9. Engr 1202 ECE
Project Cost Analysis

10. 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

11. 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

12. 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.

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

14. List processing steps used

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

16. Determine tooling cost for each process

17. Determine tooling hours per process step

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

19. Choose a labor cost per hour

20. 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

21. Total Labor Cost is calculated

22. Tooling plus Labor cost are added

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

24. 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

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

26. 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

27. Title must be added to spreadsheet

29. 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 $ 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