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HP Deskjet 3940 Printer
Note: Overhead costs are included in the value entered for fabricated parts such as molded plastic, sintered metal, stampings,
extruded, sheet-metal, castings, welded assemblies, machined parts, or other fabricated parts. These entries include the
material, labor, and the estimated overhead cost (including tooling amortization) required for fabricating the part in an in-house
machine shop facility. See page nine (Overhead Costs)
Purchased fabricated parts costs are estimated just like ‘in house’ parts. When it is obvious that a subcontractor made the part, a
mark-up for the manufacturer margin is estimated and added.
TOTAL
The quantity of the parts used multiplied by the cost is listed in the TOTAL column.
TOOL OH: EA and TOTAL
The value entered here is the estimated amortized expenses for making and sustaining the specific major tooling (molds and
metal dies or progressive tooling) needed to make the part. These costs are amortized over a 3 year period. When there is more
than one part on this line, the value entered is the combined cost of tooling for the number of parts entered on this line.
In previous Cypress Labs reports (prior to 2003), the cost of the tooling has been included as a part of the part cost. The tooling
cost has now been removed from the part cost and is treated as a separate value. It is added into the cost of the product on the
‘Cost Summary Sheet’.
TIME (in sec): ASSY and PCB
These two columns categorize labor into the mechanical assembly of the parts of the product (I.e. nuts, bolts, screws, packing,
taping etc.) and the assembly of electronics PCB (electronic assembly and soldering of single sided or two sided ‘through hole’
and ‘SMT’ construction). The numbers listed are in seconds. Not every row will have a time listed since the labor may have
been accounted for in other operations such as plastic moldings or at the subassembly level. The times are usually listed at the
beginning of a group of associated parts that are assembled together.
Dividing the labor into these categories allows different labor and overhead rates for each. These labor and overhead rates are
listed on the Labor Summary sheet and are automatically applied to the proper column. The labor costs include QA and Test time
in the area where the work is done and final test time is included in the FINAL PREP sheet.
NOTES
The note column provides an area to expand on the description. It frequently lists the type of plastic material, weight, PCB sizes,
and other information that will help to identify the part or aid in the estimating process.
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