Test Equipment Survey shows bottom line impact of poor test practices on electronics manufacturers

17 June 2019

Keysight Test Equipment Report

Test & measurement vendor, Keysight has released its Test Equipment Report, revealing the impact of poor testing practices on the bottom line of electronic hardware manufacturers, as they face increasing quality challenges.

The Keysight Test Equipment Report is based on a survey conducted by Dimensional Research, consisting of 306 participating companies that employ test equipment to ensure electronic device quality. The survey sought to understand their current challenges in achieving electronic hardware manufacturing quality.

According to the survey, 64% of respondents confirmed that ensuring product quality is growing more difficult, due to the increased complexity of electronics, and the corresponding complexities of testing required to measure and verify quality. Respondents reported that quality challenges originate from growing customer demands and tighter tolerances to increasing manufacturing complexity and pace.

Product quality issues hit the bottom line
While extreme product quality issues can make headlines, 92% of survey respondents said that they suffer also significant business impact from error-prone test equipment. Survey respondents report that quality issues frequently impact the bottom line, citing increased costs to repair or dispose of defective products, and lost business, potential lawsuits and regulatory penalties, as well as lost time-to-market or market advantages, damaged customer relationships and tarnished brands.

Looking further into quality issues, survey respondents reported that testing equipment that is out of calibration has resulted in product rejection, recalls, loss and returns. Furthermore, 49% of companies surveyed said that they lose $100,000 or more for every 1% of yield lost.

“This survey demonstrates that electronic hardware manufacturers are faced with numerous challenges to ensure quality – and that achieving that quality is difficult due to the complexities of today’s electronic products,” said John Page, President of Keysight Global Services. “Respondents report that product quality issues can directly impact the bottom line by increasing costs, stalling market momentum and disappointing customers.”

Download a complimentary copy of the Keysight report at: https://about.keysight.com/en/newsroom/pr/2019/22may-nr19071-report.pdf

An accompanying infographic is available here: https://about.keysight.com/en/newsroom/pr/2019/22may-nr19071-infographic.pdf


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