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UNIVERSITI TEKNIKAL MALAYSIA MELAKA

CASE STUDY:

A STUDY ON OVERALL EQUIPMENT EFFECTIVENESS AT

ELECTRONICS MANUFACTURING COMPANY

This report submitted in accordance with the requirements of the Universiti Teknikal

Malaysia Melaka (UTeM) for the Bachelor Degree of Manufacturing Engineering

(Manufacturing Process) with Honours

by

MUHAMMAD HAFIZ BIN AHMAD

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UNIVERSITI TEKNIKAL MALAYSIA MELAKA

BORANG PENGESAHAN STATUS LAPORAN PSM

TAJUK:

CASE STUDY: A STUDY ON OVERALL EQUIPMENT EFFECTIVENESS AT ELECTRONICS

MANUFACTURING COMPANY”

SESI PENGAJIAN: 2008/2009 Semester 2

Saya MUHAMMAD HAFIZ BIN AHMAD

mengaku membenarkan laporan PSM ini disimpan di Perpustakaan Universiti Teknikal Malaysia Melaka (UTeM) dengan syarat-syarat kegunaan seperti berikut:

1. Laporan PSM / tesis adalah hak milik Universiti Teknikal Malaysia Melaka dan

penulis.

2. Perpustakaan Universiti Teknikal Malaysia Melaka dibenarkan membuat salinan

untuk tujuan pengajian sahaja dengan izin penulis.

3. Perpustakaan dibenarkan membuat salinan laporan PSM / tesis ini sebagai bahan

pertukaran antara institusi pengajian tinggi.

4. *Sila tandakan ()

/ SULIT

TERHAD

TIDAK TERHAD

(Mengandungi maklumat yang berdarjah keselamatan atau

kepentingan Malaysia yang termaktub di dalam AKTA RAHSIA RASMI 1972)

(Mengandungi maklumat TERHAD yang telah ditentukan oleh organisasi/badan di mana penyelidikan dijalankan)

NO 245 FELDA TENGGAROH 02, JEMALUANG,

81300 MERSING, JOHOR

Tarikh: _______________________

Cop Rasmi:

Tarikh: _______________________

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FAKULTI KEJURUTERAAN PEMBUATAN

Rujukan Kami (Our Ref) : 03 Oktober 2012 Rujukan Tuan (Your Ref):

Pustakawan

Perpustakaan UTeM

Universiti Teknikal Malaysia Melaka Hang Tuah Jaya,

75450 Ayer Keroh, Melaka

Saudara,

PENGKELASAN LAPORAN PSM SEBAGAI SULIT / TERHAD LAPORAN PROJEK SARJANA MUDA MUDA KEJURUTERAAN PEMBUATAN (MANUFACTURING PROCESS): MUHAMMAD HAFIZ BIN AHMAD

Sukacita dimaklumkan bahawa laporan PSM yang tersebut di atas bertajuk

CASE STUDY: A STUDY ON OVERALL EQUIPMENT EFFECTIVENESS AT

ELECTRONICS MANUFACTURING COMPANY” mohon dikelaskan sebagai

SULIT/TERHAD untuk tempoh Lima (5) tahun dari tarikh surat ini.

2. Hal ini adalah kerana HASIL KAJIANNYA ADALAH SULIT.

Sekian dimaklumkan. Terima kasih.

“BERKHIDMAT UNTUK NEGARA KERANA ALLAH”

Yang benar,

……….. EN EFFENDI BIN MOHAMAD

Pensyarah,

Fakulti Kejuruteraan Pembuatan

UNIVERSITI TEKNIKAL MALAYSIA MELAKA

Karung Berkunci 1200, Ayer Keroh, 75450 Melaka

(4)

APPROVAL

This report is submitted to the Faculty of Manufacturing Engineering of UTeM as a

partial fulfillment of the requirements for the degree of Bachelor of Manufacturing

Engineering (Manufacturing Process) with Honours. The members of the supervisory

committee are as follow:

(Signature of Principle Supervisor)

……….

(Official Stamp of Principle Supervisor)

(Signature of Co-Supervisor)

………

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APPROVAL

This report is submitted to the Faculty of Manufacturing Engineering of UTeM as a

partial fulfillment of the requirements for the degree of Bachelor of Manufacturing

Engineering (Manufacturing Process) with Honours. The member of the supervisory

committee is as follow:

(Signature of Supervisor)

………

(6)

DECLARATION

I hereby declared this project report entitle

CASE STUDY:

A STUDY ON OVERALL EQUIPMENT EFFECTIVENESS AT

ELECTRONICS MANUFACTURING COMPANY

is the result of my own research except as cited in references.

