MEMORANDUM

To: Katalin Voros, Operations Manager

From: Susan Kellogg-Smith, Purchasing Manager

Subject: 2006 Year-End Report

Date: 12 January 2007

As the Procurement Manager for the Microlab, my responsibilities include:

• Supervision of sourcing, procuring supplies and inventory maintenance for the Microlab and the Machine Shop;
• Preparation of equipment requisitions, maintenance agreements, departmental blanket orders and purchases for equipment support in the Microlab;
• Analysis of specialized material requirements;
• Management of Specialty Gas Inventory – specify new products, establish re-order levels.

Other duties include

• customer service to 325+ Microlab members,
• administrative support of 10 student employees,
• equipment donation gift processing,
• ergonomic evaluations for Microlab staff.

The following report summarizes activities in these areas.

I. Procurement & Inventory Management

Purchasing

During fiscal year 2005/2006, an average of 200 orders per month were placed with an average monthly expenditure of $132K. This represents a 15% increase in dollar volume purchased over the same period in fiscal year 2004/2005. Inventory purchases and purchasing in support of equipment and facilities upgrades and repairs were the focus of our activity.

Completed projects included:

· Upgrade and repairs to asml, some paid by Prof. Neureuther’s FLCC funds

· Further development of 145 Cory as a measurement lab – move-in and facilitation of appropriate tools

· Installation of new sink and spin dryer capabilities in cmp lab

· Remodel sink432c

· Installation of hfvapor in 432c

· Rework aptchrome lithography tool

· Facilitate iondep system in 188 Cory

· EE143 teaching laboratory – purchasing and equipment maintenance support.

The purchasing team carefully monitors inventory levels and evaluates alternate sources whenever possible to hold costs down. E-Bay continues to be an excellent source for both new and used parts and has introduced us, through their listings, to several used equipment and parts vendors. This year we have purchased hot plates, power supplies, vacuum pumps, HEPA filters, mass flow controllers, equipment controllers and computer parts from sources on E-Bay.

During fiscal year 2005/06, the University of California Office of the President, Strategic Sourcing Group, implemented a systemwide contract to Praxair for compressed gas purchases. Our previous Praxair contract was negotiated for UC Berkeley only. Effective May 2006, the new Praxair contract is extends through April 2009.

In early 2006 I submitted to vendors a request for quote for our prime and test grade 100mm and 150mm silicon wafers, a total of 6 wafer types. 4 vendors responded with quotes and 2 vendors were awarded blanket purchase orders based on lowest price. The price of our highest volume silicon wafers, 100mm P-type test grade, came in 10% lower than our previous blanket PO despite a reported industry shortage of 100mm silicon wafers.

Fiscal year 2005/06 saw significant activity and expenditures in vacuum pump and mechanical compressor repairs. The Microlab has over 120 vacuum pumps comprised of turbopumps, cryopumps and cryocompressors - a variety of makes and models - on systems in the lab. Many of our pumps are showing their age, and due to repeated rebuilds are requiring more frequent service.

In addition to purchasing, I assisted professors, graduate students, other universities and industrial members in sourcing specialized items and in specifying the logistics and arranging for the transport of fragile equipment.

Inventory

The database of cleanroom items, chemicals and technical staff supplies currently contains 1650 items in 60 categories. Lab materials and chemicals, frequently accessed hardware and plumbing parts and equipment repair parts with long leadtimes are stocked on-site. The majority of equipment repair parts are ordered on a just-in-time basis.

Periodically we evaluate our current sources and items; we add items required for new equipment processes and repairs, and research better pricing for existing items. In fiscal year 2005/06 I did an analysis of our labwear and discovered two new cleanroom appropriate materials, at significantly reduced prices, to replace our Tyvek™ labwear. ComforTech™ Coveralls and Microbreathe™ Bootcovers replaced our Tyvek™ items.

Student staff does periodic inventory counting to ensure correct inventory quantities, while the purchasing staff works to reorder depleted inventory items in a timely manner. Stock reorder levels are adjusted as changing needs require and budgetary limitations dictate.

II. Administrative Duties

Microlab Office Administration

Microlab student employees and administrative staff members assist 325+ graduate/post graduate researchers and industrial researchers with a variety of questions related to Microlab policy and operating procedures, with inventory checkouts, equipment and safety tests and new account setup. Adrienne and I provide supervision and guidance to 2 Microlab student employees who perform the receptionist/customer service position 24 hours/week. Adrienne performs these duties in their absence. I maintain a close proximity to our reception staff where I can monitor and advise regarding information provided to lab members.

In addition to my customer service duties, I was responsible for the administrative support of 10 student employees and equipment donation gift processing.

Supervision of Purchasing Staff

Adrienne Ruff is responsible for ordering Microlab inventoried items (chemicals, lab materials, cleanroom garments, hardware and fittings) which appear on our daily Low Inventory Report. In addition, she purchases office supplies, and items requested by technical staff and acts as backup to Machine Shop purchasing when Nancy Peshette is out. Adrienne is responsible for inventory in 3 storage locations and supervises the counting and organization of those areas. She interfaces with other campus units for which she prepares travel and entertainment reimbursements, telecommunications requests and printed stationary and business card requests. Adrienne processes lab credits requested by lab members, uses the CADSWeb Gift Management Module for check deposits for Berkeley Microlab Affiliate membership payments and coordinates the monthly orientation course registration. Adrienne also acts as my backup when I am away from the office.

Nancy Peshette works for both the Machine Shop and the Microlab. I provide guidance with her purchasing duties for the Machine Shop where she is responsible for ordering and storekeeping inventoried items and materials for specific jobs. Nancy came to U.C. Berkeley with a working knowledge of machine shop supply sources and purchasing. She works independently and with high accuracy in completing her duties.

Staff Development

Adrienne attended Semicon in July 2006.

I continue to attend classes to update my campus training as an Ergonomics Evaluator. The University renewed the Computer Ergonomics Matching Funds Program for 2005-06 offering up to $500 per employee in matching funds to modify computer workstations and purchase new chairs. The Microlab has been reimbursed for 50% of ergonomic expenditures through this program over the past 2 years.

III. Conclusion

The Microlab purchasing staff increased its overall monetary purchasing volume by 15% in 2005/2006 as we continue to support equipment and facilities. Purchasing of inventoried items, and parts for equipment and facilities repairs and upgrades created a steady flow of purchasing activity. For the next year, we will continue to evaluate ways of cutting costs while maintaining the high quality parts and supplies necessary for supporting a semiconductor laboratory. A new vacuum pump database will enable us to track our pump repairs and improve our expenditures in this area by eliminating pumps with a poor performance/maintenance history.