This presentation discusses the operating curve management for the productivity improvement. The OCM is pioneered by IBM and adapted by many semiconductor companies. It is intended for wafer fab operation, but is applicable to any manufacturing operation. It is not merely a theory, but has been put into practice in many factories with visible results. When it is used with other management and productivity improvement techniques, such as Hoshin or Kanban or Just in time system, the result is even better. It is a very flexible system, but requires a lot of work in both hardware and software system for the implementation. It addresses issues and solutions at equipment level, operator level, engineering level, materials flow, and overall management.
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ManufacturingManufacturing
OperationsOperations
Dr. Len MeiDr. Len Mei
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What is a manufacturingWhat is a manufacturing
operationoperation
An operation using givenAn operation using given
resources to produce productsresources to produce products
in volumein volume
Resources include: tools/ labor/Resources include: tools/ labor/
materials/ utilities/ cashmaterials/ utilities/ cash
A manufacturing operationA manufacturing operation
without a competitive cost/without a competitive cost/
quality cannot survive for longquality cannot survive for long
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ProductivityProductivity
How efficiently an organizationHow efficiently an organization
can convert input resources intocan convert input resources into
goods and servicesgoods and services
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ChallengesChallenges
Every manufacturing operation is uniqueEvery manufacturing operation is unique
Manufacturing operation is also dynamicManufacturing operation is also dynamic
that is constantly changingthat is constantly changing
Knowing the operation theory can help toKnowing the operation theory can help to
manage the operationmanage the operation
Establishing a good system can reduceEstablishing a good system can reduce
management intervention based onmanagement intervention based on
personal judgment (mostly biased), andpersonal judgment (mostly biased), and
move the production like clockworkmove the production like clockwork
Managing manufacturing is like navigatingManaging manufacturing is like navigating
a large ship, a decision can change thea large ship, a decision can change the
course and make it difficult to turn backcourse and make it difficult to turn back
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ChallengesChallenges
A good operation requires precipitation ofA good operation requires precipitation of
every member in the factory with clearevery member in the factory with clear
understanding of his daily, weekly, monthlyunderstanding of his daily, weekly, monthly
goalsgoals
A good manufacturing system will reduceA good manufacturing system will reduce
complex operations into easy to followcomplex operations into easy to follow
goals at different levelsgoals at different levels
The goals for each member, each team/The goals for each member, each team/
task force/department need to be coherenttask force/department need to be coherent
and built toward the same ultimate goaland built toward the same ultimate goal
((HoshinHoshin 方针)方针)
Manufacturing requires disciplineManufacturing requires discipline
This cannot be accomplished without anThis cannot be accomplished without an
overall understanding of the operation itselfoverall understanding of the operation itself
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ChallengesChallenges
Manufacturing operation is not anManufacturing operation is not an
isolated operation. It has to exist andisolated operation. It has to exist and
operate under the business context.operate under the business context.
Factory priority is often set byFactory priority is often set by
business priority and financialbusiness priority and financial
requirementsrequirements
Such interface must be wellSuch interface must be well
establishedestablished
Manufacturing is a large organization.Manufacturing is a large organization.
