Parametric Cost Estimation Model For Microchannel Bonding Process Based On Activity Based Costing

Abstract

The microchannel bonding process was developed to decrease product size and improve product performance. As the microchannel bonding process has moved from research to industrial manufacturing, it has become increasingly important to create a model to more accurately estimate the costs associated with this process. However, due to problems in project planning and limitations in funding, most microchannel bonding projects appear to have schedule slips and cost overruns. This dissertation presents a cost estimation model that links activity-based costing with parametric cost estimation. A parametric cost model has been designed to improve decision making in the microchannel bonding process, specifically the eutectic microchannel bonding process developed at CREST lab at the University of Texas, Arlington (UTA). The Activity Based Costing (ABC) breaks down the eutectic microchannel bonding process into specific cost elements in each step of the production process. The Activity Based Costing (ABC) will manage the cost by activity of each process. The cost of each activity will be put into the parametric cost estimation model to calculate the cost of each activity. These specific cost elements can then be used to establish the total manufacturing cost, thereby improving the design and manufacturing process. These specific cost elements can then be used to establish the total manufacturing cost, thereby improving the design and manufacturing process. The results of the parametric cost model will afterward be analyzed by the regression method of analysis, further improving final results in the production process. The results of the regression analysis will be shown in both graph and numerical formula.