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Final Project Of Competitive Advantage And Operations Strategy

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Final Project of Competitive Advantage and Operations Strategy
Zijing Chen 661027591
December 3, 2015
Abstract
Lean is a systematic method to root out of Muda (waste), and thus increase efficiencies within a manufacturing system. During the production, values are added to the process. For example, when assembling a component, the final product is the value a customer is willing to pay for it. Lean is an important manufacturing philosophy that leads to improvement of processes. In class, there were several lean knowledge and tools introduced, such as lean manufacturing process stages, Ishikawa Diagrams, Kaizen, as well as some others. They will be studied in this report and applied to a semiconductor interconnects production process. The …show more content…

On July 1 2015, GF quickly achieved scale as the worldwide second largest semiconductor manufacturer through the acquisition of IBM Microelectronics, including two fabs in East Fishkill, NY and Burlington, VT. The company now owns 10 fabs, including four 300mm fabs and six 200mm fabs, that provide the full range of process technologies from mainstream to the leading edge.

Fab 10 stands for the 300mm fab located in East Fishkill, New York. It became part of GlobalFoundries operations with the acquisition of IBM Microelectronics, and currently manufactures technology down to the 22 nm node. The plant was built on a 450-acre property in 1962 purchased by IBM. The plant includes a large fab for 300mm wafer production, and another small line for post-fab interconnect manufacturing (C4), research and development, and a mature supply chain management department. As the company faced high costs through technology development and updates to more advanced equipment, the return on investment is extremely low. In fact, IBM lost $130 Million in 2014 in the microelectronics division, and expect an equivalent loss in 2015. Hence, IBM decided to sell both East Fishkill and Burlington in order to initiate a partnership with Globalfoundries. Similar to their partnership with AMD, they are now designing the chips for their use. GF has become a contracted supplier for

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