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Case Studies

 

 

Intel has saved millions of dollars annually by developing lighter-weight plastic trays that are used to move microprocessor units through the fabrication process and deliver them to customers.

 

 
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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