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Management Course

Cost Analysis

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

Course Outline

  • Introduction
  • Basic concepts
  • Overview of engineering economics
  • 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
  • Life cycle cost and assessment (LCC and LCA)
  • Design
  • Supplier and technology risks
  • Schedule/market window
  • Return on investment (ROI)
  • Sustainability
  • Availability
  • Maintenance and service
  • Qualification and re-qualification
  • Obsolescence (part and technology)
  • Reliability
  • Warranty
  • Life cycle assessment (LCA)
  • Waste stream and Design for environment(DFE)
  • End of life (EOL)

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