Any wavering or conflict of directionsAny wavering or conflict of directions
will result in the waste of resourcewill result in the waste of resource
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A production system consistsA production system consists
of 4 partnersof 4 partners
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For a production to happen:For a production to happen:
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LaborLabor
Labor is the most difficultLabor is the most difficult
managementmanagement
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Capacity loss due to lackingCapacity loss due to lacking
laborlabor
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TaskTask
Compiling hourly going rateCompiling hourly going rate
trend charttrend chart
Identify the low HGR root causeIdentify the low HGR root cause
Use management technique toUse management technique to
eliminate root causeeliminate root cause
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TaskTask
Synchronization can provideSynchronization can provide
efficiency without extra costefficiency without extra cost
Need to develop a matrix toNeed to develop a matrix to
monitor synchronizationmonitor synchronization
management
productioninformation
managefeedback
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Shift change managementShift change management
Shift change creates the biggestShift change creates the biggest
productivity loss due to laborproductivity loss due to labor
and often createsand often creates misoperationmisoperation
1st shift 2nd shift
Overlap/
Shift handover
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Create working cellCreate working cell
A working cell, such asA working cell, such as
photolithography, involvesphotolithography, involves
operators, process engineers,operators, process engineers,
equipment engineers,equipment engineers,
integration. The communicationintegration. The communication
and cooperation among theand cooperation among the
working cell members areworking cell members are
critical to the performance of thecritical to the performance of the
cellcell
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A matrix organizationA matrix organization
diffusion etchphotoThin film
operator
Eq eng
Proc eng
cell
department
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ProcessProcess
Process is the keyProcess is the key
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Process improvementProcess improvement
ProcessProcess standarizationstandarization
Process simplificationProcess simplification
Yield improvementYield improvement
Process design to avoidProcess design to avoid
excursionexcursion
Unnecessarily tight processUnnecessarily tight process
spec reduces efficiency withoutspec reduces efficiency without
buying morebuying more quality or yieldquality or yield
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ToolsTools
The most expensive resourceThe most expensive resource
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ToolsTools
““ToolsTools”” is the most expensiveis the most expensive
partnerpartner
Two componentsTwo components
DepreciationDepreciation
MaintenanceMaintenance
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Factors determiningFactors determining
depreciation per unit outputdepreciation per unit output
Cost of acquisitionCost of acquisition
Capacity balanceCapacity balance
UtilizationUtilization –– productive timeproductive time
ThroughputThroughput
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TaskTask –– establish depreciationestablish depreciation
bench markbench mark
$1.6 M/masking layer/1K wafers$1.6 M/masking layer/1K wafers
per month for 70 nm technologyper month for 70 nm technology
AA fabfab with 40K/m, 30 MLwith 40K/m, 30 ML
process costs $1.92 Bprocess costs $1.92 B
Depreciation cost per wafer:Depreciation cost per wafer:
$1.6 Mx30/72/1000=$662$1.6 Mx30/72/1000=$662
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TaskTask
Compile utilization charts for eachCompile utilization charts for each
equipment and equipment typeequipment and equipment type
Evaluate the rationale forEvaluate the rationale for capexcapex
expansionexpansion
cutting down Noncutting down Non--scheduled capacity isscheduled capacity is
a way to save money without sacrificinga way to save money without sacrificing
capacitycapacity
Bottleneck equipment should always beBottleneck equipment should always be
the most expensive equipmentthe most expensive equipment
Ranking of the depreciation per waferRanking of the depreciation per wafer
for equipment type should be the samefor equipment type should be the same
as ranking of bottleneck equipment typeas ranking of bottleneck equipment type
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0000
5555
10101010
15151515
20202020
25252525
30303030
35353535
40404040
45454545
50505050
AAAA BBBB
NonNon--scheduled capacityscheduled capacity
K unit/month
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Capacity balanceCapacity balance
0000
10101010
20202020
30303030
40404040
50505050
60606060
70707070
80808080
90909090
AAAA BBBB CCCC DDDD
Bottleneck equipment
Identifying and improving the capacity of bottleneck
equipment is a sure way to increase overall fab capacity
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TaskTask
Determine bottlenecks in theDetermine bottlenecks in the
production lineproduction line
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Unscheduled down timeUnscheduled down time
Unscheduled down usuallyUnscheduled down usually
means product damagemeans product damage
Its loss is two foldsIts loss is two folds--
Depreciation and maintenanceDepreciation and maintenance
Product scrap or downgradeProduct scrap or downgrade
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0000
50505050
100100100100
150150150150
200200200200
250250250250
