Product and System Cost Analysis

Detailed Course Outline:

INTRODUCTION

1 - Introduction and Basic Concepts

• Motivation
• Basic concepts
• Price
• Cost
• Recurring cost
• Non-recurring cost
• Quality
• Yield
• Yielded Cost
• Overhead
• Design-to-Cost
• Life Cycle
• Product Life Cycle
• Requirements Capture
• Concept (Bid)
• Design and Development (Qualification)
• Production (manufacturing)
• Marketing and Sales
• Sustainment
• End-of-Life

2 - Engineering Economics

• Engineering economics
• Definition
• Overview
• Relationship to this course
• Accounting Methods

MANUFACTURING COST ANALYSIS

• Hierarchy of modeling approaches

3 - Process Flow Analysis and Technical Cost Modeling (TCM)

• Definitions
• Process Flow
• Fabrication processes
• Basic process sequence
• Formats (lots, batches, and number-up)
• Fundamental process step descriptions
• Labor
• Materials
• Tooling
• Equipment/facilities
• Overhead
• Stringing together process steps
• Rolling up costs

4 – Quality and Yield

• Defects
• Sources of defects (classification)
• Defect density (ppm)
• Accumulating defects
• Yield
• Concept & definition
• Relationship between defects and yield
• Discrete
• Non-discrete
• Probability distributions (Poisson, Murphy, Seeds)
• Rolling up yields
• Yielded Cost
• Cost of yield loss
• Definitions of yielded cost
• Producability
  • Concept
  • Cp and Cpk
  • Relationship to yield

5 - Cost of Ownership (COO)

• Concept
• History
• Goal
• Motivation
• A COO Model
• 3 contributions to COO
• Basic models associated with each contribution
• Example: Electrovert machine
• The COO equation
• Application of COO to throughput modeling for Printed Circuit Boards

6 - Activity Based Costing (ABC)

• Small manufacturing firm problems
• Basic premise of ABC
• ABC steps
• Terminology
• Example: machine A vs. machine B
• ABC vs. process-flow based cost analysis

7 - Parametric Cost Modeling

• The parametric modeling paradigm
• Cost Estimating Relationships (CERs)
• Work/Estimating Breakdown Structures (WBSs/EBSs)
• Contract Work Breakdown Structures (CWBSs)
• Development of parametric models
• Calibration
• Normalization
• Curve fitting (regression analysis)
• Demonstration of PRICE Systems software tools

8 - Test Economics

• Introduction - basic questions
• Fault spectrum
• Fault coverage
• Explanation
• Relating fault coverage to yield
• Example of how not to use fault coverage
• Defect clustering - Williams Brown model
• Process flow implementation of testing steps
• Scrap
• Cost of scrap (pass fraction, escape fraction, etc.)
• False positives
• Wafer probe
• Test throughput rate
• Test pattern generation
• What are test patterns
• Test pattern generation costs
• Design for test (DFT)
• Concept
• Area overhead vs. test coverage (cost)
• Known Good Die (KGD)

9 - Rework

• Process flow implementation of rework steps
• Basic (single pass)
• Multiple rework cycles
• Yielded cost for test/diagnosis/rework activities
• Real world rework

10 - Monte Carlo Analysis

• Concept
• Random number generation
• Implementation
• Flow chart
• Sampling a distribution
• Triangular distribution example
• Sample size calculation
• Stratified sampling
• Latin Hypercube

11 - Learning Curves

• Introduction
• 80% Learning Curve Example (Crawford Model)
• Sample Learning Curves
• Industrial Learning
• Wright Model
• Example
• Understanding the difference between the Crawford and Wright models
• Learning curve math
• Slide property
• Relationship between B and the % learning
• Midpoint formula
• Sources of learning curves
• Determining learning curves from actual data
• Simple unit data
• Block data
• Iterative midpoint method
• Using learning curves in cost modeling

LIFE CYCLE COST AND ANALYSIS

• Product Life cycle

12 - Return on Investment (ROI)

• Defining and calculating ROI
• Example ROI analysis
• Return on Equity (ROE)
• Technology ROI

13 - Design

• Models for design
• ASIC IP and the economics of design reuse

14 - Supplier and Technology Risks

• Manufacturer assessment
• Part group and part assessment
• Distributor assessment
• Supply chain formation
• Contract manufacturers
• Introduction to obsolescence

15 - Schedule/Market Window

• Profit vs. schedule
• Cost of schedule delays
• With market products
• Ahead of market products
• Correlating risk and cost
• Cost of schedule uncertainty
• Multivariate probability theory

16 - Sustainability

• Availability
• Maintenance and Service
  • Unscheduled maintenance
  • Sparing
  • Scheduled maintenance
• Qualification and Re-qualification
• Obsolescence (part and technology)
  • Lifecycle phases of an electronic product
  • Definition of obsolescence and discontinuance
  • Analysis approach (predicting windows of obsolescence)
  • Mitigation strategies
• Reliability
  • MTBF
  • Maintenance and Failure Free Operating Periods (MFOP/FFOP)
  • Life cycle modeling using event lists
  • A reliability/obsolescence based life cycle cost model
  • Time-domain Monte Carlo
• Liability and Warranty

17 - Life Cycle Analysis (LCA)

• Goal and definition
• Drivers
• Eco-economics
• Life Cycle Analysis (LCA)
• Inventory analysis
• Material-centric cost modeling
• Impact assessment
• Recovery
• Recycling
• Recycling legislation
• Waste disposition costs
• Product stewards

18 - End-of-Life (EOL)

• Disassembly
• Types of disassembly (reversible, irreversible)
• Quantitative measurement of disassembly
• Energy for disassembly
• Entropy of disassembly
• Other End-of-Life (EOL) options
• Demonstration of the Salvage tool