Modeling the Total Cost of Ownership (TCO) of an Automated Test System


Defining a test strategy is critical to reducing cost and maximizing the efficiency of your product development and manufacturing organizations. Gain best practices from the Fundamentals of Building a Test System guides to understand the recommended process for building test systems from start to finish. Ensure you have the fundamentals to build a smarter test system that is built to address your needs today and in the future.


Most organizations do not consider production test a top priority, but it is a necessity to prevent major quality issues in the products that represent the company brand in the hands of customers. The costs, however, can be significant and are often greatly misunderstood, especially when there’s no easy way to quantify the positive business impact of high-quality products or shortened time to market. But best-in-class organizations are unfazed by this “necessary evil” viewpoint, because they seek to understand the total cost of developing, deploying, and maintaining test systems to get ahead of this perception. And the cost of automated test, in reality, is far more complex than the capital cost of a test rack or even the operator’s hourly rate.

In this guide, learn about the tools and insight you need to evaluate your test organization, propose changes where significant cost savings are available, and improve the profitability of your company year over year with smarter investment decisions.


Topics Covered

  • Financial Approaches: Payback Period, Return on Investment (ROI)
  • Development Costs: Planning Effort, Developer Training, Development Tools, Development Effort, Development System
  • Deployment Costs: Capital Equipment, System Assembly, Software Deployment, Shipping and Logistics
  • Operation and Maintenance: Hourly Operation, Operator Training, Maintenance, Spare Inventory, Installation, Utilities
  • Production Test competitive analysis and TCO calculation