Cost of Debug and Failure Analysis (FA) for integrated circuits continues to be an increasing challenge for lab managers and senior technologists, especially for highly integrated devices on leading edge state-of-the-art process technologies. The establishment, operation, and management of a Debug and/or FA Lab require proper perspectives and approaches to maximize the positive impact and cost-effectiveness of the Lab to the product life cycle of the business organization. A holistic approach to the true costs of Debug and FA, the various aspects of Debug/FA Lab operations and business management requirements will be presented.