Optimizing Operator Cycle Time In A Semiconductor Company.
UNIVERSITI TEKNIKAL MALAYSIA MELAKA
OPTIMIZING OPERATOR CYCLE TIME IN A
SEMICONDUCTOR COMPANY
This report submitted in accordance with requirement of the Universiti Teknikal
Malaysia Melaka (UTeM) for the Bachelor Degree of Manufacturing Engineering
(Manufacturing Management) with Honors
by
CHONG JIA MING
B051110143
911127045183
FACULTY OF MANUFACTURING ENGINEERING
2015
DECLARATION
I hereby, declared this report entitled “Optimizing Operator Cycle Time in a
Semiconductor Company” is the results of my own research except as cited in
references.
Signature
:
…………………………
Author‟s Name
:
Chong Jia Ming
Date
:
26 June 2015
APPROVAL
This report is submitted to the Faculty of Manufacturing Engineering of UTeM
as a partial fulfillment of the requirements for the degree of Bachelor of
Manufacturing Engineering (Manufacturing Management) (Hons.). The member
of the supervisory is as follow:
………………………………
(Project Supervisor)
ABSTRAK
Kecekapan dalam penggunaan sumber dan strategi pembuatan yang baik adalah
penting untuk bersaing dan meningkatkan keuntungan. Keberkesanan penggunaan
masa bagi pekerja dalam melaksanakan sebarang tugasan dapat memberi manfaat
kepada
pengilang.
Projek
penyelidikan
ini
dijalankan
di
sebuah
kilang
semikonduktor yang terletak di negeri Melaka. Pada ketika ini, „non-value added
(NVA) activities‟ yang didapati di operasi „Front of Line‟ telah memberi kesan
kepada masa kitaran pekerja. Kilang tersebut ingin menambahbaikan masa kitaran
pekerja dengan mengurangkan „NVA activities‟. Tujuan projek penyelidikan ini
adalah untuk menambahbaikan masa kitaran pekerja dengan mengurangkan
pembaziran yang disebabkan oleh „NVA activities‟ di bahagian pengeluaran. Projek
ini akan fokus kepada operasi „Front of Line‟ dimana proses tersebut adalah seperti
ikatan mati, ikatan wayar dan „FAV (Auto Vision)‟. Kajian masa dengan
menggunakan jam randik akan digunakan untuk mendapatkan masa pekerja kepada
ketiga-tiga proses dan didapati proses ikatan mati mengambil masa kitaran pekerja
yang paling banyak. „Value added dan NVA activities‟ akan dikenalpasti terhadap
proses ikatan mati dengan menggunakan kaedah Lean dan MUDA. Alat bersesuaian
seperti carta pie, „Ishikawa diagram‟ dan „Pareto Chart‟ akan digunakan untuk
menganalisis „NVA activities‟. Cadangan penambahbaikan akan diberi untuk
membuang dan mengurangkan masa terhadap „NVA activities‟. Kajian terhadap
masa dengan menggunakan jam randik akan diulangi untuk mengukur perubahan
selepas pelaksanaan penambahbaikan yang dijalankan. Daripada keputusan yang
didapati,
masa
kitaran
pekerja
telah
menurun
sebanyak
9.70%
selepas
penambahbaikan. Kini, pekerja ada masa yang berlebihan untuk fokus kepada
aktiviti produktif.
i
ABSTRACT
Proper use of resources and good manufacturing strategy are important to stay
competitive and to increase profit. Effective use of time for direct labors to perform
any type of work will benefit the manufacturer. This study was conducted at a
semiconductor company located at Melaka. At present, non-value added (NVA)
activities in Front of Line operation have significantly lengthen the operator cycle
time. The company wants to reduce the efforts for unnecessary activities and free up
some time to focus on value added activities. The aim of this study is to improve
operator cycle time by minimizing time wastages caused by NVA activities in
production floor. The processes in Front of Line operation are die bonding process,
wire bonding process and FAV (Auto Vision) process. Stopwatch time study were
conducted to obtain the operator cycle times and it was found that die bonding
process contributed to the longest operator cycle time. Value added and NVA
activities were identified for the die bonding process based on Lean philosophy and
MUDA approach. Appropriate tools such as Pie Chart, Ishikawa diagram and Pareto
Chart were used to further analyze the NVA activities. Some suggestions were
proposed to the case company in order to eliminate or reduce the time taken on these
NVA activities. Stopwatch time study was conducted again to evaluate the
effectiveness of the proposed improvement. From the result obtained, operator cycle
time in die bonding process has improved by 9.70% after implementation of the
proposal. Operators are now having extra time to focus on more productive activities.
ii
DEDICATION
This thesis is dedicated to my beloved family and friends.
Thank you for the endless support and love to me.
iii
ACKNOWLEDGMENT
I would like to take this opportunity to express my deepest gratitude and thanks to
my supervisor, Associate Professor Dr Chong Kuan Eng. I am very fortunate to be
blessed with the guidance and encouragement from him. He is willing to share his
knowledge, explain details to me and always keep me on the correct path whenever I
look for him.
I would like to express my utmost gratitude to the case company for providing
opportunity to me to collect some data for my study. They have given me necessary
guidance and arrangement of facilities that make me easier in completing my works.
Special thanks to all the people who helped and encouraged me in completing my
final year project. I am very thankful and grateful that what they did for me. Without
their support, I definitely cannot complete my final year project.
