Publication: Headcount reduction using pdca method in semiconductor company: a case study
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Date
2024-07-01
Authors
Nur Illyana Binti Mohd Nordin
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Abstract
In the competitive semiconductor industry, continuous improvement is essential for viability, necessitating efficient production processes. This project aims to optimize labor allocation on the production line using Witness Simulation Software. The primary objectives are to study headcount reduction methods in a production line using PDCA and conduct a case study and simulate the production line after headcount reduction using Witness Simulation Software. Using Witness Simulation Software, the analysis revealed that the current headcount exceeds the optimal Crew-to-Takt ratio, indicating operational inefficiencies. The Work Load Leveling Chart (WLLC) also showed significant imbalances, emphasizing the need for improved line balancing. The PDCA cycle was applied to evenly distribute the workload, with simulation Model 2 achieving a 100% achievability rate and a 91.67% occupancy rate, confirming the effectiveness of this approach. Line balancing was shown to minimize idle times, bottlenecks, and redundancy, leading to higher productivity ratios, fewer workers' compensation claims, better job satisfaction, and greater supply flexibility. However, challenges such as initial costs, reluctance to change, and potential job losses must be carefully managed. The results demonstrate that line balancing, facilitated by Witness Simulation Software, is a vital strategy for semiconductor companies to enhance production efficiency and reduce costs without significant job cuts. By addressing these challenges and focusing on staff health and satisfaction, companies can achieve effective line balancing, helping them remain competitive in the semiconductor industry.