PowerPoint Presentation - Executive Presentation - SMTA
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CTEA<br />
Customer Value and Plant<br />
Performance, The Impact of<br />
Implementing Traceability<br />
by Tommy Fox<br />
Optimal Electronics<br />
February 16, 2010<br />
Copyright © 1998-2010 Optimal Electronics Corp.
Agenda<br />
• Context – Electronic Assembly<br />
• Aberdeen Study Results<br />
• Traceability Elements & Drivers<br />
• What’s the Opportunity?<br />
• Plant Performance Improvements<br />
• What’s the Problem & Solution?<br />
• Summary<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp.<br />
2
Context - Electronic Assembly Plants<br />
Circuit Assembly -- Box Build / Final Assembly -- RMA<br />
The Traceability and Genealogy Gap<br />
• Best-in-class companies at 48% Traceability Automated<br />
• Non best-in-class companies at 34% Traceability Automated<br />
Source: Aberdeen December 2008<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 3
The Cost of Quality - % of Revenue<br />
“Best in class lose only<br />
12% of revenue to cost<br />
of quality where laggards<br />
lose …an astounding<br />
34% of revenue”<br />
– Source: Aberdeen Group,<br />
December 2008<br />
Cost of Quality<br />
Cost of Poor<br />
Quality<br />
Cost of Good<br />
Quality<br />
Internal Failure<br />
Cost<br />
External<br />
Failure Cost<br />
Assurance<br />
Cost<br />
Prevention<br />
Cost<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 4
Primary Classes of Traceability<br />
• Materials Traceability<br />
• Components – Lot, MSD, RoHAS<br />
• Manufacturing Materials<br />
• Stencils<br />
• Process Traceability<br />
• Machine – programs, performance<br />
• Manpower – ID, cert., ops, shift<br />
• Methods – oven profile, deviations<br />
• Operations / Routing<br />
• Environment & Time<br />
• Quality Traceability<br />
• Inspections<br />
• First Article Inspection<br />
• Defects, Repair, Yield<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 5
SMT Line Traceability Data Collection<br />
Sensor<br />
Real-time<br />
Machine<br />
Communication<br />
Sensor<br />
Dual fixed<br />
scanners<br />
Dual fixed<br />
scanners<br />
(optional)<br />
Real-time<br />
Machine<br />
Communication<br />
LAN<br />
Traceability<br />
Database<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 6
Traceability Drivers<br />
1. Product Quality / Customer Satisfaction<br />
2. Government/ Standards Regulatory Req.<br />
3. Severity of Quality, Non-compliance, Recall<br />
4. Maintain / Achieve Competitive Advantage<br />
5. Reduce Cost of Manufacturing Operations<br />
6. Corporate Social Responsibility Mandates<br />
7. Increase NPI Speed & Introductions<br />
Moved from bottom to<br />
top since 2007<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 7
What is the Opportunity…?<br />
Customer Facing<br />
$2.B +<br />
• Recalls – narrows recall envelope $<br />
• Warranty - $2.B<br />
• Legal $ ??.<br />
• Electronic interference - $??<br />
• Brand Quality Perception – improvement through experience $ $<br />
• Higher Value Products - standards e.g., AS9100, ISO 13485 $<br />
• Audits – prove the traceability<br />
• Customer Satisfaction – better quality, date delivery, retention, - (#1)<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 8
What is the Opportunity…? -- Internally<br />
25-50%<br />
Improved<br />
Machine<br />
Utilization<br />
50%<br />
Feeder Failure<br />
33% Scrap<br />
Reduction<br />
33- 400%<br />
Change Over<br />
Reduction<br />
Downtime Management<br />
& Line Scheduling<br />
Duty Cycle<br />
Feeder Management<br />
Offline Setup &<br />
Grouped Setups<br />
5-20%<br />
Revenue Cost<br />
of Quality<br />
50-350%<br />
Reduced<br />
Manpower<br />
Quality Management<br />
& Traceability Management<br />
Automated Material<br />
Counting & Locating<br />
February 17, 2010<br />
Copyright © 1998-2010 Optimal Electronics Corp.<br />
9
Plant Performance<br />
OEE = Availability * Performance Efficiency<br />
* Rate of Quality<br />
OOE def: Overall Equipment Effectiveness<br />
Data Needed<br />
• Availability<br />
• Production Rate for each Assembly<br />
• Machine Downtime<br />
• Quality<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 10
Maturity Classes<br />
13% <br />
17% <br />
20% <br />
11.5 hrs <br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 11
Production Performance Improvement<br />
Dynamic<br />
Scheduling /<br />
Line Balancing<br />
Machine<br />
Downtime<br />
Plant<br />
Performance<br />
& OEE<br />
Changeovers -<br />
Grouped Setups<br />
/ Optimization<br />
Programming<br />
Quality &<br />
Direct Labor<br />
Tracking<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 12
Production Performance Improvement<br />
Dynamic<br />
Scheduling /<br />
Line Balancing<br />
Machine<br />
Downtime<br />
Plant<br />
