NDLI: Cost of yield

Content Provider	IEEE Xplore Digital Library
Author	Maynard, D.N. Kerr, D.S. Whiteside, C.
Copyright Year	2003
Description	Author affiliation: IBM Microeletronics Div., Essex Junction, VT, USA (Maynard, D.N.; Kerr, D.S.; Whiteside, C.)
Abstract	Every semiconductor manufacturer carefully manages fixed and variable costs to achieve profitability. Usually this is well defined in terms of facilities, equipment, labor, and materials, and for the high volume single product producer, the story is complete. Allocating a factory's capacity across several or many products quickly complicates the picture, and the engineering staff is forced to prioritize issues across product subsets. Cost of yield (COY) is a measure of the additional dollars debited (credited) to production expenses when the aggregate productivity falls below (exceeds) the business plan. It provides a way to understand the economic impact of yield variation from the plan weighted by the costs and volumes of each product. COY has been calculated at IBM Microelectronics since 1995 when the division moved to a "Standard Cost" accounting system, and it continues to be an important business management tool. The management staff interprets COY data to validate resource allocations and insure the deployment of the correct activities that cover the products with the largest COY variances. In fact, COY can be subdivided by a number of dimensions, and the implications of these analysis reaches beyond the realm of accounting. A manufacturer develops the cost targets during its planning cycle by projecting productivities (and yield). Measuring COY validates and audits the planning process, and large COY variances trigger profit motivation questions. Moreover, the manufacturer can make an informed decision as to when to scrap degraded hardware. This paper discusses the mechanics of the COY calculation and illustrates the concepts with analysis examples. Suggested integration into and investigation by the manufacturing engineering community are shown. Gaining a true understanding of how specific decisions affect yield in terms of actual dollars forces the design community to be accountable for conscience yield-limiting decisions, and provides the right benefit measure of some design-for-manufacturing initiatives. Finally, the senior business decision makers can assemble an enterprise-level COY perspective to guide future investment and actions.
Sponsorship	IEEE Comput. Soc.
Starting Page	165
Ending Page	170
File Size	340999
Page Count	6
File Format	PDF
ISBN	0780376811
ISSN	10788743
DOI	10.1109/ASMC.2003.1194488
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2003-03-31
Publisher Place	Germany
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Manufacturing Productivity Semiconductor device manufacture Profitability Semiconductor materials Production Aggregates Microelectronics Cost accounting Resource management
Content Type	Text
Resource Type	Article
Subject	Industrial and Manufacturing Engineering Electrical and Electronic Engineering Electronic, Optical and Magnetic Materials

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Libarray of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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