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Proceedings Paper

Analyzing component manufacturing costs using the SEMI-E35 standard for cost of ownership (COO)
Author(s): Sid Ragona
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Paper 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:

Paper Details

Date Published: 29 August 2017
PDF: 3 pages
Proc. SPIE 10313, Opto-Canada: SPIE Regional Meeting on Optoelectronics, Photonics, and Imaging, 1031353 (29 August 2017); doi: 10.1117/12.2283979
Show Author Affiliations
Sid Ragona, Burleigh Instruments (United States)

Published in SPIE Proceedings Vol. 10313:
Opto-Canada: SPIE Regional Meeting on Optoelectronics, Photonics, and Imaging
John C. Armitage, Editor(s)

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