Last but not least, sincere thanks to University Teknikal Malaysia Melaka (UTeM)
and all the lecturers who shared their knowledge to me during my study life. I will
strive to apply the gained knowledge in the best possible way in my working life
after graduation.
iv
TABLE OF CONTENT
Abstrak
i
Abstract
ii
Dedication
iii
Acknowledgment
iv
Table of Content
v
List of Tables
viii
List of Figures
ix
List of Abbreviations, Symbols and Nomenclatures
xi
CHAPTER 1: INTRODUCTION
1
1.1
Background of Study
1
1.2
Background of Case Company
2
1.3
Problem Statement
3
1.4
Objectives
3
1.5
Scope
4
1.6
Benefits to the Case Company
4
1.7
Organization
5
CHAPTER 2: LITERATURE REVIEW
6
2.1
Manufacturing Operation
6
2.1.1
Direct and Indirect Labor
8
2.1.2
Direct and Indirect Material
8
2.1.3
Overhead
8
2.2
Productivity
2.2.1
Types of Productivity Measures
10
2.2.2
Labor Productivity
10
2.2.2.1 Factors to Increase Labor Productivity
11
Efficiency
12
2.2.3
2.3
9
The History of Lean
13
2.3.1
14
Definition of Lean Manufacturing
v
2.3.2
2.3.3
2.3.4
2.4
2.5
2.6
2.3.1.1 Lean Tools and Techniques
16
MUDA (The 7 Wastes)
17
2.3.2.1 Minimizing Wastages Approach
20
Introduction to Kaizen
21
2.3.3.1 Application of Kaizen
22
5S
23
2.3.4.1 Application of 5S
24
Work Study (Motion and Time Study)
25
2.4.1
Work Measurement
26
2.4.1.1 Stopwatch Time Study
27
Statistical Process Control
28
2.5.1
Pareto Chart
29
2.5.2
Cause and Effect Diagram
30
Summary
31
CHAPTER 3: METHODOLOGY
32
3.1
Overview of the Project Planning
32
3.1.1
Identify Problem, Scope and Objectives
35
3.1.2
Literature Review (Secondary Data)
35
3.1.3
Design of Methodology
35
3.1.4
Data Collection (Primary Data)
36
3.1.5
Data Analysis
37
3.1.6
Suggestions and Recommendations
37
3.1.7
Implementation and Evaluation
38
3.1.8
Conclusion
38
3.2
Summary
38
CHAPTER 4: PROCESS DESCRIPTION, DATA COLLECTION AND
ANALYSIS
39
4.1
Production Lot, Magazines and Lead Frame
39
4.2
Software Employed in Front of Line Operation
40
4.3
Front of Line Operation
41
4.3.1
42
Die Bonding
vi
4.3.2
4.3.3
4.4
4.3.1.1 Time Study Spreadsheet for Die Bonding Process
45
Wire Bonding
46
4.3.2.1 Time Study Spreadsheet for Wire Bonding Process
48
Auto Vision (FAV)
49
4.3.3.1 Time Study Spreadsheet for Auto Vision
51
Analysis for Three Processes
52
4.4.1
Data Analysis for Die Bonding Process
53
4.4.1.1 NVA Activities in Die Bonding Process
55
CHAPTER 5: SUGGESTIONS AND IMPLEMENTATION FOR OPERATOR
CYCLE TIME IMPROVEMENT
5.1
61
Suggestions to Reduce NVA activities in Die Bonding Process
61
5.1.1
New Workflow for Clip Buyoff
62
5.1.2
Remove Material Change Checklist
63
5.1.3
Remove x10 Magnification Test
64
5.1.4
Add a New Lot Paper Printing Area
65
5.2
Feedback from Manager in the Case Company
66
5.3
Time Study Spreadsheet for Die Bonding Process (After)
67
5.4
Improvement in Die Bonding Process
68
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
69
6.1
Conclusion
69
6.2
Recommendations for Future Study
70
REFERENCES
71
APPENDICES
A
Gantt chart for FYP 1 and FYP 2
B
Preliminary data collection
C1
Stopwatch time study for die bonding process (before)
C2
Stopwatch time study for wire bonding process
C3
Stopwatch time study for auto vision
C4
Stopwatch time study for die bonding process (after)
vii
LIST OF TABLES
2.1
Lean tools and techniques
16
2.2
Time study techniques
26
2.3
Application of Lean in manufacturing industry
31
4.1
Lot, magazine and lead frame
40
4.2
Software used in Front of Line operation
41
4.3
Operator cycle time per lot in three different processes
52
4.4
VA and NVA activities
55
4.5
NVA activities in operators‟ operation
58
5.1
Feedback from company
66
5.2
Summary of improvement sheet
68
viii
LIST OF FIGURES
2.1
Overview of literature review
7
2.2
Manufacturing operation in the conversion of inputs into output
9
2.3
Types of productivity measures
10
2.4
Traditional and Lean manufacturing improvement
15
2.5
Value added and non-value added
17
2.6
Types of wastes
18
2.7
Seven types of wastes in Lean manufacturing
18
2.8
Work study components
25
2.9
Example of Pareto chart
29
2.10
Example of cause and effect diagram
30
3.1
Flow chart for methodology
34
3.2
Example of time study spreadsheet
36
4.1
Overall flow for die bonding process
44
4.2
Part of collected data in die bonding process
46
4.3
Overall flow for ASM wire bonding process
48
4.4
Part of collected data in wire bonding process
49
4.5
Overall flow for FAV process
50
4.6
Part of collected data in auto vision process
51
4.7
Total operator cycle time (in seconds) for die bonding process
54
4.8
Ishikawa diagram
57
4.9
Pareto chart of NVA activities in die bonding process
60
5.1
Clip buy-off procedure
62
5.2
Before and after for clip buyoff
62
5.3
Material change checklist
63
5.4
Graphic user interface for „SPACE‟ application
64
5.5
Current printer location
65
5.6
Proposed printer location
66
ix
5.7
Part of the collected data in die bonding process (after)
67
x
LIST OF ABBREVIATIONS, SYMBOLS AND
NOMENCLATURES
BE
-
Backend Operation
FAV
-
Front of Line Auto Vision
FE
-
Frontend Operation
FYP 1
-
Final Year Project 1
FYP 2
-
Final Year Project 2
MUDA
-
Wastes
NVA
-
Non Value Added
PC
-
Process Control
SPC
-
Statistical Process Control
VA
-
Value Added
xi
CHAPTER 1
INTRODUCTION
This chapter explains the background of study, background of case company, details
of problem statement, objectives of the study, scope, expected outcome and
organization of the entire report.
