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HP Deskjet 3940 Printer
Analysis Structure
This report documents an estimate of the manufacturing cost of products at a specific manufacturing site, based upon specific
production volumes. It estimates the following:
1. Minimum procurement costs of Commodity Components that are readily available to any world class manufacturer.
2. Manufacturing costs of Fabricated Components, Sub-Assemblies and Materials.
Private labeling or custom manufacturing has become pervasive for many products. These products are manufactured by offshore
companies and sold to major domestic and international companies with their labels, documentation, and software included.
This report does not reflect the transfer costs of subassemblies in this type of multi-tiered product assembly operation. These
transfer costs always include layers of markup, which is added to the manufacturing cost of the subassembly from the OEM supplier.
These added margins may or may not have any relationship to the actual manufacturing costs, which makes them virtually
impossible to include as a part of an estimate of the manufacturing cost. In some cases such as modem modules, LCD panels, and
power supplies, these OEM transfer costs are widely known and may be shown as purchased parts in the report.
DESCRIPTION
This column is a brief description of the subassembly or part. Indentation of the part description denotes that the part belongs to
a higher-level part listed above it.
REF
This column is used for two purposes. In the case of electronic printed circuit boards (PCBs), the manufacturer’s reference
designator for integrated circuits (ICs) appears in this column. However, sometimes the designators are not used or are
unreadable. In these cases, no designator is placed in this column.
The second use for this column is to denote a subassembly that is itemized elsewhere or to identify the group of parts indented in
subsequent rows. The word ref. is used for this purpose.
QTY
The QTY column indicates the number of parts in the subassembly that meets the part description.
EACH
The EACH column lists the estimated cost of the part. The value entered for purchase parts is the estimated purchase cost of the
part described.
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