Assembly Lead Time Reduction in a Semiconductor Capital Equipment Plant through Improved Material

Manufacturing operations were studied at a semiconductor capital equipment manufacturing plant, with an aim to reduce the production time of their longest lead time module. Preliminary analysis was done by observing the assembly and test operations on the production floor, and material handling operations at the warehouse. Detailed time studies were then performed on the assembly and test processes, to establish baseline measurements and to gather in-depth information on the value added and non-value added activities. It was found that 18% of the assembly activities were non-value added activities, 28% of which were related to material handling on the production floor. Based on the analysis a new kit design and kitting process were developed, which enabled parts to arrive from the warehouse in kits specific to each assembly procedure performed on the module. A method of indicating shortages was also proposed. The new design and process also facilitated Just-in-Time ordering and arrival of parts. The new kitting process was piloted, and based on two trial runs it was found that it reduced material handling time on the production floor by 70% and overall time spent on non-value added assembly operations was reduced by 20%. Thesis Supervisor: Stephen C. Graves Abraham Siegel Professor of Management Sciences 3 This page left blank intentionally.