REVOLUTIONISING THE MANUFACTURING INDUSTRY IN MALAYSIA
89
INNOVATION ACROSS THE MALAYSIAN MANUFACTURING INDUSTRY WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
K RIS PA LMER
90
OSRAM Opto Semiconductors is embracing digitalization in transforming its manufacturing operations. Director of Digital Manufacturing and Industrialization (DMI), Samivel Krishnamoorthy, speaks to Business Chief APAC
W
ith a history of over 110 years and based on more than 40 years of continuous innovation in opto semiconductors,
OSRAM has set world leading standards in the fields of illumination, visualization, treatment and sensor technology. Its product portfolio covers 91
mobility, increasing safety and security, creating connections, and enhancing health and wellbeing. Their mission is to improve people’s lives in almost all areas. Commencing production in Malaysia in 1972 as Litronix before officially becoming OSRAM Opto Semiconductors (OSRAM OS) in 1999, the business has focused on transferring essential knowledge, building local talents and producing best-in-class products for the lighting market. Joining OSRAM OS about 10 years ago, Director of Digital Manufacturing and Industrialization (DMI), Samivel Krishnamoorthy has been instrumental in its digitalization journey. “In 2009, I joined OSRAM Penang - the first semiconductor wafer fabrication plant (Fab) of OSRAM OS outside of Germany. I was tasked to help add-
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ress quality related issues due to
tools to the host system and automat-
manual processes performed by the
ing them. The CIM experience I gained,
operators. This task eventually exp-
helped me realize that the factories of
nded to setting up dedicated teams
the future would progressively adopt
working on Computer Integrated Man-
CIM and Factory Integration.
ufacturing (CIM) and automation con-
“Coming from a semiconductor opera-
cepts throughout our Wafer Fab. In
tional perspective and background, it
2012 our Wafer fab achieved full CIM
helped me to identify and adapt to the
coverage. Now, we are extending this
differences of an integrated circuit (IC)
effort to our Assembly & Test facilities,”
Fab and Assembly & Test operations
he says.
vis-a-vis compound semiconductor.
“Starting out in 2004 as a CIM Engi-
The compound semiconductor industry,
neer in SilTerra Malaysia - a 200mm
including companies like ours were not
Wafer Fab, I got my grounding on CIM
in the same league with our DRAM,
and Factory Integration, connecting
NAND, Logic Fabs in terms of automa-
E X E C U T I V E P R OF IL E
Samivel Krishnamoorthy Samivel Krishnamoorthy joined OSRAM Opto Semiconductors in 2009 and was instrumental in engineering the transformation of Asia’s most advanced LED Wafer Fab Facility in Penang, the first of its kind for OSRAM. Following which, he is currently spearheading the digitalization initiatives of its Assembly & Test Plant. He has championed the introduction and adoption of SEMI standards as de-facto factory integration standard within the organisation globally while phasing out legacy data collection system within the organisation.
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tion capabilities. Even for me, it took some transitioning to adapt to 100mm and later 150mm Fab environment as opposed to the familiar 200mm Fab experience I came from.” 95
EMBRACING CHANGE From urbanization to digitalization, infrastructure to security, Internet of Things (IoT), digital communication, smart cities and buildings along with human centric lighting and horticulture – OSRAM has its footprint in the thick of the lighting action. Mobility is also a significant area of focus, particularly in relation to autonomous driving. “As these domains flourish and new ideas and innovations come to the fore, manufacturing operations need to be more flexible and scalable – meaning
CLICK TO WATCH : ‘LIGHT FROM CRYSTALS — OSRAM OPTO SEMICONDUCTORS’ 96 running multiple high mix low volume
them that there are more effective
operations in parallel,” notes Samivel.
ways of doing things by delivering proof
“We are becoming more customer
of concepts and moving people out of
centric and championing the ability to
their comfort zones.”
meet customers’ highest expectations. This means, organizations that were
DRIVING OPERATIONAL EXCELLENCE
traditionally going for “high-volume”
In his role as Global Requirement
manufacturing models to meet their
Management Director for OSRAM
targets, may need to redefine their
OS, Samivel is establishing the OS
operational ideology to focus on “high
wide requirement management
value” manufacturing models. This
framework for the company’s Digital
inherently brings complexity that could
Manufacturing & Industrialization ini-
redefine existing factory physics targets.
