Test Economics - What can a Board/System Test Engineer do to Influence Supply Operation Metrics

The outsourcing of manufacturing to low cost regions has significantly changed product cost models. The impact of test may be much more difficult to determine in lower cost regions. This paper presents some background on product cost models and the effect that outsourcing has on these cost models. In light of these affect the concept of return on investment for "test enhancements" is discussed. The paper provides examples of how test enhancements can generate both positive and negative ROI. The paper concludes by presenting ideas on how test engineers can influence product costs, in both a positive and negative way. The reader should note that these examples use hypothetical data based on quotes received over the last several years from contract manufacturers. The intent of these examples is to illustrate the concepts presented