The Best Way To Estimate The Manufacturing Cost For A New Electronic Product Case Study: Bluetooth Device
Today I’m providing a step by step information for ItagPro estimating the manufacturing price for a hypothetical tracking device that incorporates Bluetooth Low Energy (BLE), iTagPro product GPS, an accelerometer, and pet gps alternative a USB rechargeable lithium battery. When you've gotten a new product that you just wish to develop, the first thing you must do is look at the massive picture earlier than you get bogged down in the details. You don’t need to jump proper into absolutely growing a manufacturing prototype. Product growth is costly, time-consuming, and risky so there are some upfront steps you want to take first. Instead, first concentrate on what I call a preliminary manufacturing design (or sometimes just known as a preliminary product design). The iTagPro key finder is that it focuses on a manufacturable model of your product, and not simply on a Proof-of-Concept (POC) prototype. One in every of a very powerful causes for making a preliminary design is it allows you to precisely estimate the manufacturing value for the product earlier than you spend the money to fully develop it.
A preliminary manufacturing design focuses on answering among the vital questions that you will need to know as soon as attainable. How tough is it going to be to develop your product? Is it possible to manufacture your product? What's the price to develop your product? What is the fee to scale from a prototype to quantity manufacturing? How much will it cost per unit to manufacture your product? Ultimately, iTagPro shop certainly one of a very powerful questions you wish to reply is how much will it price to manufacture your product. The manufacturing value goes to determine how much profit you will make and iTagPro bluetooth tracker the way much you may sell it for. Manufacturing price is one thing it's essential to know as early as doable. Unfortunately, many entrepreneurs make the error of first absolutely designing their product for manufacturing. In any case that’s executed, they go back and begin figuring out how much it’s going to price to manufacture. That’s not the way experienced tech corporations do it.
They reply all the large questions earlier than they begin sinking assets into fully creating the product. There is no such thing as a level in spending the entire time to try to develop a brand new product if it isn’t feasible to manufacture, or prices too much to manufacture. A preliminary production design gives you all of the knowledge needed to precisely estimate the manufacturing value for a new product earlier than the product has been absolutely developed. It also provides you early perception into the manufacturing feasibility of your product. By starting with a preliminary production design it permits you to more precisely estimate all of your prices, create a more correct timeline of milestones, and be able to better determine the manufacturing feasibility of the product. Ultimately, it permits you to develop a greater product that is more seemingly to be successful. The first step in creating a preliminary production design is to design the system level block diagram. Our hypothetical product includes 4 primary capabilities: Bluetooth Low-Energy microcontroller, GPS, an accelerometer, and energy administration.
Figure 1 - System block diagram for a hypothetical BLE GPS tracking device. The core of the product will likely be a Bluetooth Low Energy microcontroller. This contains each the Bluetooth Low Energy radio and the microcontroller working your firmware code. Those two capabilities are embedded on a single chip referred to as a System-on-a-Chip (SoC). However, I all the time advocate that you simply start off utilizing a pre-certified module solution, as a substitute of a chip-based answer, for any wireless functionality, like Bluetooth Low Energy. This module will nonetheless be primarily based on a BLE SoC nevertheless it can even embrace the antenna. There are two the explanation why you need to begin with a module. First, the use of a module drastically reduces your FCC certification value. That may prevent about $10,000 to certify your product. The second motive is that modules will simplify the design course of. Wireless functionality tends to be exhausting to design correctly. In actual fact, very seemingly, it will require several iterations to get things just right.
Using a module reduces your time to market which is always vital. Even large tech corporations start off utilizing a module to allow them to get their product to market quicker. If you scale as much as producing 100,000 units or extra, iTagPro key finder then it may be an excellent time to modify to a custom chip design to maximize your revenue margin. The other massive piece involved with this product is GPS (Global Positioning System) which communicates with the BLE microcontroller via a UART serial interface. As with BLE, we’re going to additionally use a module answer for GPS. The first purpose for utilizing a GPS module is a bit different, however. GPS is a obtain-only know-how. You’re not intentionally transmitting radio waves outside of your product. This is in contrast to Bluetooth Low Energy, the place you are clearly receiving and transmitting knowledge. The FCC is primarily involved within the electromagnetic vitality a product radiates (transmits), not what a product receives.