UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
Slide 1CITE BootCamp February 2014
2014 Technology Entrepreneurship Boot Camp
Sponsored by Jackson Walker
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 2
Manufacturing Cost Considerations
1: Show that you know what you are talking about
2: Show you did your research
3: Allows realistic projections
The Pitch to Investors
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 3
Manufacturing Cost Considerations
Profit = Sale Price – Costs to Produce
Truly a Simple Concept that applies to everything from Pet Rocks to radioisotopes for chemotherapy
A “realistic” sale price is ALWAYS what the market will bear
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 4
Manufacturing Cost Considerations
Tooling Considerations:
Lithographic: Tooling can last for life of production, changes relatively affordable: micromachining of stintsMolding/Casting: Tooling has limited lifespan,
changes can be expensive: CPAP, Backboard
Lifespan of tooling depends on process
1st Article Costs: Engineering/Labor/TestingProduction is not Prototyping, some
processes do not scale
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 5
Manufacturing Cost Considerations
Injection Molding
Usually contracted outAssembly concerns
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 6
Manufacturing Cost Considerations
Composite Material Processing
Contracted out or in house.Economics of scaling production
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 7
Manufacturing Cost Considerations
Electronic Assembly
Flex circuits? ASIC/FPGA? Peltier combined with air bladder, micro flow control, ……
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 8
Manufacturing Cost Considerations
Production
Facilities: Lease or OwnZoning
Siracha?Materials: Raw or processed?Machines: Energy/Tools/
ChemicalsPM’s,
downtime, backups
Automation?Waste/Recycling/Compliance
w/……
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
9
Manufacturing Cost Considerations
CITE BootCamp January 2011
Compliance: Depends on ……
Certification of incoming materialsCertification of contracted suppliersCertification of final product
Documentation Costs
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 10
Manufacturing Cost Considerations
Manufacturing Medical Devices….
Commercial distribution of medical devices requires compliance with FDA rules. Involves listing product with the FDA and documentation of compliance with “Good Manufacturing Practices” as listed in the Code of Federal Regulations, among other requirements.http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/PostmarketRequirements/QualitySystemsRegulations/default.htm#applicability (Overview)
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 11
Manufacturing Cost Considerations
ISO Certification
ISO 9001, ISO 14001, ISO 27001,…..
More costsMore required documentation
http://www.iso.org/iso/home/standards/certification.htm
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 12
Manufacturing Cost Considerations
Now Back to Production
Labor: Staffing:Line: trained
monkey or skilled craftsman
Assembly: human or
machineSupport: engineer
or journeyman
Training/Supervision/Turnover
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 13
Manufacturing Cost Considerations
QC: Personnel: training/timeEquipmentDocumentation
HR: AdministrationBenefits/Policies/
ComplianceDocumentation
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 14
Manufacturing Cost Considerations
Out the Door:
PackagingShipping
Customer Service:
Service/Support/Warranty
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2011 15
Manufacturing Cost Considerations
Questions