Digital Testing

Department of Computer Engineering, Iran University of

Science & Technology

Instructor: Ahmad Patooghy (patooghy@iust.ac.ir)

Lecture 3: Test Economics

Adapted from slides prepared by professors Bushnell & Agrawal

Outlines

Economics defined
Costs
Production Economics
Economics of design-for-testability (DFT)
Quality and yield loss
Summary

Engineering Economics
Engineering Economics is the study of how engineers
choose to optimize their designs and construction methods
to produce objects and systems that will optimize their
efficiency, and hence, the satisfaction of their clients.

Types of Cost

Fixed cost: costs that dont change with use.

Variable cost: increase with the production output.
Total cost: sum of the above two costs.
Average cost: total cost/number of units produced.

Example: Costs of running a car

Fixed cost

$25,000

Purchase price of car

Variable cost

20 cents/mile

Gasoline,

Total cost

$25,000 + 0.2x

Maintenance, repairs
for traveling x miles
4

Average cost

25,000
$ ----------- + 0.2
x

Total cost / x

Simple Cost Analysis

Case 1: 10,000 miles/yr, $12,500 resale value after 5 years
25,000 - 12,500
Average cost = $ ------------------------- + 0.2 = 45 cents/mile
50,000
Case 2: 10,000 miles/yr, $6,250 resale value after 10 years

25,000 - 6,250
Average cost = $ ----------------------- + 0.2 = 38.75 cents/mile
100,000
Case 3: 10,000 miles/yr, $0 resale value after 20 years
25,000 - 0
Average cost = $ ------------------ + 0.2 = 32.5 cents/mile
200,000

Cost Analysis Graph

Fixed, Total and Variable
Costs ($)

Fixed cost

25,000
20,000

50

Average cost
Ideal

0
0

50k

100k
Miles Driven

150k

0
200k

Average Cost (cents)

100

40,000

Production
Production inputs: Labor, land, capital, enterprise, energy
Production variable cost = x, fixed cost = 0
Production output, Q = f (x)
Average product = product per unit of input = Q / x
Average product AKA Technological Efficiency
Marginal product, dQ / dx (amount of change in Q by a fixed
change in x)
Total Average cost, X / Q
Engineers like to maximize Technological Efficiency

Law of Diminishing Returns

If one input of production is increased keeping inputs constant,
then the output may increase, eventually reaching a point
beyond which increasing the inputs will cause progressively less
increase in output.

Technological Efficiency
Technological efficiency = Q/x
where x = variable cost
To maximize tech. Efficiency:

Tech. Eff.

d Q
= 0;
dx x
1.0

1 dQ
Q
= 0
x dx
x2

Q
dQ
or
=
x
dx
Max. tech. efficiency
Q/x

0.5
dQ/dx
0.0

Input Resources, x

Technological efficiency matters when it is not possible to increase output

without increasing inputs

Economic Efficiency
Maximum economic efficiency minimizes the total average
cost X /Q, where X is the total (fixed + variable) cost.
economic efficiency : when the cost of producing a given
output is as low as possible.

Maximum economic efficiency is achieved when total average

cost equals the marginal cost,
X /Q = dX /dQ.
For average cost = marginal cost

Take variable cost to maximize technological

efficiency
Take total cost to maximize economic efficiency

10

Maximum Efficiencies

Something that is technologically efficient may not be economically

efficient. But something that is economically efficient is always
technologically efficient.

11

Benefit-Cost Analysis
Benefits: Savings in manufacturing costs (capital and
operational) and time, reduced wastage, automation, etc.
Benefit/cost ratio

Annual benefits
B/C ratio = > 1
Annual costs
12

A PCB Repair Shop

Average cost of repair = $350, includes
Cost of diagnostic test
Cost of replacement chip
Cost of assembly and test

= $300
= $ 10
= $ 40

Failure data for 100 chips on PCB

Shops repair log 95% of failed boards have a burnout
failure of one of two specific chips

13

PCB Repair Strategies

Faulty PCB

Faulty PCB

Apply diagnostic
Test
Cost = $300

Replace chips
A and B and test
Cost = $60

Replace faulty
Chip and test
Cost = $50

PCB passes
Test?

Repair completed
Av. Cost = $350

Strategy 1

Strategy 2

Apply diagnostic
Test
Prob=0.05 Cost = $300
No

Yes Prob=0.95
Repair completed
Av. Cost = $77.50

Replace faulty
Chip and test
Cost = $50

14

Economics of Design for

Testability (DFT)
Combination of verification and manufacturing testing is the
major capital cost of system companies (50-60%).
DFT reduces yield due to area overhead, impacts the costs
at board and system levels
Might be cheaper than providing testing using ATE
(considering life-cycle cost).
DFT provides the capability of at-speed testing.

15

Benefits and Costs of DFT

16

Summary
Economics teaches us how to make the right trade-offs.
It combines common sense, experience and mathematical
methods.
The overall benefit/cost ratio for design, test and manufacturing
should be maximized; one should select the most economic
design over the cheapest design.
A DFT or test method should be selected to improve the product
quality with minimal increase in cost due to area overhead and
yield loss.
17