Analyzing component manufacturing costs using the SEMI-E35 standard for cost of ownership (COO)

Sid Ragona

doi:10.1117/12.2283979

29 August 2017 Analyzing component manufacturing costs using the SEMI-E35 standard for cost of ownership (COO)

Sid Ragona

Proceedings Volume 10313, Opto-Canada: SPIE Regional Meeting on Optoelectronics, Photonics, and Imaging; 1031353 (2017) https://doi.org/10.1117/12.2283979
Event: Opto-Canada: SPIE Regional Meeting on Optoelectronics, Photonics, and Imaging, 2002, Ottawa, Ontario, Canada

Abstract

To determine the full cost of purchasing and operating manufacturing equipment and its potential return on investment (ROI) component manufacturers are being forced to look beyond the initial purchase price of the equipment. The cost of operating and maintaining the equipment over its lifetime often exceeds the original purchase price by several times. In order to determine the real costs associated with the purchase of assembly equipment one needs to take into account such things as throughput rate, yield, reoccurring costs such as labor and maintenance costs as well as determine the utilization of the equipment. In order for optical component manufacturers to be able to lower their manufacturing costs they first need standardized methods for analyzing the cost breakdown of the manufacturing process into finite elements that contribute to the cost per manufactured part. One widely accepted method of performing this type of analysis is to use the principles of the SEMI E35 standard for determining the Cost of Ownership (COO). In its simplest form COO determines the total capital outlay over the life of the equipment divided by the number of good parts produced as depicted in formulas below:

Citation Download Citation

Sid Ragona "Analyzing component manufacturing costs using the SEMI-E35 standard for cost of ownership (COO)", Proc. SPIE 10313, Opto-Canada: SPIE Regional Meeting on Optoelectronics, Photonics, and Imaging, 1031353 (29 August 2017); https://doi.org/10.1117/12.2283979

ACCESS THE FULL ARTICLE

INSTITUTIONAL
Select your institution to access the SPIE Digital Library.

SELECT YOUR INSTITUTION

PERSONAL
Sign in with your SPIE account to access your personal subscriptions or to use specific features such as save to my library, sign up for alerts, save searches, etc.

PERSONAL SIGN IN

No SPIE Account? Create one

PURCHASE THIS CONTENT

SUBSCRIBE TO DIGITAL LIBRARY

50 downloads per 1-year subscription

Members: $195

Non-members: $335 ADD TO CART

25 downloads per 1 - year subscription

Members: $145

Non-members: $250 ADD TO CART

PURCHASE SINGLE ARTICLE

Includes PDF, HTML & Video, when available