TSMC was awarded the "Taiwan Continuing Improvement Campaign Excellence Award" by the Taiwan Continuous Improvement Award (TCIA)
CASE STUDY

TSMC Reinforces Quality Culture and Strengthens Competitive Advantage

David Chang
2018/6/8
Jenna Chang
2018/6/8

At TSMC, quality is the responsibility of every employee and is also the principle of our work and service.

With the rapid development of science and technology, excellent product quality is not only the key to customer satisfaction, but also the cornerstone of sustainable enterprise management. In order to ensure product quality, in addition to establishing strict control mechanisms during the design and manufacturing stages, it is even more important to establish a culture of quality in the company and to carry out the business philosophy of "Quality is the principle of our work and service" in our daily work, so that product quality can endure.

In order to strengthen TSMC's quality culture, the Quality and Reliability Organization is committed to implementing the Continual Improvement Team (CIT) system. Through cross-organizational cooperation, the "Continual Improvement Steering Committee" was established to set priorities and short, medium, and long-term goals, hold quality courses to enhance peoples' capabilities, as well as build case management and experience sharing platforms to share experience, and organize competitions with awards to motivate people.

Set Up Continual Improvement Steering Committee

The "Continual Improvement Steering Committee" is composed of managers from various factories/divisions, with members of the Quality and Reliability Organization serving as the executive office and quality method consultants, supported by additional executive officers from various factories/divisions. The committee holds a review meeting at the beginning of each year to assess the effectiveness of continuous improvement activities at TSMC in the past year, and sets priorities and targets for coming the year based on external environmental changes, customer feedback, and corporate strategies. Executive officers carry out annual goals in each factory/division.

Continual Improvement Steering Committee

Enhancing Employees' Quality Ability

Continuing to improve the quality ability of employees is the mission of the Quality and Reliability Organization. In recent years, it has continued to collaborate with Human Resources organization to design quality- related courses, include them individual employees' development plans, and encourage employees to complete relevant education and training through regular reviews.

Quality Courses Examples

Type Quality Courses Examples
e-learning QC 7 tools, New QC 7 tools, Problem Solving…
Classroom Design of Experiment (DOE)、Failure Mode and Effect Analysis (FMEA)、Statistical Process Control (SPC)、Quality Tools Tips and Trap, etc.

Case Management and Sharing Platform

In order to effectively manage continuous improvement cases and expand the benefits of experience sharing, Quality and Reliability has established a continuous improvement case registration management system and internal website to provide employees with benchmarking. The content of the website includes excellent award-winning cases from each contest, correct use of quality tools, frequent mistakes, and procedures for the current year's competition.

Encouraging Employee Participation

Every year, the executive officers of each organization hold improvement case competitions in her or his organization. Factory/division directors commend outstanding employees in their organization, and then the Quality and Reliability organization holds a company-wide improvement case conference - the Total Quality Excellence (TQE) and Innovation Conference. Cross-organizational learning enhances staff's ability to solve problems and innovate, and the conference establishes various awards to encourage outstanding employees. We expect that through public recognition, colleagues will be motivated to actively participate in continuous improvement activities. As of 2017, more than 400 employees have won awards and become continuous improvement seeds and consultants to lead their organization to strive for excellence.

In addition, in order to deepen the continuous improvement of the quality culture in the minds of every employee, the Quality and Reliability Organization has expanded the scope of corporate-wide improvement case competition to include corporate social responsibility and green energy, advanced technology development, customer satisfaction, supporting processes, and lean management. Participants were also expanded from engineers to assistant engineers and direct employees, and the event has also been extended to overseas subsidiaries.

As a good corporate citizen, TSMC does not just pursue its own excellence, it is also committed to helping local industry upgrade its own capabilities. Since 2014, it has required raw material suppliers to participate in the Taiwan Continuous Improvement Award (TCIA) to promote the continuous improvement of the supply chain and to improve the quality culture and capabilities of local suppliers. In 2017, 74% of suppliers participated in the TCIA. In addition, due to the continuous improvement of the comprehensive operating mechanism in TSMC, it has also become the winner of the "Taiwan Continuing Improvement Campaign for Excellence Award" issued for the first time in the 30 years since the TCIA was set up.