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Activity Based Cost Planning ‚?? Modeling Fab Refurbishment and Greenfield Facilities

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D. N. LAUBEN, Wright Williams & Kelly, Albuquerque, NM, USA
F. M. TRAYLOR, Wright Williams & Kelly, Austin, TX, USA


The capital investment needed to build the next generation of wafer fabrication facilities has grown well beyond the one billion-dollar mark. The industry is in the process of determining the needs for transitioning to the next generation of semiconductor technology. This could include the transition from 200mm to 300mm or advanced production at 200mm. A decision that many organizations have to consider is whether to upgrade existing facilities or build on new or greenfield sites. The use of decision support tools in making these strategic decisions is essential. This paper describes the issues associated with the fab refurbishment vs. greenfield decision. In addition, the paper describes the usage of activity based cost planning in making a strategic decision. A sample problem was analyzed using Wright Williams & Kelly ’s Factory Commander™ software. The software allows a user to characterize each factory as an economic alternative, and offers an objective method of comparison.
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