Every manufactured product cost is the sum of:
- Parts/materials bought
- Manufacturing processes
- Assembly processes
- Test
- Packaging
- Handling/Storage and Transport
- Process loss due to rework
- Scrap
The above distribution of these capex cost contributions is random.
When manufacturing a product its likely that something can go wrong. This go wrong will result in the need for introducing a test, a rework action when repairable or scrap when not repairable. Every not detected manufacturing step gone wrong will generate a failure at the customer. Testing will increase your product cost (capex). manufacturing gone wrong will slip through the and will create a failure at your customer site. This increase the cost (opex) for your customer and your warranty cost. With an agreed manufacturing Part Quality or Infant Mortality Defect rate (IMDR) prediction gives insight. Based on the created Topx of the most contributing processes or parts in cost increase are made visible.