- Initial fixed costs involved in purchasing the equipment such as purchase price, cost of installation and initial training, system qualification, and any movement of the equipment in the factory.
- Fully burdened labor cost.
- All recurring costs associated with the equipment over its lifetime. This includes such things as consumables, maintenance, utilities, floor rent, and specialized support personnel.
- The yield cost associated with the equipment’s mishandling of the devices. The cost of lost yield due to the equipment is the product of the probability that the device will be damaged by the equipment in question multiplied by the cost of the device at that processing step.
- L is the entire lifetime of the equipment.
- T is the throughput rate – parts or units per hour (UPH).
- Y is composite yield or the number of good units produced.
- U is equipment utilization.
