This course provides an in-depth understanding of
the process of predicting the cost of systems.
Elements of traditional engineering economics are
melded with manufacturing process modeling, life cycle
cost management concepts, and selected concepts from
environmental life cycle cost assessment to form a
practical foundation for predicting the real cost of
electronic products.
Various manufacturing cost analysis methods are
included in the course: process-flow, parametric,
cost-of-ownership, and activity-based costing. The
effects of learning curves, data uncertainty, test and
rework processes, and defects are considered in
conjunction with these methodologies. In addition to
manufacturing processes, the product life cycle costs
associated with design, procurement, manufacturing
waste, sustainment (reliability, warranty, availability,
obsolescence), and end-of-life are also addressed.
This course uses real-life design scenarios from
integrated circuit fabrication, electronic systems
assembly, board fabrication, and functional testing at
various levels
1. Introduction
- Basic concepts
- Overview of engineering economics
2. Manufacturing cost analysis
- Process-flow analysis and technical cost modeling
- Quality and yield (defect models, relation to producability)
- Cost of ownership (COO)
- Activity based costing (ABC)
- Parametric modeling methods
- Test economics
- Diagnosis and Rework
- Variability and uncertainty
- Learning curves
- Monte Carlo/Latin Hypercube analysis
3. Life cycle cost and assessment (LCC and LCA)
- Design
- Supplier and technology risks
- Schedule/market window
4. Return on investment (ROI)
5. Sustainability