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Electronic Component Procurement and circuit board components Sourcing Solutions

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Introduction

Sourcing and procuring electronic components is a crucial part of

any electronics manufacturing process. With the rapid growth of

electronics manufacturing, especially for consumer electronics,

automotive electronics, medical devices, and other industries, having a

robust and optimized electronic component sourcing strategy is key to

remaining competitive and meeting production demands. This article

will provide an in-depth look at electronic component procurement,

circuit board component sourcing solutions, strategies for optimizing

the sourcing process, and how to build resilience into the electronics

component supply chain.

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Overview of Electronic
Component Procurement
Electronic component procurement involves purchasing all of the

individual parts that go into manufacturing printed circuit boards (PCBs)

and complete electronic devices. This includes active

components like integrated circuits (ICs), microprocessors, transistors,

diodes, LEDs, etc. It also includes passive components like

resistors, capacitors, inductors, transformers, and more. Additional

components needed are connectors, buttons, displays,

sensors, power sources, PCBs, and all accompanying hardware.

For any given electronic device, there may be thousands of individual

components that need to be sourced from suppliers and

manufacturers around the world. The procurement of these

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components is a complex process that needs to account for aspects

like:

 Component availability – Ensuring needed parts are available

when required for production schedules. This includes

proactively managing end-of-life components.

 Lead times – Understanding and accounting for production and

shipping times of each component. Shorter lead times allow for

more flexibility.

 Cost management – Negotiating and controlling procurement

costs while balancing quality needs. Taking advantage of volume

discounts and supplier relationships.

 Quality – Vetting suppliers and components to ensure they meet

specifications and quality requirements. Avoiding counterfeit or

low-quality parts.

 Compliance – Adhering to regulatory, environmental, and other

applicable compliance regulations. This includes RoHS, REACH,

Conflict Minerals reporting, and more.

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 Supply chain optimization – Strategically choosing suppliers and

manufacturing locations to optimize the supply chain for costs,

speed, quality, and risk mitigation.

To effectively handle electronic component procurement, organizations

utilize sourcing teams to properly manage the complex web of

suppliers, manufacturers, and vendors that provide the thousands

of PCB components needed for production.

Best Practices for

Electronic Components
Sourcing
To build an efficient and effective electronic component sourcing

process, organizations should follow these best practices:

Consolidate suppliers

Consolidating the supplier base allows buyers to build stronger

relationships with fewer suppliers. This provides benefits like

better pricing through higher volumes, improved responsiveness,

and better visibility into the supply chain. The goal is to find

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suppliers that can provide a broad catalog of parts to cover most

procurement needs.

Use authorized distributors

When possible, source components through authorized

distributors approved by the component manufacturers. This

helps ensure authentic, high-quality parts. Purchasing via

unauthorized channels increases the risk of counterfeit

components.

Favor local suppliers when possible

Utilize local suppliers within the same country or region when

feasible. This simplifies logistics and can reduce costs and lead

times. However, the priority should be quality, so only use local

suppliers that meet standards.

Do volume-based pricing

Leverage volume discounts through aggregated orders, long-term

supplier contracts, and by minimizing the number of suppliers.

This makes procurement costs more predictable as well.

Use downstream supply chain visibility

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Work with suppliers that provide visibility into their own supply

chains. This gives insight into lower-tier component availability

and can prevent shortages.

Review supplier certifications

Require suppliers to hold certifications like ISO-9001 for quality

management. Also verify any special certifications needed for

heavily regulated industries like automotive, aerospace, or

medical.

Demand test data

Require statistically relevant component testing data from

suppliers to validate quality and reliability. This provides

confidence in components before they enter production.

Enforce process controls

Suppliers should adhere to established processes for change

control, failure analysis, corrective actions, escalation, and other

disciplines to ensure consistency and address issues quickly.

Build supplier scorecards

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Create scorecards that track key performance indicators for

suppliers like quality, lead time, responsiveness, and pricing. This

quantifies their performance for easier management.

Audit supplier processes

Conduct periodic audits of key suppliers to verify their internal

processes meet expected standards. This can cover areas

like quality control, counterfeit prevention, ESD control, and more.

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Electronic Components
Procurement Models
There are several procurement models organizations can utilize

to source electronic components:

Internal Sourcing Teams

Larger organizations often have their own internal sourcing teams

and processes to procure components directly from suppliers.

This provides the most control and flexibility, but also incurs more

overhead.

