A Model Predictive Control Approach for Managing Semiconductor Manufacturing Supply Chains under Uncertainty

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1 A Model Predictive Control Approach for Managing Semiconductor Manufacturing Supply Chains under Uncertainty Wenlin Wang*, Junhyung Ryu*, Daniel E. Rivera*, Karl G. Kempf**, Kirk D. Smith*** *Department of Chemical & Materials Engineering Arizona State University Tempe, AZ **Decision Technologies ***Components Automation Systems Intel Corporation Chandler, AZ Outline A process-oriented viewpoint to supply chain management in semiconductor manufacturing Model Predictive Control as a tactical decision policy Case studies: Basic problem with backlog Die-packaging problem (in presentation record) Assembly/Test2 stochastic split problem Conclusions and future research 2003 AIChE Annual Meeting, San Francisco 1

2 Supply Chain Management in Semiconductor Manufacturing Strategic and inventory planning steps using optimization are already part of operational practice in semiconductor mfg. - Usually deterministic (linear or dynamic programming) - Long time horizons (weekly, monthly) The need exists for an integrated tactical execution layer - Addresses system nonlinearity and stochasticity - Involves daily decision-making Proposed Architecture strategic planning The Outer Loop Problem Validation MPC goals goals limits inventory planning simulation tactical execution Prediction The Inner Loop Problem 2003 AIChE Annual Meeting, San Francisco 2

3 Semiconductor Manufacturing Process Fluid Analogy for Single Fab/Test1, Assembly/Test2 and Finish Nodes 2003 AIChE Annual Meeting, San Francisco 3

4 Modeling Issues and Challenges The manufacturing process displays long throughput times (TPT) which are stochastic and nonlinearly dependent on load Yields are also stochastic There is an error between the forecasted and actual demand, which is also stochastic Additional problem features include package dynamics, stochastic splits in die properties, and multi-factory issues involving cross-shipments, shared capacity, and correlated demands. Fab/Test1 manufacturing node properties Throughput Time Starts Outs Load Load Time 2003 AIChE Annual Meeting, San Francisco 4

5 Model Predictive Control Appeal for Dynamic Inventory Management in Supply Chains As an optimizer, an MPC-based algorithm can minimize or maximize an objective function that represents a suitable measure for supply chain performance. As a controller, an MPC algorithm can be tuned to achieve stability, robustness, and performance in the presence of plant/model mismatch, failures and disturbances which affect the system. (Inventory Levels, WIP) (Actual Demand) (Forecasted Demand) (Previous Starts) (Future Starts) 2003 AIChE Annual Meeting, San Francisco 5

6 MPC Objective Function s.t. constraints on starts, inventories and Work In Progress (WIP) Case Study: Basic problem with backlog C4 M10 I10 C5 M20 I20 C6 M30 I30 C7 M40 Actual Forecast Demand D3 D2 D1 Backlog 2003 AIChE Annual Meeting, San Francisco 6

7 Scenario 1 (no move suppression, controller TPT at low end of range) Fab/Test1 Starts Assembly- Die Inv Finishing Starts Components Warehouse Fab Load Assembly/ Test Load Finish Load Many backorders Backorders Scenario 2 (with move suppression, controller TPT at average) Fab/Test1 Starts 98.9% variance reduction 50% variance reduction Assembly- Die Inv Finishing Starts Components Warehouse Fab Load 74.9% variance reduction Assembly/ Test Load Finish Load No backorders Backorders 2003 AIChE Annual Meeting, San Francisco 7

8 Case Study: Assembly/Test2 Stochastic Split Problem C35 M10 I10 C36 M20 I20 C37 C38 M30 M30 I30 C40 M40 D3 D2 D1 C39 Number of Die I21 M30 C90 I31 X Slow Fast devices devices Speed C41 M40 E3 E2 E1 The outcome of the Assembly/Test2 process is stochastic in terms of the number of fast and slow devices that result. Fast devices can be used to make high speed products (C37). Slow devices can be used to make low speed products (C39). Stochastic Split Modeling BIN SPLITS I20 hi spd I21 lo spd case 1 max ave min max ave min balanced unif unif case 2 downbin hi unif unif case 3 discard lo unif unif Average demand for fast devices: 351 units/day (39%) Average demand for slow devices: 551 units/day (61%) 2003 AIChE Annual Meeting, San Francisco 8

9 Case Study: Assembly/Test2 Stochastic Split Problem C35 M10 I10 C36 M20 I30 I20 C37 C38 M30 M30 C40 M40 C39 I21 M30 C90 I31 C41 M40 The outcome of the Assembly/Test2 process is stochastic in terms of the number of fast and slow devices that result. Fast devices can be used to make high speed products (C37). Slow devices can be used to make low speed products (C39). D3 D2 D1 E3 E2 E1 Original Move Suppression A/T2 Load F/T1 Starts CW (Fast) Finishing Load Reconfiguration Starts CW (Slow) 2003 AIChE Annual Meeting, San Francisco 9

10 Improved Move Suppression A/T2 Load F/T1 Starts CW (Fast) 98.9% variance reduction 43.2% variance reduction 69.3% variance reduction Finishing Load Reconfiguration Starts CW (Slow) 4.7% variance reduction 51.5% variance reduction Customer Service Comparison Original Move Suppression Improved Move Suppression Fast Device Backlog Slow Device Backlog Unfilled Orders: 4.62% Unfilled Orders: 7.41% Slow Device Backlog Fast Device Backlog Unfilled Orders: 0.34% Unfilled Orders: 2.38% 2003 AIChE Annual Meeting, San Francisco 10

11 Conclusions and Future Research MPC is a useful tool for tactical decision-making in semiconductor manufacturing supply chain management. It can handle stochastic and nonlinear manufacturing process using linear model with fixed parameters Judiciously picking tuning and model parameters can help to achieve performance robustness and improve customer service Good inventory targets from the outer loop will help reduce backorders and costs Future research will examine combination problems involving configuring, packaging, sharing capacity, etc Acknowledgements Financial support for this research has been provided by: Intel Research Council ASU s Institute for Manufacturing Enterprise Systems (IMES) 2003 AIChE Annual Meeting, San Francisco 11

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