Notes on:

Calculating semiconductor cost of ownership
Denton

"Calculating semiconductor cost of ownership", Donald Denton, SAE paper 870057. Automotive Electronics Reliability SP-696, SAE Warrendale PA, 1987, pp. 61-67.

This paper presents a model for the total cost of using an IC from purchase to warranty costs. (It does not cover "overhead" costs associated with vendor selection and qualification, nor costs beyond the warranty period.) While times have changed since 1987 and incoming electronics components tend to be much more reliable, it is still useful to give a summary of issues for manufacturing operations.


Topic coverage: (*** = emphasized; ** = discussed with some detail; * = mention)

** Dependability *** Electronic Hardware Requirements
Safety Software * Design
Security Electro-Mechanical Hardware *** Manufacturing
Scalability Control Algorithms * Deployment
Latency Humans * Logistics
*** Affordability Society/Institutions Retirement

Abstract:

"The cost of ownership concept has been around for a long time and while most people have some understanding of what it means, it is only recently in the semiconductor industry that the concept has been formalized so the cost of ownership can be calculated and used for decision making. (1) Because there are few cost of ownership models available today to help buyers make cost effective decisions on ICs, many buyers are purchasing ICs based primarily on cost. The purpose of this paper is to review a model which will allow automotive IC buyers to make cost effective decisions on ICs relative to incoming inspection, ship-to-stock, JIT, and component burn-in."


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Philip Koopman: koopman@cmu.edu