2009 Wagner Prize Finalist - IBM

A Queuing Model-Based System for Semiconductor Production Planning at IBM

This paper presents IBM's Enterprise Production planning Optimization System (EPOS). EPOS uses a unique queuing network model combined with linear programming to meet the requirements of capacity and lead time planning for semiconductor manufacturing. EPOS is in continuous use at IBM's 300mm factory where it has become an integral tool for predicting bottlenecks, prioritizing continuous improvement efforts, planning capital investment, and managing factory lead times. EPOS has guided efforts to improve factory performance and reduce more than 30 million dollars of expense.