The Company
Since 1978, Virginia Semiconductor, Incorporated (VSI) has been a recognized leader in manufacturing customized silicon substrates and components. VPMEP and VSI have worked together on a number of improvement activities that have had a positive impact on VSI manufacturing. Currently VSI is located in Fredericksburg and employs approximately 40 workers.

The Situation
Although the high-tech and semiconductor industries have been depressed over the past 18 months, VSI sales have continued to grow. In anticipation of another strong period of growth in the semiconductor industry, management wanted to have the proper tools in place to profitably handle increased demand and a larger organization. VSI felt it was necessary to develop and implement an improved Quality Management System (QMS) during this growth period.

The Response
In response to the issues facing VSI, VPMEP Project Manager Dr. Victor Gray, was asked to assist in the development of an ISO 9001 QMS. A system that would provide the structure and consistency needed to maintain quality, productivity, and customer satisfaction necessary for future success. VSI’s management was presented an overview of ISO 9001:2000 Standard and received company-wide awareness training. A gap analysis audit was then performed to determine the magnitude of the implementation effort. Based on the gap analysis audit, VPMEP and the VSI quality team designed and implemented an ISO 9001 QMS. The project manager facilitated the quality team, which met to review and approve changes that were proposed to the QMS. An internal audit system was developed to assure that the QMS was functioning properly. VPMEP trained the new auditors, and consulted on the internal audit system development. The project manager reviewed the QMS quality manual and procedurals to assist VSI in developing an ISO 9001:2000 compliant documentation system. Once the system was in place, VPMEP completed a Pre-Assessment audit to assure VSI that they were in compliance and could pass a Registration Audit.

The Results
A pre-assessment audit was conducted and determined that VSI was ready for future ISO 9001 certification by an independent, certified, third party registrar of quality systems. The early benefits of standardized and documented company processes before certification were recognized. An unanticipated reduction in capital avoidance was evident, but not part of the initial goal. Other projected cost savings benefits may be seen in jobs retained, reduced inventory, raw materials, and returned products. By far the greatest success to date from this activity is a 75% reduction in returned product between 2001 and 2002.

Management’s Comment (a testimonial)
"Our activities with VPMEP regarding our ISO 9001 QMS system have been very successful. Over the past 18-20 months the overall semiconductor industry has significantly declined into its worst economic climate in the past 10 years. Having this program under development and ultimately complete had direct positive impact on our business to compete in the market and maintain modest growth."
"VSI during the time was able to retain 2 employees. Those 2 employees were actively involved in the ISO 9001 QMS system. Most microelectronic companies in Virginia and the remainder of the world have had significant layoffs: this has not been the situation at VSI."
" Our greatest achievement to date from this project with VPMEP is our significant reduction in returned product"
-Steve Rogers, Quality Control Manager, VSI

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