AAAA BBBB CCCC DDDD EEEE
Pareto chartsPareto charts
Time units
Root cause
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TaskTask
CompilingCompiling paretopareto charts to determinecharts to determine
the top three root causes for thethe top three root causes for the
unscheduled down and address theunscheduled down and address the
problemproblemss
Fixing the unscheduled down rootFixing the unscheduled down root
causes usually improves the qualitycauses usually improves the quality
Distinguish between the real rootDistinguish between the real root
cause and the apparent root causecause and the apparent root cause
Difference between assist and downDifference between assist and down
(e.g. jammed wafer)(e.g. jammed wafer)
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Scheduled down and taskScheduled down and task
Daily, weekly, monthly, quarterlyDaily, weekly, monthly, quarterly
How long takes to performHow long takes to perform
Which parts are changedWhich parts are changed
Second source spare partsSecond source spare parts
Review necessity of parts changeReview necessity of parts change
Internal vs. outsourcingInternal vs. outsourcing
SchedulingScheduling
Multiple toolsMultiple tools
Multiple chambersMultiple chambers
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TaskTask
Compile trend chart data for theCompile trend chart data for the
total equipment maintenancetotal equipment maintenance
cost (parts/ labor for bothcost (parts/ labor for both
internal and outsourcing)internal and outsourcing)
Add maintenance cost to theAdd maintenance cost to the
equipment cost to determine theequipment cost to determine the
cost of ownershipcost of ownership
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TaskTask
Compile trend charts for MTTFCompile trend charts for MTTF
and MTTR for each equipmentand MTTR for each equipment
Bench mark different equipmentBench mark different equipment
of the same equipment typeof the same equipment type
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EngineeringEngineering
Daily performance checkDaily performance check
Kit change due to processKit change due to process
changechange
CalibrationCalibration
Recipe management or editingRecipe management or editing
Self cleaningSelf cleaning
Test runsTest runs
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TaskTask
Breakdown of engineeringBreakdown of engineering
activities on tools and evaluateactivities on tools and evaluate
its effectivenessits effectiveness
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StandbyStandby
TaskTask –– compile standby time forcompile standby time for
each equipment typeeach equipment type
Standby due to lack of partnersStandby due to lack of partners
LaborLabor
WIPWIP
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Improving bottleneck capacityImproving bottleneck capacity
For bottleneck
equipment,
we must minimize
this.
For bottleneck
equipment,
we must maxmize
this.
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Improving bottleneck capacityImproving bottleneck capacity
Equipment automation plays an important role!
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OEE using equipmentOEE using equipment
automationautomation
OEE (overall equipmentOEE (overall equipment
efficiency) improvement byefficiency) improvement by
retrieving equipmentretrieving equipment
performance data fromperformance data from
equipmentequipment
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WIPWIP
Managing WIP intelligentlyManaging WIP intelligently
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Capacity loss due to lacking ofCapacity loss due to lacking of
WIPWIP
Introduction of the theory ofIntroduction of the theory of
operating curve managementoperating curve management
Two normalized parametersTwo normalized parameters
UUUU –– fabfab capacity utilizationcapacity utilization
(capacity utilized vs. total capacity)(capacity utilized vs. total capacity)
FFFF –– flow factor (cycle time vs.flow factor (cycle time vs.
raw process time)raw process time)
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OCMOCM
DGR – daily going rate(raw process time)
gap
Queuing theory
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Operating curve with differentOperating curve with different
αα
SmallSmall ααis more efficientis more efficient
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Cycle timeCycle time
Flow factor (FF) is theFlow factor (FF) is the
normalized cycle timenormalized cycle time
Too long cycle time is bad:Too long cycle time is bad:
Increase cost of WIPIncrease cost of WIP
Decrease qualityDecrease quality
TaskTask –– create a trend chart forcreate a trend chart for
flow factorflow factor
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Cycle time breakdownCycle time breakdown
Processing timeProcessing time
Queue time (waiting for tools)Queue time (waiting for tools)
Queue time (waiting for labor)Queue time (waiting for labor)
Hold time (waiting for engineers/Hold time (waiting for engineers/
process)process)
Transport timeTransport time
Above CT analysis for eachAbove CT analysis for each
modulemodule
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TaskTask
Create cycle time reportsCreate cycle time reports
Identify long cycle time itemsIdentify long cycle time items
Eliminate long cycle time itemsEliminate long cycle time items
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Daily management of WIPDaily management of WIP
no. stage BOH moves EOH turn turn tgt scrap rework
1 wfr start - - - - - - -
2 preanneal 200 200 350 0.73 0.80 21 -
3 pad nitride 340 650 435 1.68 1.50 - -
4 BSG mask 325 430 230 1.55 2.00 - -
5 BSG anneal 435 456 345 1.17 1.00 - -
6 DT photo 560 890 345 1.97 1.80 - 33
7 DT MOetch 325 232 230 0.84 2.00 - -
8 DT etch 450 270 230 0.79 2.40 - -
9 edge poly 325 435 235 1.55 1.60 - -
