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Improve SMT Labor Margin Per Unit

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Improve SMT Labor Margin Per Unit

  1. 1. Bose Lean Enterprise Bose Confidential Project : Improve LMPU by increasing SMT UPH. Presented by : Damian Murphy Denis
  2. 2. Bose Lean Enterprise • Reduce LMPU of HED products running at SMT by 20 June 2014. Challenge
  3. 3. Bose Lean Enterprise Plan Step 1: Define and Breakdown Problem Step 2: Grasp Current Condition Step 3: Set a Target Condition Step 4: Conduct Root Cause and Gap Analysis Step 5: Identify Potential Countermeasures
  4. 4. Bose Lean Enterprise PROBLEM STATEMENT • Current LMPU is based on Tijuana’s UPH and is not reflecting our actual LMPU/UPH. We could be achieving more than Tijuana’s rates/UPH based on BSM configuration. IMPACT STATEMENT • Without UPH improvement there will be a considerable wastage in terms of line utilization and capacity. • There is a significant opportunity to improve SMT UPH thereby also improving on our current LMPU as well. Step 1: Define & Break Down Problem  Team Lead: Damian M Denis  Champion: Mr. Ahmad Zamsari Zakaria  Team Members: Harlina Ismail Chew Tzy Ching Niven Lam Tan Hock Lee TEAM
  5. 5. Bose Lean Enterprise Step 2: Grasp Current Condition - We are running ahead for some of HED products. - Hence, 80% of our HED models are running at below capacity and this does not reflect our actual capability at SMT. - This needs to be changed so that the line is fully utilize and the lines are always productive. 0 0.5 1 1.5 2 2.5 3 3.5 1 2 3 4 5 6 Number of days ahead Days Linear (Days)
  6. 6. Bose Lean Enterprise TARGET CONDITION • All SMT HED model will have a new LMPU target based on the new UPH and cycle time by 10 June 2014. GOAL • Reduce cycle-time for HED products at SMT hence improving LMPU by 10 June 2014. Step 3: Set a Target Condition OBSTACLES - This reduction in LMPU requires all parties to play a role in achieving the targeted cycle- time/UPH.
  7. 7. Bose Lean Enterprise Step 4: Conduct Root Cause & Gap Analysis WHY SMT UPH is not reflecting the actual BSM capacity rates ? No data on SMT potential cycle-time & rates. Un-even line balancing at Siplace machine Manual insert components are a bottleneck in some HED models. Diff machine config available but cycle time is still same Comfort zone based on TJ rates. Siplace machine is sometimes slower than hand load process. Measurement Manpower Machine Problem Statement Machine
  8. 8. Bose Lean Enterprise Step 5: Identify Potential Countermeasures 1) Measure SMT cycle time with current SMT configuration for all models. 2) Check theoretical cycle time thru SMT simulation. 3) Work with core team for any UPH gaps between pt. 1 & 2. 4) Do line balancing for models that needs improvement. 5) Improve on hand load process by machine operator. Timeline Key Milestone Date 1) Measure SMT cycle time 10th May 2) SMT Simulation 14th May 3) Bridge the gap 21th May 4) Line Balancing 24th May 5) Improve hand load 30th May
  9. 9. Bose Lean Enterprise Do Step 6: Develop & Test Countermeasures Step 7: Refine & Finalize Countermeasures Step 8: Implement Countermeasures
  10. 10. Bose Lean Enterprise  After brainstorming the team agrees on a set of solutions based on their knowledge & experience.  In addition, we use the prioritization matrix to help us to zero in on some of the important decision criteria and we found it correlates with the team decision as well.  The below shows the solution the team have opted to implement as subject matter expertise:- i. Measure actual SMT cycle time for all models ii. Simulate theoretical SMT cycle time iii. Bridge the gap between i & ii. iv. Do line balancing for SMT lines v. Improve hand load cycle time process Brainstorming & Subject Matter Expertise Step 6: Develop & Test Countermeasures
  11. 11. Bose Lean Enterprise Analysis of the above matrix is on the next slide. Countermeasure Selection thru Prioritization Matrix Step 6: Develop & Test Countermeasures SelectionCriteria BusinessImpact ResourceAvailability Effort/Impact Abilitytoleverage WeightedSum Listofpotentialcountermeasures: 3 4 5 2 MeasureactualSMTcycletimeforallmodels 9 9 5 9 106 SimulateSMTcycletimeforallmodels 9 9 9 9 288 BridgethegapbetweenactualandtheoreticalUPH 1 9 9 9 252 Dolinebalancing 5 9 9 9 248 Improvecycletimeforhandloadprocess 1 5 9 9 212 LEGEND Relationship 1 WeakRelationship 5 MediumRelationship 9 StrongRelationship
  12. 12. Bose Lean Enterprise Step 6: Develop & Test Countermeasures Countermeasure Selection  The above matrix clearly shows which countermeasures should be prioritized to get the best/optimum result with the given resources we have at SMT.  The team decided that all these countermeasures are important and thus must be implemented to achieve our goal.  But all these countermeasures must be prioritized as a continuous flow according to their importance in the matrix.  So, which countermeasures are selected?
