Course Overview

This course provides an in-depth understanding of the process of predicting the cost of systems.  Elements of traditional engineering economics are melded with manufacturing process modeling, life cycle cost management concepts, and selected concepts from environmental life cycle cost assessment to form a practical foundation for predicting the real cost of electronic products.
Various manufacturing cost analysis methods are included in the course: 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 in conjunction with these methodologies. In addition to manufacturing processes, the product life cycle costs associated with design, procurement, manufacturing waste, sustainment (reliability, warranty, availability, obsolescence), and end-of-life are also addressed. This course uses real-life design scenarios from integrated circuit fabrication, electronic systems assembly, board fabrication, and functional testing at various levels.

Course Outline

1. Introduction
  • Basic concepts
2. Manufacturing cost analysis
  • Process-flow analysis and technical cost modeling
  • Quality and yield (defect models, relation to producability)
  • Cost of ownership (COO)
  • Activity based costing (ABC)
  • Parametric modeling methods
  • Test economics
  • Diagnosis and rework
  • Variability and uncertainty
  • Learning curves
3. Life cycle cost and sustainment modeling
  • Reliability
  • Sparing
  • Warranty cost analysis
  • Burn-in-in cost modeling
  • Maintenance
  • Availability
  • Obsolescence
  • Software development and support
  • Cost, benefit, and risk tradeoffs
  • Real options analysis
4. Other topics
  • Return on investment (ROI)
  • Weighted average cost of capital (WACC)
  • Monte Carlo analysis
  • Discrete-event simulation

Past Customers

  • Ericsson Radio Systems- Sweden
  • IBM - New York
  • IVF/Chalmers University - Sweden
  • University of Maryland Graduate Course
  • Lockheed Martin - Texas, Florida
  • L3/Harris - Georgia

Related Links and Texts


Peter Sandborn
301-405-3167 | 
University of Maryland
College Park, MD 20742