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PCB Assembly 2026/06/23 6 min read

Turnkey vs Consignment PCB Assembly: Which Model Fits Your Project

Every PCB assembly quote starts with an unstated question: who buys the parts? In a turnkey program, the assembler sources everything—bare boards, components, and materials—and delivers finished boards. In consignment, you supply the parts kit and the assembler provides labor and process. Between them sits partial turnkey, where responsibility is split line-item by line-item.

The right answer depends on your purchasing leverage, engineering bandwidth, BOM risk profile, and how much control your quality system requires. Here is how the models actually differ in practice.

How the three models allocate work and risk

Turnkey moves procurement, incoming inspection, moisture-sensitive handling, and shortage management onto the assembler. You review a costed BOM, approve alternates, and receive finished boards. Consignment keeps procurement with you: your purchasing team buys parts, ships kits, and owns every shortage, wrong reel, and date-code problem that arrives at the line. Partial turnkey splits the BOM—typically you consign the critical or long-lead parts you control, and the assembler sources passives and commodity parts.

The hidden variable is engineering time. A 150-line BOM means 150 sourcing decisions, availability checks, and package verifications. Under consignment that work lands on your team, and kitting errors (a mislabeled reel, a 90%-depleted feeder reel counted as full) become your production delays. Under turnkey the assembler absorbs it—priced into the quote, but executed by people who do it daily.

Turnkey vs consignment vs partial turnkey
Model Who sources parts Who owns shortages Typical best fit
Turnkey Assembler (+ usually fab)AssemblerStartups, NPI, lean teams wanting one owner
Consignment CustomerCustomerMature AVL, contract pricing, in-house purchasing
Partial turnkey Split by line itemSplit by agreementCritical/custom parts consigned; passives sourced by assembler

Cost: markup vs hidden overhead

Consignment looks cheaper on paper because the assembly quote contains no component markup. The comparison is honest only if you count your own overhead: purchasing hours, incoming inspection, storage, kitting labor, freight for the kit, and the cost of line stoppage when one reel is short. For teams without an established purchasing operation, these costs routinely exceed a turnkey markup.

Turnkey pricing includes component cost plus handling margin, but assemblers buy through established distributor relationships and, for common passives, at volume prices an individual project cannot reach. Where turnkey genuinely costs more is on parts you can buy better than the assembler—custom modules, parts under an existing corporate pricing agreement, or allocation parts where you hold inventory. That is exactly the case partial turnkey exists for.

Lead time and shortage dynamics

Turnkey lead time starts when the costed BOM is approved and runs procurement and fabrication in parallel—the assembler orders parts while boards are in fab. Consignment lead time starts when the complete, verified kit arrives at the assembler; any missing line restarts the clock. In stable supply conditions the difference is modest. During shortages, it widens: an assembler managing dozens of BOMs sees allocation problems early and proposes alternates as a routine service, while a consignment customer discovers the same problem at kit-check.

One caution on turnkey during allocation markets: approve alternates quickly. A turnkey program where every substitution waits a week for customer approval loses the model’s speed advantage. Agree on an alternate-approval process—pre-approved substitution rules for passives, engineering sign-off only for actives—before the first build.

Quality, traceability, and who owns a failure

Under turnkey, one party owns the entire chain of custody: authorized-channel sourcing, date codes, MSL handling, and storage. If a board fails from a counterfeit or mishandled component, accountability is unambiguous. Under consignment, a solder-joint failure is the assembler’s problem but a component failure is yours—and distinguishing the two after the fact consumes engineering time on both sides.

Regulated products complicate this in both directions. If your quality system requires purchasing through your own approved vendor list (AVL), consignment or partial turnkey may be mandatory for controlled line items. Conversely, if you lack the infrastructure for MSL baking logs and lot traceability, a turnkey assembler with documented processes strengthens your audit position rather than weakening it.

A decision rule that works in practice

Choose turnkey when your team is small, the BOM is mostly catalog parts, and speed matters more than squeezing component margin—typical for prototypes, NPI builds, and small-batch production. Choose consignment when you have real purchasing infrastructure, pricing agreements the assembler cannot match, or AVL obligations that force it. Choose partial turnkey when a handful of lines are special (custom, allocated, or contractually sourced) and everything else is commodity—consign the few, turnkey the rest.

Whichever model you choose, put it in the RFQ explicitly, line item by line item for partial turnkey. At MOZPCB, turnkey requests get a costed BOM with flagged risks and proposed alternates before production release, and consigned kits get checked against the BOM at intake—both exist to surface the shortage before it stops the line, not after.

Frequently asked questions

What does turnkey PCB assembly include?
The assembler handles everything from your design files to finished boards: bare-board fabrication, component procurement through authorized channels, incoming inspection, MSL handling, SMT and through-hole assembly, agreed inspection and test, and packaging. You review a costed BOM and approve alternates; the assembler owns execution.
Is consignment assembly cheaper than turnkey?
On the quote line, yes—no component markup. In total cost, only if you already run a purchasing operation: sourcing hours, incoming inspection, storage, kitting labor, kit freight, and line-stoppage risk all move onto your team. For most small teams and NPI builds, those hidden costs exceed a turnkey markup.
What is partial turnkey (hybrid) assembly?
The BOM is split line by line: you consign the parts you control—custom modules, allocated components, items under corporate pricing agreements or AVL obligations—and the assembler sources the commodity remainder. It captures most of turnkey’s speed while preserving your leverage on the lines where it matters.
How should overage and attrition be handled on consigned kits?
Ship overage per the assembler’s guidelines—typically a few percent extra on small passives and several units on larger parts—to cover placement attrition and feeder setup. Agree on the attrition allowance, reel labeling, and quantity verification method before the kit ships; mislabeled or short reels are the top cause of consignment line stops.
Who is responsible when a board fails: assembler or component supplier?
Under turnkey, the assembler owns the entire chain of custody, so accountability is unambiguous. Under consignment, workmanship defects belong to the assembler and component defects to you—and separating a cold joint from a counterfeit or mishandled part after the fact costs engineering time on both sides.

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