Final Grades (Fall 1999)
ENME 808S Product and System Cost Analysis Fall 1999

Lecture: 2:00–3:15 PM Monday and Wednesday, Woods Hall 1127

Instructor: Dr. Peter Sandborn
Office: ENG 3127
Phone: (301) 405-3167
Office Hours: 12:00 – 1:45 PM, Monday, 1:00 – 1:45 PM, Wednesday

Course Description:
The objective of this course is to provide students with an in depth understanding of the process of predicting the cost of systems. This course melds elements of traditional engineering economics with manufacturing process modeling and life cycle cost management concepts to form a practical foundation for predicting the cost of commercial products.

Methodologies for calculating the cost of systems will be presented. Various manufacturing cost analysis methods will be studied, including: process-flow, parametric, cost of ownership, and activity based costing. The effects of learning curves, data uncertainty, test and rework processes, and defects will be considered. In addition to manufacturing processes, the product life cycle costs of design, maintenance, design for environment, and end-of-life costs will also be discussed. Special attention will be given to the treatment of risk by considering the economic impact of obsolescence, reliability, liability, and market window on the system’s life cycle cost.

This course will use real life design scenarios from integrated circuit fabrication, electronic systems assembly, and various non-electronic product assemblies. Students will be required to complete a project involving cost modeling of a product.

Detailed Course Outline:


1 - Introduction and Basic Concepts

2 - Engineering Economics


3 - Process Flow Analysis

4 - Yield

5 - Six Sigma

6 - Cost of Ownership (COO)

7 - Activity Based Costing (ABC)

8- Parametric Cost Modeling

9 - Test Economics

10 - Rework

11 - Monte Carlo Analysis

12 - Learning Curve


13 - Market Window

14 - Design for Environment

15 - Obsolescence

Text:         None.

Materials on Reserve:

Web Site:

Class Examination Dates:

Grading Policy:

The course expects to assign approximately one homework problem per week. Homework assignments will be collected in the first 10 minutes of the lecture on the day the assignment is due. Late homework will be marked 10% off if it is handed in before solutions are posted, 50% off after solutions are posted.

Homework Format:

Make-Up Exams:
Make-up exams are only allowed for justifiable reasons if notified in advance (i.e., University approved religious observance) or with a documented reason for an unnotified emergency absence (i.e., family or medical emergency).

Homework Solutions:
On reserve in the engineering library.
Monte Carlo Homework solution.