Case Study: Packaging Innovation
at Intel Corporation |
Intel Corporation, the world's largest chipmaker, has a proud
history of technological innovation, resulting in quantum
improvements in both its products and supply chain network.
Intel strives to be a leader in EHS performance and product
stewardship, and is constantly exploring options to reduce the
mass throughput of its supply chain operations. For every
high-tech product that leaves Intel, equally high-tech
packaging designs and materials must be developed to protect
the product. In 2001, Intel engineers discovered a way to
reduce by 58% the weight of the trays used to transport
microprocessors, by switching from injection-molded plastic to
thermoformed plastic (PET). Now, this innovation is yielding
millions of dollars in annual savings and a reduction of over
1.5 million pounds of plastics material per year, with minimal
up-front capital investment.
The new concept was first developed by Intel's Transport Materials
Engineering Group, and after careful review it was approved
for implementation. A cross-functional team was formed in
2001, including representatives from engineering,
manufacturing, commodity management and supplier
qualification, EHS, various Intel product groups, and key
customers. The team worked intensively for about 18 months,
overcoming many technical challenges in order to meet the
demanding requirements of semiconductor fabrication, including
material rigidity, precise tolerances, compatibility with
process automation, and electro-static discharge issues. The
trays are designed to support product flow throughout the
supply chain, from initial delivery of substrates by material
suppliers through the multiple steps of fabrication, and then
delivery to customers. Intel will also be working on the
closed-loop processes that will enable the empty trays to be
collected from customers, de-contaminated, and re-used.
The results of this project have significantly reduced both
Intel's consumption of plastic materials and the costs
associated with product packaging and transportation. The
reduction in packaging purchase costs alone is approximately
30%, resulting in millions of dollars cost savings annually.
In addition, Intel has reduced its environmental footprint in
terms of both energy consumption and waste generation, helping
to meet its environmental performance goals. This is but one
example of a continuing series of innovative initiatives in
which EHS and supply chain professionals work closely together
to assure that Intel's products and processes are both
profitable and environmentally sustainable.
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