Signature :

Author’s Name : MUHAMMAD HAFIZ BIN AHMAD

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DEDICATION

I would like to dedicate these special thanks towards my beloved parents and siblings

for their endless encouragement, who inspired me throughout my journey of

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ACKNOWLEDGEMENT

In the name of Allah,The Most Gracious, Most Graceful.

Alhamdulillah, with full effort and patience in taking all challenges, Projek Sarjana Muda 2 (PSM 2) finally accomplished successfully.

A Special thanks to my supervisor, En. Effendi bin Mohamad for his very valuable editorial advices, comments, guidance and support.

I also would like to thank the TQS Manufacturing Sdn. Bhd. and the all workers that help me to do this study. Thanks to the manager of TQS Manufacturing Sdn. Bhd. that approves me to make this study in the company.

Besides, I would like to thank my beloved parents and family for giving endless encouragement, motivation and support throughout my project. Last but not least, I would like to thank my colleagues for their cooperation.

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ABSTRACT

This project entitled “Case Study: A Study On Overall Equipment Effectiveness At Electronics Manufacturing Company” discuss about the methods of

overall equipment effectiveness study. Aiming to study the overall equipment

effectiveness at the electronics machine, this method is very suitable in order to

reduce the production time of the manufacturing tape and reel machine. The

objectives of this project are to study the Overall Equipment Effectiveness in

electronics manufacturing company, to implement the Overall Equipment

Effectiveness in electronics manufacturing company and to see the effectiveness of

implementation Overall Equipment Effectiveness in the cost and productivity.

The overall equipment effectiveness can be determined by using a particular

formula. The formula is related to the availability, performance and the quality rate

of the machine to produce a product. The Overall Equipment Effectiveness will be

implemented to the machine after an analysis of the methods is done. The machine

that is used in this project is TR18AS2 tape and reel machine and the package that is

use is package DIL 4.

Methodology of Overall Equipment Effectiveness are collecting, calculating

and analyzing the data. The data collecting process is mainly focusing on the

machine breakdown and downtime event by using a stopwatch. This calculating

process is done by using the Overall Equipment Effectiveness formula. After that,

the result will be analyzed by using Pareto, histogram, scatter and fishbone diagrams.

The expectation of this study is the Overall Equipment Effectiveness method

will determine the current Overall Equipment Effectiveness value of the TR18AS2

machine. This method will also reduce the cycle time of the tape and reel process.

More over it will improve the production and eliminate almost all wastes and make

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ABSTRAK

Projek ini bertajuk “Case Study: A Study On Overall Equipment Effectiveness At Electronics Manufacturing Company” mengandungi metodologi bagi kajian “Overall Equipment Effectiveness” yang perlu dijalankan pada mesin tape and reel. Bertujuan untuk membuat kajian “Overall Equipment Effectiveness”

pada mesin elektronik, cara ini adalah sangat sesuai dan terampil dalam usaha

mengurangkan masa bagi mesin tersebut sekaligus meningkatkan pengeluaran.

Projek ini berobjektifkan untuk melaksanakan “Overall Equipment Effectiveness”

pada mesin elektronik berdasarkan untuk mengurangkan pembaziran bahan serta

menghindarkannya daripada berlaku. Dalam usaha melaksanakan “Overall Equipment Effectiveness” pada mesin elektronik, kajian terhadap impak yang bakal

berlaku mestilah dianalisis dengan menggunakan tujuh senarai kualiti yang

mana-mana lebih sesuai.

“Overall Equipment Effectiveness” boleh ditentukan dengan menggunakan

formula yang tertentu. Formula tersebut adalah berkaitan dengan kebolehan mesin

mengendali process tersebut, kebagusan mesin tersebut dan juga kualiti yang ada

pada mesin tersebut dalam menghasilkan pengeluaran. “Overall Equipment

Effectiveness” boleh dilaksanakan pada mesin tersebut selepas analisis bagi

pengumpulan data dan juga pengiraan data selesai dilakukan. Ia juga boleh

dilaksanakan apabila masalah besar dan kecil terhadap mesin tersebut berjaya

dikenalpasti dan juga nilai bagi “Overall Equipment Effectiveness” diketahui. Untuk mengetahui bagaimana “Overall Equipment Effectiveness” ini dapat mengurangkan

masa serta meningkatkan pengeluaran, ia mestilah dilaksanakan terhadap mesin

tersebut. Mesin yang akan digunakan dalam projek ini ialah mesin TR18AS2 dan

pakej yang terlibat hanyalah pakej DIL 4.

