Impact of Panelization on PCB Design

What are the implications of panelizing a PCB design? I received a message from my PCB manufacturer stating:Given the large quantity of small-sized boards in your order, can we panelize them for easier handling? If not, there will be an additional cost of $37 USD."
While I’m inclined to save the $37, I am concerned that panelization might result in ragged edges on the PCBs. Is this a valid concern? What has been your experience with panelized PCBs?

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Panelization is a CAM function and it might depend on what software a shop is using but we do it for every job and never have problems. Basically how this works is our script creates what can be described as a tooling frame which contains all the coupons and alignment/registration targets based on a given job’s requirements. The actual board data is imported into the tooling frame and the job is now panelized. This includes what is called step & repeat where one board image is replicated enough times to fill up the available space. All the process files - image, drill, test, rout, solder mask, etc. are automatically output based on the panelized data. Ragged edges is a final rout issue and has nothing to do with Panelization.

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Panelization can significantly reduce PCB costs and streamline the assembly process, especially for smaller boards.You have two primary options for panelization:
V-Groove (Scoring): If your board is square or rectangular, it can be scribed with a V-groove. After assembly, the board can be easily broken apart along the groove, resulting in smooth, straight edges.
Tab Routing: For boards with irregular shapes, the panel will be routed, leaving small tabs that connect the board to the panel. After assembly, these tabs are cut with shears or diagonal cutters to separate the board, which may leave small nubs. If necessary, you can request the assembly house to clean up these nubs for a smoother finish.

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