Graduation assignments Production and Logistics

2016-01 MSc-assignment: Proactively predicting material availability during system lifetime

ASML: Smaller, faster, greener

ASML is the world's leading provider of lithography systems for the semiconductor industry. ASML designs, develops, integrates, markets and services these advanced systems used by customers – the major global semiconductor manufacturers – to create chips that power a wide array of electronic, communications and information technology products.

ASML’s corporate headquarters is in Veldhoven, the Netherlands. Manufacturing sites and research and development facilities are located in Connecticut, California, Taiwan and the Netherlands. Technology development centers and training facilities are located in Japan, Korea, the Netherlands, Taiwan and the United States. Overall, ASML has more than 70 locations in 16 countries. ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML.

With over 60 facilities, the ASML organization is extensive yet it is characterized by close cooperation — internally, and with customers and suppliers worldwide. The structure reflects ASML’s business strategy, which is based on technology leadership, customer focus and operational excellence. Consequently, innovation tailored to the strategic business segments is at the heart of the organization. And this is backed up by comprehensive logistics and customer support.

Global Logistics Services (GLS) is responsible for ensuring material availability to ASML’s factories and customers. Any break in material availability can have an unacceptable impact for our customers. So GLS must proactively identify and solve potential issues by working closely with our technical departments and customers, and actively managing an extensive supplier base. With over 350 highly educated and motivated people, GLS has contributed to ASML being named “Best Factory” in the Netherlands. In 2013, GLS was rewarded with the “VLM Nederlandse Logistiek Prijs 2013”.

The New Product Logistics (NPL) team is managing the interface between the supply chain of ASML and the development organization. As such, NPL is responsible for securing material availability for ASML’s new product introductions, as well as end-of-life materials. This involves the planning and release of materials throughout the logistics chain from system development through suppliers and manufacturing to customers. For more information, please visit

Assignment: Proactively predicting material availability during system lifetime.

Lithography systems consist of tens of thousands of parts that all have specific functions. The product life cycle (PLC) of such a lithography system is over thirty years, while the PLC of individual parts is often shorter. As a result, parts are flagged end-of-life (EOL) by the supplier, while these parts are crucial for manufacturing and servicing the system during the remainder of the product lifecycle.

ASML has a running process designed to deal with these EOL parts, deciding on three options:

  • Define a Form-Fit-Function (FFF) replacement, i.e., a part can be replaced by another part.
  • Redesign (part of) the system, such that the EOL part is not required anymore.
  • Perform an All-Time-Buy (ATB) and cover the demand over the remaining PLC of the system.

In most cases, the solution is to redesign (part of) the system as the initial design is tailor-made and the demand over the remaining PLC uncertain. However, the redesign process is complex and time consuming and hence ASML needs to build-up inventory to bridge the gap until the redesign is in place. This results in material availability risk.

A model has been made to estimate this material availability risk based on past Enterprise Rescource Planning (ERP) data, and prognosis of the master production schedule. However, this model is not yet practical to use, and requires manual estimates. Next to that, it is based on reactive input starting at our supply chain.

ASML wants change this to proactive management of the effect EOL has on the PLC of our systems. That is, change in supply parameters – such as an increasing or heavily fluctuating price or lead time – may be an indication that a supply disruption is upcoming. Your task is to build a statistical forecasting model for the risk of a supply disruption per spare part in the next period of – say – 1-2 years based on historical data. Next, the forecasted supply risks per part need to be aggregated to the system level. Each system of ASML consists of many parts, and for the planning of system redesigns it is important to estimate how many supply disruptions may be expected. Recall that system redesign is one way to deal with a part supply disruptions (second option above).

This assignment is positioned within the NPL department of the GLS group within ASML, with strong links to other GLS departments such as Material Planning and Inventory Control.


You are a student Industrial Engineering and Management, with a specialization in Production and Logistics Management, or Mechanical Engineering with specialization Maintenance Engineering. You have knowledge of and affinity with maintenance and service logistics. Preferably you have completed the courses Reliability Engineering and Maintenance Management, and Reverse Logistics and Remanufacturing.

Starting date: February 2016, or as soon as a qualified candidate is available

Contact person UT: Matthieu van der Heijden, Ravelijn 3117; : 053-4892852; :