Contract Manufacturers

Contract manufacturing partners can procure components as part

of their assembly services. This simplifies procurement but

reduces visibility into the component supply chain.

Electronics Manufacturing Services (EMS) Firms

Specialty EMS providers can completely manage the end-to-end

electronics manufacturing supply chain, including procurement.

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This is ideal for smaller organizations with less manufacturing

experience.

Electronics Distributors

Broadline and specialty electronics distributors provide a

centralized source for procuring thousands of components from a

variety of suppliers. However, this can limit customization and

volume discounts.

Online Electronics Platforms

Emerging e-commerce platforms like Alibaba, Digikey, Mouser,

Newark, Arrow, Avnet, Future Electronics, and others simplify

discovery and purchase of many components online. However,

not all suppliers utilize these channels.

For most organizations, the ideal approach is a hybrid model that

combines internal sourcing teams with external distributors and

platforms to provide the best balance of control, flexibility, and

procurement overhead.

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Optimizing Component
Selection

Autom

otive Grade vs Commercial Grade

Selecting the most appropriate components is crucial to meet

design requirements while minimizing costs. Here are tips for

optimizing component selection:

Specify wide temperature ranges

Avoid narrowly focused temperature ranges when possible to

allow more component choices. The wider the temp range, the

more options.

Seek second sources

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Always try to design-in alternate component choices from other

suppliers to prevent sole-source risks.

Leverage standard components

Standard component types with multiple supplier options are

easier to source than proprietary or custom parts.

Reduce unique item types

Minimizing the total number of unique component part numbers

needed reduces sourcing complexity and cost.

Plan for long-term availability

Avoid components at risk of short-term obsolescence. Check

lifecycle projections and plan for component longevity.

Design with newer technologies

When possible, use newer component families over older legacy

ones with more limited availability.

Evaluate on total cost

Look at total procurement cost impact of each component choice,

not just unit price. Factor in logistics, lifespan, reliability etc.

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Assess technical tradeoffs

Consider the full technical tradeoffs of alternate components, not

just pricing. Evaluate parameters like performance, power, size,

quality, etc.

Use standard packaging sizes

Opt for common packaging sizes and formats that maximize

sourcing flexibility across suppliers.

Reduce waste

Designs should minimize waste by using optimal board sizes,

panelization, and assembling approaches.

Managing Component
Obsolescence
One of the biggest challenges in electronic component sourcing is

managing obsolescence – when components are discontinued by

suppliers and no longer available. This can quickly disrupt

manufacturing if not planned for proactively. Strategies for

managing obsolescence include:

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Component lifecycle monitoring

Work with suppliers to actively monitor end-of-life (EOL) and

last-time-buy (LTB) forecasts for at-risk components. Sign up for

change notifications.

Design-in replacement parts

Engineer next-generation products to use newer replacement

components for ones going obsolete.

Lifetime buys

When EOL notices are received, do one-time lifetime inventory

buys to stock up on needed volumes before obsolete parts

disappear.

Use aftermarket suppliers

Specialty aftermarket brokers can sometimes procure

difficult-to-find obsolete components, often at a premium.

Component substitutions

Find replacement parts that can substitute for obsolete items.

May require redesigns or adjustments if not drop-in compatible.

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Use emulators

For obsolete proprietary ICs like CPUs, component emulators can

mimic pin-compatible functionality.

Component harvesting

Remove obsolete components from old products or boards and

reuse them in current production as available.

Refurbish equipment

Keep old component-population equipment operational in order

to continue placing obsolete parts when needed.

Buy component intellectual property

If feasible, purchase licenses, documentation, and rights to

fabricate obsolete proprietary components.

Design flexibility for change

Architect products so that certain subsystems can be redesigned

to use new components without affecting the whole system.

Expanded inventories

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Keep larger stocks of components with obsolescence risk to buy

more time before redesigns are needed.

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Building Resilient Supply

Chains
With frequent component shortages and supply chain disruptions

in recent years, developing resilience has become essential for

electronics sourcing:

Multi-sourcing components

Source each component from at least two suppliers to enable

supply flexibility in case one has shortages.

Stockpile key inventory

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Keep expanded inventories and safety stock for high-risk

components susceptible to shortages.

Regionalize supply chains

Have component inventory located close to production facilities to

simplify logistics if global shipments are disrupted.

Improve supply chain visibility

Gather supply chain data from suppliers to gain insights into

lower-tier risks, constraints, and bottlenecks.