“Overall Equipment Effectiveness” memerlukan metodologi untuk mengumpul data,

mengira data dan menganalisis data. Pengumpulan data dilakukan terhadap mesin

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menyebabkan mesin terhenti seketika untuk melakukan pengeluaran dengan

menggunakan jam randik. “Overall Equipment Effectiveness” boleh ditentukan

dengan menggunakan formula yang tertentu. Formula tersebut adalah berkaitan

dengan kebolehan mesin mengendali process tersebut, kebagusan mesin tersebut dan

juga kualiti yang ada pada mesin tersebut dalam menghasilkan pengeluaran. Selepas

keputusan didapati, data yang dikumpulkan akan dianalisis dengan menggunakan

Pareto diagram, histogram diagram, scatter diagram and the fishbone diagram.

Kajian ini diharap dapat menentukan overall equipment effectiveness

terhadap mesin TR18AS2. Kajian ini juga diharap dapat mengurangkan kitaran masa

bagi setiap proses tape and reel dan pada masa yang sama meningkatkan lagi

pengeluaran bagi mesin tersebut. Dalam usaha untuk meningkatkan pengeluaran dan

mengurangkan masa bagi proses tersebut, perlaksanaan yang bakal dilakukan akan

dilakukan terhadap mesin tersebut. Ini akan mengurangkan hamper semua bahan

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TABLE OF CONTENTS

CHAPTER SUBJECT PAGE

DECLARATION i

DEDICATION ii

ACKNOWLEDGEMENT iii

ABSTRACT iv

ABSTRAK vi

TABLES OF CONTENTS viii

LIST OF TABLES xii

LIST OF FIGURES xiv

LIST OF ABBREVIATIONS xvi

LIST OF APPENDICES xvii

CHAPTER I INTRODUCTION 1.0 Introduction 1

1.1 Overview of the project

1.1.1 Preventive Maintenance 1

1.1.2 Total Productive Maintenance (TPM) 2

1.1.3 Overall Equipment Effectiveness (OEE) 2

1.2 Problem Statement 3

1.3 Objective 5

1.4 Scopes 5

1.5 Challenges Faces 5

1.6 Significance of this study 7

1.7 Research Methodology 7

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CHAPTER II LITERATURE REVIEW

