A System Dynamics Approach for Modeling Return on Quality for ECS Industry

Abstract

The Electronic Components and Systems industry (ECS) is characterized by long lead times and high market volatility. Besides fast technological development within this industry, cyclic market up- and downturns are influencing the semiconductor market. Therefore, adequate capacity and inventory management as well as continuous process improvements are important success factors for semiconductor companies to be competitive. In this study, the authors focus on a manufacturing excellence approach to increase front-end supply reliability and the availability of inventory within the customer order decoupling point. Here, development and manufacturing processes must be designed in a way that highest levels of product quality, flexibility, time and costs are reached. The purpose of this study is to explore the impact of return on quality in manufacturing systems. Therefore, multimethod simulation modelling including discrete-event and system dynamics simulation is applied