Refurbish old equipment

Maintain and protect legacy component manufacturing

equipment to provide fallback production capacity if needed.

Develop robust forecasting

Improve demand forecasting accuracy through data analysis and

algorithms to mitigate volatility.

Expand warehouse space

Increase storage capacity to hold larger component inventories as

a buffer against shortages.

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Dual source raw materials

Make sure component suppliers have at least two sources for

their critical raw materials and substrates.

Find alternate substitutes

Engineer components to allow flexibility to use alternate materials

if certain raw materials become scarce.

Standardize components

Maximize use of standard component families with multiple

global production locations for flexibility.

Monitor industry early warnings

Stay on top of industry disruption news through trade

associations, news, and early warning systems.

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Questions and Answers

Q: What are some key metrics to track for electronic component procurement

performance?

A: Key metrics to track include:

 Supplier lead time accuracy – Ensure quoted lead times

match actual delivery times.

 Supply chain flexibility – How easily can you switch volume

between suppliers?

 Component quality – Monitor defects-per-million and field

failure rates.

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 Procurement costs – Track costs over time to identify

improvement opportunities.

 Inventory turns – Faster turns mean you are managing

inventory levels optimally.

 Component shortages – Quantify the revenue impact of

component allocation and shortages.

 Counterfeit infiltration – Detect and log occurrences of

counterfeit components.

 Time-to-market – Impact of component availability on

product introduction schedules.

Q: How can you identify the optimal suppliers among the thousands of options

globally?

A: Key factors in identifying the best suppliers include:

 Technology specialization – Suppliers focused on specific

component technologies.

 Quality certification – Suppliers certified to critical standards

like ISO-9001.

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 Reliability data – Suppliers willing to share reliability data on

their components.

 Technical support – Availability of engineering resources

for troubleshooting and keeping designs up to date.

 Business stability – Favor well-established suppliers vs.

unproven ones.

 Logistics capabilities – Suppliers with warehouses near your

factories simplify shipping.

 Responsiveness – How quickly do suppliers address

requests for quotes, samples, etc.

 Previous experience – Consider supplier relationships from

other companies.

 Volume capabilities – Ensure suppliers can support your

production volumes as you scale.

Q: What is the best way to manage costs in an unpredictable component market?

A: Recommended techniques to better manage procurement

costs include:

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 Aggregate orders – Place less frequent bulk orders instead

of many small ones.

 Leverage long-term contracts – Agree to consistent pricing

for specified terms.

 Pursue supplier partnerships – Work closely with suppliers

for mutual benefit.

 Design with flexibility – Allow alternative component choices

depending on market dynamics.

 Pool demand – Coordinate procurement across business

units or sites.

 Monitor market trends – Stay on top of shortages, price

swings, and market forces.

 Use distributors – Leverage authorized distributors for

buying flexibility and economies of scale.

 Standardize designs – Reuse designs and components

across product families to maximize volumes.

 Perform online auctions – Use online platforms for

competitive bidding.

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 Offer volume discounts – Negotiate better pricing for

aggregated orders.

Q: How can you tell if you are receiving authentic vs. counterfeit components

from suppliers?

A: Strategies for detecting counterfeits include:

 Purchase from authorized channels and distributors only.

Avoid untrusted brokers or aftermarket sources.

 Physically inspect components for exterior defects and

inconsistent markings.

 Verify lot codes and date stamps match official numbering

systems.

 Perform sample x-ray inspection of internal structures for

alterations.

 Confirm electrical parameters like consumption, output,

response times, etc. match datasheet specifications.

 Check for blacktopped or remarked surfaces that may hide

exterior changes.

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 Validate certificates of compliance and material analysis

reports for chemistry consistency.

 Conduct failure analysis on suspect components to

determine cause.

 Leverage dedicated counterfeit detection technologies like

laser scanning, thermal imaging, acoustic microscopy, and

others.

Q: What are some ways to get better pricing from electronic component

suppliers?

A: Tactics to get better component pricing include:

 Consolidating spend to fewer suppliers to increase volumes.

 Entering into long-term volume-based pricing agreements.

 Paying early to take advantage of early payment discounts.

 Leveraging distributor relationships for aggregated

discounts across suppliers.

 Having suppliers compete for business through quoting

processes.

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 Using EMS providers that aggregate orders across

customers.

 Ordering in bulk quantities rather than small orders to get

quantity breaks.

