TO IDENTIFY CRITICAL COST AND EFFICIENCY ISSUES FROM ACTUAL PRODUCTION DATA IN A TIMELY MANNER IS ESSENTIAL TO DETERMINING EFFECTIVE SOLUTIONS THAT FACILITATE PRODUCTIVITY AND MINIMIZE MANUFACTURING COSTS. A SIMPLE BUT EFFICIENT PRODUCTION PROCESS CATEGORIZATION SCHEME HAS BEEN DEFINED FOR THE EVALUATION OF PRODUCTION EFFICIENCY AND PRODUCT DESIGN FOR EASE OF ASSEMBLY. USING THIS APPROACH, THE COST DISTRIBUTION ANALYSIS CAN BE EASILY PERFORMED. THE SIGNIFICANCE OF EACH CLASSIFICATION CATEGORY RELATED TO THE PRODUCTION/ASSEMBLY EFFICIENCY IS CLEARLY UNDERSTOOD. THE COMPUTER-AIDED PRODUCTION EVALUATION SOFTWARE (CAPE) WAS DEVELOPED TO SIMPLIFY THE EVALUATION PROCESS. THIS SOFTWARE HAS BEEN USED SUCCESSFULLY TO EVALUATE PRODUCTION AND PRODUCT DESIGN FOR ELECTRONIC INSTRUMENT ASSEMBLY.