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Reducing Total Cost of Ownership for Mobile Handset Design and Production

By Carsten Barth | February 11, 2008

peking-2.jpgWith mounting pressure from all sides of the supply chain, the mobile handset business is at the cusp of a major evolution in its design and manufacturing approach to keep the industry moving forward. The electronic manufacturing services (EMS) companies who design and manufacture mobile phones, and the mobile phone OEMs, can better adapt to this evolution by finding ways to evaluate and reduce their total cost of ownership (TCO). Besides the obvious reason for evaluating and reducing costs, making TCO part of a company’s strategy provides a consistent, systematic framework for comparing alternatives and evaluating costs.

Total Cost of Ownership can be defined as the systematic quantification of all costs generated over the lifetime of a product or service. Many variables comprise total cost of ownership, e.g. Bill of materials, time-to-volume, field failure rate, etc. These, along with complete DFx analysis for After Market Services (AMS), yield optimization, and test times to cover every aspect of the product’s life-cycle are major contributors to reducing TCO.

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