Implementation of activity-based costing (ABC) to drive cost reduction efforts in a semiconductor manufacturing operation

Hussein Naguib; Igor I. Bol; J. Lora; R. Chowdhry

doi:10.1117/12.186788

16 September 1994 Implementation of activity-based costing (ABC) to drive cost reduction efforts in a semiconductor manufacturing operation

Hussein Naguib, Igor I. Bol, J. Lora, R. Chowdhry

Author Affiliations +

Proceedings Volume 2336, Manufacturing Process Control for Microelectronic Devices and Circuits; (1994) https://doi.org/10.1117/12.186788
Event: Microelectronic Manufacturing, 1994, Austin, TX, United States

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.

Citation Download Citation

Hussein Naguib, Igor I. Bol, J. Lora, and 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); https://doi.org/10.1117/12.186788

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