TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
2014 Technology Entrepreneurship
Boot Camp
Sponsored by Jackson Walker
UTSA Colleges of
Business and Engineering
CITE BootCamp February 2014
1
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
The Pitch to Investors
1: Show that you know what you are talking about
2: Show you did your research
3: Allows realistic projections
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
2
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
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
CITE BootCamp January 2011
3
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Tooling Considerations:
1st Article Costs: Engineering/Labor/Testing
Production is not Prototyping, some processes
do not scale
Lifespan of tooling depends on process
Lithographic: Tooling can last for life of
production, changes relatively affordable:
micromachining of stints
Molding/Casting: Tooling has limited lifespan,
changes can be expensive: CPAP, Backboard
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
4
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Injection Molding
Usually contracted out
Assembly concerns
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
5
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Composite Material Processing
Contracted out or in house.
Economics of scaling production
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
6
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Electronic Assembly
Flex circuits? ASIC/FPGA? Peltier
combined with air bladder, micro flow
control, ……
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
7
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Production
Facilities:
Lease or Own
Zoning
Siracha?
Materials: Raw or processed?
Machines: Energy/Tools/Chemicals
PM’s, downtime, backups
Automation?
Waste/Recycling/Compliance w/……
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
8
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Compliance: Depends on ……
Certification of incoming materials
Certification of contracted suppliers
Certification of final product
Documentation Costs
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
9
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
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/DeviceRegulationandGuida
nce/PostmarketRequirements/QualitySystemsRegulations/defaul
t.htm#applicability (Overview)
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
10
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
ISO Certification
ISO 9001, ISO 14001, ISO 27001,…..
More costs
More required documentation
http://www.iso.org/iso/home/standards/certification.htm
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
11
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Now Back to Production
Labor:
Staffing:
Line: trained monkey or
skilled craftsman
Assembly: human or
machine
Support: engineer or
journeyman
Training/Supervision/Turnover
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
12
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
UTSA Colleges of
Business and Engineering
Manufacturing Cost Considerations
QC:
Personnel: training/time
Equipment
Documentation
HR:
Administration
Benefits/Policies/Compliance
Documentation
CITE BootCamp January 2011
13
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Out the Door:
Packaging
Shipping
Customer Service:
Service/Support/Warranty
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
14
TAKE YOUR
TECHNOLOGY
TO THE
LIMIT!
Manufacturing Cost Considerations
Questions
UTSA Colleges of
Business and Engineering
CITE BootCamp January 2011
15