A system study on the manufacturing process at DPL Technology Incorporated

• Main Author: Someros, Rommel Mercado
• Format: text
• Language: English
• Published: Animo Repository 2012
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4344
• Institution: De La Salle University

DPL Technology Incorporated is a company engaged in semiconductor business since 1990s. What was started as a trading company which focus on buy and sell of manufacturing equipment, it diversified its business activities into semiconductor sub-contracting assembly and test of various semiconductor products such as Chip-On-Board, Clock Modules, Numerical Display (LED and LCD type), Watch Modules, Signal Receiver Modules, Opto Modules, and Radio Frequency Identification Device as well as other custom products. Electronic manufacturing in the Philippines tends to compete with China as the priority investment site for electronics manufacturing which offers low labor cost, cheaper electricity and better tax incentives. Given the situation, local manufacturing companies look for ways to maintain high standard of manufactured goods and cost effective manufacturing process without compromising quality. In this study, the strengths, weaknesses, opportunities and threats on the manufacturing process at DPL Technology Incorporated was analysed and evaluated using WOT-SURG methodology. The result showed the overall yield performance of DPL for first quarter of 2012 is 95% for Casted device and 97% for Minicast which is below the target of 98% for both Casted and Minicast which leads to an accumulated missed opportunity of USD 81,000 in sales. After analysing the data using tools like process mapping, Pareto chart and graphical analysis, top contributor of yield loss for Casted device came from casting station with an issue known as exposed shield which represents 2% total rejects while for Minicast device yield losses came from dambar cut station with an issue of damage leads which represents 1% of the total rejects. Using a why-why diagram, the key factors contributing to yield loss for casted device is non-linearity of the cavity while for minicast is the improper monitoring of the life span of punches. Knowing the factors that contribute yield losses, the proponent came up with viable solutions after evaluation of different alternative solutions using the Kepner-Tregoe Decision Analysis. These solutions are the modification of jigs used at casting station to compensate for the non-linearity of the cavity was evaluated for casted device while a sustainable monitoring system that involves an installation of a counter system for dambar cut station was implemented for minicast device. The modified jig cost of implementation for casted product line was USD 5,000 and based on the cost benefit analysis, the return-of-investment computed in terms of the number of units that can be recovered is 3 months while the cost to implement the counter system for dambar cut at minicast product line is only USD 25 which is almost negligible. Proposed solution where evaluated and implemented for both devices and as a result, the overall yield was maintained at 98% for second and third quarter of 2012 which yielded 15% growth in sales equivalent to an average of USD 10,000 per month.