2.0 Introduction 9

2.1 OEE in semiconductor 9

2.2 Total Productive Maintenance

2.2.1 What is Total Productive Maintenance, TPM? 11

2.2.2 Why Total Productive Maintenance, TPM? 12

2.2.3 What is benefit by using TPM? 13

2.3 Preventive Maintenance

2.3.1 What is Preventive Maintenance? 14

2.3.2 Why Preventive Maintenance? 14

2.3.3 What is benefiting Preventive Maintenance? 15

2.4 Overall Equipment Effectiveness, OEE

2.4.1 What is OEE? 16

2.4.1.1 Overall Equipment Effectiveness 17

2.4.1.2 Production OEE, OEEP 18

2.4.1.3 Demand OEE, OEED 18

2.4.2 Why OEE? 19

2.5 What Is Capacity Utilization Bottlenecks Efficiency

System, CUBES in OEE? (A develop system) 22

2.6 Uses and Misuses of the OEE for Production

Management

2.6.1 The Uses of OEE 24

2.6.2 Misuses of the OEE 24

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CHAPTER III METHODOLOGY

3.0 Introduction 28

3.1 Overview of the methodology 29

3.1.1 The Process Planning Flow Chart 29

3.1.2 The Explanation of Process Planning

Flow Chart 30

3.1.2.1 Problem statement identification 30

3.1.2.2 Literature review 30

3.1.2.3 Identification of the category of

losses and breakdown and the

downtime event 31

3.1.2.4 Calculating the OEE 31

3.1.2.5 Analyzing the data 32

3.2 Methodology 32

3.2.1 Know the OEE Factors 32

3.2.1.1 Plant Operating Time 32

3.2.1.2 Planned Production Time 33

3.2.1.3 Operating Time 33

3.2.1.4 Net Operating Time 33

3.2.2 Attacking the Six Big Loses 35

3.2.2.1 Defining the Six Big Losses 35

3.2.3 Collecting Data 36

3.2.4 Calculating the OEE 37

3.2.4.1 Formulas That Using In the

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3.2.5 Analysis the Data 40

3.2.5.1 Histogram diagram 41

3.2.5.2 Pareto diagram 42

3.2.5.3 Fishbone diagram 43

3.2.5.4 Scatter diagram 44

3.3 Conclusion 45

CHAPTER IV COMPANY BACKGROUND

4.0 Introduction 46

4.1 Quality Policy 47

4.2 Quality Performance Objectives of Key Quality

Management System Processes 47

4.2.1 Customer satisfaction 47

4.2.2 Customer related process and production

Process 48

4.2.3 Product conformity / non-conformity 48

4.2.4 Purchasing 48

4.2.5 Resources management 48

4.3 Business Orientation 48

4.4 Organization Chart 49

4.5 Departments 49

4.5.1 Bundling department 49

4.5.2 Production Department

(Process tape and reel) 50

4.5.3 Quality assurance department 51

4.5.4 Packaging department 52

4.5.5 General process flow in the departments 52

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CHAPTER V RESULTS AND DISCUSSION

5.1 Introduction 54

5.2 Results and discussion 54

5.3 Data collection 55

5.3.1 Data collection: downtime event 55

5.4 OEE calculation for machines 56

5.5 Discussion 62

5.6 Calculation of theoretical value 67

5.7 Time study of current OEE 70

5.8 Loss calculation 72

5.8.1 DIL 4 option 9 loss 83

5.8.2 Overall reel loss 72

5.8.3 Overall units loss 72

5.9 Standard operation procedure 74

5.91 Parameter setting 75

5.10 Results after implementation OEE 80

5.10. 1 Data collection 80

5.11 OEE calculation after implementation 83

5.12 Calculation of the theoretical value 89

5.13 Discussion after implementation OEE 93

5.14 Time study after implementation OEE 99

5.15 Comparison 100

5.16 Analysis 101

5.16.1 Fishbone/Ishikawa diagram 101

5.16.1.1 Fishbone Solution 101

5.16.2 Pareto diagram 103

5.16.3 Scatter diagram 106

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5.17 Relationship OEE and the productivity 110

5.17.1 Units Price 113

5.17.2 Loss machine hours calculation 114

5.17.3 Loss reel calculation 115

5.18 Summary 116

CHAPTER VI CONCLUSION AND FUTURE RECOMMENDATION

6.1 Conclusion 117

6.2 Future recommendation 118

REFERENCES 119

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LIST OF TABLES

TABLE TITLE PAGE

2.1 Overall Equipment Effectiveness Component 17

2.2 Six Major Losses in the Sub Category 20

3.1 The OEE loss and OEE factor 34

3.2 The Six Big Loss Category 35

3.3 Guide Table for Calculating OEE 37

5.1 Downtime machine 55

5.2 Total downtime percentage in one shift 62

5.3 Percentage of every problem 65

5.4 Average actual data per day 66

5.5 Time study schedule for tape and reel machineTR18AS2 70

5.6 Percentage of productivity and loss per machine 71

5.7 Machine default parameter setting 75

5.8 Control panel 76

5.9 Data collection after implementation OEE 80

5.10 Average frequency and Problem frequency 81

5.11 Average breakdown in minutes 81

5.12 Machine parameter setting 82

5.13 The total downtime in minutes and percentage 93

5.14 The problem occur in minutes and percentage 95

5.15 Time study after the implementation 99

5.16 Average actual data per shift 100

5.17 Machine problem frequency 103

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5.19 Theoretical output value before and after implementation OEE 106

