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Integrating Q&R in the production department of Company X Place y

Zwart, Robert and Enthoven, Jeroen (2013) Integrating Q&R in the production department of Company X Place y.

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Abstract:Company X is an independent and certified test house and analysis lab for optic- and microelectronics. Company X’s portfolio consists of several different parts in the test cycle. The engineering, test and programming are part of the activities, as well as qualification and failure analysis. Company X can also apply their specialism in the whole supply chain, assisting and supporting their customers with a supply chain service. Company X has several facilities in Germany. The main production or testing department is located in Place y in Bavaria, Germany. Company X GmbH is the result of a merger between Microtec GmbH in Place S and Rood Testhouse International N.V. in Place Z and Place y. As a follow-up on this merger and to obtain higher productivity in the production department, the raw production, i.e., the testing, has been moved from Place S to the facility in Place y. Although the companies merged in 2008, the two different production facilities were never combined until the process was started in early 2012. The main production areas in Place y are Qualification & Reliability and Test Engineering & Programming. The approaches to these production areas were different, most of the production was done differently and the perspective on the business was different, although both production areas are part of the same company. During the internship at Company X, we saw this discrepancy. There were several indicators that the parties were working next to each other and not so much with each other. The best example for this was the way the planning of the Q&R and TE & PSS departments differed from each other. In Q&R, the process description is written in excel, while TE & PSS used an ERP system. This problem was the main issue we had to deal with at Company X, thus our main goal was to provide Company X with insight in the current production and planning process in TE and Q&R. This led to our research question, as we believe that combining these two practices into one smooth flow, the production inefficiencies could be turned into winners for Company X. The main research question is the following: “In what way, given the current available machinery, employee database and culture at Company X, can the department of Qualification & Reliability be integrated in the production floor?” This report is an analytical view of the company production process with a qualitative nature. The research should give the management of Company X insight in the difficulties of a technological environment and culture while striving for change. This research is based on the experiences on the production floor and this report adds value through its literary perspective. The research starts by providing insight in the production departments of Qualification & Reliability and Test Engineering & Programming. Elaborating on the differences and the similarities between these two departments, an analysis is made on all levels, machinery, employees and planning and scheduling. After this analysis, we will discuss the literature required to provide Company X with tools to improve the integration. Finally, conclusions and recommendations were made regarding the best practices and solutions for semiconductor companies. Using the process described above, we have tried to identify the problem areas of Company X and to deliver an insight in the company in order to help Company X with the integration of Qualification and Reliability with the rest of the company. There was an obvious ‘us versus them’ culture inside the company, driving a wedge in the communication and the corporate identity and corporate goals. The merger from 2008 had not been processed correctly, and management made top down decisions. Although this is not necessarily a bad thing, the gatekeepers weren’t involved at all, reducing the effectiveness of the decisions that were made. The physical border between the production departments has already been removed by the merger and the transportation of the Q&R department to Place y. The cultural integration has to catch up. An example of this is the lunch room, in which the different departments never join each other, but only lunch with their own department. The similarities between the departments are enough to start pooling employees and exchange information. This can be done on every level with increasing difficulty, from the operators to the engineers. The pooling of operators from the departments is, with minor training, currently possible and a viable option. A means to an end in the corporate culture and identity for Company X is the implementation of a new ERP system. This system provides a window of opportunity to reinvent the business process of all the departments, especially Q&R. Reinventing the business process and guiding the departments more towards the same identity and corporate beliefs are the factors that will help Company X survive in the killing market they are in.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
Link to this item:http://purl.utwente.nl/essays/63777
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