tiatives. In addition to this, his CIM
“At OSRAM OS, we needed to change the mindset of the people and convince
department currently works to support the five main business divisions w w w.o sra m . com
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within its Penang facility - comprising its Front-End Wafer Fab and four of its Assembly & Test functions, along with all associated R&D activities. Samivel represents OSRAM in various external organizations such as CREST (Collaborative Research in Engineering, Science and Technology) and TalentCorp to help develop Malaysia’s talent pool. In SEMI (Semiconductor Equipment and Materials International), he is a member of its Information & Control Technical Committee in reviewing and approving the Factory Integration related standards.
DIGITAL INVESTMENT
“ At OSRAM OS, we needed to change the mindset of the people and convince them that there are more effective ways of doing things by delivering proof of concepts and moving people out of their comfort zones” — Samivel Krishnamoorthy, Director of Digital Manufacturing and Industrialization (DMI)
Whilst Samivel remains a key figure
processes either before or while
in the transformation of OSRAM OS’
automating/digitizing our manufactur-
manufacturing facilities in Penang and
ing lines. Some processes in this
other locations, the business has look-
category involve operator decision
ed to anchor its goals to the digitaliza-
making, human intervention in running
tion levels achieved in the IC Fabs, and
equipment and transactional/logistical
implement a global roadmap utilizing
complexities,” he explains.
de facto semiconductor norms. “The main challenge we faced was
“Secondly, it was imperative to keep our intent focused proceduralizing the
in creating a paradigm shift in moving
value-added processes by focusing
away from the old ways. Our branding
on a number of key things. These are
tagline for our initiative – ‘LESS is MORE’
monitorability, repeatability, controlla-
- serves as a catalyst to emphasise on
bility, flexibility – essentially keeping
the need to remove non-value-added
things simple.” w w w.o sra m . com
98
OSRAM OPTO SEMICONDUCTORS ( M A L AY S I A)
€1.7bn Approximate revenue in 2017
1999
Year founded
99
7,000
Approximate number of employees
Moving away from introducing multiple systems to close the digitalization gap, OSRAM OS has taken the more complex route of platforming its digitalization tools. This is to scale on connectivity and create the necessary gravity by establishing a consistent optimised data flow throughout its Fabs. By assessing its own capabilities which align with semiconductor best practices, the business has harvested low hanging fruits by ticking off topics which are easily addressed before looking at further complex areas. “We needed sound solution providers to realise our vision. Partners like Vistrian, ATOS, Dimension Data, our equipment suppliers, and a long list of others are the cogs in our digitalization wheel in Penang. Once the baseline was established, we focused on completing system to system integration which was easiest to realise as those systems were under our direct control. Once the system to system integration was done, we coupled the system to equipment in our shop floor which was/and still is the more challenging part,” he continues. “Our equipment suppliers were not known to support the compound semiconductor industry with the same integration capabilities offered to the semiconductor peers (in this case SEMI standards such as SECS/ GEM and E142). It took a lot of discussions, negotiations and re-negotiations – and in some cases even haggling – to get them to agree and deliver such integration possibilities. Once achieved, we moved to making the requirements mandatory in our equipment w w w.c o mpa ny we bsite. com
100
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procurement strategies. This cycle
new blood into the organisation. Having
was also to repeat for our Assembly &
the demand from customers to bring
Test implementations when we started
Front End capabilities into our Back
later in 2014 and is still an ongoing pra-
End also helped give the necessary
ctice we adhere to.”
impetus for this initiative. We are curr-
Using the same platform for its Ass-
ently deploying the same concepts
embly & Test operations to capitalise
and implementations in two of our sites
on the possibility of operator mobility,
in Wuxi, China and Kulim, Malaysia.”
