29 August 2017 Analyzing component manufacturing costs using the SEMI-E35 standard for cost of ownership (COO)
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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:
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Sid Ragona, 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); doi: 10.1117/12.2283979; https://doi.org/10.1117/12.2283979
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