Operational Excellence in Electronics Manufacturing


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Operational Excellence in Electronics Manufacturing

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Operational Excellence in Electronics Manufacturing

  1. 1. Operational ExcellenceFramework ©LNS Research 2012
  2. 2. Building a Model of Operational Excellence • Define Strategic and financial objectives • Create metrics and benchmark against industry leaders • Understand your business capabilities: people, process, and technology • Establish a plan for operational excellence with current resources ©LNS Research 2012
  3. 3. Building a Model of Operational Excellence • Monitor gaps closely, adjusting plan to get the right results • Learn from experiences to create an atmosphere for continuous improvement • In the case of electronics, optimize shop floor drivers by intersecting the right people, processes and technologies ©LNS Research 2012
  4. 4. Shop Floor Drivers ©LNS Research 2012
  5. 5. Shop Floor Drivers • Quality Management • Having the right people, processes, and technologies in place is a necessity • Metrics and processes • Defects per Million Opportunities (DPMO) • Failure Mode and Effects Analysis (FMEA) • First Pass Yield • Scrap Rate • Leverage emerging software in the space ©LNS Research 2012
  6. 6. Shop Floor Drivers • Lean Production • Main goals are similar across industries: level loaded flow of material, demand-driven production, operating without mistakes, etc. • Can be used to battle complexities • External: global supply-chain • Internal: companies with multiple products, lines, and plants • Modernizing processes • Go paperless • Utilize software ©LNS Research 2012
  7. 7. Shop Floor Drivers • New Product Introductions (NPI) • Perhaps biggest pain point for the industry • Ability to get new ideas up and running quickly is critical • PCB engineering designs need to be quickly fed into machine programs • BoM, engineering work instructions, quality specifications, and other capabilities need to be built into running manufacturing processes • Time, volume, and quality are very important metrics ©LNS Research 2012
  8. 8. Shop Floor Drivers • Traceability and Inventory Flow • Data granularity is key • Companies want to have component level traceability on a PCB or finished product assembly • Track defects and failures in the field and communicate back to engineering • Mandated in many industries by OEMs • Tightly coupled with quality and continuous improvement • Requisite for closed-loop quality management ©LNS Research 2012
  9. 9. Shop Floor Drivers • OEM Visibility • The shop floor as a block box is no longer acceptable • When contract manufacturers can’t effectively improve processes, OEMs do not have the data needed to optimize supply-chain • OEMs are pressuring and in some cases providing tools to improve visibility • Cloud and enterprise solutions are important here ©LNS Research 2012
  10. 10. Closing Thoughts• Establish a model of operational excellence, aligning financial and strategic goals with capabilities• Overcome challenges by optimizing shop floor drivers• Quality Management: Leverage metrics and technology• Lean Production: Modernize operations to maximize lean capabilities• NPI: Create a collaborative and communicative environment between engineering and manufacturing• Traceability: Strengthen tracking abilities to find the root causes of problems quicker – quality is critical in electronics• OEM Visibility: Utilize cloud and enterprise capabilities ©LNS Research 2012