Measuring production performance of different product mixes in semiconductor fabrication

Abstract

In a competitive market, a company needs to fully utilize its current capacity in order to acquire higher profit. The purpose of this paper is to present an effective approach to find a set of product mix efficient for the company to achieve the optimal production. Simulation is first used to generate the data of performance measures of different product mixes in a semiconductor fabricator. Data Envelopment Analysis (DEA) is applied next to measure multiple inputs and outputs, without pre-assigning weights, for product mixes, and an efficiency score for producing each product mix relative to other mixes can be obtained. The results provide guidance for a fab in accepting orders when its capacity cannot fully satisfy all the product demand. Significance: This paper applied the DEA method to evaluate the production performance with different product mixes in a semiconductor fabricator. The results provide guidance to the fabricator regarding accepting orders to maximize the production efficiency and the profit, while considering several other important input and output factors that maintain production smoothing.