Nirvana

IEEE Spectrum published a brilliant article titled “The New Economics of Semiconductor Manufacturing” focusing on applying Toyota Production System (TPS) principles to improve efficiency and production capacity.

The TPS is briefly summarized as

(1) highly specify activities,

(2) clearly define the transfer of material and information,

(3) keep the pathway for every product and service simple and direct, and

(4) detect and solve problems where and when they happen, using the scientific method.

Authored by Clayton M. Christensen (author of “The Innovator’s Dilemma”) et. al. the article elaborates on the TPS principles as applicable to semiconductor fabs with real examples and the results gained by the changes.

To cut costs by 12%, increase production capacity by 10% and lower cycle time by 67% in six months without additional investment is astounding to say the least.

Highly recommended to read !

Thanks to my FIL for forwarding this article to me.

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