Operational Excellence Case Study

Transcription

1 Operational Excellence Case Study Kenny Heifner VP, Quality and Organizational Development, SMS Technologies In the past few years Kenny has led two organizations to ISO 9001:2000 registration and three organizations to ISO/TS 16949:2002 registration. Of these 5 organizations, Total Electronics went on to become one of seven National Finalists for the American Association for Manufacturing Excellence (AME) award in October of Master of Business Administration, MBA from Anderson University, a Master of Arts in Education, MAE from Ball State University, and a Bachelor of Science, BS from Purdue University. Accelerating Supply Chain Performance 1 SEA 2011 All Rights Reserved

2 SMS Technologies, Inc Supplier Excellence Alliance Supply Chain Innovation Winner And 2010 Supplier Excellence Alliance Operational Excellence Winner Workforce Development Finalist

3 SMS Technologies, Inc. Employees in San Diego Low volume / high mix EMS - Electronic Manufacturing Services including Design, Layout, Rapid Proto-Typing, DFM & DFT, RF Technology, Supply Chain Management AS9100, ISO/TS 16949, ISO 9001 & Aerospace & Military Customers:

4 Results of USAF Implementation

5 Customer-Focused Process Approach ISO/TS 16949:2002 Customer- Oriented Process Approach Workforce Development Leadership And Culture AS9100C:2009 Customer- Oriented Process Approach Operational Excellence

6 Build Quality In With APQP (Advanced Product Quality Planning) Customer Requirements Special / Key Product Characteristics ( ) Process Flow Diagram Process Failure Mode Effects Analysis Control Plan Work Instruction Qualification

7 Launch Lean With 3P Production Preparation Process Note: Each color represents a different operator s work cycle

8 VSM From Raw Material to USAF RAW LONG - LEAD ALUMINUM SUPPLIER ITEMS ADC PRODUCTION CONTROL SMS PRODUCTION CONTROL SEI SALES ORDER BANK USAF CUSTOMER LOCATIONS SHIPPED AS WEEKLY SHIPPED AS AS NEEDED SHIPPED AS 1x DAY SHIPPED AS 1x DAY CUSTOMER LOCATIONS ADC CUSTOMER LOCATIONS SMS CUSTOMER LOCATIONS SEI FINISHED GOODS 100 Day 100 Day 100 Day

9 Results of NSA Implementation

10 Trouble In The Beginning NSA business was acquired by SMS in 2007 Volume was 260 sets (13-PCBAs) per month Many of the key components were obsolete Consigned material was furnished sporadically by our Tier 1 customer Low incoming yield from a key directed-source resulted in quality problems throughout Material handling costs were left out of the quote SMS was losing >175% of the quoted margin

11 The 1 st SMS Current State Map Boards & Components Prod. Ctrl. Tier 1 Weekly SMS WH 9 Operators 1 st Shift Lead Time ~ 8 Days 1 Inspector 1 st Shift VA 1 Time Operator = 2127 nd Shift Minutes Coating Outside Supplier Weekly SMT & Test Wash 2 nd Assy & Wave Wash No Clean In-Circuit Test Source Inspection Final Insp. & Pack-out Shipping.5 day.25 day.25 day.25 day.25 day 1 day 5-days.5 day LT ~8 days VA =127 min.

12 The NSA Customer-Focused Team Program Manager Manufacturing / Quality Engineer Test Engineer Value-Stream Manager Production Planner Procurement Specialist Cell Leads

13 The Turn-A-Round Begins Our customer agreed to let SMS manage the supply chain including obsolete components SMS qualified a second source to provide key flex cables & helped them improve the process Quality improved significantly throughout the entire value-stream as a result (98.4% SMS) The SMS Customer-Focused Team conducted a Kaizen event to develop a mixed-model cell around the wave soldering process The Team built every PCBA every week

14 The NSA Cell Lay-out

15 The New SMS Current State Map Boards & Components Prod. Ctrl. Tier 1 Weekly SMS WH 5 Operators 1 st Shift Lead Time ~ 8 Hours 1 Inspector 1 st Shift VA Time = 107 Minutes Weekly SMT & Test max. 10 pcs. FIFO Wash 2 nd Assy & Wave max. 6 pcs. FIFO Wash max. 6 pcs. FIFO No Clean In-Circuit Test max. 6 pcs. FIFO Conformal Coating max. 6 pcs. FIFO Final Assy Pack-out & Shipping.5 hrs. 4.4 hrs..3 hrs..3 hrs..3 hrs..3 hrs LT ~8 hrs. VA =107 min.

16 LIFE, Quality & Margin Improves

17 The New SMS Future State Map Boards & Components Prod. Ctrl. Tier 1 Twice Weekly SMS WH 4 Operators 1 st Shift Lead Time < 4 Hours VA Time = 95 Minutes Twice Weekly SMT, Test & Wash Combine 2 nd Assy., Wave, Test, Conformal Coating, Pack-out & Ship Combine 2 nd Assembly 2.2 hrs. 5 min. 90 min. LT <4 hrs. VA = 95 min.

