The Ongoing Challenge - Tutorial The Illusion Of Capacity Incorporating the Complexity Of FAB Capacity (tool deployment & operating curve) into Central Planning for Demand-Supply Networks for the production of semiconductor based packaged goods with substantial non-FAB complexity Cycle Time Tax and the Operating Curve in steady-state start patterns part 2 of 4 Ken Fordyce & John Fournier, IBM Prof. John Milne, Clarkson University Dr. Harpal Singh, CEO Arkieva Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 1 Hunt for CAPAVAIL and the Operating Curve Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 2 Outline • Overview of the Demand Supply Network for the production of semiconductor based package goods – • Decision Tiers – – • Planned lack of tool uniformity Inherent variability Basics of Aggregate Factory Planning – – – • Aggregate FAB Planning Central Planning Two major challenges – – • Warring factions Can this wafer start profile be supported Near Term Deployment WIP Projection Basics of Central Planning – – Basic Functions Historical emphasis on non-FAB complexity • – Handle FAB Capacity with limits stated as wafer starts • – Alternate BOM for example Wafer start equivalents evolved to nested wafer starts Second look at capacity (CAPREQ and CAPAVAIL) • • Linear methods in central planning engines FAB complexity creates miss match • Operating Curve and Cycle time Tax Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 3 definitions • CAPREQ - establishing a consumption rate for each unit of production by that manufacturing activity for the selected resource • CAPAVAIL - providing the total available capacity for the resource. connecting manufacturing releases (starts) to resource consumption with a linear relationship Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 4 CAPAVAIL, Cycle Time, & a Taxes • Central & FAB Planning make two demand supply network decisions – quantity of wafer starts (explicit decision made by CPE) – committed cycle time (input to CPE) • Typically cycle time is “fixed” and not linked to starts decision • In fact committed cycle time influences capacity available – Longer cycle times, more effective capacity available – Shorter cycle times, less effective capacity available • since capacity available influences starts, the two decisions (starts and cycle time are not independent – Shorter cycle time, less starts – Longer cycle time more starts • use operating curve to link cycle time and effective capacity available via a cycle time tax Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 6 Trade-off between effective capacity available and cycle time MM1 comparison full MM1 and Squeezed Xfactor calculated for traditional MM1 xfactor from Sullivan - Fordyce 10% Sqeezed xfactor from Sullivan-Fordyce 20% Squeezed 24.00 22.00 For Blue Operating Curve to achieve a CTM of 5.00 Requires accepting Tool utilization of 80% 20.00 18.00 16.00 xfactor 14.00 IDLE IS TAXto accept If you are willing Which Means 20% of your capacity has to SIT IDLE 12.00 10.00 CTM of 6.0, then only 17% of your capacity has to sit idle 08.00 Effective CAPAVAIL is 80% of “Raw” CAPAVAIL 06.00 04.00 02.00 00.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 Effective CAPAVAIL is 0.5583% 0.60 0.65 0.70 0.75 CAPAVAIL 0.80 0.85 0.90 of “Raw” 0.95 1.00 machine utilization Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 8 Martin-Morrison Operating Curve – some basics Cycle Time Estimate Based on Utilization util M CTM 1 offset 1 util M CTM is the cycle time multiplier of raw process time (RPT) – measure of cycle time util is tool utilization of the entity (expressed as a percentage) – facility, tool set, checkout clerks, etc. offset represents several of aspects of the process that generate wait time that cannot be eliminated. M is the number of identical parallel machines or servers. Typically this value ranges from 1 to 4 α represents the amount of variation in the system (arrival times, service times (including machine outage, raw process time (RPT), and operator availability)) and controls how long the curve stays flat. The lower the value of α the less variation and the longer the curve stays flat. Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL 9 Martin-Morrison Operating Curve – some basics Utilization Required based on Cycle Time Decision 1 M CTM (offset 1) util CTM (offset 1) Solve Previous Equation for Util Given a CTM target, calculate tool utilization required Utilization fraction of tool set required to meet cycle time commit This drives idle without WIP 10 Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL Capacity Available Tax Rate to meet cycle time commit Capacity Available Tax Rate 1 util where util is a function of the cycle time commit and the operating curve for tool set CAPAVAIL tax rate is required idle without WIP to meet cycle time target If the cycle time target requires a 80% utilization, then the “tax” is 20% If the raw CAPAVAIL is 100 units, then 20 units must be “set aside” to meet the cycle time commit 20% of the time the tool set should be ready to go, but idle no WIP 11 Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL Martin-Morrison Operating Curve – some basics Capacity Required Uplift Factor (ULF) to meet cycle time commit 1 CAPREQ Uplift Factor (ULF) util Alternative is to place “tax” on capacity required (CAPREQ) This is done with uplift factor If util is 0.80, then the uplift factor is 1.25 (=1/0.8) If core CAPREQ is 10, CAPREQ to account for required idle capacity is 12.5 = (10 x 1.25) 12 Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL Therefore effective Capacity Available depends on the cycle time commit • relationship normally not a component of CPE formulations • cycle time “decisions” are made prior to creation of the central plan in “off line” analysis and seen as an “estimate” of capability as much as a decision • in aggregate FAB planning using algebraic methods incorporating cycle time tax is straightforward, but cumbersome • Challenge is to incorporate this into the day to day central planning process where complications abound – example ramp up or ramp down of cycle time 14 Fordyce, Fournier, Milne, Singh Illusion of FAB Capacity in Central Planning – hunt for CAPAVAIL