Materials lead time reduction in a semiconductor equipment manufacturing plant : warehouse design and layout

Abstract

The warehouse layout and operations of a semiconductor tool manufacturer were studied with the objective of reducing the lead time for parts ordered from the warehouse to 8 hours. Current order fulfillment operations were studied and interviews with involved personnel were conducted. Additionally, data was extracted and analyzed from the company's SAP Extended Warehouse Management database to analyze the past performance of the warehouse operations. Three main areas for improvements were analyzed and recommendations were made regarding each area. First, it is recommended that a kit of parts ordered should be sent immediately the constituent parts are consolidated and the kit is completed. This saves an average of 6 hours that parts in a complete kit wait for other kits to be completed before being sent out. Second, the picking aisles of the warehouse should be cleared so that parts in storage locations are easily accessed for picking and no time is wasted on clearing a path to pick a part. This leads to an average time saving of 1.2 hours per day on the time parts are delivered. Third, the receiving and sorting areas in the warehouse should be combined together. This frees up storage space for excess bulk material which block picking aisles. These recommendations are to be combined with other material flow improvements. It was determined that the goal of 8 hours lead time is unrealistic. However, calculations suggest that lead time will be reduced to 16 hours.