1.1
Background of Study
This study is to analyze and optimize operator cycle time based on real case study in
a semiconductor factory located at Malacca. In recent years, manufacturing
industries in Malaysia grow rapidly and play an important role in country‟s economy.
As stated from Altius Directory (2014), Malaysia is ranked in the 23rd position
among the world countries in term of manufacturing industry. Apart from that, it is
stated that major manufacturing industry in Malaysia are furniture industries,
semiconductor industries and food processing industries. It was estimated that about
48.1% of Malaysia‟s GDP is contributed from manufacturing industry sector.
According to Modi and Thakkar (2014), to survive in a competitive and challenging
market, industries need to improve their strength and concentrate on their process
flow. Lean manufacturing is the solution to increase the manufacturing profit and
quality. Idea of Lean manufacturing is to remove waste from manufacturing process.
Waste or non value added activities refer to any activities that consuming more
resources than necessary to produce the goods. Company need to identify and
eliminate various types of wastes from the manufacturing process to move toward
leaner operation. Skills and knowledge on manufacturing engineering are used to
1
conduct this study. For instance, appropriate methods, tools and techniques such as
Lean manufacturing concept and stopwatch time study will be applied to solve the
problem.
1.2
Background of Case Company
The case company is a German semiconductor manufacturer founded on 1999. As of
30 September 2013, the company has 26,725 employees worldwide. It is one of the
biggest and well-known multinational semiconductor companies in worldwide. There
are two factories located in Malaysia, one is at Kulim, Kedah and the other one is at
Batu Berendam, Malacca. For Kulim factory, it is focuses on Frontend operation (FE)
whereas for Batu Berendam factory, it is focuses on Backend operation (BE). Mainly,
Frontend is the front portion of semiconductor supply chain for wafer fabrication.
Backend is back portion of a semiconductor supply chain for assembly and test
facilities. A backend manufacturing process comprises of wafer mounting, wafer
sawing, die bonding, wire bonding, molding, marking and testing process.
Today, factory in Malacca sites has become one of the largest manufacturing sites of
case company with the cumulative investment of EUR 1.0 billion. At present, this
manufacturing site committed workforce of 7000 employees. In addition, there are
four segments in this factory which are Discrete, Logic, Power and Sensor. Each of
the segments comprises different packages of products. Therefore, each of the
segments has their own specified production line. Examples of products
manufactured by this factory are chip card and security, automotive products,
industrial power control, mobile devices, power supply and so on. The products from
the case company are able to stand out for their reliability, excellence quality and
their innovative.
The company‟s products are exported globally through its distribution centers in
United States, Europe as well as Asia region. The millions of semiconductor devices
produced hourly lead to an annual export volume of over RM 3 billion. Thus, this
company is contributing to Malaysia‟s trade balance and economic growth in the
2
state of Malacca. Besides, the company dedicated to the highest product quality
providing exacting solutions to application requirements, increasing efficiency and
productivity with unpromising adherence to deliver schedules and protect the
environments. The company is looking forward to Zero Defects, continuous
improvement and implements the Zero Defects strategy to the next level.
1.3
Problem Statement
Operators and machines are the 2 important resources in production line. Effective
use of operators is important in manufacturing field for good return of investment.
Based on the brainstorming session with company manager, wastes or non-value
added (NVA) activities in Front of Line operation have significantly lengthen the
operator cycle time. The Front of Line operation includes die bonding, wire bonding
and auto vision process. The company does have a standard procedure to measure,
track and analysis operators‟ performance. From the result, company believes that
there are some improvements that can be made from operators‟ daily operation.
Eventually, company would like to improve operator cycle time by reducing the
amount of time and effort for unnecessary activities. Company wants to free up some
time to focus on value added activities.
1.4
Objectives
The main aim of the study is to improve operator cycle time in a semiconductor
company. The specific purposes of this study are:
i.
To conduct stopwatch time study on operators in Front of Line operation.
ii.
To identify process with longest operator cycle time and the associated NVA
activities.
iii.
To propose and implement new procedures to minimize NVA activities.
3
1.5
Scope
Since the case company produces a lot of products therefore only one production line
was selected in this study. Study covered only for Power Segment, X module and
Front of Line operation. Only one package family was studied under X module. This
package family consists of several package classes where the highest demand of
package class was selected. The study covered only for Front of Line operation
where processes included are die bonding, wire bonding and FAV (Auto Vision).
