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Comment by Sinergy2

I can give the automotive electronics perspective here. Suppose that resistor costs 2c, including the actual part cost, PCB space, pick-and-place machine time (inc. more frequent spool replacement). Further suppose you expect to sell one million of this device.

$0.02 x 1E6 = $20k

If you are the circuit designer making, say, $150k, you just justified about a month of your salary (after accounting for benefits and other overhead). Your manager may parade you in front of the team at the next big group meeting as an example of how to achieve the BOM efficiency the company need to hit profit margin targets.

parent Sinergy2 7 years ago

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