EFFICIENCY IMPROVEMENT OF THE BOTTLENECK OPERATION TO INCREASE THE CAPACITY OF TO-220 ON-GDL AT PSi TECHNOLOGIES, INC.
KATHLEEN BARCENAS LEE
A PRACTICUM REPORT PRESENTED TO THE FACULTY OF THE DEPARTMENT OF INDUSTRIAL ENGINEERING COLLEGE OF ENGINEERING AND AGRO-INDUSTRIAL
TECHNOLOGY UNIVERSITY OF THE PHILIPPINES LOS BAÑOS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING
APRIL 2009
ii ACCEPTANCE SHEET
The practicum study attached hereto, entitled “EFFICIENCY IMPROVEMENT OF THE BOTTLENECK OPERATION TO INCREASE THE CAPACITY OF TO-220 ON-GDL AT PSI TECHNOLOGIES, INC.”, prepared and submitted by KATHLEEN B. LEE in partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering, is hereby accepted.
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ENGR. ARVIN JOSEPH M. ELAURIA Adviser and Chairman, Guidance Committee
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Date Signed
_____________________________ ______________________________
ENGR. HAEROLD DEAN Z. LAYAOEN ENGR. MIKEL ANGELO B. YAP Member, Guidance Committee Member, Guidance Committee
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Date Signed Date Signed
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PROF. HERBERT T. MANALIGOD Chairman, IE Department
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Date Signed
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DR. ARSENIO N. RESURRECCION
Dean, College of Engineering and Agro-industrial Technology ______________
Date Signed
EXECUTIVE SUMMARY
PSi Technologies, Inc. is a company that focuses on assembly and test services of power semiconductor and specialized non-power semiconductor packages used for industrial, automotive, and computer peripherals. It is located in Electronics Avenue, FTI Complex, Taguig City.
The company has the lowest efficiency in producing the TO-220 ON-GDL products. It has the lowest efficiency of 91.0706%. In addition, it is behind its target efficiency of 95%. Each 1% lost in efficiency is equivalent to 41,075 units per week which is equivalent to Php64,046.94 per week. Furthermore, given the current capacity with low efficiency, the system cannot satisfy the demand for 2008. Breaking down the operations in producing the product reveals the mold station as the bottleneck process.
In addition, it has the lowest efficiency recorded and is behind its target efficiency equal to 98%. It’s current efficiency in producing TO-220 ON-GDL is 94.94%, behind its target by 3.06%. The mold station is behind its effective capacity by 208,000 units which is equivalent to Php324,324 per week.
Root cause analysis was done and cause factors were derived. The cause factors were grouped into Man, Machine, Method, or Material. CNX analysis was done to classify the root causes into Controllable, Noise and Experimental Factors. Since the Noise factors were not within the scope of the study, it is not addressed. Six controllable factors were derived and given solutions. These factors were grouped into three – Factor C1, C2 and C3. Recommendation for the first factor was that the management should make sure that the task of checking the availability and condition of the mold compound inventory is being fulfilled by the material planner. Second, management should not overlook the poor implementation of its rules and regulations. The rules described here are those regarding tardiness and loitering of the employees. Third, standard operating procedures should be strictly reminded and a re-training of workers was suggested in order to avoid mistakes in production. Two experimental factors were identified. Factor A is the mold tool has exceeded its optimum number of shots while Factor B is the poor inventory system. For Factor A, Alternative A was presented. For Factor B, Alternatives C and D were given. Alternative A suggests the replacement of mold tool which increased the capacity per week by 86,000 units. Alternative B suggests the use of lot for lot technique in ordering the required molding compound while Alternative C uses Economic Ordering Quantity or EOQ. For an experimental factor, one alternative solution was chosen. Factor rating method was done in order to come up with the selection. Based from the ratings done, Alternative A was the solution for Factor A and Alternative B was the solution for Factor B.
It was determined that upon implementation of the solutions to the problem, the TO-220 ON-GDL products would increase its efficiency by 3.57% in the mold station, from 94.94% to 98.51%.