 Removing costly special requirements like custom

packaging.

 Downselecting to lower cost standard components vs.

expensive proprietary ones.

 Sharing future demand forecasts to help suppliers with

planning and allocation.

 Committing to minimum order quantities.

 Avoiding highly constrained components that carry supply

premiums.

 Switching to newer component families with better pricing

due to technology maturation.

Conclusion

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Managing an effective and efficient electronic component

procurement and sourcing process is complex, but critical to

success. Following best practices around supplier management,

obsolescence mitigation, supply chain resilience, optimized

component selection, and cost control can help organizations

maintain a competitive edge. Leveraging the right combination of

internal sourcing expertise supplemented by authorized

distributors and online procurement platforms provides the most

robust results. With vigilance and the right strategies, even the

challenges of supply variability and component shortages can be

overcome to sustainably meet production requirements and

business goals.

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Electronic Components:

Example 1: (Relay Switch Circuit)

Here in this circuit, we have selected NPN type BJT transistor BC337.

This transistor is connected in common emitter mode and

1KΩ resistor is the base resistor used to control the base current . The

10KΩ resistor is used to tie the Base of BC337 to ground (GND) so that

when trigger at input positive edge trigger is given, then the transistor

will go in saturation and conducts through Collector and Emitter to

short the GND to Relay coil. Hence Coil will energize and Normally

Close (NC) the contacts of Relay.

On the other hand if the trigger is not applied transistor will

remain in cutoff and C-E junction will remain open and GND is not

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shorted to coil of relay hence relay will remain in Normally Open

(NO)

Transistors:

The two main types of transistors are BJT and MOSFET. The BJT

transistor is a current controlled device and is commonly used in

relay control switches.

Relay:

The relay is an Electromechanical electronic components, that has

a coil and two contacts (NO and NC). This coil when 12VDC is

applied the relay will change its state from NC to NO and vice

versa

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The relay are available in 5V, 12V, 24VDC coils and contacts

ampere ranging from 10A to 30 A. So if you have to drive heavy

load like water pump, Air Conditioner, Blower, Large Servo Motors,

then use high ampere relays otherwise for small loads like

bulb, LED lights etc use small relays.

Resistors

The resistor is used to control the current flow and divide the

voltage as required. In our case above, we have used “Voltage

Divider Network” that drops the voltage at 1KΩ and pass

remaining potential to 10KΩ to the base. The table to recognize

and select the proper resistor is given. The resistors are very

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cheap and available at every electronic store. They are available

in SMD and Through hole types.

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Example 2: (Power Supply)

Here in this circuit, we have used adjustable LM317 voltage

regulator. The voltage regulator can generate stable DC Voltage

output programmed by the two resistors R1 and

RV1. Capacitor C3 is the bypass capacitor to connect adjust pin to

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GND to improve ripple rejection capability. C1,C2,C4 used to

eliminate ripple voltage. Diode D5 is used to protect reverse

current from output to protect regulator IC.

D1,D2,D3,D4 are full bridge converter to convert AC to DC level.

RV1 is trim pot used to set the fixed output voltage.

Transformer:

The transformer is the device that converts high AC voltage like

230VAC to 24VAC low voltage to be used by bridge rectifier. The

transformer is selected by finding turns ratio according to the

primary and secondary voltages.

Diode

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This is the semiconductor components, used in bridge

rectifiers,fly-back / fly wheel purpose. This diode will forward bias and

drop 0.7V across it. In semiconductor devices, Silicon is the important

ingredient and proper doping will cause the barrier / junction creation.

Capacitor:

This passive component, is very common in electronics and used

in dual and single power supplies. Main purpose is filtering. In

timing circuits, it is used as RC timers. In OPAMP integrators used

in feedback loop. The larger the rated voltage and capacitance,

the larger the size of capacitor.

If the output voltage is regulated at 24VDC then the output ripple

capacitor should be selected at rated voltage greater than 24V like

around 100V. Otherwise the capacitor will burst or swollen. The

longer lead is positive and smaller lead is negative leg.

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Voltage Regulator:

The linear voltage regulators are available under 1A rating and

can provide output voltage 1.2V to 438V DC. The voltage regulator

is selected to check the least dropout voltage, number of outputs,

output voltage polarity, input voltage range and packaging as

desired case to case basis.