5.20 The theoretical value of units differentiation 107

5.21 The comparison of downtime after and before implementation 108

5.22 Table of histogram 109

5.23 The theoretical output unit and average target data 110

5.2 Percentage of productivity per goal per machine 111

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LIST OF FIGURES

DIAGRAM TITLE PAGE

1.1 The Diagram of the Bottlenecks of the Manufacturing Area 5

2.1 The Diagram of the Downtime Target for the Machine 12

2.2 The Standard OEE Calculation 17

2.3 Production OEE 18

2.4 Demand OEE 18

2.5 The OEE Management Process 21

2.6 Examples of CUBES E10 Template Worksheet 23

3.1 The Process Flow Chart of the Project 29

3.2 Examples of Histogram 41

3.3 Example of Pareto Diagram. 42

3.4 Example of Fishbone or Cause and Effect Diagram 43

3.5 Examples of the Scatter Diagram 44

4.1 TQS Manufacturing Sdn Bhd 46

4.2 Organization Chart of TQS Manufacturing Sdn Bhd 49

4.3 Bundling Department 50

4.4 Production Department 51

4.5 Quality Assurance Department 51

4.6 Packaging Department 52

4.7 General Process Flow in the Departments 52

5.1 The time using for the operators 56

5.2 Graph total downtime vs. machine number 62

5.3 Percentage of downtime machine pie charts 63

5.4 Fishbone diagram of the machine problem 64

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5.6 Formulas of productivity 71

5.7 Setting the pressure gauge and the sealing temperature 75

5.8 Setting the sealing interval and the sealing time 75

5.9 Set the UPH machine 700 – 800 75

5.10 The standard operation to conversion setup machine 77

5.11 Press the stop button to stop manual sealing process 78

5.12 Do the peel test for that particular reel 78

5.13 Machine prompt 2D vision inspection not ready 78

5.14 Do AT4520 2D vision inspection calibration 79

5.15 Do AT4520 2D vision inspection setup and teaching 79

5.16 The time estimated for operators 82

5.17 Graph total downtime vs. machine number 93

5.18 Percentage of downtime machine pie chart 94

5.19 Percentage downtime per shift pie chart 95

5.20 Graph minutes problem vs. type of problem 96

5.21 Percentage problem per shift pie chart 97

5.22 Percentage per problem pie chart 97

5.23 The fishbone diagram of machine problem for breakdown 101

5.24 Pareto diagram of machine problem with number of breakdown 103

5.25 The Pareto diagram of breakdown with the number of problem 104

5.26 Scatter diagram theoretical output value before and after 106

5.27 Scatter diagram of downtime before and after implementation 108

5.28 Histogram of the working time and the breakdown time 109

5.29 Formulas of productivity before OEE implementation 111

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LIST OF ABBREVIATIONS

AV - Availability

CUBES - Capacity Utilization Bottleneck Efficiency System

CL - Change Loss

FL - Failure Loss

FAB - Semiconductor Manufacturing Facilities

JIT - Just In Time

KPI - Key Performance Indicator

MES - Manufacturing Execution System

MTBA - Mean Time Between Assist

MTTA - Mean Time To Assist

MUBA - Mean Unit Between Assist

OPE - Overall Plant Efficiency

OEE - Overall Equipment Effectiveness

PM - Preventive Maintenance

PE - Performance Efficiency

QC - Quality Control

RQ - Rate of Quality

SPS - Semiconductor Products Sector

SL - Start Up Loss

SPC - Statistical Process Control

STI - Semiconductor Technologies and Instruments

SU - Set Up

SMED - Single Minute Exchange of Dies

TPM - Total Productive Maintenance

TPS - Through Put Solution

TQM - Total Quality Management

UPH - Units Per Hour

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LIST OF APPENDICES

APPENDIX TITLE PAGE

1.1 Gantt Chart for PSM 1 122

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CHAPTER 1

INTRODUCTION

1.0INTRODUCTION

In the latest life, the demands for semiconductors are at an all time high.

Nowadays, the semiconductor suppliers cannot keep up with the increasing demand. In

fact, many of manufacturers built a new preparation to increase the production capacity.

The move towards more complex integrated circuit and smaller features size has

escalated both the capability and cost of manufacturing equipment. Product innovation,

customer service, and manufacturing excellent have become the competitive leverage

points. Factory capacity is becoming exceedingly expensive and new factories may not

reach designed output levels at least a few years.

1.1 OVERVIEW OF THE PROJECT 1.1.1 Preventive maintenance

Preventive maintenance (PM) is an important operation in semiconductor

manufacturing systems. PM is performed by intentionally taking off-line tools to

perform a prescribed maintenance task. A good PM schedule improves tools availability

and production performance, while reducing the costs derived from PM operations,

Work-In-Process (WIP) inventory, and tool breakdowns (Yao et al., 2001; 2002; 2004).

When PM tasks are properly performed, these will produce a trade-of between

planned down-time due to PM operations and costly unplanned tool failures. (Jose´ A.

References

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