ABSTRACT
In this phase, we are refining our estimates from Chapter 1 because we have more information. Let us now develop a modular or major subassembly breakdown structure (or refine the existing one) of the product from a systems point of view (see Chapter 1, Section 1.7, and Figure 1.5). For each module or subassembly, acquire material and component pricing from key vendors for components, especially for known cost drivers. Estimate the anticipated cost of the remaining hardware. Contact knowledgeable personnel to get reliable estimates for tooling and capital equipment (or acquire vendor estimates or quotes), and labor estimates for production, production support, and test. This total constitutes the basis for a bottom-up DTC study. Compare this to a top-down cost goal analysis, which assigns cost to major subassemblies or modules based on relative complexity, parts count, weight, estimates from experts, or comparisons to similar products or processes. There will be differences, and you should expect them. Now is the time to start addressing them with the design, manufacturing and purchasing, or subcontracts people. Changes in the system approach can have pronounced effects on the detailed design and production costs downstream.
