Tutorial: Illusion of capacity — Challenge of incorporating the complexity of FAB capacity (tool deployment & operating curve) into central planning for firms with substantial non-fab complexity

Since the early 1990s, organizations have focused on making smarter decisions in their integrated supply chain central planning, but the representation of capacity and cycle time has remained static and linear in contrast to its complex nature. This includes central planning for firms with semiconductor fabrication facilities (FABS) as a component of a complex demand supply network(DSN) where much of the complexity is non-FAB. Developing more intelligent solutions for capacity in central planning within computational and process limitations is a critical challenge. For DSNs with FABS, twin challenges are tool deployment and the operating curve. Many in the FAB community are aware of these complexities; options proposed and some implemented within “aggregate FAB planning,” rarely within central planning. This tutorial reviews the current state of central planning with respect to capacity and cycle time, outlines the challenges these complexities place on central planning structures, and indicates possible solutions.