Techniques for effective product costing in an IC manufacturing facility

Operation costing is shown to be a useful method for accurately allocating product costs in a fair manner. Manufacturing complexities such as shared facilities, dynamic product routings, and complex batching/dispatching rules, which often plague traditional costing techniques and result in erroneous information, may be handled in a straightforward manner. The technique allocates all costs based on actual resource utilization, thus accurately capturing the impact of product mix on final product cost. The technique is robust in its application: that is, it may be adopted for both a cost measurement system and a cost planning/evaluation system.<>