CONTENTS -- Preface -- Chapter 1 Introduction -- 1.1 Cost Modeling -- 1.2 The Product Life Cycle -- 1.3 Life-Cycle Cost Scope -- 1.4 Cost Modeling Definitions -- 1.5 Cost Modeling for Electronic Systems -- 1.6 The Organization of this Book -- References -- Part I Manufacturing Cost Modeling -- I.1 Classification of Products Based on Manufacturing Cost -- I.2 Technical Cost Modeling (TCM) -- References -- Chapter 2 Process-Flow Analysis -- 2.1 Process Steps and Process Flows -- 2.1.1 Process-step sequence -- 2.1.2 Process-step inputs and outputs -- 2.2 Process-Step Calculations -- 2.2.1 Labor costs -- 2.2.2 Materials costs -- 2.2.3 Tooling costs -- 2.2.4 Equipment/Capital costs -- 2.2.5 Total cost -- 2.2.6 Capacity -- 2.3 Process-Flow Examples -- 2.3.1 Simple pick & place and reflow process -- 2.3.2 Multi-step process-flow example -- 2.4 Comments -- References -- Problems -- Chapter 3 Yield -- 3.1 Defects -- 3.2 Yield Prediction -- 3.2.1 The Poisson approximation to the binomial distribution -- 3.2.2 The Poisson yieldmodel -- 3.2.3 The Murphy yield model -- 3.2.4 Other yield models -- 3.3 Accumulated Yield -- 3.3.1 Multi-step process-flow example -- 3.3.2 The known good die (KGD) problem -- 3.4 Yielded Cost -- 3.5 The Relationship between Yield and Producibility -- References -- Bibliography -- Problems -- Chapter 4 Equipment/Facilities Cost of Ownership (COO) -- 4.1 The Cost of Ownership Algorithm -- 4.2 Cost of Ownership Modeling -- 4.2.1 Capital costs -- 4.2.2 Sustainment costs -- 4.2.3 Performance costs -- 4.3 Using COO to Compare Two Machines -- 4.4 Estimating Product Costs -- References -- Bibliography -- Problems -- Chapter 5 Activity-Based Costing (ABC) -- 5.1 The Activity-Based Cost Modeling Concept -- 5.1.1 Applicability of ABC to cost modeling -- 5.2 Formulation of Activity-Based Cost Models -- 5.2.1 Traditional cost accounting (TCA).

5.2.2 Activity-based costing -- 5.3 Activity-Based Cost Model Example -- 5.4 Summary and Discussion -- References -- Bibliography -- Problems -- Chapter 6 Parametric Cost Modeling -- 6.1 Cost Estimating Relationships (CERs) -- 6.1.1 Developing CERs -- 6.2 A Simple Parametric Cost Modeling Example -- 6.3 Limitations of CERs -- 6.3.1 Bounds of the data -- 6.3.2 Scope of the data -- 6.3.3 Overfitting -- 6.3.4 Don't force a correlation when one does not exist -- 6.3.5 Historical data -- 6.4 Other Parametric Cost Modeling/Estimation Approaches -- 6.4.1 Feature-based costing (FBC) -- 6.4.2 Neural network based cost estimation -- 6.4.3 Costing by analogy -- 6.5 Summary and Discussion -- References -- Bibliography -- Problems -- Chapter 7 Test Economics -- 7.1 Defects and Faults -- 7.1.1 Relating defects to faults -- 7.2 Defect and Fault Coverage -- 7.3 Relating Fault Coverage to Yield -- 7.3.1 A tempting (but incorrect) derivation of outgoing yield -- 7.3.2 A correct interpretation of fault coverage -- 7.3.3 A derivation of outgoing yield (Yout ) -- 7.3.4 An alternative outgoing yield formulation -- 7.4 A Test Step Process Model -- 7.4.1 Test escapes -- 7.4.2 Defects introduced by test steps -- 7.5 False Positives -- 7.5.1 A test step with false positives -- 7.5.2 Yield of the bonepile -- 7.6 Multiple Test Steps -- 7.6.1 Cascading test steps -- 7.6.2 Parallel test steps -- 7.7 Financial Models of Testing -- 7.8 Other Test-Related Economic Topics -- 7.8.1 Wafer probe (wafer sort) -- 7.8.2 Test throughput -- 7.8.3 Design for test (DFT) -- 7.8.4 Automated test equipment costs -- References -- Bibliography -- Problems -- Chapter 8 Diagnosis and Rework -- 8.1 Diagnosis -- 8.2 Rework -- 8.3 Test/Diagnosis/Rework Modeling -- 8.3.1 Single-pass rework example -- 8.3.2 A general multi-pass rework model -- 8.3.3 Variable rework cost and yield models.

