Understanding the cost ramifications of design, manufacturing and life-cycle management decisions is of central importance to businesses associated with all types of electronic systems. Cost Analysis of Electronic Systems contains carefully developed models and theory that practicing engineers can directly apply to the modeling of costs for real products and systems. In addition, this book brings to light and models many contributions to life-cycle costs that practitioners are aware of but never had the tools or techniques to address quantitatively in the past. Cost Analysis of Electronic Systems melds elements of traditional engineering economics with manufacturing process and life-cycle cost management concepts to form a practical foundation for predicting the cost of electronic products and systems. Various manufacturing cost analysis methods are addressed including: 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. Aspects of system sustainment and life-cycle cost modeling including reliability (warranty, burn-in), maintenance (sparing and availability), and obsolescence are treated. Finally, total cost of ownership of systems and return on investment are addressed. Real life design scenarios from integrated circuit fabrication, electronic systems assembly, substrate fabrication, and electronic systems management are used as examples of the application of the cost estimation methods developed within the book.

Description-Table Of Contents

ch. 1. Introduction. 1.1. Cost modeling. 1.2. The product life cycle. 1.3. Life-cycle cost scope. 1.4. Cost modeling definitions. 1.5. Cost modeling for electronic systems. 1.6. The organization of this book -- pt. I. Manufacturing cost modeling. I.1. Classification of products based on manufacturing cost. I.2. Technical cost modeling (TCM) -- ch. 2. Process-flow analysis. 2.1. Process steps and process flows. 2.2. Process-step calculations. 2.3. Process-flow examples. 2.4. comments -- ch. 3. Yield. 3.1. Defects. 3.2. Yield prediction. 3.3. Accumulated yield. 3.4. Yielded cost. 3.5. The relationship between yield and producibility -- ch. 4. Equipment/facilities cost of ownership (COO). 4.1. The cost of ownership algorithm. 4.2. Cost of ownership modeling. 4.3. Using COO to compare two machines. 4.4. Estimating product costs -- ch. 5. Activity-based costing (ABC). 5.1. The activity-based cost modeling concept. 5.2. Formulation of activity-based cost models. 5.3. Activity-based cost model example. 5.4. Summary and discussion -- ch. 6. Parametric cost modeling. 6.1. Cost estimating relationships (CERs). 6.2. A simple parametric cost modeling example. 6.3. Limitations of CERs. 6.4. Other parametric cost modeling/estimation. 6.5. Summary and discussion -- ch. 7. Test economics. 7.1. Defects and faults. 7.2. Defect and fault coverage. 7.3. Relating fault coverage to yield. 7.4. A test step process model. 7.5. False positives. 7.6. Multiple test steps. 7.7. Financial models of testing. 7.8. Other test-related economic topics -- ch. 8. Diagnosis and rework. 8.1. Diagnosis. 8.2. Rework. 8.3. Test/diagnosis/rework modeling. 8.4. Rework cost (Crework fixed) -- ch. 9. Uncertainty modeling - Monte Carlo analysis. 9.1. Representing the uncertainty in parameters. 9.2. Monte Carlo analysis. 9.3. Sample size. 9.4. Example Monte Carlo analysis. 9.5. Stratified sampling (Latin hypercube). 9.6. Discussion -- ch. 10. Learning curves. 10.1. Mathematical models for learning curves. 10.2. Unit learning curve model. 10.3. Cumulative average learning curve model. 10.4. Marginal learning curve model. 10.5. Learning curve mathematics. 10.6. Determining learning curves from actual data. 10.7. Learning curves for yield. ; 8 pt. II. Life-cycle cost modeling. II.1. System sustainment. II.2. Cost avoidance. II.3. Logistics -- ch. 11. Reliability. 11.1. Product failure. 11.2. Reliability basics. 11.3. Qualification and certification. 11.4. Cost of reliability -- ch. 12. Sparing. 12.1. Calculating the number of spares. 12.2. The cost of spares. 12.3. Summary and comments -- ch. 13. Warranty cost analysis. 13.1. Types of warranties. 13.2. Renewal functions. 13.3. Simple warranty cost models. 13.4. Two-dimensional warranties. 13.5. Warranty service costs - Real systems -- ch. 14. Burn-in cost modeling. 14.1. Burn-in cost model. 14.2. Example burn-in cost analysis. 14.3. Effective manufacturing cost of units that survive burn-in. 14.4. Burn-in for repairable units. 14.5. Discussion -- ch. 15. Availability. 15.1. Availability contracting. 15.2. Availability measures. 15.3. Maintainability and maintenance time. 15.4. Monte Carlo availability calculation example. 15.5. Relating availability to spares. 15.6. Markov availability models. 15.7. Readiness. 15.8. Discussion -- ch. 16. The cost ramifications of obsolescence. 16.1. Managing electronic part obsolescence. 16.2. Lifetime buy costs. 16.3. Strategic management of obsolescence. 16.4. Discussion -- ch. 17. Return on investment (ROI). 17.1. Definition of ROI. 17.2. Cost savings ROIs. 17.3. Cost avoidance ROI. 17.4. Stochastic ROI calculations. 17.5. Summary -- ch. 18. The cost of service / X. X. Huang ... [et al.]. 18.1. Why estimate the cost of a service? 18.2. An engineering service example. 18.3. How to estimate the cost of an engineering service. 18.4. Application of the service costing approach within an industrial company. 18.5. Bidding for the service contract -- ch. 19. Software development and support costs. 19.1. Software development costs. 19.2. Software support costs. 19.3. Discussion -- ch. 20. Total cost of ownership examples. 20.1. The total cost of ownership of color printers. 20.2. Total cost of ownership for electronic parts.