viii TABLE OF CONTENTS
PAGE
TITLE PAGE i
ACCEPTANCE SHEET ii
AUTOBIOGRAPHICAL SKETCH iii
ACKNOWLEDGMENT iv
EXECUTIVE SUMMARY vii
TABLE OF CONTENTS viii
LIST OF TABLES x
LIST OF FIGURES xii
LIST OF APPENDICES xiii
1.0 INTRODUCTION 1
1.1 GENERAL OVERVIEW OF THE COMPANY 2
1.2 BACKGROUND AND SIGNIFICANCE OF THE STUDY 7
1.3 STATEMENT OF THE PROBLEM 10
1.4 OBJECTIVE OF THE STUDY 11
1.5 SCOPE AND LIMITATIONS OF THE STUDY 11
1.6 DATE AND PLACE OF THE STUDY 11
2.0 METHODOLOGY 12
2.1 PROCEDURES 13
2.2 DEFINITION OF TERMS AND SYMBOLS 13
3.0 SYSTEM DOCUMENTATION 16
3.1 PRODUCT DESIGN 17
3.2 GENERAL PRODUCTION PROCESS 21
3.3 AREA UNDER STUDY 27
4.0 RESULTS AND DISCUSSIONS 41
4.1 PROBLEM IDENTIFICATION 42
4.2 ANALYSIS 44
4.3 COST & BENEFIT ANALYSIS 64
5.0 SUMMARY AND CONCLUSION 66
6.0 RECOMMENDATIONS 68
7.0 AREAS OF FURTHER STUDY 70
8.0 REFERENCES 72
9.0 APPENDICES 74
x LIST OF TABLES
TABLE NO.
TITLE PAGE
1-1 Semiconductor Average Demand per Week from November 2008 to
March 2009 of PSi Taguig 9
1-2 Average Efficiency per week of PSi Technologies from November
2008 to March 2009 When Producing the Products 9 2-1 Definition of terms used and cited in the study 14
2-2 Symbols used for Process Charting 15
3-1 Molding Station and their respective Floor Area and Number of
Workstations 33
3-2 Thawing time and UsageLimit of Different Molding Compound 37 4-1 Efficiency of the Five Major Station in Producing TO-220 ON-GDL 43
4-2 Actual mold tool condition 48
4-3 Number of Stock-out from November to March 2008 49
4-4 Controllable factors 51
4-5 Guidelines Regarding the Loitering Policy in PSi Technologies, Inc. 53
4-6 Proposed Re-Training Program 54
4-7 Experimental Factors Considered in the Study 54 4-8 Experimental Factors and Proposed Alternatives 54 4-9 Comparison of the Present System and Alternative A 55
4-10 Costs considered in the Study 56
4-11 Molding compound requirement per usage 56
4-12 Demand for TO220 ON-GDL and Mold Compound Requirement for
year 2008 57
4-13 Initial Monte Carlo Simulation of Alternative B 58 4-14 Summary of Performance in Implementing Alternative B 59 4-15 Initial Monte Carlo Simulation of Alternative C 60 4-16 Summary of Performance in Implementing Alternative B 61
4-17 Weight Rating 62
4-18 Ratings for Number of Stock-out 62
4-19 Ratings for Average Number of Inventory 63
4-20 Ratings for Number of Orders in a Year 63
4-21 Ratings for Efficiency Improvement 64
4-22 Summary of the evaluation for the experimental factor 64
4-23 Before Tax Cash Flow of the Present System 65
4-24 Before Tax Cash Flow of Alternative A 65
xii LIST OF FIGURES
FIGURE NO.
TITLE PAGE
1-1 Corporate Organizational Chart of PSi Technologies, Inc., Taguig 3
1-2 PSi Technologies, Inc. Taguig City 4
1-3 Some of the Customers of PSi Technologies, Inc. 7
3-1 Products of PSi Technoligies, Inc. 17
3-2 Process Flowchart of the Production of Power Semiconductor Units 22 3-3 Die Attach Machine in Front-of-Line at PSi Technologies, Inc. 26 3-4 Die Attach Machine in Front-of-Line at PSi Technologies, Inc. 27 3-5 Auto Frame Loader and Mold Press in Mold Station 28 3-6 Electrolytic Deflash Machine at PSi Technologies, Inc. Taguig 29 3-7 Laser Mark Station in End-of-Line Area at PSi Technologies, Inc. 30 3-8 Trimming/Forming Machine in End-of-Line Area 30
3-9 Singulation Machine in End-of-Line Area 31
3-10 Production area at PSi Technologies, Inc. Taguig 32 3-11 Machines in the mold workstation: a. Mold Press Machine, b. Auto
Frame Loader, c. Pre-heater Machine 34
3-12 Parts of Mold Press Machine 35
3-13 Standard Operating Procedure before entering Mold station 36
3-14 Process Flow Chart of the Molding Process 39
4-1 Efficiency of the Five Major Stations in Producing Station in
Producing TO-220 ON-GDL 43
4-2 Actual Mold tool Condition 44
4-3 Number of Stock-out from November to March 2008 44
4-4 Estimated Time of Unmanned Machine per Day 46
4-5 Causes Connected to Man 47
4-6 Machine Related Causes 48
4-7 Causes Attributed to Material Used 49
4-8 Causes Attributed to Method Used 50
4-9 Material Planning Standard Operating Procedure 52
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Certificate of Completion 75
B Monte Carlo Simulation Using Lot for Lot as Lot Sizing Technique 76 C Monte Carlo Simulation Using EOQ as Lot Sizing Technique 88