Operators‟ activities, movement and time taken for each sub activities will be the
main issue to concern throughout the study. Throughput for each machines and
operators‟ movement with any unexpected situation such as no material and
machines breakdown were excluded in this study.
1.6
Benefits to the Case Company
Key benefit of the study is to improve the operator cycle time in production line.
This study helps manufacturer to identify NVA activities for operators in Front of
Line operation. It helps to identify the operators‟ activities in production line and
minimize the waste occurred at every production steps. In other words, it helps
operators to focus more on productive activities as any non-value added activities
will be minimized. Apart from this, this study can reduce operator fatigue and
workload as any unnecessary activities will be eliminated. Better understanding of
work performed by operators in production line helps to develop a better and
effective working procedure in manufacturing process. This will help to improve
overall performance of the production line. With a better performance, it helps to
reduce the overall cost, increase the productivity as well as higher profit gain in
future.
4
1.7
Organization
This report is included into six chapters. Chapter 1 is the research overview which is
the introduction of this study. Chapter 2 provides the literature review where
appropriate past research, journals and articles related to this study will be presented.
Chapter 3 describes the methods, tools and techniques used to collect and analysis
the data. In addition, Chapter 4 presents the process description, data collection and
data analysis where it will explain the processes, data and details analysis of the
results. Chapter 5 provides suggestions and implementation for operator cycle time
improvement where improved data will be collected again and compared to the
previous result obtained. Lastly, Chapter 6 includes the discussion of conclusion,
major findings and future recommendations for this study.
5
CHAPTER 2
LITERATURE REVIEW
This chapter review past studies, books and journals to explain manufacturing
operation, direct labor, productivity, Lean principles, Lean tools and techniques,
work study and work measurement. Purpose of this review is to identify the related
theories and applications in previous research. Furthermore, a flow chart is
constructed to visualize the overview of literature review.
2.1
Manufacturing Operation
Manufacturing operations produce tangible product, physical goods which can be
seen and held (Matthew, n.d.).
Stevenson (2009) stated that manufacturing
operations is that part of a business organization that is responsible for
manufacturing goods. The creation of goods comprises transforming inputs to
outputs. Examples of inputs are machines, labor, raw material and capital investment.
According to Vitez and Osborne (2014), many companies use manufacturing
operations to manufacture goods for customers. They claim that three critical parts of
manufacturing operation are direct labor, direct material and overhead which include
all the insignificant costs related with the manufacturing process. In addition to the
general overviews, a good manufacturing operation able to improve competitiveness,
profitability, reduce resources requirements and maximize the throughput. Expertise
in manufacturing industry such as production director, factory manager, and
industrial engineer always work hard to look for any possible improvement. Figure
2.1 shows the overview of literature review.
6
Manufacturing
Operation
Financial
Direct
Material
Marketing
Direct Labor
Productivity
Overhead
Efficiency
Lean Principle
Lean Tools and Techniques
Kaizen
5S
MUDA
Work Study
Method Study
Work
Measurement
Time Study
Figure 2.1: Overview of literature review
7
2.1.1
Direct and Indirect Labor
Direct labor is any type of work that is related to the production of goods. Activities
of direct labors are involves with the actual process such as operating machine,
getting raw materials from inventory, loading and unloading raw materials. Carreira
(2007) stated that direct labor is someone who builds the product and directly
involved in manufacturing process. In contrast, indirect labor is the work of those
who indirectly produce goods but directly support the value added people. A shift
supervisor can only be considered as indirect labor since his contribution does not
really producing the goods.
2.1.2
Direct and Indirect Material
Direct materials include all the raw materials needed to produce a finished good. For
example, a semiconductor manufacturer will require wafer, lead frame, clips and
other pieces to make a single chip. Without these parts, company will not produce
the goods required by the customers (Vitez and Osborne, 2014). Indirect materials
are the materials consumed as a part of process. Examples of indirect materials are
lot paper used for documentation, stationary such as glue and tape, and safety
equipment such as finger coat and jump suit.
2.1.3
Overhead
Overhead or known as manufacturing overhead cost involves the costs that are
incurred as part of the manufacturing process. Overhead cost excludes direct labor
cost and direct material cost which typically used in the manufacturing process. In
other words, manufacturing overhead cost is concerned with the expenses of indirect
cost but still related with the production (Vitez and Osborne, 2014). Factory facilities,
utilities bill and maintenance fees are considered as part of the overhead cost.
8
2.2
Productivity
Baines (1997) believed that the productivity movement has been around for more
than 50 years. There are plenty of techniques, methodologies and productivity
strategies have been developed so far. However, he claimed that the pursuit of
improved productivity still seems an imperfect science. Sahar et al. (2013) defined
that productivity is the ability of an organization or country to create greater income
or value added. In addition, Sahar et al. (2013) also described that Malaysia is taking
rigorous step to become an advanced country with high income status by 2020.
Therefore, it is essential to have a high productivity in the production process.
The term „productivity‟ means different things to different people how people look
from different angles. This term is interpreted differently by different organizations
and in different countries (Baines, 1997). In general, productivity is defined as ratio
of output to input, where “output” refers to anything that created from a production
or service. In manufacturing perspective, “output” usually refers to finished good.
“Input” can be a labor, machine, factory, materials and etc. in converting to an
“output”. Today‟s productivity improvement has becomes the approaches to enhance
the productivity index. Figure 2.2 shows the conversion of inputs to output.