8.3.4 Example test/diagnosis/rework analysis -- 8.4 Rework Cost (Crework fixed) -- References -- Problems -- Chapter 9 Uncertainty Modeling - Monte Carlo Analysis -- Uncertainty Modeling -- 9.1 Representing the Uncertainty in Parameters -- 9.2 Monte Carlo Analysis -- 9.2.1 How does Monte Carlo work? -- 9.2.2 Random sampling values from known distributions -- 9.2.3 Triangular distribution derivation -- 9.2.4 Random sampling from a data set -- 9.2.5 Implementation challenges with Monte Carlo analysis -- 9.3 Sample Size -- 9.4 Example Monte Carlo Analysis -- 9.5 Stratified Sampling (Latin Hypercube) -- 9.5.1 Building a latin hypercube sample (LHS) -- 9.5.2 Comments on LHS -- 9.6 Discussion -- References -- Bibliography -- Problems -- Chapter 10 Learning Curves -- 10.1 Mathematical Models for Learning Curves -- 10.2 Unit Learning Curve Model -- 10.3 Cumulative Average Learning Curve Model -- 10.4 Marginal Learning Curve Model -- 10.5 Learning Curve Mathematics -- 10.5.1 Unit learning data from cumulative average learning curves -- 10.5.2 The slide property of learning curves -- 10.5.3 The relationship between the learning index and the learning rate -- 10.5.4 The midpoint formula -- 10.5.5 Comparing learning curves -- 10.6 Determining Learning Curves from Actual Data -- 10.6.1 Simple data -- 10.6.2 Block data -- 10.7 Learning Curves for Yield -- 10.7.1 Gruber's learning curve for yield -- 10.7.2 Hilberg's learning curve for yield -- 10.7.3 Defect density learning -- References -- Bibliography -- Problems -- Part II Life-Cycle Cost Modeling -- II.1 System Sustainment -- II.2 Cost Avoidance -- II.3 Logistics -- References -- Chapter 11 Reliability -- 11.1 Product Failure -- 11.2 Reliability Basics -- 11.2.1 Failure distributions -- 11.2.2 Exponential distribution -- 11.2.3 Weibull distribution -- 11.3 Qualification and Certification.

11.4 Cost of Reliability -- References -- Bibliography -- Problems -- Chapter 12 Sparing -- Challenges with Spares -- 12.1 Calculating the Number of Spares -- 12.1.1 Multi-unit spares for repairable items -- 12.1.2 Sparing for a kit of repairable items -- 12.1.3 Sparing for large k -- 12.2 The Cost of Spares -- 12.2.1 Spares cost example -- 12.2.2 Extensions of the cost model -- 12.3 Summary and Comments -- References -- Bibliography -- Problems -- Chapter 13 Warranty Cost Analysis -- How warranties impact cost -- 13.1 Types of Warranties -- 13.2 Renewal Functions -- 13.2.1 The renewal function for constant failure rate -- 13.2.2 Asymptotic approximation of M(t) -- 13.3 Simple Warranty Cost Models -- 13.3.1 Ordinary (non-renewing) free-replacement warranty cost model -- 13.3.2 Pro-rata warranty cost Model -- 13.3.3 Investment of the warranty reserve fund -- 13.3.4 Other warranty reserve fund estimation models -- 13.4 Two-Dimensional Warranties -- 13.5 Warranty Service Costs - Real Systems -- References -- Problems -- Chapter 14 Burn-In Cost Modeling -- The Cost Tradeoffs Associated with Burn-in -- 14.1 Burn-In Cost Model -- 14.1.1 Cost of performing the burn-in -- 14.1.2 The value of burn-in -- 14.2 Example Burn-In Cost Analysis -- 14.3 Effective Manufacturing Cost of Units That Survive Burn-In -- 14.4 Burn-In for Repairable Units -- 14.5 Discussion -- References -- Bibliography -- Problems -- Chapter 15 Availability -- 15.1 Availability Contracting -- 15.1.1 Product service systems (PSS) -- 15.2 Availability Measures -- 15.2.1 Time-interval-based availability measures -- 15.2.2 Downtime-based availability measures -- 15.2.3 Application-specific availability measures -- 15.3 Maintainability and Maintenance Time -- 15.4 Monte Carlo Availability Calculation Example -- 15.5 Relating Availability to Spares -- 15.5.1 Backorders and supply availability.

15.5.2 Erlang-B -- 15.6 Markov Availability Models -- 15.7 Readiness -- 15.8 Discussion -- References -- Problems -- Chapter 16 The Cost Ramifications of Obsolescence -- Electronic part obsolescence -- 16.1 Managing Electronic Part Obsolescence -- 16.2 Lifetime Buy Costs -- 16.2.1 The newsvendor problem -- 16.2.2 Application of the newsvendor optimization problem to electronic parts -- 16.3 Strategic Management of Obsolescence -- 16.3.1 Porter design refresh model -- 16.3.2 MOCA design refresh model -- 16.3.3 Material risk index (MRI) -- 16.4 Discussion -- 16.4.1 Budgeting/bidding support -- 16.4.2 Value of DMSMS management -- 16.4.3 Software obsolescence -- References -- Problems -- Chapter 17 Return on Investment (ROI) -- 17.1 Definition of ROI1 -- 17.2 Cost Savings ROIs -- 17.2.1 ROI of a manufacturing equipment replacement -- 17.2.2 Technology adoption ROI -- 17.3 Cost Avoidance ROI -- 17.4 Stochastic ROI Calculations -- 17.5 Summary -- References -- Problems -- Chapter 18 The Cost of Service X. X. Huang, M. Kreye, G. Parry, Y. M. Goh and L. B. Newnes -- 18.1 Why Estimate the Cost of a Service? -- 18.2 An Engineering Service Example -- 18.3 How to Estimate the Cost of an Engineering Service -- 18.4 Application of the Service Costing Approach within an Industrial Company -- 18.5 Bidding for the Service Contract -- References -- Problems -- Chapter 19 Software Development and Support Costs -- Definitions -- 19.1 Software Development Costs -- 19.1.1 The COCOMO model -- 19.1.2 Function-point analysis -- 19.1.3 Object-point analysis -- 19.2 Software Support Costs -- 19.3 Discussion -- References -- Bibliography -- Problems -- Chapter 20 Total Cost of Ownership Examples -- 20.1 The Total Cost of Ownership of Color Printers -- 20.2 Total Cost of Ownership for Electronic Parts -- 20.2.1 Part total cost of ownership model -- 20.2.2 Example analyses.

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