4-1-07 SLIM short cycle time low inventory at samsung

4-1-07 SLIM short cycle time low inventory at samsung -...

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0092-2102/02/3201/0061$05.00 1526-551X electronic ISSN Interfaces , q 2002 INFORMS Vol. 32, No. 1, January–February 2002, pp. 61–77 SLIM: Short Cycle Time and Low Inventory in Manufacturing at Samsung Electronics Robert C. Leachman • Jeenyoung Kang • Vincent Lin Department of Industrial Engineering and Operations Research, University of California at Berkeley, Berkeley, California 94720–1777 IBM Korea, Inc., MMAA Building, Dogok-dong, Gangnam-gu, Seoul, Korea 467–12 Leachman and Associates LLC, 5870 Carmel Way, Union City, California 94587 leachman@ieor.berkeley.edu • kangjy@kr.ibm.com • vincent@leachmanandassociates.com SLIM is a set of methodologies and scheduling applications for managing cycle time in semi- conductor manufacturing. SLIM includes methodology for calculating target cycle times and target WIP levels for individual manufacturing steps, heuristic algorithms for factory floor scheduling, and optimization-based capacity analysis. Between 1996 and 1999, Samsung Elec- tronics Corp., Ltd., implemented SLIM in all its semiconductor manufacturing facilities. It reduced manufacturing cycle times to fabricate dynamic random access memory devices from more than 80 days to less than 30. Considering the decline of selling prices for dynamic random access memory devices, SLIM enabled Samsung to capture an additional $1 billion in sales revenue compared to the revenue it would have realized had cycle times not been reduced. ( Manufacturing: performance, productivity . Industries: computer, electronics. ) S amsung Electronics Corp., Ltd. (SEC) is a leading merchant of dynamic random access memory (DRAM) devices, static random access memory (SRAM) devices, and other advanced digital integrated circuits. SEC has sustained about a 20 percent market share of the vast DRAM market every year since 1995. In terms of unit volume, SEC is the largest manufac- turer of digital integrated circuits in the world. SEC’s advanced memory-chip products require more than 400 fabrication steps performed in multibillion-dollar factories that include several hundred processing ma- chines of various types. At the Kiheung, South Korea, site, probably the largest semiconductor fabrication site in the world, SEC fabricates more than 300,000 sil- icon wafers per month (about half six-inch wafers and half eight-inch) and employs over 10,000 people. SEC’s chip assembly and test site in Onyang, South Korea, employs over 4,000 people. SEC also operates a large semiconductor fabrication plant in Austin, Texas, un- der the auspices of its US semiconductor subsidiary, Samsung Austin Semiconductors (SAS). Cycle time is the industry’s term for the manufac- turing flow time, that is, the elapsed time from the re- lease of a lot of blank silicon wafers into the fabrication process until completion of the devices that are fabri- cated on those wafers. The entire semiconductor manufacturing process may be divided into four stages: wafer fabrication, electrical die sort, device as- sembly, and device testing. Depending on device and wafer sizes, each wafer processed through the fabri- cation stage contains 400–800 identical memory de-
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4-1-07 SLIM short cycle time low inventory at samsung -...

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