Prepared for Simon | Delivered August 28, 2019
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To understant the average cost of assembly as a percentage of total finished goods costs in the manufacturing of consumer electronics, automotives, and medical devices.
Assembly costs can account for as much as
50% of the total manufacturing
cost, especially if there isn't proper assembly planning during product development.
A study on the costs associated with producing a steel
designs of cars of different variants (entry-level luxury sedans, crossovers, and luxury sedans) revealed that assembly costs
accounted for 37%
of the total cost in all variants. The biggest cost was fabrication cost which
accounted for 53%
of the total cost.
The authors also found that "
the reduction in fabrication
costs due to part sharing accounted for 55% of total cost savings; the reduction in assembly costs from sharing
authors in the same study above also studied tubular designs of similar cars and found that "
fabrication costs are again
the largest portion of total costs, accounting for
54% of total costs
; assembly cost
account for 35%
of total costs, with development costs making up the balance."
a design for assembly and design for manufacturing model that resulted in a reduction of assembly time "
from 45 to 11 min (−75 percent
)" and reduction in "
assembly cost from $622 to $384
(−38 percent)." However, the research paper is behind a paywall.
Our preliminary research didn't reveal additional data on the average cost of assembly as a percentage of total finished goods costs for manufacturing in medical device
and consumer electronics manufacturing.