Figure 2.2: Manufacturing operation in the conversion of inputs into output (Stevenson, 2009)
9
OPTIMIZING OPERATOR CYCLE TIME IN A
SEMICONDUCTOR COMPANY
This report submitted in accordance with requirement of the Universiti Teknikal
Malaysia Melaka (UTeM) for the Bachelor Degree of Manufacturing Engineering
(Manufacturing Management) with Honors
by
CHONG JIA MING
B051110143
911127045183
FACULTY OF MANUFACTURING ENGINEERING
2015
DECLARATION
I hereby, declared this report entitled “Optimizing Operator Cycle Time in a
Semiconductor Company” is the results of my own research except as cited in
references.
Signature
:
…………………………
Author‟s Name
:
Chong Jia Ming
Date
:
26 June 2015
APPROVAL
This report is submitted to the Faculty of Manufacturing Engineering of UTeM
as a partial fulfillment of the requirements for the degree of Bachelor of
Manufacturing Engineering (Manufacturing Management) (Hons.). The member
of the supervisory is as follow:
………………………………
(Project Supervisor)
ABSTRAK
Kecekapan dalam penggunaan sumber dan strategi pembuatan yang baik adalah
penting untuk bersaing dan meningkatkan keuntungan. Keberkesanan penggunaan
masa bagi pekerja dalam melaksanakan sebarang tugasan dapat memberi manfaat
kepada
pengilang.
Projek
penyelidikan
ini
dijalankan
di
sebuah
kilang
semikonduktor yang terletak di negeri Melaka. Pada ketika ini, „non-value added
(NVA) activities‟ yang didapati di operasi „Front of Line‟ telah memberi kesan
kepada masa kitaran pekerja. Kilang tersebut ingin menambahbaikan masa kitaran
pekerja dengan mengurangkan „NVA activities‟. Tujuan projek penyelidikan ini
adalah untuk menambahbaikan masa kitaran pekerja dengan mengurangkan
pembaziran yang disebabkan oleh „NVA activities‟ di bahagian pengeluaran. Projek
ini akan fokus kepada operasi „Front of Line‟ dimana proses tersebut adalah seperti
ikatan mati, ikatan wayar dan „FAV (Auto Vision)‟. Kajian masa dengan
menggunakan jam randik akan digunakan untuk mendapatkan masa pekerja kepada
ketiga-tiga proses dan didapati proses ikatan mati mengambil masa kitaran pekerja
yang paling banyak. „Value added dan NVA activities‟ akan dikenalpasti terhadap
proses ikatan mati dengan menggunakan kaedah Lean dan MUDA. Alat bersesuaian
seperti carta pie, „Ishikawa diagram‟ dan „Pareto Chart‟ akan digunakan untuk
menganalisis „NVA activities‟. Cadangan penambahbaikan akan diberi untuk
membuang dan mengurangkan masa terhadap „NVA activities‟. Kajian terhadap
masa dengan menggunakan jam randik akan diulangi untuk mengukur perubahan
selepas pelaksanaan penambahbaikan yang dijalankan. Daripada keputusan yang
didapati,
masa
kitaran
pekerja
telah
menurun
sebanyak
9.70%
selepas
penambahbaikan. Kini, pekerja ada masa yang berlebihan untuk fokus kepada
aktiviti produktif.
i
ABSTRACT
Proper use of resources and good manufacturing strategy are important to stay
competitive and to increase profit. Effective use of time for direct labors to perform
any type of work will benefit the manufacturer. This study was conducted at a
semiconductor company located at Melaka. At present, non-value added (NVA)
activities in Front of Line operation have significantly lengthen the operator cycle
time. The company wants to reduce the efforts for unnecessary activities and free up
some time to focus on value added activities. The aim of this study is to improve
operator cycle time by minimizing time wastages caused by NVA activities in
production floor. The processes in Front of Line operation are die bonding process,
wire bonding process and FAV (Auto Vision) process. Stopwatch time study were
conducted to obtain the operator cycle times and it was found that die bonding
process contributed to the longest operator cycle time. Value added and NVA
activities were identified for the die bonding process based on Lean philosophy and
MUDA approach. Appropriate tools such as Pie Chart, Ishikawa diagram and Pareto
Chart were used to further analyze the NVA activities. Some suggestions were
proposed to the case company in order to eliminate or reduce the time taken on these
NVA activities. Stopwatch time study was conducted again to evaluate the
effectiveness of the proposed improvement. From the result obtained, operator cycle
time in die bonding process has improved by 9.70% after implementation of the
proposal. Operators are now having extra time to focus on more productive activities.
ii
DEDICATION
This thesis is dedicated to my beloved family and friends.
Thank you for the endless support and love to me.
iii
ACKNOWLEDGMENT
I would like to take this opportunity to express my deepest gratitude and thanks to
my supervisor, Associate Professor Dr Chong Kuan Eng. I am very fortunate to be
blessed with the guidance and encouragement from him. He is willing to share his
knowledge, explain details to me and always keep me on the correct path whenever I
look for him.
I would like to express my utmost gratitude to the case company for providing
opportunity to me to collect some data for my study. They have given me necessary
guidance and arrangement of facilities that make me easier in completing my works.
Special thanks to all the people who helped and encouraged me in completing my
final year project. I am very thankful and grateful that what they did for me. Without
their support, I definitely cannot complete my final year project.