10 DT etch+ cln 421 534 411 1.28 1.60 - -
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Gap ChartGap Chart –– identifying the rootidentifying the root
cause of long cycle time and lowcause of long cycle time and low
utilizationutilization
Gap too large
FF too large
efficient production
In-efficient production
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Gap ChartGap Chart
Plotting daily gap chart is usefulPlotting daily gap chart is useful
because one can tell the factorybecause one can tell the factory
efficiency at one glanceefficiency at one glance
The direction of moving of theThe direction of moving of the
daily data point also tells us thedaily data point also tells us the
production is moving towardproduction is moving toward
more efficiency or less efficiencymore efficiency or less efficiency
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A Gap Trend ChartA Gap Trend Chart
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Trend charts of efficiencyTrend charts of efficiency
Regardless of the manufacturing theory,Regardless of the manufacturing theory,
we can set up many different trend chartswe can set up many different trend charts
to show the trend of efficiencyto show the trend of efficiency
It is easy to setup and powerfulIt is easy to setup and powerful
The design of trend charts should beThe design of trend charts should be
representative and the improvement shouldrepresentative and the improvement should
be directly linked to a few specific actionsbe directly linked to a few specific actions
taken. Interdependent parameters shouldtaken. Interdependent parameters should
be removedbe removed
The trend charts should beThe trend charts should be fabfab
independent so it can be benchmarkedindependent so it can be benchmarked
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Trend charts of efficiencyTrend charts of efficiency --11
MLPW – Masking layer per week
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Trend charts of efficiencyTrend charts of efficiency --22
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Trend chart of masking layerTrend chart of masking layer
productivityproductivity
Actual masking layer per weekActual masking layer per week
performed vs. targetperformed vs. target
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How to monitor monthly targetHow to monitor monthly target
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Manufacturing variabilityManufacturing variability αα
Not all the lots are equal
Queing theory CT/RPT=FF=αααα(u/(1- u)+1)
Where u=DGR/Capa
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Example of OCM curveExample of OCM curve
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αα, uptime and utilization trend, uptime and utilization trend
chartchart
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How to oHow to optimizingptimizing αα
OptimizingOptimizing ααmeans to improve the operation efficiencymeans to improve the operation efficiency
(more output in less time) without adding capacity(more output in less time) without adding capacity
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Line control to optimizingLine control to optimizing αα
Using line control methodologyUsing line control methodology
to improve line balanceto improve line balance
Accurately forecast WIP forAccurately forecast WIP for
bottleneck equipmentbottleneck equipment
Establish alert for coming WIP tooEstablish alert for coming WIP too
high or too lowhigh or too low
Establish dispatch rulesEstablish dispatch rules
Always provide enough WIP toAlways provide enough WIP to
feed bottleneck equipmentfeed bottleneck equipment
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Line balancingLine balancing
Daily WIP turn at 10 means a lot can goDaily WIP turn at 10 means a lot can go
through 10 process recipes per daythrough 10 process recipes per day
Lot dispatching should avoid sending theLot dispatching should avoid sending the
lots toward process bottleneck within 10lots toward process bottleneck within 10
process recipesprocess recipes
Dispatch rules need to be setup to arrangeDispatch rules need to be setup to arrange
the lot processing priorities automaticallythe lot processing priorities automatically
Bottlenecks are dynamic and changingBottlenecks are dynamic and changing
constantlyconstantly
A control table with a list of all theA control table with a list of all the WIPWIP’’ss atat
every equipment type should be generatedevery equipment type should be generated
for production control reviewfor production control review
Manual intervention is occasionally neededManual intervention is occasionally needed
to override auto dispatch systemto override auto dispatch system
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Line balanceLine balance
Bottleneck equipment type should be givenBottleneck equipment type should be given
highest priority for equipment maintenancehighest priority for equipment maintenance
Relationship between line balancing andRelationship between line balancing and
production efficiency (production efficiency (αα)) should beshould be
carefully monitoredcarefully monitored
Daily inventory turn for each equipmentDaily inventory turn for each equipment
type can be a good indicator for linetype can be a good indicator for line
balancebalance
Manufacturing system should flash alert forManufacturing system should flash alert for
the equipment type with inventory turnthe equipment type with inventory turn
trending down for prolong period or belowtrending down for prolong period or below
certain valuecertain value
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Line balanceLine balance
WIP management and lotWIP management and lot
dispatching provide the biggestdispatching provide the biggest
opportunity to improve efficiencyopportunity to improve efficiency
without extra cost.without extra cost.
