resistor with no tolerance or footprint.

State approved alternates where substitution is acceptable, and mark lines where it is not. Check lifecycle status before release, because parts marked not recommended for new designs, last-time-buy or obsolete cause trouble in both turnkey purchasing and kit shortages. Cleaning up the BOM early prevents most quote delays and engineering queries.

What do you need to send to get an accurate quote?

Assemblers typically need a consistent data package. Mismatches between the BOM, the centroid file and the silkscreen are a common cause of queries and delays, so run a final cross-check before sending the pack.

  • Gerber files, or an equivalent such as ODB++ or IPC-2581, plus drill data for the bare board
  • BOM spreadsheet with manufacturer part numbers, quantities and reference designators
  • Centroid (pick-and-place) file with X, Y position, rotation and board side for each part
  • Assembly drawing showing polarity, special instructions and any do-not-populate parts
  • Test requirements, procedures and any fixtures or programming files
  • Quantities, delivery schedule and special needs such as coating, labelling or packaging

Which test, inspection and box build options are available?

Automated optical inspection (AOI) uses cameras to check part presence, polarity and solder joint appearance. X-ray inspection looks beneath components, which matters for BGAs and other packages with hidden joints that AOI cannot see. Neither one proves the board works.

For electrical test, in-circuit test (ICT) uses a bed-of-nails fixture for fast, thorough checks on volume runs, but the fixture takes time and money to build. Flying probe test moves probes to test points without a custom fixture, which suits prototypes and low volume, though it is slower per board. Functional test powers the board and exercises it like the product would, and it often needs a purpose-built jig and firmware, so define it early.

Box build extends assembly to the finished product: boards, cables, enclosure, labelling, packaging and final test. Decide early who sources the mechanical parts and harnesses, because box build adds more items to the bill of materials and more places for shortages.

How do you choose by project stage?

The right model usually changes as the project matures. Use these as starting points rather than rules.

  • Prototype: consignment or partial turnkey works well when you already hold the parts or need exact components; full turnkey is easier when speed matters and the BOM is standard
  • Pilot: move toward turnkey with approved alternates and a defined test plan, so you learn real sourcing and yield issues before volume
  • Production: favour turnkey with agreed shortage procedures and buffer stock, and keep consignment only for strategic or customer-owned parts

Where does Hire PCB Designer fit in?

Hire PCB Designer provides turnkey manufacturing support: sourcing and coordination, test planning, global supply chain routing and functional testing. Because the same team designs the board, the BOM, alternates and test points can be prepared with assembly in mind.

We coordinate with our fabrication center in Bangladesh and the wider global supply chain, and we recommend the assembly model that suits your project stage and risk tolerance. Send your requirements through the contact form and we will review them with you.

This guide is general educational information. Requirements vary by project, fabricator and applicable standards, so confirm specifics with your manufacturer and test lab.

Frequently asked questions

Can I move from consignment to turnkey later?

Yes, and it is a common path between pilot and production. The preparation is mostly data work: a complete BOM with manufacturer part numbers, approved alternates, lifecycle checks and a clear test plan. Once the assembler can buy everything from authorised sources, you can stop kitting parts and concentrate on forecasts and acceptance criteria.

Who owns leftover components after an assembly build?

It depends on the agreement, so settle it in writing before the order. In consignment, unused parts normally belong to you and are returned or held as agreed. In turnkey, the assembler buys to minimum quantities, so remaining stock may be billed to you, held for the next build or kept by the assembler. Ask how excess is handled.

How much overage should a consignment kit include?

There is no universal figure, and it varies with part type and the assembler's process. Small passives and fine-pitch parts are the easiest to lose on a machine, and parts supplied on cut tape may need extra for machine setup. Ask the assembler for its overage policy before kitting, and never assume a kit with zero spare will build cleanly.

What happens when a part goes out of stock mid-project?

Under turnkey, the assembler normally reports the shortage and proposes alternates or a wait, and you approve the choice. Under consignment, the line pauses until you supply the part. In both cases, pre-approved alternates and lifecycle checks reduce delay, and any substitution should be documented against the BOM so later builds stay consistent.

Does the assembler review my design before building?

Assemblers commonly run an engineering review of the data you send and raise queries about footprints, polarity marks, missing centroid entries or panel needs. That check is not a substitute for your own design review. Running a DFM and DFA review before release catches most issues earlier and cheaper, when changes still cost little.

Have a hardware project in mind?

Send us your requirements through the contact form. We review the scope and reply with questions or a proposed approach.