16 September 1994 Implementation of activity-based costing (ABC) to drive cost reduction efforts in a semiconductor manufacturing operation
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Abstract
This paper presents a case study on the implementation of ABC to calculate the cost per wafer and to drive cost reduction efforts for a new IC product line. The cost reduction activities were conducted through the efforts of 11 cross-functional teams which included members of the finance, purchasing, technology development, process engineering, equipment engineering, production control, and facility groups. The activities of these cross functional teams were coordinated by a cost council. It will be shown that these activities have resulted in a 57% reduction in the wafer manufacturing cost of the new product line. Factors contributed to successful implementation of an ABC management system are discussed.
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Hussein Naguib, Igor I. Bol, J. Lora, R. Chowdhry, "Implementation of activity-based costing (ABC) to drive cost reduction efforts in a semiconductor manufacturing operation", Proc. SPIE 2336, Manufacturing Process Control for Microelectronic Devices and Circuits, (16 September 1994); doi: 10.1117/12.186788; https://doi.org/10.1117/12.186788
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