1. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! 1CITE BootCamp February 2014 2014 Technology Entrepreneurship Boot Camp Sponsored by Jackson Walker

2. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! CITE BootCamp January 20112 Manufacturing Cost Considerations 1: Show that you know what you are talking about 2: Show you did your research 3: Allows realistic projections The Pitch to Investors

3. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! CITE BootCamp January 20113 Manufacturing Cost Considerations Profit = Sale Price – Costs to Produce Truly a Simple Concept that applies to everything from Pet Rocks to radioisotopes for chemotherapy A “realistic” sale price is ALWAYS what the market will bear

4. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! CITE BootCamp January 20114 Manufacturing Cost Considerations Tooling Considerations: Lithographic: Tooling can last for life of production, changes relatively affordable: micromachining of stints Molding/Casting: Tooling has limited lifespan, changes can be expensive: CPAP, Backboard Lifespan of tooling depends on process 1 st Article Costs: Engineering/Labor/Testing Production is not Prototyping, some processes do not scale

5. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 20115 Injection Molding Usually contracted out Assembly concerns

6. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 20116 Composite Material Processing Contracted out or in house. Economics of scaling production

7. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 20117 Electronic Assembly Flex circuits? ASIC/FPGA? Peltier combined with air bladder, micro flow control, ……

8. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 20118 Production Facilities:Lease or Own Zoning Siracha? Materials:Raw or processed? Machines:Energy/Tools/Chemicals PM’s, downtime, backups Automation? Waste/Recycling/Compliance w/……

9. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 20119 Compliance: Depends on …… Certification of incoming materials Certification of contracted suppliers Certification of final product Documentation Costs

10. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201110 Manufacturing Medical Devices…. Commercial distribution of medical devices requires compliance with FDA rules. Involves listing product with the FDA and documentation of compliance with “Good Manufacturing Practices” as listed in the Code of Federal Regulations, among other requirements. http://www.fda.gov/MedicalDevices/DeviceRegulationandGuida nce/PostmarketRequirements/QualitySystemsRegulations/defaul t.htm#applicabilityhttp://www.fda.gov/MedicalDevices/DeviceRegulationandGuida nce/PostmarketRequirements/QualitySystemsRegulations/defaul t.htm#applicability (Overview )

11. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201111 ISO Certification ISO 9001, ISO 14001, ISO 27001,….. More costs More required documentation http://www.iso.org/iso/home/standards/certification.htm

12. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201112 Now Back to Production Labor:Staffing: Line: trained monkey or skilled craftsman Assembly: human or machine Support: engineer or journeyman Training/Supervision/Turnover

13. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201113 QC:Personnel: training/time Equipment Documentation HR:Administration Benefits/Policies/Compliance Documentation

14. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201114 Out the Door: Packaging Shipping Customer Service: Service/Support/Warranty

15. UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Manufacturing Cost Considerations CITE BootCamp January 201115 Questions