Cost Structure

From Open Source Ecology
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Cost structure is the exact cost of product delivery from R&D, materials, production, training, labor, marketing, distribution, sale, and support over the lifetime of a product.

Cost Structure determination during a development phase of a product is iterated rapidlyi and depends on:

  1. Design optimization - for simplicity and modularity as embodied in OSE Specfications
  2. Sourcing strategy
  3. Production tooling
  4. Production tooling
  5. Production labor costs
  6. Distribution development
  7. Level of support