Bioprocess economics · worked method
Calculation boundary
Annual good product = released batches × conforming product per released batch. Keep scheduled batches separate. A schedule can look fully utilized while failures, rework, holds or yield loss reduce the denominator that actually carries annual cost.
Declare the cost boundary before comparing scenarios: raw materials, consumables, labor, utilities, waste, facility and depreciation, quality and overhead. Keep financing, tax, selling expense and development cost outside unless the named decision requires them.
COGS = total annual manufacturing cost ÷ annual released good product. Use one currency year, one production horizon and one product-quality boundary. Never mix a steady-state numerator with a ramp-up denominator.
Synthetic worked example
Decision review
Yield, cycle time, consumables, utilities, labor and release success are rarely independent. A higher-titer process may shorten campaigns but increase downstream load; a faster schedule may raise changeover demand or queue risk.
Explain whether annual output is limited by demand, batch duration, shared equipment, room occupancy, labor, utility peaks, maintenance or quality release. Utilization alone does not identify the bottleneck.
Report low, base and high values with sources, owners and validity ranges. Use scenario analysis for correlated changes and sensitivity analysis for individual drivers. Reserve probabilistic claims for distributions that have evidence.
Frequently asked questions
Use product that meets the quality and release boundary named by the decision. Keep scheduled batches, successful batches, released batches and saleable product separate so failures and yield loss remain visible.
No. Manufacturing COGS excludes any costs outside the declared boundary and does not establish price, demand, tax, financing, development cost or return. Profitability requires a wider cash-flow model.