Potentiometer:

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The trim pot is widely used in various electronic circuits. It is used

in voltage divider circuits, to set the reference voltage in OPAMP

comparator circuits, to set the output voltage in adjustable

voltage regulators, used in RF circuits for tuning, used in timers to

set the value of R in RC timers. The code 102 written means that

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Military Grade electronic components

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Military electronic components are an important cornerstone of

weapons and equipment. With the development of science and

technology and national defense construction, more and more

components are used in weapons and equipment. How to query, count,

exchange, process, and uniformly manage component information

with many categories and complex parameters is an urgent problem

faced by research and development units, production units, users, and

management departments.

Scientific and standardized electronic components classification is an

important basic work for enterprise informatization and improving the

management level of electronic components. At present, all the major

companies and industrial departments in my country manage their

components according to their classification methods, either by

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function or process or by inheriting engineering experience, lacking a

unified and standardized classification system and parameters

measures.

This status is not conducive to data sharing, nor does it have good

interchangeability between them. It also brings many inconveniences

to the management of military electronic components (such as quality

establishment, inspection, acceptance, evaluation, etc.).

Therefore, establishing a standard and reasonable military electronic

components classification is the prerequisite and basis for

standardizing military electronic components. The reasonable

classification of military electronic components also plays a significant

role in preventing the repeated research and development of similar

products, the excessive expansion of product varieties, and the

enhancement of product versatility and serialization.

At the same time, the scientific and effective classification of military

electronic components will also play a guiding role in the

standardization of civilian product classification. Since military

electronic components are common for military and civilian use,

scientific and effective classification is conducive to the integration of

military and civilians. This can promote the conversion of more civilian

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products to military use, make full use of the industrial advantages of

civilian products, and also help military electronic components.

Manufacturers open up the civilian product market and expand the

production scale. Scientific and effective classification of military

electronic components is also of great significance to the

internationalization of general electronic components. These are the

basis for improving the quality level and technical level of military

electronic components.

American military standard MIL-STD

MIL-STD-871A(USAF)-1979 Electrochemical removal of inorganic

(plating) film

MIL-STD-870A(USAF)-1978 Electrodeposited low brittle cadmium

coating

MIL-STD-868A(USAF)-1979 Electrodeposition low brittle nickel plating

MIL-STD-866B(USAF)-1978 Grinding of steel parts and chrome-plated

steel parts heat-treated to be equal to or greater than 180,000 pounds

per inch

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MIL-STD-826A(USAF)-1966 Electromagnetic interference test

requirements and test methods

MIL-STD-810D-1983 Environmental Test Methods and Engineering

Guidelines

MIL-STD-810C-1975 Space and land equipment environmental test

methods

MIL-STD-810A-1958 Space and land equipment environmental test

methods

MIL-STD-1277A-1970 Electrical splicing piece clip terminal terminal

terminal block terminal

MIL-STD-1276C-1979 Electronic component leads

MIL-STD-1271B-1981 Supplementary symbols for the contents of

military vehicle description plates

MIL-STD-1252-1975 Inertial friction welding process, process and

performance appraisal

MIL-STD-1246A-1967 Product cleanliness level and pollution control

program

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MIL-STD-1224-1960 visual inspection guide for pneumatic tires (for

non-aviation tires)

MIL-STD-1223V-1981 Non-tactical wheeled vehicle treatment, painting,

rust prevention, identification mark, and data plate standard

MIL-STD-1188A Commercial packaging of materials and equipment

MIL-STD-1186-1963 When packing the product, add cushioning, fix,

anti-swing support, stuffing and waterproof and corresponding test

methods

MIL-STD-1184(AT)-1979 Waterproof test of gasoline electrical parts

MIL-STD-1180(AT)-1976 Military Ground Vehicle Safety Standard

MIL-STD-1197A-1976 Military vehicle lamp reflector and related signal

equipment

MIL-STD-1165-1968 (Earth) Environmental Glossary

MIL-STD-1157-1965 Calibration and Verification Procedure of Textile

Test Methods

MIL-STD-1156C-1982 Hygienic standards for soft drink factories

MIL-STD-1131B-1979 Inventory life and burn-in procedures

of aluminum electrolytic capacitors

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MIL-STD-1130B(1)-1979 Electric connection without soldering

MIL-STD-977-1982 Test methods and procedures for the qualification

of microcircuit production lines

MIL-STD-976A-1981 JAN certification requirements for microcircuits

MIL-STD-1399/072-1978 Ship system impact interface

[Link]

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