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The Best Plan in terms of product cost was $17.16. The median plan cost was $32.29. The current purchase price of $38.00 is 15% above the price of the median plan for this product, while 65% of the plans had a lower cost. Market pricing for the design was determined from component cost data that were obtained from major electronics component distributors. PCB and assembly costs were obtained from US suppliers and proprietary global models.Impact using data from recent studies:
• Printed circuit board assembly (PCBA) cost is approximately 18% of an electronic company’s revenue
• An electronic product designer supports $10 million in revenue per year and on average develops ten PCBA designs per year.
• An average PCBA requires three iterations and nine months to produce a production ready PCBA design.
One PCBA designer affects approximately $1.8 million in cost per year. Using the Ve-design tools and services project average savings of 46% or $830,000. In the above example 54% or $970,000 in annual savings is projected.
The results of this analysis project significant opportunities for improvement at all levels of product development. Accurately predicting cost and cycle time in all phases of development and product life cycle is necessary, critical, and difficult. The Ve-design tool set enables users to gain a significant competitive advantage by measurement of performance in terms of product cost ($) and time (days) throughout the product development process including Design Chain/Supply elements.
The tool suite provides the capability of optimizing the design and supply chain using all three parameters: time, reliability and cost. As this example demonstrates a small increase in cost provides for a higher level of reliability. This example’s data are from an actual board file but not the same design file as shown in figure A.