Framework RK-10v1.0July 2026Executive Brief
Cost Engineering Decomposition Model
BOM is 60% of landed cost. Decompose it into 12 cost drivers, then optimize each. The gap between best and worst OEM is 22%.
Updated July 2026 · 5 Figures · For B2B Buyers & OEM Partners
Figure 1: 12-driver cost decomposition — BOM is 60% of landed cost; each driver has a leverage range.
Figure 2: Cost waterfall from cell to retail. Where margin is created and where it leaks.
Figure 3: OEM cost benchmark — best vs. worst OEM across 12 drivers. The gap is 22% of total BOM.
Figure 4: Six cost engineering rules — from cell grade selection to tooling amortization strategy.
Figure 5: Mid-range 10000mAh — redesign saved $1.85/unit (13%) through cell regrading + connector simplification + PCB optimization.
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References
• McKinsey & Company — Consumer Electronics Cost Optimization Framework (2024)
• BloombergNEF — Lithium-Ion Battery Price Survey (2024)
• IPC — Electronics Manufacturing Cost Standards (2023)
• Supply Chain Management Review — BOM Cost Decomposition Methodology (2023)
