Cost-of-ownership (COO) analysis has started to gain acceptance in the
semiconductor industry as a tool for evaluating potential cost and be
nefit tradeoffs of purchased equipment. However, use of the technique
has so far been optimized for traditional high-volume wafer fabs. Furt
hermore, standard COO analysis models are usually applied to a single
process step (i.e., to alternatives for one piece of equipment). This
article examines the impact of flexible manufacturing on analyses that
use current COO models. Also, the author explores possible extensions
of COO analysis to better address costs and benefits in a flexible ma
nufacturing environment, which allows fast cycle times and extensive e
quipment reuse and includes powerful computer-integrated manufacturing
capabilities.