the plan was initially met with skepti-
Filtering into its transformation,
cism. “Achieving this for an IC Assem-
OSRAM lives from employees contribut-
bly & Test operation is relatively easier
ing to the company’s success with
as opposed to a compound semicon-
enthusiasm. Working in OSRAM means
ductor,” observes Samivel. “It took
experiencing a trust-based atmosphere
multiple tries within our teams along
alongside open and respectful interac-
with top down targets and bringing in
tion. Investing in both technical compe-
102
“ The products need to have staying power – needs to be of good quality – and a good data landscape with the right verifications and validations in place will help achieve that” — Samivel Krishnamoorthy, Director of Digital Manufacturing and Industrialization (DMI)
tency related training and emotional quotient development, the business has established the OSRAM Skills and Development Center (OSDC), a dedicated building to support training activities all year long. Since its inception, it has become the central physical entity that focuses on OSRAM’s formation and propagation of career, operational, technical, academic and leadership development, along with digitalization tool trainings and new employee orientation/integration programs. w w w.o sra m . com
C OMPA N Y FA C T S
• The business has looked to anchor its goals to the digitalization levels achieved in the IC Fabs, and implement a global roadmap utilizing de facto semiconductor norms. 103
“Our Managing Director - Dr. Roland Mueller is a strong advocate and believer in investing in people development. Under the auspices of OSDC – we aim to achieve our missions of: • Providing equal development opportunities for all employees, in both personal and professional aspects. • To develop the full potential of employees through both technical and management programs. • To provide structured programs and infrastructure that will produce competent and highly skilled employees. • To encourage a culture of daring where failure and learning are part of the process.”
• OSRAM OS has taken the more complex route of platforming its digitalization tools. This is to scale on connectivity and create the necessary gravity by establishing a consistent optimized data flow throughout its Fabs • The business has established the OSRAM Skills and Development Center (OSDC), a dedicated building to support training activities all year long
CLICK TO WATCH : ‘KULIM - MOST MODERN PRODUCTION SITE OF CHIPS FOR LEDS ON 6 INCH WAFERS’ 104
INNOVATING FOR THE FUTURE
firms have been brought in to further
As we keep innovating and improving
explore its potential. Additionally, it has
our products and applications it will
sought to deploy a number of cloud-
become increasingly essential for
based solutions to support its produc-
OSRAM to acquire the right products
tivity tools in relation to its IT systems.
for each market, which can be further
“We have robotics running our major
analyzed through the adoption of
manufacturing processes, but we are
advanced data analytics.
also exploring possibilities of inter pro-
“The products need to have staying
cess logistical handling via the use of
power – needs to be of good quality
robotics – i.e. automated transport sys-
– and a good data landscape with the
tems and also manual process auto-
right verifications and validations in place
mation with COBOTS. However, we
will help achieve that,” says Samivel.
are still in the evaluation stage and are
In the adoption phase of big data at OSRAM, a number of consultancy
hoping to kick-start some of these initiatives soon once we have the right w w w.o sra m . com
teams established to champion this,” he adds. “We are also currently deploying Customer Relationship Management
mark, our standards need to raise along with it,” says Samivel. “Our customer feedback has been
(CRM) solutions from Salesforce to
tremendously positive across all digit-
help with our forecasting topics and
alisation initiatives. Our hiring strate-
our customer relationship manage-
gies are going after the best in class
ment. This is another digitalization
talent pool who could work with these
topic that we are excited about and
operational demands in a continuous
that could also help us respond spee-
improvement frame of mind. Our tar-
dily to market demands,” he adds.
gets are continuously enhanced with
Housing a unique mission statement, to unlock the potential of light to imp105
“As we constantly raise the bench-
newer strategies to be the market leader in our domain.”
rove people’s lives, OSRAM’s diverse
“Samivel reminds organizations em-
portfolio will continue to deliver sign-
barking on any digitalization initiatives
ificant financial gains.
from throwing caution to the wind – as
106
digital solutions alone will not solve all
fore, any such endeavors should start
inherent organisational flaws. If there
by investing in equipping the people
are inherent lack of manufacturing
who run those processes the neces-
competencies, even the best in class
sary core competencies� he ended.
solutions will fail to deliver the promised results. No amount of automation or artificial intelligence could compensate for the lack of operational understanding - and the investments might not yield the expected results. Therew w w.o sra m . com
Bayan Lepas Free Industrial Zone Phase 1 11900 Bayan Lepas Penang Malaysia T +60 4 643 4404 www.osram.com