DocumentCode :
1653581
Title :
The application of activity-based costing (ABC) to drive cost reduction efforts for a new IC product line
Author :
Naguib, H. ; Bol, I. ; Lora, J. ; Chowdhry, R.
Author_Institution :
Microelectron. Center, Xerox Corp., El Segundo, CA, USA
fYear :
1994
Firstpage :
185
Abstract :
Summary from only given. Activity-Based Costing (ABC) is a process which enables the assignment of costs to products based upon the use of resources in the creation or manufacture of the product. This paper presents a case study on the application of ABC to calculate the cost per wafer and to drive cost reduction efforts for a new IC product line. The study was performed in six phases: forming the ABC team; developing the ABC model; costing the product line; planning cost reduction efforts; implementing cost reduction; and evaluating results. The ABC management team efforts resulted in significant reduction in the manufacturing costs of the new product line. In addition, the ABC model demonstrated the sensitivity of the cost per wafer to such parameters as composite yield, production volume, utilization rate of existing equipment, and the cost of purchasing of new equipment
Keywords :
costing; IC product line; activity-based costing; composite yield; cost per wafer; cost reduction; equipment purchasing cost; equipment utilization rate; management team; manufacturing costs; production volume; Application specific integrated circuits; Chemical technology; Conducting materials; Costing; Costs; Finance; Manufacturing processes; Microelectronics; Production control; Semiconductor device modeling;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Advanced Semiconductor Manufacturing Conference and Workshop. 1994 IEEE/SEMI
Conference_Location :
Cambridge, MA
Print_ISBN :
0-7803-2053-0
Type :
conf
DOI :
10.1109/ASMC.1994.588240
Filename :
588240
Link To Document :
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