Establishing workload standards and plant capacity of semiconductor factory 3 (SMC 3) operations, NXP semiconductors Philippines Incorporated, Cabuyao, Laguna.

Date

2009

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Abstract

The study was conducted at the Semiconductor Factory 3 (SMC 3) operations of NXP Semiconductors plant in Cabuyao, Laguna. SMC 3 manufactures devices in high volume (in million units per day) and are usually processed on batch basis. The production schedule is based on the approved Midterm Plan (MTP) which serves as the forecasted demand of the year. Demand for 2009 was projected to be lower compared to the demands of the previous years an MTP of 5 million units per day was forecasted. Since the current capacity of the system was designed to operate based from MTP of 6.4 million units per day, new capacity calculations must be done for the new MTP to determine the actual resources needed in the production line. In order to come up with accurate capacity calculations, the standard workload of each operation is to be established. However, due to high workloads of Industrial Engineers, the standard time of each operation was not updated. This study was conducted to address the problems of SMC 3 operations. The study was focused on establishing workload standards and capacity per day of each operation and designing the capacity of the system based on the MTP of 5M units per day. Time studies were conducted on all operations. Each operation was broken down into job elements and the traditional stop watch method was used to determine the elemental time of each operation. Initial sample size for each operation was taken and the required sample size was identified. Additional time studies were conducted on operations requiring more sample sizes compared to the initial one. The standard time of each operation was computed based from the gathered elemental time of each operation. The allowances used were given by the company. The standard units per hour (UPH) was established based from the computed standard time. The net units per hour (UPH) of each operation was computed based on the organizational efficiency, technical efficiency and yield specified by the company and the computed standard UPH. The net UPH, together with machine quantity and available working hours, was used to compute for the capacity per day of each operation. The established capacity per day of each operation was analyzed and compared to the Midterm Plan MTP) of 5 million units per day. The results of analysis showed that the current system has an average utilization of 55.2%. This implied that the system can produce approximately twice of MTP. Resources were not fully utilized and wastes from excess resources were high. Three alternatives were formulated to solve the problem of underutilization. Alternative 1 suggested that the optimal machine requirement for each operation should be identified and the operators should be working on a Four gGroup Shift (4GS). Alternative 2 proposed that the operators should be working on a five-day per week period. Alternative 3 recommended that the optimal machine requirement should be identified and 4GS should be implemented in the frontline operations while Three Group Shift (3GS) should be implemented in the backend operations. The alternatives were evaluated using savings analysis and factor rating method. The results of factor rating method showed that the best alternative to choose is alternative 1. If this system will be adapted, the utilization of the system will increase from 55.2% to 80.6%. The system will be more utilized and some of the unnecessary resources will be removed from the system. The operators as well as the machines will be more productive. The company will have an annual savings of Php12,930,855.00 from this alternative.

Language

English

Location

UPLB College of Engineering and Agro-Industrial Technology (CEAT)

Call Number

LG 993 2009 E66 D53

Document Type

Thesis

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