Product Cost Engineering in electronics is especially challenging, as technical and commercial assessment take place in a quite complex and dynamic environment.

Typical education careers are either technical or commercial, so that the combination of the two approaches normally needs to be achieved by self-study.

Our training aims at closing this gap for electronics buyers as well as for engineers in development, sales and marketing.

As a matter of course we adapt training scope and focus to our customers' requirements. The training is practice-oriented and is ideally based on customer real-life examples (sample parts, component scope, etc.) In this way, savings potential can be identified during the training which typically is significantly higher than training cost.

Training Electronics Purchasing (proposed agenda)

1.   Key information analysis

  • Component identification / data sheet research
  • Data sheet analysis / information for target price development / information selection
  • Packages (Overview, particularities, etc.)

2.   IC Calculation (Bottom-Up)

  • Manufacturing processes (IC, Wafer)
  • Cost drivers (technology, raw materials, yields, degree of automation, etc.)
  • Cost structures
  • Semiconductor supply chain
  • Packages
  • Raw materials

3.   Price analysis from market information / distribution / manufacturer quotes (Top-Down)

  • Benchmarking of existing data / price database
  • Performance indicators, analogies
  • Parametrical pricing from functional analysis

4.   Analyse of volume and time effects

  • Price recalculation with volume changes
  • Lifecycle

5.   Market structures (Manufacturers Fab / Fabless, Foundries, etc.)

  • Information source
  • Key figures

Training Product Cost Engineering Electronic (proposed agenda)

1. Overview Cost Management / Cost Engineering

2.   Calculation methodology

  • Surcharge calculation
  • typical surcharges by technology (elektronics, mechanical, wire harness)
  • Limits of usage, particularities
  • Factor cost


3.   Cost analysis electronics (populated boards)

  • Material costen (active, passive, etc.)
  • Manufacturing processes
  • Production cost (Machines, cycle times)
  • Quick calculation / cost estimate
  • Cost drivers


4.   Cost analysis electromechanics

  • PCBs
  • Wire harnesses
  • Inductors/Transformers
  • Design to Cost possibilities

5.   Cost analysis mechanics

  • Technologies (Die casting (Al, Mg, ..) , injection moulding (various plastics)  stamping / bending / deep-drawing, machining, assembly)
  • Production cost (Machines, cycle times, etc.)
  • Quick calculation / cost estimate
  • Cost drivers
  • Design to Cost possibilities

6.   Target Costing / Design-to-Cost

  • Target Costing methodology
  • Design-to-Cost methodology
  • Cost optimization on architecture level
  • Cost optimization on module level