2. Server Storage Gets Cheap

10. Engr 1202 ECE Project Cost Analysis

11. 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

12. 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 Cost Analysis for Engr 1202 ECE Project

13. 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.

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

15. List processing steps used

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

17. Determine tooling cost for each process

18. Determine tooling hours per process step

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

20. Choose a labor cost per hour

21. 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

22. Total Labor Cost is calculated

23. Tooling plus Labor cost are added

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

25. Cost is now per wafer Manufacturing cost per wafer + material costs 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

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

27. 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

28. Title must be added to spreadsheet

30. Assignment – HW 11 due next class Each team 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 –Spreadsheet must have gridlines –Spreadsheet must fit on one page –Each team must assign choose a labor rate, anything from $0 to $100 per hour Determine the labor cost you will use for your presentation/report Evaluate if cost is reasonable and include possible ways to improve cost in your final PowerPoint presentation