Case Study

Cymer Maximize Service Revenue

The Challenge

Cymer faced a significant challenge in their reactive approach to part replacement

Cymer, a global leader in engineering, manufacturing, and maintaining lasers for chip production, faced a significant challenge in the reactive approach to part replacement. Responding reactively to part failures resulted in high costs, both in terms of machine downtime and customer dissatisfaction. The unplanned replacement of parts due to failure, rather than scheduled maintenance, incurred substantial expenses, often exceeding a million dollars per occurrence. Machine downtime not only translated into financial losses but also led to dissatisfied customers, further impacting the company’s bottom line.

The Action

Calligo sought to optimize the clients’ maintenance operations

In collaboration with Calligo, Cymer implemented a comprehensive solution to address the challenges of reactive maintenance and optimize their operations:

  1. Integrated Predictive Analytics: Calligo leveraged machine diagnostics to predict the lifespan of components using ARIMA Time-Series and Survival Curve Modeling. This allowed for accurate forecasts of potential failures.
  2. Demand Forecast Integration: Machine lifespan predictions were combined with customer demand forecasts using sophisticated Monte Carlo simulations, providing a robust basis for decision-making.
  3. Customized Predictive Models: Calligo incorporated customer-specific service and maintenance preferences into the predictive models. This customization enhanced the accuracy of predictions, aligning maintenance actions with individual customer needs.
  4. Proactive Service Planning: The integrated predictive models enabled Cymer to schedule machine services and maintenance before failures occurred. This proactive approach positioned the company to avoid machine downtime and enhance operational efficiency.

Data Science Methodology:

  • ARIMA Time-Series: Utilized for accurate time-series analysis to predict component lifespan.
  • Survival Curve Modeling: Implemented to estimate failure probabilities and optimize maintenance schedules.
  • Monte Carlo Simulation: Used for scenario modeling and demand forecast integration.
  • Markov Chain Modeling: Applied to analyze the transition of machine states over time.
  • Tree-based ML Modeling: Utilized for creating predictive models based on decision trees.

The Impact

Significant positive impact on Cymer’s operations

The implementation of the proactive maintenance strategy with Calligo had a significant positive impact on Cymer’s operations and business outcomes:

  • Accurate Demand Forecasts: Demand forecasts achieved an average accuracy of 92%, leading to more meaningful service dates and efficient resource allocation.
  • Downtime Reduction: Machine downtime, estimated to cost millions of dollars per day, was reduced by upwards of 50%. This reduction not only optimized operational costs but also greatly increased customer satisfaction.
  • Inventory Management Optimization: The proactive approach facilitated better inventory management, resulting in significant cost reductions.
  • Estimated Financial Impact: The overall estimated impact amounted to millions of dollars per year, reflecting the substantial savings and increased revenue generated by the proactive maintenance approach.

In summary, Calligo’s collaboration with Cymer resulted in a transformative shift from reactive to proactive maintenance, leveraging advanced data science methodologies. This not only addressed the initial challenges but also positioned Cymer as an industry leader, optimizing operations, reducing costs, and enhancing customer satisfaction.

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