A Systems study on the assembly of DAL7 of DAL Company

• Main Authors: Abadia, Gianpola G., De Lima, Leslie Ann S., Lonzaga, Diana Marie C.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: DAL Company > Philippines > Cavite; DAL Company > Philippines > Manila; Semiconductors; Computer storage devices; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6874
• Institution: De La Salle University

DAL Company is one of the largest semiconductor companies in the world. Here in the Philippines, they operate a huge manufacturing facility in Cavite. The manufactured products in the Cavite plant are being exported in other countries, with the bulk being exported in the United States. The company experienced subcontracting costs amounting to Php41,919,073.34 or 2,587,597 short units for the year 2005 for the production of the product DAL7. This is because the company is operating below its design capacity, specifically for the wire bound process, which forces the company to subcontract the short units in order to fill in the needed target output of 1,000,000 units a week. Upon thorough analysis of the production, it has been learned that the causes for not meeting the target output are due to low machine utilization, low labor utilization, long cycle time, wrong identification of lots, and excessive repairs and assists of the machines. Due to the causes identified that contribute to the problem, the following solutions were proposed, which aim to alleviate the problem being experienced by the company: Introducing a fixed break time schedule, implementing a time in-time out system on the production floor, providing appropriate tags on the machines, and assigning technicians to respective lines. These solutions will increase the output per year by 2,011,763 units at a total cost of Php21,412.08 and total benefit of Php32,590,560.60. Another solution that was proposed is to decrease the batch size of DAL7. Currently, the batch size is 2800 units but it signifies a long waiting time before the units are transferred from one station to the next. The optimal batch size was determined and came out to be 2520 units. With this solution, 2,751,000 units additional output can be produced at no investment cost. Total benefit for this solution will amount to Php44,566,200.00. From the cost benefit analysis, it has been learned that the cost that will be incurred in implementing the solutions can be paid back in a span of .008 months, which shows that the proposed solutions are feasible and worth investing on. All solutions can be implemented within 2 months.