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SEC/N Thoughts

Gary Alexander, President, SEC/N -- Semiconductor International, 6/1/2001

One of the objectives of SEC/N is to develop criteria and establish standards in support of the used- equipment industry. Shortly after SEC/N's founding in 1998, the SEC/N Equipment Condition Index (ECI) was created to provide the industry with a standardized way of classifying the possible conditions of used-equipment status. That 21-category index has served the industry well over the past three years and has been adopted by companies and e-commerce sites throughout the world.

As often happens with a new concept or tool, experience and evolutionary advances in the marketplace necessitate modifications and enhancements. Revision #1 of SEC/N's ECI was adopted by the member companies in February and is now available and recommended for use by all companies, regardless of their affiliation with SEC/N.

Revision #1 features a comprehensive list of possible equipment conditions, directly linked to an alpha-numeric-alpha three-place code similar to the one used with the original ECI. Used much like one would in "peeling an onion," the user systematically works through various options, easily constructing a word picture and three-digit code that accurately depicts the condition of the equipment in question. Revision #1 also includes a glossary of relative terms to assist the user in making the proper selection.

The major categories of the revised ECI are:

  • A — New from OEM/never been installed
  • B — Operational/remanufactured
  • C — Operation/refurbished
  • D — Operational/installed (as is/where is)
  • E — Operational/not installed (as is/where is)
  • F — Operational status unknown (as is/where is)
  • G — Not operational/installed (as is/where is)
  • H — Not operational/not installed
  • J — System not definable based on above categories

Collectively, with their subcategories, these categories encompass the most significant conditions currently being used to describe the condition of all types of used equipment. For some users, such as managers wanting to classify surplus equipment within their operations, these nine categories may be sufficient. However, most buyers and sellers will need to "peel the onion" further for the purpose of a potential transaction. Other subcategories include "Warranty," "Documentation," "Demonstration Available" and "Decommissioned/Crated/Stored" (Table).

Equipment Condition Index (ECI)
Decommissioned/Crated/Stored
•To OEM Specifications: System de-installed to specifications as defined by the OEM.
•To 3rd Party/Owner Specifications: System de-installed to specifications other than those specified by the OEM.
Demonstration Available
•Customer: Customer may observe firsthand the demonstration of the equipment.
•3rd Party: Customer may not observe demonstration but a 3rd party may observe the demonstration of equipment.
Documentation: Complete set of manuals and schematics necessary to operate and maintain the system.
Installed: System connected to utilities needed to operate.
Not Operational — Major: Missing components key to the operation of the system.
Not Operational — Minor: Missing components not necessarily key to the operation of the system.
OEM Specification: Systems specifications at the time of original purchase.
Operational: System fully functional to intended purpose.
Refurbished: System has been restored to operational status using some of the original components, and reconfigured to customer requirements.
Remanufactured: System is operational/completely rebuilt using all new OEM specified components, and reconfigured to customer requirements.
Warranty: Existing OEM, remanufacturer, and/or seller warranty applicable.
Note: These terms assume the equipment has been decontaminated to OEM specifications prior to shipment.

Example

Let's assume that "Company A" remanufactures equipment and has an etch system that has been remanufactured and is available for sale. It is operational, being offered with a warranty and full documentation, and can be demonstrated to the customer directly. The corresponding ECI would be B 1 a:

  • B— Operational/remanufactured
  • 1— Available with warranty and documentation
  • a — Demonstration available to the customer

SEC/N's Equipment Condition Index is not copyrighted and is available for international use. For a complete copy of the ECI, visit www.secninc.com, or contact SEC/N at email@secninc.com .

Contact Gary Alexander at galexander@secninc.com and visit SEC/N's Web site at www.secninc.com .


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