The key tool is real timeThe key tool is real time
dispatching systemdispatching system
The theory is the OCMThe theory is the OCM
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Advanced techniques for lineAdvanced techniques for line
controlcontrol
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Planning of production startsPlanning of production starts
Production starts by pull and pushProduction starts by pull and push
PullPull --Production backed by customer orderProduction backed by customer order
PushPush ––Production allocated for sales force toProduction allocated for sales force to
pushpush
Production starts plan is driven by sales. ItProduction starts plan is driven by sales. It
is part of the business process.is part of the business process.
Erratic production plan is detrimental to theErratic production plan is detrimental to the
production efficiencyproduction efficiency
It is recommended to fix the productionIt is recommended to fix the production
plan for at leastplan for at least ½½ of cycle timeof cycle time
Monthly planning meeting for productionMonthly planning meeting for production
plan, capacity, production targetplan, capacity, production target
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Production planProduction plan
Mid term (6 months) productionMid term (6 months) production
plan drives resource forecast,plan drives resource forecast,
supply chain managementsupply chain management
Long term (1 year or more)Long term (1 year or more)
production plan drivesproduction plan drives capexcapex,,
headcount, and other strategicheadcount, and other strategic
business plans (market sharebusiness plans (market share
target, return on investmenttarget, return on investment
target, etc)target, etc)
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AutomationAutomation
Tool for productivity and qualityTool for productivity and quality
improvementimprovement
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AutomationAutomation
Automation is the essential toolAutomation is the essential tool
for factory efficiencyfor factory efficiency
improvementimprovement
Three areas of automationThree areas of automation
Factory automationFactory automation
Equipment automationEquipment automation
Data automationData automation
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Purpose of automationPurpose of automation
Relief mundane task of dataRelief mundane task of data
collection and calculationcollection and calculation
Shorten information feedbackShorten information feedback
looploop
ControlControl
Remove emotional decisionsRemove emotional decisions
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Factory automationFactory automation
MES (manufacturing executionMES (manufacturing execution
system)system)
WIP/ DGR/ turn/ equipment statusWIP/ DGR/ turn/ equipment status
AMHSAMHS –– automatic materialsautomatic materials
handling system (wafer transporthandling system (wafer transport
system)system)
Production control systemProduction control system
(interfacing with supply chain(interfacing with supply chain
management system and includingmanagement system and including
factory resource managementfactory resource management
system)system)
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Equipment automationEquipment automation
Equipment automation has twoEquipment automation has two
applications:applications:
OEE (Overall EquipmentOEE (Overall Equipment
Efficiency)Efficiency)
APC (Advanced Process Control)APC (Advanced Process Control)
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Equipment automationEquipment automation
Bring every piece equipment onBring every piece equipment on--lineline
APCAPC
CoCo--relating yield to equipmentrelating yield to equipment
parametersparameters
Monitor equipment performance data inMonitor equipment performance data in
real timereal time
OEEOEE
Event based schedulingEvent based scheduling vsvs time basedtime based
scheduling of equipment maintenancescheduling of equipment maintenance
Throughput improvementThroughput improvement
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Equipment automationEquipment automation
EAP
SERVER
Batch
Creat
e
APC
SERVER
Trac
e
Data
Batc
h
EQ DATA
External
sensors
EAP Server APC Functions :EAP Server APC Functions :
Configurable Trace DataConfigurable Trace Data
Connection.Connection.
(Including All Logistic Data)(Including All Logistic Data)
External Sensor Integration.External Sensor Integration.
Equipment Alarm Collection.Equipment Alarm Collection.
