Engr 1202 ECE Project Cost Analysis

Two Categories of Business Expenses Direct (Manufacturing Cost) Material Cost Factory Cost Labor Cost Indirect Sales/Marketing Staff Phones Insurance Advertising Travel Lawyers Accounting Benefits

Cost Analysis for Engr 1202 ECE Project For purposes of the Engr 1202 ECE project, we will deal only with direct costs. Final cost is ALWAYS important Direct costs will include tooling, labor, materials, and losses during manufacturing (Yields) Lowest cost with highest quality is the goal Market will determine success, not technology innovation

The cost analysis will be done using the Excel software Excel is a spreadsheet program Excel provides a simple way to do arithmetic calculations and value changes to get final calculations Changes to any value ripple through the entire spreadsheet to adjust final answers Once the spreadsheet is set up, it can be used over and over (for different years, months, semesters, etc.) Excel is good for check book balancing, budgets, stock portfolio history, financial assets, grading for classes, etc.

Sample grading spreadsheet Final Grade 85(.2) + 86(.4) + 90 (.2) + 80 (.2) = 85 “B”

List processing steps used

Determine maximum lot size – the maximum number of wafers that can be processed at once

Determine tooling cost for each process

Determine tooling hours per process step

Total tooling cost is calculated Tooling cost/hour x Tooling Hours = Total Tooling Cost Sum of each process

Choose a labor cost per hour

Determine labor hours per process step Note - labor hours will be different from tooling hours. Labor can be used for other tasks while parts are being processed in the tool

Total Labor Cost is calculated

Tooling plus Labor cost are added

Manufacturing cost per wafer is calculated Manufacturing cost = cost per step / lot size

Approximate Wafer cost Cost is now per wafer Approximate Wafer cost 4” - $10 6” - $24 8” - $75 12” - $150 Find your conductor cost per gram on the conductor attributes chart on the web site Note- Use of larger wafers would require higher tooling cost due to the tooling being much more expensive Manufacturing cost per wafer + material costs

Wafer losses are factored in One wafer in 10 gets broken Finished wafer cost x wafer yield = yielded wafer cost

Final manufacturing cost of one antenna is calculated Yielded wafer cost is divided by yielded total number of complete antenna on wafer to give individual antenna cost

Title must be added to spreadsheet

Assignment – HW 11 due next class Each student is to create a manufacturing cost spreadsheet for your antenna design – due next week Count or calculate number of complete antenna on a 4” wafer Each spreadsheet must have a title with the team number and the individual student name Spreadsheet must have gridlines Spreadsheet must fit on one page Each team must assign one of the listed options to each student Labor at $ 0.00 Labor at $ 10.00 Labor at $ 50.00 Labor at $100.00 or any labor cost over $100 All equipment tooling cost at $150/hour Wafer size at 6” – multiply antenna quantity for 4” wafer by scale factor Use wafer cost of $24 for 6” wafer Wafer size at 12”, multiply antenna quantity by 4” wafer by scale factor Use wafer cost of $150 for 12” wafer Determine the labor cost you will use for your presentation/report Evaluate if cost is reasonable Redesign to improve cost if necessary