Activity Based Cost Modeling
A bottom-up approach to cost
This is the most detailed version of cost modeling available. A process flow is broken down into steps, or activities, and then the cost for every step is accounted for. These costs include:
Material (consumable and permanent)
Being able to see the contribution to each type of cost from every step allows clarity into the cost drivers of the process flow or technology being analyzed.
The graph below shows the first few steps of a die-first fan-out wafer level packaging process. The chart to the right shows how activities can be grouped into categories to effectively compare costs across different technologies. The table to the right is based on a project in which a traditional system-in-package, using a flip chip die and a wire bonded die, was compared to putting those two die in a fan-out package.