APC Server Functions:APC Server Functions:
Data CollectionData Collection
Fault DetectionFault Detection
Data CorrelationData Correlation
10 ~ 20 tools
Per server
10 tools
Per server
1 web server
1 def/ metrology server
1 WAT/yld server
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Equipment MaintenanceEquipment Maintenance
Database (OEE)Database (OEE)
Equipment abnormal serviceEquipment abnormal service
record systemrecord system
Schedule preventiveSchedule preventive
maintenance systemmaintenance system
Setting priority for scheduled andSetting priority for scheduled and
nonnon--scheduled maintenancescheduled maintenance
based on daily WIPbased on daily WIP disbributiondisbribution
and line balanceand line balance
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Equipment throughput (OEE)Equipment throughput (OEE)
To improve bottleneck equipmentTo improve bottleneck equipment
throughtputthroughtput increases overall factoryincreases overall factory
capacitycapacity
Throughput improvement requiresThroughput improvement requires
breakdown data for each processbreakdown data for each process
stepstep
Benchmarking equipment of theBenchmarking equipment of the
same equipment type will bring thesame equipment type will bring the
worst performer to the bestworst performer to the best
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Advanced Process ControlAdvanced Process Control
Data collection
From equipment
automation
Data analysis/
Fault detection &
classification
Process control
APC collects data from equipment in real time, analyzes
by FDC, sends alarm to equipment engineers for
decision.
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APC/OEEAPC/OEE
An abnormal parameter of an equipmentAn abnormal parameter of an equipment
sends an alert to equipment supervisorsends an alert to equipment supervisor
Supervisor reviews the alert to determineSupervisor reviews the alert to determine
whether shutdown is necessary. Hewhether shutdown is necessary. He
reviews the database to find previousreviews the database to find previous
cases of same alertcases of same alert
If the shutdown is required, he reviews theIf the shutdown is required, he reviews the
maintenance procedure (a check list) andmaintenance procedure (a check list) and
triggers a maintenance order.triggers a maintenance order.
The system automatically reThe system automatically re--schedule theschedule the
priority and send an order to store for thepriority and send an order to store for the
maintenance kitmaintenance kit
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Run to Run ControlRun to Run Control
Use the data from previous step to controlUse the data from previous step to control
the process in the next stepthe process in the next step
Step N Step N+1
Data collection
& analysis
Process control
Use the data from previous lots to controlUse the data from previous lots to control
the processthe process for next lotfor next lot
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Data automationData automation
Recipe management systemRecipe management system
Yield enhancement systemYield enhancement system
SPC control systemSPC control system
Equipment databaseEquipment database
Product knowledge databaseProduct knowledge database
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Link to the outside worldLink to the outside world
Factory data (WIP,
cycle time, equipment,
lots, process)
Accounting data
(cost, ASP)
Business and
planning data (order,
capex, purchasing,
inventory)
ERP
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Next level of businessNext level of business
engineeringengineering
Establish supply chain controlEstablish supply chain control
system to reduce inventory (JIT)system to reduce inventory (JIT)
Improve CT for WIP reductionImprove CT for WIP reduction
Managing spare parts and rawManaging spare parts and raw
materials inventory by turnmaterials inventory by turn
Managing finished productManaging finished product
inventory by PULL (convert asinventory by PULL (convert as
much PUSH to PULL)much PUSH to PULL)
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A word about quality controlA word about quality control
Quality monitoring and controlQuality monitoring and control
responsibility belong to QA/QCresponsibility belong to QA/QC
departmentdepartment
Execution to achieve goodExecution to achieve good
quality is the responsibility ofquality is the responsibility of
manufacturingmanufacturing
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Business processBusiness process
Advanced Planning and SchedulingAdvanced Planning and Scheduling
System is the calculation of theSystem is the calculation of the
production order based on forecastproduction order based on forecast
of sales order, profit margin andof sales order, profit margin and
otherother stretegicstretegic considerations.considerations.
What happens in sales for the nextWhat happens in sales for the next
month, in material costs, labor costs andmonth, in material costs, labor costs and
profit? What is going to happen with theprofit? What is going to happen with the
costs and the profit for this order?costs and the profit for this order?
Forecasting the future sales providesForecasting the future sales provides
the basic data for planning work.the basic data for planning work.
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ReportsReports
Manufacturing reports should beManufacturing reports should be
comprehensive enough to havecomprehensive enough to have
a birda bird’’s eye view of the overalls eye view of the overall
factoryfactory
All reports should containAll reports should contain
quantitative data that can bequantitative data that can be
benchbench--markedmarked
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SummarySummary
Adapt OCM/Adapt OCM/HoshinHoshin/ automation/ automation
/OEE/ APC techniques to/OEE/ APC techniques to
eliminate waste and createeliminate waste and create
competitiveness incompetitiveness in
manufacturingmanufacturing
Integrate the above techniquesIntegrate the above techniques
into daily productioninto daily production
management systemmanagement system