Samsung Uses Data-Driven Approach to Manage Work-in-Process of Bottlenecks in Semiconductor Manufacturing Operations

Gwangjae Yu (), Jaehyeon Ryu () and Sang-Seok Choi ()
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Gwangjae Yu: Samsung Electronics, Hwaseong-si, Gyeonggi-do 18448, Republic of Korea
Jaehyeon Ryu: Samsung Electronics, Hwaseong-si, Gyeonggi-do 18448, Republic of Korea
Sang-Seok Choi: Samsung Electronics, Hwaseong-si, Gyeonggi-do 18448, Republic of Korea

Interfaces, 2024, vol. 54, issue 6, 487-499

Abstract: Semiconductor manufacturing is a repetitive and time-consuming process, with cycle times ranging from one to three months. To improve market responsiveness and reduce operational costs, minimizing work-in-process (WIP) throughout the manufacturing process is crucial, especially for the bottleneck process because it determines the efficiency of the entire production system. To achieve this goal, we utilize optimization and statistical techniques based on real-world data to determine the optimal level and threshold bounds for managing the WIP of the bottleneck process. Our results show a 35% reduction in the average WIP level of the bottleneck process without compromising its productivity, demonstrating the effectiveness of our approach in practical applications.

Keywords: lean manufacturing; forecasting; mixed-integer linear programming (MILP); business analytics; production management (search for similar items in EconPapers)
Date: 2024
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