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Engr 1202 ECE

Project Cost Analysis

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

• 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

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.

Sample grading spreadsheetLast First TEAM 1/8 1/10 1/15 1/17 1/22 1/24 1/29 1/31 2/5 CR 2/12 CR 2/19 CR 2/26 CR 3/12 CR 3/19 CR 3/26 CR 4/2 CR 4/9 4/11 4/16 4/18 4/23 4/25 P T

Name Name 1 2 3 4 5 6 7 8 1 Smith Dilbert E0101 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 27

X HW HW HW HW HW Test HW HW HW Test HW HW HW M ATTD Raw Lab

Last First TEAM A 1 2 3 4 1 5 6 7 2 8 9 10 Lab TotalName Name 2 5 5 5 5 25 5 5 5 10 5 5 5 2 29 Total

1 Smith Dilbert E0101 2 5 5 5 18 4 3 4 7 5 4 4 1 27 94 86

Last First TEAM Project Lab Presentation Presentation Final Overall Letter Name Name Report Grade Eval Eval JH Grade Exam Grade Grade

20% 40% 1 2 20% 20%

1 Smith Dilbert E0101 85 86 86 88 92 90 80 85 B

• Final Grade• 85(.2) + 86(.4) + 90 (.2) + 80 (.2) = 85 “B”

List processing steps usedOperation

Cleaning Oxidation Metal Deposition Mask creation Photolithography Metal Etch Dicing

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

Operation MaximumLot Size

Cleaning 25Oxidation 25Metal Deposition 15Mask creation 1Photolithography 1Metal Etch 1Dicing 1

Determine tooling cost for each process

Operation Maximum ToolingLot Size Cost/Hr

Cleaning 25 $21.00Oxidation 50 $23.00Metal Deposition 15 $52.00Mask creation 20 $25.00Photolithography 1 $86.00Metal Etch 1 $21.00Dicing 1 $21.00

Determine tooling hours per process step

Operation Maximum Tooling ToolingLot Size Cost/Hr Hours

Cleaning 25 $21.00 1.0Oxidation 50 $23.00 1.0Metal Deposition 15 $52.00 5.0Mask creation 20 $25.00 1.0Photolithography 1 $86.00 0.3Metal Etch 1 $21.00 0.2Dicing 1 $21.00 0.5

9.0

Total tooling cost is calculatedOperation Maximum Tooling Tooling Total Tooling

Lot Size Cost/Hr Hours Cost

Cleaning 25 $21.00 1.0 $21.00Oxidation 50 $23.00 1.0 $23.00Metal Deposition 15 $52.00 5.0 $260.00Mask creation 20 $25.00 1.0 $25.00Photolithography 1 $86.00 0.3 $25.80Metal Etch 1 $21.00 0.2 $4.20Dicing 1 $21.00 0.5 $10.50

Total 9.0 $369.50

Tooling cost/hour x Tooling Hours = Total Tooling Cost

Sum of each process

Choose a labor cost per hourOperation Maximum Tooling Tooling Total Tooling Labor

Lot Size Cost/Hr Hours Cost Cost/Hr

Cleaning 25 $21.00 1.0 $21.00 $10.00Oxidation 50 $23.00 1.0 $23.00 $10.00Metal Deposition 15 $52.00 5.0 $260.00 $10.00Mask creation 20 $25.00 1.0 $25.00 $10.00Photolithography 1 $86.00 0.3 $25.80 $10.00Metal Etch 1 $21.00 0.2 $4.20 $10.00Dicing 1 $21.00 0.5 $10.50 $10.00

Total 9.0 $369.50 $70.00

Determine labor hours per process step

Operation Maximum Tooling Tooling Total Tooling Labor LaborLot Size Cost/Hr Hours Cost Cost/Hr Hours

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25Dicing 1 $21.00 0.5 $10.50 $10.00 0.50

Total 9.0 $369.50 $70.00 4.00

Note - labor hours will be different from tooling hours. Labor can be used for other tasks while parts are being processed in the tool

Total Labor Cost is calculatedOperation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor

Lot Size Cost/Hr Hours Cost Cost/Hr Hours Cost

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$

Total 9.0 $369.50 $70.00 4.00 40.00$

Tooling plus Labor cost are addedOperation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor Cost

