Implementation of RFID in a Low Volume High Flexibility Assembly Plant: Process Redesign

This thesis focuses on the operational improvements in a semiconductor equipment manufacturing company (Varian Semiconductor Equipment Associates). The company faces challenges of highly fluctuating demand as well as complex and highly customized assembly, which lead to problems such as lead time control and components tracking at multiple manufacturing stages. The goal of the project is to propose an efficient assembly system with the ability of parts checking and tracking. Radio Frequency Identity (RFID) technology is introduced as the core method to treat the problems, in such a way that RFID tagged parts can be sensed automatically by antennas and identified by the system. In order to implement the system and maximize the benefits, redesign of the manufacturing process is proposed and discussed as the main results of this thesis. To achieve the goal, the current operations are carefully captured and analyzed; the RFID technology is briefly described as the basis of designing new procedures; the lean principles are introduced to refine the processes; and the simulation is applied to evaluate the changes between the old system and the new system. The solutions include three phases: 1) RFID for miscellaneous parts checking, 2) RFID for module parts tracking, 3) RFID for parts tracking in the flow line, respectively corresponding to the three problems: 1) Inefficient operation of miscellaneous parts, 2) fraudulent claims and warranty costs, and 3) deficient tracking ability. The analysis of benefits and the simulation results suggests a potential reduction of costs. A new material flow map and new procedures of certain stages are proposed. Finally, the two pilots are developed as stepping stones to formal implementation of the RFID system in VSEA. Thesis Supervisor: David E. Hardt Title: Ralph E. and Eloise F. Cross Professor of Mechanical Engineering