Last but not least, sincere thanks to University Teknikal Malaysia Melaka (UTeM)
and all the lecturers who shared their knowledge to me during my study life. I will
strive to apply the gained knowledge in the best possible way in my working life
after graduation.
iv
TABLE OF CONTENT
Abstrak
i
Abstract
ii
Dedication
iii
Acknowledgment
iv
Table of Content
v
List of Tables
viii
List of Figures
ix
List of Abbreviations, Symbols and Nomenclatures
xi
CHAPTER 1: INTRODUCTION
1
1.1
Background of Study
1
1.2
Background of Case Company
2
1.3
Problem Statement
3
1.4
Objectives
3
1.5
Scope
4
1.6
Benefits to the Case Company
4
1.7
Organization
5
CHAPTER 2: LITERATURE REVIEW
6
2.1
Manufacturing Operation
6
2.1.1
Direct and Indirect Labor
8
2.1.2
Direct and Indirect Material
8
2.1.3
Overhead
8
2.2
Productivity
2.2.1
Types of Productivity Measures
10
2.2.2
Labor Productivity
10
2.2.2.1 Factors to Increase Labor Productivity
11
Efficiency
12
2.2.3
2.3
9
The History of Lean
13
2.3.1
14
Definition of Lean Manufacturing
v
2.3.2
2.3.3
2.3.4
2.4
2.5
2.6
2.3.1.1 Lean Tools and Techniques
16
MUDA (The 7 Wastes)
17
2.3.2.1 Minimizing Wastages Approach
20
Introduction to Kaizen
21
2.3.3.1 Application of Kaizen
22
5S
23
2.3.4.1 Application of 5S
24
Work Study (Motion and Time Study)
25
2.4.1
Work Measurement
26
2.4.1.1 Stopwatch Time Study
27
Statistical Process Control
28
2.5.1
Pareto Chart
29
2.5.2
Cause and Effect Diagram
30
Summary
31
CHAPTER 3: METHODOLOGY
32
3.1
Overview of the Project Planning
32
3.1.1
Identify Problem, Scope and Objectives
35
3.1.2
Literature Review (Secondary Data)
35
3.1.3
Design of Methodology
35
3.1.4
Data Collection (Primary Data)
36
3.1.5
Data Analysis
37
3.1.6
Suggestions and Recommendations
37
3.1.7
Implementation and Evaluation
38
3.1.8
Conclusion
38
3.2
Summary
38
CHAPTER 4: PROCESS DESCRIPTION, DATA COLLECTION AND
ANALYSIS
39
4.1
Production Lot, Magazines and Lead Frame
39
4.2
Software Employed in Front of Line Operation
40
4.3
Front of Line Operation
41
4.3.1
42
Die Bonding
vi
4.3.2
4.3.3
4.4
4.3.1.1 Time Study Spreadsheet for Die Bonding Process
45
Wire Bonding
46
4.3.2.1 Time Study Spreadsheet for Wire Bonding Process
48
Auto Vision (FAV)
49
4.3.3.1 Time Study Spreadsheet for Auto Vision
51
Analysis for Three Processes
52
4.4.1
Data Analysis for Die Bonding Process
53
4.4.1.1 NVA Activities in Die Bonding Process
55
CHAPTER 5: SUGGESTIONS AND IMPLEMENTATION FOR OPERATOR
CYCLE TIME IMPROVEMENT
5.1
61
Suggestions to Reduce NVA activities in Die Bonding Process
61
5.1.1
New Workflow for Clip Buyoff
62
5.1.2
Remove Material Change Checklist
63
5.1.3
Remove x10 Magnification Test
64
5.1.4
Add a New Lot Paper Printing Area
65
5.2
Feedback from Manager in the Case Company
66
5.3
Time Study Spreadsheet for Die Bonding Process (After)
67
5.4
Improvement in Die Bonding Process
68
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
69
6.1
Conclusion
69
6.2
Recommendations for Future Study
70
REFERENCES
71
APPENDICES
A
Gantt chart for FYP 1 and FYP 2
B
Preliminary data collection
C1
Stopwatch time study for die bonding process (before)
C2
Stopwatch time study for wire bonding process
C3
Stopwatch time study for auto vision
C4
Stopwatch time study for die bonding process (after)
vii
LIST OF TABLES
2.1
Lean tools and techniques
16
2.2
Time study techniques
26
2.3
Application of Lean in manufacturing industry
31
4.1
Lot, magazine and lead frame
40
4.2
Software used in Front of Line operation
41
4.3
Operator cycle time per lot in three different processes
52
4.4
VA and NVA activities
55
4.5
NVA activities in operators‟ operation
58
5.1
Feedback from company
66
5.2
Summary of improvement sheet
68
viii
LIST OF FIGURES
2.1
Overview of literature review
7
2.2
Manufacturing operation in the conversion of inputs into output
9
2.3
Types of productivity measures
10
2.4
Traditional and Lean manufacturing improvement
15
2.5
Value added and non-value added
17
2.6
Types of wastes
18
2.7
Seven types of wastes in Lean manufacturing
18
2.8
Work study components
25
2.9
Example of Pareto chart
29
2.10
Example of cause and effect diagram
30
3.1
Flow chart for methodology
34
3.2
Example of time study spreadsheet
36
4.1
Overall flow for die bonding process
44
4.2
Part of collected data in die bonding process
46
4.3
Overall flow for ASM wire bonding process
48
4.4
Part of collected data in wire bonding process
49
4.5
Overall flow for FAV process
50
4.6
Part of collected data in auto vision process
51
4.7
Total operator cycle time (in seconds) for die bonding process
54
4.8
Ishikawa diagram
57
4.9
Pareto chart of NVA activities in die bonding process
60
5.1
Clip buy-off procedure
62
5.2
Before and after for clip buyoff
62
5.3
Material change checklist
63
5.4
Graphic user interface for „SPACE‟ application
64
5.5
Current printer location
65
5.6
Proposed printer location
66
ix
5.7
Part of the collected data in die bonding process (after)
67
x
LIST OF ABBREVIATIONS, SYMBOLS AND
NOMENCLATURES
BE
-
Backend Operation
FAV
-
Front of Line Auto Vision
FE
-
Frontend Operation
FYP 1
-
Final Year Project 1
FYP 2
-
Final Year Project 2
MUDA
-
Wastes
NVA
-
Non Value Added
PC
-
Process Control
SPC
-
Statistical Process Control
VA
-
Value Added
xi
CHAPTER 1
INTRODUCTION
This chapter explains the background of study, background of case company, details
of problem statement, objectives of the study, scope, expected outcome and
organization of the entire report.