Performance<br />
& OEE<br />
Changeovers -<br />
Grouped Setups<br />
/ Optimization<br />
Programming<br />
Detailed Data Collection/Tracking<br />
+<br />
Dashboards with Drilldown<br />
Quality &<br />
Direct Labor<br />
Tracking<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 13
Downtime Data-Drilldown<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 14
Example - Changeovers<br />
Dynamic<br />
Scheduling /<br />
Line Balancing<br />
Machine<br />
Downtime<br />
Plant<br />
Performance<br />
& OEE<br />
Changeovers -<br />
Grouped Setups<br />
/ Optimization<br />
Programming<br />
Quality &<br />
Direct Labor<br />
Tracking<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 15
Example - Downtime Due to Changeovers<br />
Run<br />
Setup A Run A Setup B Run B Setup C Setup D Run D Setup E<br />
C<br />
Run E<br />
Hour 7<br />
Hour 6<br />
Hour 5<br />
Hour 4<br />
Hour 3<br />
Hour 2<br />
Hour 1<br />
- Applying Dynamic Scheduling & Group Setups<br />
Group Setup 1<br />
Group Setup 2<br />
Group Setup 1 Run B Run D Run H<br />
Run<br />
Group Setup 2 Run A Run E Run F Run G<br />
C<br />
3 more Runs (F,G, H)<br />
in 6 hours!<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 16
Case Study Scheduling & Optimization<br />
Challenge<br />
• High Mix/Low Volume: 50 board avg.<br />
• Poor Machine Utilization<br />
• Minimize Setup Time across 6 lines<br />
Solution<br />
• Implemented Scheduling, Machine<br />
Optimization, & Offline Setup<br />
Results<br />
• Reduced set up time by 65%<br />
• Slashed Total Set ups by 400%<br />
• Nominated for Chairman's Award<br />
Before Advanced MES<br />
– Machine Utilization: 23%<br />
– 20 –30 Changeovers/day<br />
– 1 hour avg. set up time<br />
After Advanced MES<br />
– Machine Utilization: 40%<br />
– 3-6 Changeovers/day<br />
– 20 minute avg. set up time<br />
50+% Production Increase/$11M Annual Cost Reduction<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 17
Hitting NIP Quality, Volume & Time<br />
Targets<br />
Details: Best-in-class outperformed Laggards by > 25% in quality<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 18
What’s the Problem with Implementing<br />
Traceability?<br />
ERP / MRP<br />
Work Order<br />
Planning &<br />
Scheduling<br />
Material<br />
Receiving &<br />
Preparation<br />
Assembly<br />
Scheduling / Changeover<br />
Production Improvement/Cost of Capital<br />
Minimal Manufacturing Visibility<br />
Multiple or no IT systems<br />
Cost Controls (scrap etc)<br />
Process Improvement & Controls<br />
Quality Issues<br />
Downtime<br />
Overall Equipment Effectiveness (OEE)<br />
Lack of Traceability<br />
Lack of an<br />
Integrated MES<br />
Invoice &<br />
ERP Update<br />
Test & Quality<br />
Shipping<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 19
The Problem: Lack of Integrated MES<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 20
Addressing the Problem<br />
Comprehensive Manufacturing Execution System<br />
Materials<br />
Management<br />
Traceability<br />
(Component, Process, Quality)<br />
MES<br />
Database<br />
Process & Quality<br />
Management<br />
Production<br />
Improvement<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 21
Traceability/Plant Performance Summary<br />
Time is Money<br />
– 33 – 400% reduction in set ups<br />
– 33 to 75% reduction in setup time<br />
– 50-400% reduction in part counting & locating time<br />
Reduce Costs<br />
– 50+% reduction in Feeder Failures<br />
– 33+% Scrap reduction<br />
– Lower headcounts<br />
Build More with less<br />
– 25-50% improved machine utilization<br />
– 100% - the right parts on the right boards<br />
February 17, 2010<br />
Copyright © 1998-2010 Optimal Electronics Corp.<br />
22
Optel’s Electronic Assembly MES Solution<br />
Electronic Assembly<br />
Circuit Assembly<br />
Machine & Hand-placed<br />
Box Build /<br />
Final Assembly<br />
Repair /<br />
RMA<br />
Dynamic Production Scheduling & Machine Optimization<br />
Traceability – Components, Process, Quality, Product<br />
Management – Production Operations<br />
• Process Enforcement<br />
• Quality Management<br />
• Materials Management<br />
• Component Verification<br />
Real-time Visibility, Reporting & Messaging / Alerting<br />
Plant Performance Monitoring (OEE)<br />
ERP & Business System Integration<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 23
Thank You<br />
Eliminate<br />
Waste<br />
Visibility &<br />
Control<br />
Optel<br />
Optimize<br />
& Simplify<br />
Build:<br />
More<br />
Cheaper<br />
Faster<br />
Better<br />
Optel – The complete MES manufacturing<br />
control and optimization solution<br />
Tommy Fox<br />
Optimal Electronics<br />
www.Optelco.com<br />
tfox@optelco.com<br />
February 17, 2010 Copyright © 1998-2010 Optimal Electronics Corp. 24
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