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hw8_Sp09 - IEOR 130 Methods of Manufacturing Improvement...

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1 IEOR 130 Methods of Manufacturing Improvement Spring, 2009, Prof. Leachman Homework assignment 8, due April 21, 2009. 1. Consider a fab producing a NAND flash device. Production volume is 50,000 wafer starts per week. Accounting for line yield and die yield, output is 600 die per wafer start. The cycle time is currently 50 days. Average selling price is currently $10.00 per die but is declining 50% per year. The remaining economic life of the device is 2 years. (a) Compute the value of a 1-day reduction in cycle time in terms of the lifetime revenue gains. (b) In addition to the revenue gains, what costs do you expect could be reduced if cycle time is reduced? Assume there is no reduction in process time and no change in the equipment set. (c) Compute the value of a 10-day reduction in cycle time in terms of the lifetime revenue gains. (d) Is the value of cycle time reduction approximately linear in the number of days of reduction? 2. A particular machine type performs three steps in a fabrication process flow. There are 5 machines of this type and the average process time per lot is 1 hour. Assume all 5
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