Lot Size Cost/Hr Hours Cost Cost/Hr Hours Cost

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ $23.50Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ $25.50Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ $262.50Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ $45.00Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ $30.80Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ $6.70Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$ $15.50

Total 9.0 $369.50 $70.00 4.00 40.00$ $409.50

Manufacturing cost per wafer is calculated

Operation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor Cost ManufacturingLot Size Cost/Hr Hours Cost Cost/Hr Hours Cost Cost/Wafer

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ $23.50 $0.94Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ $25.50 $0.51Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ $262.50 $17.50Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ $45.00 $2.25Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ $30.80 $30.80Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ $6.70 $6.70Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$ $15.50 $15.50

Total 9.0 $369.50 $70.00 4.00 40.00$ $409.50 $74.20

Manufacturing cost = cost per step / lot size

Cost is now per waferOperation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor Cost Manufacturing

Lot Size Cost/Hr Hours Cost Cost/Hr Hours Cost Cost/Wafer

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ $23.50 $0.94Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ $25.50 $0.51Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ $262.50 $17.50Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ $45.00 $2.25Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ $30.80 $30.80Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ $6.70 $6.70Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$ $15.50 $15.50

Total 9.0 $369.50 $70.00 4.00 40.00$ $409.50 $74.20

Manufacturing Cost/wafer 74.20$ Material cost-wafer 10.00$ Material cost-metal (1gm/wafer) 17.00$ for goldMaterial cost-mask 0.50$ Finished wafer cost 101.70$

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

siteNote- Use of larger wafers would require higher tooling cost due to the tooling being much more expensive

Wafer losses are factored inOperation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor Cost Manufacturing

Lot Size Cost/Hr Hours Cost Cost/Hr Hours Cost Cost/Wafer

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ $23.50 $0.94Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ $25.50 $0.51Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ $262.50 $17.50Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ $45.00 $2.25Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ $30.80 $30.80Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ $6.70 $6.70Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$ $15.50 $15.50

Total 9.0 $369.50 $70.00 4.00 40.00$ $409.50 $74.20

Manufacturing Cost/wafer 74.20$ Material cost-wafer 10.00$ Material cost-metal (1gm/wafer) 17.00$ for goldMaterial cost-mask 0.50$ Finished wafer cost 101.70$

Wafer Yield 0.90

Yielded wafer cost $113.00 One wafer in 10 gets broken

Finished wafer cost x wafer yield = yielded wafer cost

Final manufacturing cost of one antenna is calculated

Operation Maximum Tooling Tooling Total Tooling Labor Labor Total Labor Cost ManufacturingLot Size Cost/Hr Hours Cost Cost/Hr Hours Cost Cost/Wafer

Cleaning 25 $21.00 1.0 $21.00 $10.00 0.25 2.50$ $23.50 $0.94Oxidation 50 $23.00 1.0 $23.00 $10.00 0.25 2.50$ $25.50 $0.51Metal Deposition 15 $52.00 5.0 $260.00 $10.00 0.25 2.50$ $262.50 $17.50Mask creation 20 $25.00 1.0 $25.00 $10.00 2.00 20.00$ $45.00 $2.25Photolithography 1 $86.00 0.3 $25.80 $10.00 0.50 5.00$ $30.80 $30.80Metal Etch 1 $21.00 0.2 $4.20 $10.00 0.25 2.50$ $6.70 $6.70Dicing 1 $21.00 0.5 $10.50 $10.00 0.50 5.00$ $15.50 $15.50

Total 9.0 $369.50 $70.00 4.00 40.00$ $409.50 $74.20

Manufacturing Cost/wafer 74.20$ Material cost-wafer 10.00$ Material cost-metal (1gm/wafer) 17.00$ for goldMaterial cost-mask 0.50$ Finished wafer cost 101.70$

Wafer Yield 0.90

Yielded wafer cost $113.00

Antenna/wafer 200Antenna Yield 0.98Yielded antenna 196

Cost/antenna $0.58

Yielded wafer cost is divided by yielded total number of complete antenna on wafer to give individual antenna cost

Title must be added to

spreadsheet

Assignment – HW 11due 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 $100.00 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