Introduction, Costing methodology – Cypress HP Deskjet 3940 User Manual

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HP Deskjet 3940 Printer

Introduction

This unique analysis covers a Manufacturing Cost – Component Cost Benchmark Analysis of the HP Deskjet 3940 inkjet printer.
This unit shipped directly to Cypress Labs. It was unpacked, and completely disassembled. Each part was identified, and the
material costs and assembly times were estimated. From this data, we created a list of materials, arranged in a logical drawing
structure (each sub-assembly through the top assembly). The parts/cost breakdown section of the report is intended to emulate an
engineering drawing structure. This portion of the report shows the relationship between the material cost and labor, including the
estimated applied overhead rate, for the product assembly.

Costing Methodology

This chart intends to show the flow of materials and costs in the manufacturing process.

MCA-CCB cost estimates, including labor costs and overhead costs, are based on specified volume run rates. The country of
manufacturing origin (A client–chosen criteria) is identified on top of each worksheet in this report. Commodity materials are plastic
resins, bulk metal materials in various forms, glass, etc. Commodity components are ICs, transistors, diodes, resistors, all other
electronic components, printed circuit boards, connectors, filters, and any other item required for the assembly of the subject product.
Costs estimated in this report do not include:

**1. Profit margins incurred from sales from Contracted sub-assemblers (see detailed explanation in ANALYSIS STRUCTURE),

**2. Profit margins incurred from sales from the CEM (Contract Equipment Manufacturer) to the Brand Name manufacturer, or

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**3. Profit margins incurred from the Brand Name manufacturer to the distribution channels.

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