This article outlines a method for developing a quality-based cost mod
el for the design of new electronic systems and products. The model in
corporates a methodology for determining a cost-effective design margi
n allocation for electronic products and systems and its impact on man
ufacturing qualify and cost. A spreadsheet-based cost estimating tool
was developed to help implement this methodology in order for the syst
em design engineers to quickly estimate the effect of design decisions
and tradeoffs an the quality and cost of new products. The tool was d
eveloped with automatic spreadsheet connectivity to current process ca
pability and with provisions to consider the impact of capital equipme
nt and tooling purchases to reduce the product cost.