18 NSA Current-State Value Stream Map SMS Technologies 200 Units Per Month Production Control 400 Units / 2 - Months Various NSA Locations 0010 Pull Kit & Print Docs. 900s 0015 INSP. Labels / Travele 900s r Black & Red PWAs 660s Units Per Week INSP 120s 0060 Install Keyboard 180s 0040 Install Shield 240s 13 People 1-10-Hour Shift 4:30 AM 3:00 PM ½-Hour Lunch 2-15 Minute Breaks 15 Minutes Set-up Total 9.25 Hours Interfac e PWA 60s 0045 INSP 120s INSP 60s Install Shield 0050 Back Plane Rec SN 240s 120s Work Orders 400 Units / 2 - Months 0055 INSP 60s 0090 Knobs & Screws 240s Lead Time = 21.7 Days VA Time = 121 Minutes 0060 PWAs Rec. SNs 120s 0095 INSP 120s 0065 INSP V/ M #1 135s (Between LT=2.6d Products) VA=10min 0070 Close Unit 45s 18 ~90% 0085 up c/o 1hr. Vibration 2700s 2 per st ATP 45min 9 ~95% 0095 up c/o 1hr. (Between Burn Batches) - max 36 units In 72 hrs Open Insp. Close 720s 6 2 per V/M #3 2 per nd ATP 45min nd INSP 180s day Sample Tests 1-60-day 0135 QAA ATP 45min <400 Units / 2 - Months 0140 Battery Cover Dust C. 600s Pack Ship Final 0150 Stock 0145 QAA INSP. 120s 0145 Final Insp. 120s d.3d 6.6d 3.5d.6d 1.4d 2.5d 660s 240s 240s 120s 45s 1350s 720s 1350s 1350s 600s d LT=21.7days VA=121min

19 ~1500 Square Feet

20 NSA Future-State Value Stream Map SMS Technologies 200 Units Per Month Production Control 400 Units / 2 - Months Various NSA Locations 0010 Pull Kit & Print Docs. 900s 0015 INSP. Labels / Travele 900s r 50 Units Per Week Build / Inspect Panel Assembly 780s Work Orders LT=13min VA=10min - Also help with Rework Build, Inspect & Close Unit 1740s 7 People 1-10-Hour Shift 4:30 AM 3:00 PM ½-Hour Lunch 2-15 Minute Breaks 15 Minutes Set-up Total 9.25 (Between Products) ~90% 0085 up c/o 1hr. Vibration 2700s 400 Units / 2 - Months Lead Time = 3.2 Days Hours - Trouble-Shooter / Rework VA Time = 121 Minutes Weekend ~95% 0095 up Buffer c/o 1hr. (Between Burn Batches) - max 36 units In 72 hrs day Sample Tests 1-60-day max 19 - Empty Daily unit 2 per 2 per V/M #3 2 per s st ATP 45min Open Insp. Close 720s nd ATP 45min nd INSP 180s 0135 QAA ATP 45min <400 Units / 2 - Months Pack Ship Final 0150 Stock 0145 QAA INSP. 120s Install Battery, Dust Cover & Final Inspection 720s 1.1d d LT=3.2days 1305s 1350s 720s 1350s 1350s 600s VA=121min

21 1 st ATP nd ATP rd ATP Rework ATP 080 Failed 125 Failed Repaired Failed 140 Trouble-Shooter / Rework - Also help with Rework Finished Units Panel Assembly To Vibration Return From Burn-In To Finished Goods Start

22 Projected LIFE Improvements

23 Actual LIFE Improvements

24 Pitfalls to Improvement The power of a disciplined lean culture should not be underestimated Workforce development is also a critical component of a successful lean transformation Independent inspection requirements forced us to continuously move operators from station to station The customer shut down SMS operations for 4 weeks after the event to use up excess inventory The assembly process lacked enough burn-in capacity to keep pace with the projected rate The burn-in chamber is a monument

25 Bottlenecks / Constraints 36 Unit Max. 12 / Day In 12 / Day Out Maximum 84 Unit Throughput in 7 Days (24/7) Overflow FIFO 20 Unit Max. Overflow Overflow Out

26 Potential Future Improvements Combine inspections steps Combine functional test operations Pack-out at the end of the cell Locate all assembly & test in one place Ship to NSA every month vs. 2 months Add more visual controls Develop returnable shipping kanbans Make milk-runs twice a week

27 Daily, Weekly & Monthly Output (For 10 & 12-hour Shifts) KANBAN Box 1 Full Board Set with Front Cover

28 Lessons Learned The significance of lean culture and workforce development on the ease of implementation The power of the SEA Roadmap Removing the blinders and learning to see Having faith when it is not easy to see the way Supply chain partners can team-up to turn a losing proposition into a sustaining asset Operational Excellence is multiplied many times over when it is applied to the entire value stream

29 VSM From Raw Material to NSA RAW LONG - LEAD FLEX CABLE SUPPLIER ITEMS Supplier PRODUCTION CONTROL SMS PRODUCTION CONTROL Customer SALES ORDER BANK NSA CUSTOMER LOCATIONS SHIPPED AS WEEKLY SHIPPED AS AS NEEDED SHIPPED AS 1x Week SHIPPED AS 1x Week CUSTOMER LOCATIONS Supplier CUSTOMER LOCATIONS SMS CUSTOMER Customer LOCATIONS FINISHED GOODS </= 260 Mo </= 260 Mo </= 260 Mo