Cost of Ownership - Practices, benefits and perspectives of a strategic cost modeling method coordinating organizations
In 2007, Miller and O’Leary examined how mediating instruments link a multitude of companies and agencies to foster the development of future technology within the microprocessor industry. The availability of a cost of ownership tool was seen as highly significant for building sufficient confidence among these actors that new technology will meet key benchmarks. As a result, capital spending decisions were framed and investments made by various actors aligned ensuring the making of future markets. Miller and O’Leary discuss the role of cost of ownership in the case of post-optical lithography, however little is mentioned about how actual calculations are being conducted. In order to clarify how cost of ownership facilitates coordination and thereby acts as a mediating instrument, current practices are discussed in this thesis by first examining the theoretical background and then by demonstrating calculations using real world values. While doing so, the cost of ownership standard guideline SEMI E35 has been identified as the key to a precise understanding of the practices, benefits, and the mediation mechanism of cost of ownership. The standard is therefore presented and applied, which is then followed by an examination of the benefits and limitations. Due to its acceptance and success throughout the semiconductor industry, cost of ownership especially in combination with the standard guideline and software, is a very relevant example for other industries. Hence, applications of cost of ownership outside of the semiconductor industry are presented, key industry characteristics favoring a beneficial implementation are analyzed and the potential of the standard SEMI E35 is assessed.