Customer Story: US Based Semiconductor Fabricator

There is a vast and complex range of costing activities semiconductor fabrication organizations require for effective cost calculations. The company, one of the oldest in the US, needed a consistent methodology to calculate standard and actual costs to support all of their facilities and worked in concert with their existing business application environment.

They required deep cost insights into costs at the work-in-process (WIP), subassembly and finished goods level in an effort to produce meaningful variances and drive both tactical and strategic decisions. ImpactECS connects and centralizes data from different parts of the company to establish an integrated costing solution that links both front and backend fabrication operations.

Company Category
Semiconductor Fabrication

Annual Revenue
$1.4 Billion US

Year Founded
1957

Headquarters
United States

Technology
Peoplesoft ERP, Workstream MES

Benefits of ImpactECS

By selecting ImpactECS, the company moved from a reactionary to proactive approach to costing and profitability by creating exposure to the true costs of manufacturing their products. With ImpactECS, the team gained access to:

  • Detailed actual costing using ABC methodology to get accurate, granular product costs for each unique SKU
  • Alignment of costing rules for six different fabrication plants to drive consistency
  • Product line profit & loss statements based on actual unit costs
  • Developed standard machine hour rates for each product
  • Improved allocation process to trace spending from MED to product P&L
  • Increased visibility into cost drivers through process cost drill-down into direct spending line items

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