1.1
Background of Study
This study is to analyze and optimize operator cycle time based on real case study in
a semiconductor factory located at Malacca. In recent years, manufacturing
industries in Malaysia grow rapidly and play an important role in country‟s economy.
As stated from Altius Directory (2014), Malaysia is ranked in the 23rd position
among the world countries in term of manufacturing industry. Apart from that, it is
stated that major manufacturing industry in Malaysia are furniture industries,
semiconductor industries and food processing industries. It was estimated that about
48.1% of Malaysia‟s GDP is contributed from manufacturing industry sector.
According to Modi and Thakkar (2014), to survive in a competitive and challenging
market, industries need to improve their strength and concentrate on their process
flow. Lean manufacturing is the solution to increase the manufacturing profit and
quality. Idea of Lean manufacturing is to remove waste from manufacturing process.
Waste or non value added activities refer to any activities that consuming more
resources than necessary to produce the goods. Company need to identify and
eliminate various types of wastes from the manufacturing process to move toward
leaner operation. Skills and knowledge on manufacturing engineering are used to
1
conduct this study. For instance, appropriate methods, tools and techniques such as
Lean manufacturing concept and stopwatch time study will be applied to solve the
problem.
1.2
Background of Case Company
The case company is a German semiconductor manufacturer founded on 1999. As of
30 September 2013, the company has 26,725 employees worldwide. It is one of the
biggest and well-known multinational semiconductor companies in worldwide. There
are two factories located in Malaysia, one is at Kulim, Kedah and the other one is at
Batu Berendam, Malacca. For Kulim factory, it is focuses on Frontend operation (FE)
whereas for Batu Berendam factory, it is focuses on Backend operation (BE). Mainly,
Frontend is the front portion of semiconductor supply chain for wafer fabrication.
Backend is back portion of a semiconductor supply chain for assembly and test
facilities. A backend manufacturing process comprises of wafer mounting, wafer
sawing, die bonding, wire bonding, molding, marking and testing process.
Today, factory in Malacca sites has become one of the largest manufacturing sites of
case company with the cumulative investment of EUR 1.0 billion. At present, this
manufacturing site committed workforce of 7000 employees. In addition, there are
four segments in this factory which are Discrete, Logic, Power and Sensor. Each of
the segments comprises different packages of products. Therefore, each of the
segments has their own specified production line. Examples of products
manufactured by this factory are chip card and security, automotive products,
industrial power control, mobile devices, power supply and so on. The products from
the case company are able to stand out for their reliability, excellence quality and
their innovative.
The company‟s products are exported globally through its distribution centers in
United States, Europe as well as Asia region. The millions of semiconductor devices
produced hourly lead to an annual export volume of over RM 3 billion. Thus, this
company is contributing to Malaysia‟s trade balance and economic growth in the
2
state of Malacca. Besides, the company dedicated to the highest product quality
providing exacting solutions to application requirements, increasing efficiency and
productivity with unpromising adherence to deliver schedules and protect the
environments. The company is looking forward to Zero Defects, continuous
improvement and implements the Zero Defects strategy to the next level.
1.3
Problem Statement
Operators and machines are the 2 important resources in production line. Effective
use of operators is important in manufacturing field for good return of investment.
Based on the brainstorming session with company manager, wastes or non-value
added (NVA) activities in Front of Line operation have significantly lengthen the
operator cycle time. The Front of Line operation includes die bonding, wire bonding
and auto vision process. The company does have a standard procedure to measure,
track and analysis operators‟ performance. From the result, company believes that
there are some improvements that can be made from operators‟ daily operation.
Eventually, company would like to improve operator cycle time by reducing the
amount of time and effort for unnecessary activities. Company wants to free up some
time to focus on value added activities.
1.4
Objectives
The main aim of the study is to improve operator cycle time in a semiconductor
company. The specific purposes of this study are:
i.
To conduct stopwatch time study on operators in Front of Line operation.
ii.
To identify process with longest operator cycle time and the associated NVA
activities.
iii.
To propose and implement new procedures to minimize NVA activities.
3
1.5
Scope
Since the case company produces a lot of products therefore only one production line
was selected in this study. Study covered only for Power Segment, X module and
Front of Line operation. Only one package family was studied under X module. This
package family consists of several package classes where the highest demand of
package class was selected. The study covered only for Front of Line operation
where processes included are die bonding, wire bonding and FAV (Auto Vision).
Operators‟ activities, movement and time taken for each sub activities will be the
main issue to concern throughout the study. Throughput for each machines and
operators‟ movement with any unexpected situation such as no material and
machines breakdown were excluded in this study.
1.6
Benefits to the Case Company
Key benefit of the study is to improve the operator cycle time in production line.
This study helps manufacturer to identify NVA activities for operators in Front of
Line operation. It helps to identify the operators‟ activities in production line and
minimize the waste occurred at every production steps. In other words, it helps
operators to focus more on productive activities as any non-value added activities
will be minimized. Apart from this, this study can reduce operator fatigue and
workload as any unnecessary activities will be eliminated. Better understanding of
work performed by operators in production line helps to develop a better and
effective working procedure in manufacturing process. This will help to improve
overall performance of the production line. With a better performance, it helps to
reduce the overall cost, increase the productivity as well as higher profit gain in
future.
4
1.7
Organization
This report is included into six chapters. Chapter 1 is the research overview which is
the introduction of this study. Chapter 2 provides the literature review where
appropriate past research, journals and articles related to this study will be presented.
Chapter 3 describes the methods, tools and techniques used to collect and analysis
the data. In addition, Chapter 4 presents the process description, data collection and
data analysis where it will explain the processes, data and details analysis of the
results. Chapter 5 provides suggestions and implementation for operator cycle time
improvement where improved data will be collected again and compared to the
previous result obtained. Lastly, Chapter 6 includes the discussion of conclusion,
major findings and future recommendations for this study.
5
CHAPTER 2
LITERATURE REVIEW
This chapter review past studies, books and journals to explain manufacturing
operation, direct labor, productivity, Lean principles, Lean tools and techniques,
work study and work measurement. Purpose of this review is to identify the related
theories and applications in previous research. Furthermore, a flow chart is
constructed to visualize the overview of literature review.
2.1
Manufacturing Operation
Manufacturing operations produce tangible product, physical goods which can be
seen and held (Matthew, n.d.).
Stevenson (2009) stated that manufacturing
operations is that part of a business organization that is responsible for
manufacturing goods. The creation of goods comprises transforming inputs to
outputs. Examples of inputs are machines, labor, raw material and capital investment.
According to Vitez and Osborne (2014), many companies use manufacturing
operations to manufacture goods for customers. They claim that three critical parts of
manufacturing operation are direct labor, direct material and overhead which include
all the insignificant costs related with the manufacturing process. In addition to the
general overviews, a good manufacturing operation able to improve competitiveness,
profitability, reduce resources requirements and maximize the throughput. Expertise
in manufacturing industry such as production director, factory manager, and
industrial engineer always work hard to look for any possible improvement. Figure
2.1 shows the overview of literature review.
6
Manufacturing
Operation
Financial
Direct
Material
Marketing
Direct Labor
Productivity
Overhead
Efficiency
Lean Principle
Lean Tools and Techniques
Kaizen
5S
MUDA
Work Study
Method Study
Work
Measurement
Time Study
Figure 2.1: Overview of literature review
7
2.1.1
Direct and Indirect Labor
Direct labor is any type of work that is related to the production of goods. Activities
of direct labors are involves with the actual process such as operating machine,
getting raw materials from inventory, loading and unloading raw materials. Carreira
(2007) stated that direct labor is someone who builds the product and directly
involved in manufacturing process. In contrast, indirect labor is the work of those
who indirectly produce goods but directly support the value added people. A shift
supervisor can only be considered as indirect labor since his contribution does not
really producing the goods.
2.1.2
Direct and Indirect Material
Direct materials include all the raw materials needed to produce a finished good. For
example, a semiconductor manufacturer will require wafer, lead frame, clips and
other pieces to make a single chip. Without these parts, company will not produce
the goods required by the customers (Vitez and Osborne, 2014). Indirect materials
are the materials consumed as a part of process. Examples of indirect materials are
lot paper used for documentation, stationary such as glue and tape, and safety
equipment such as finger coat and jump suit.
2.1.3
Overhead
Overhead or known as manufacturing overhead cost involves the costs that are
incurred as part of the manufacturing process. Overhead cost excludes direct labor
cost and direct material cost which typically used in the manufacturing process. In
other words, manufacturing overhead cost is concerned with the expenses of indirect
cost but still related with the production (Vitez and Osborne, 2014). Factory facilities,
utilities bill and maintenance fees are considered as part of the overhead cost.
8
2.2
Productivity
Baines (1997) believed that the productivity movement has been around for more
than 50 years. There are plenty of techniques, methodologies and productivity
strategies have been developed so far. However, he claimed that the pursuit of
improved productivity still seems an imperfect science. Sahar et al. (2013) defined
that productivity is the ability of an organization or country to create greater income
or value added. In addition, Sahar et al. (2013) also described that Malaysia is taking
rigorous step to become an advanced country with high income status by 2020.
Therefore, it is essential to have a high productivity in the production process.
The term „productivity‟ means different things to different people how people look
from different angles. This term is interpreted differently by different organizations
and in different countries (Baines, 1997). In general, productivity is defined as ratio
of output to input, where “output” refers to anything that created from a production
or service. In manufacturing perspective, “output” usually refers to finished good.
“Input” can be a labor, machine, factory, materials and etc. in converting to an
“output”. Today‟s productivity improvement has becomes the approaches to enhance
the productivity index. Figure 2.2 shows the conversion of inputs to output.
Figure 2.2: Manufacturing operation in the conversion of inputs into output (Stevenson, 2009)
9