  13. 13. Bose Lean Enterprise Step 7: Refine & Finalize Countermeasures The Finalized Countermeasures Actions Status Lesson learnt Doc. Update Define KPI Owner Measure actual SMT cycle time for all models Done Massive opportunity for improvement No Will reflect in reduce LMPU IE Simulate SMT cycle time Done NA No NA Engineering Bridge the gap Done Gap to be reduced to achieve optimum cycle time No NA Core team Line balancing Done NA No NA Core team Improve hand load cycle time Done To be done simultaneously during line balancing activity No NA Core team
  14. 14. Bose Lean Enterprise Step 8: Implement Countermeasures Progress checks – Below is the timeline to wrap up all countermeasures by end of May 2014.
  15. 15. Bose Lean Enterprise Check Step 9: Measure Process Performance
  16. 16. Bose Lean Enterprise New SMT UPH & LMPU Results Step 9: Measure Process Performance Financial Benefits : - The line can be loaded with more orders as we are able to increase BSM UPH tremendously! ACTIONS/PLANS MODEL Tijuana BSM % Previous Improved % Tijuana BSM % Previous Improved % Reframe AMP 1178 1250 6.11 0.25 0.24 -5.76 Reframe Dock 1296 1400 8.02 0.23 0.21 -7.43 Reframe DSP/IR 772 800 3.62 0.39 0.38 -3.50 417 450 7.91 0.72 0.67 -7.33 Phoenix AMP 1178 1250 6.11 0.25 0.24 -5.76 Phoenix DSP/IR 772 800 3.62 0.39 0.38 -3.50 417 450 7.91 0.72 0.67 -7.33 Bruiser AMP-IO 814 900 10.56 0.37 0.33 -9.56 682 682 0.00 0.44 0.44 0.00 Bruiser DSP 408 425 4.16 0.74 0.71 -4.00 541 600 10.91 0.55 0.50 -9.83 Seine Tuner 235 276 17.44 1.28 1.09 -14.86 258 270 4.65 1.16 1.11 -4.44 Seine DSP 445 541 21.57 0.67 0.55 -17.74 306 340 11.11 0.98 0.88 -10.00 VIA Main - SMT 1/2 814 900 10.56 0.37 0.33 -9.56 540 576 6.67 0.56 0.52 -6.25 VIA Main - SMT 7 814 900 10.56 0.37 0.33 -9.56 540 650 20.37 0.56 0.46 -16.92 Via BAIO - SMT 1/2 408 600 47.05 0.74 0.50 -32.00 480 550 14.58 0.63 0.55 -12.73 VIA BAIO - SMT 7 408 900 120.58 0.74 0.33 -54.67 480 600 25.00 0.63 0.50 -20.00 Teacup AMP-IO 913 1000 9.52 0.33 0.30 -8.70 590 674 14.24 0.51 0.45 -12.46 Teacup DSP 550 420 -23.63 0.55 0.71 30.95 450 500 11.11 0.67 0.60 -10.00 Machine config diff from TJ Spotty AMP-IO 201 220 9.45 1.49 1.36 -8.64 240 240 0.00 1.25 1.25 0.00 Spotty Button/Mojo 541 900 66.36 0.55 0.33 -39.89 925 1100 18.92 0.32 0.27 -15.91 Shelby C. Module 200 200 0.00 1.50 1.50 0.00 305 305 0.00 0.98 0.98 0.00 HED UPH & LMPU ACHIEVEMENT HED LMPU BSS HED LMPU TSSHED UPH BSS HED UPH TSS
  17. 17. Bose Lean Enterprise Step 9: Measure Process Performance New SMT UPH & LMPU Results TSS UPH & LMPU Results Total Models – 15 Improved UPH & LMPU – 12 % of Improvement – 80% Financial Benefits : - BSM LMPU is reduced aggressively without increasing the number of lines and headcount! BSS UPH & LMPU Results Total Models – 18 Improved UPH & LMPU – 16 % Improvement – 88.88%
  18. 18. Bose Lean Enterprise Step 9: Measure Process Performance Financial Benefits : - Line is fully utilize without too much sand-bagging! Monitoring:- 1) All SMT build from 1 June 2014 onwards is following the new UPH & LMPU target. 2) Monitoring was done from 1 – 15 June 2014 and the result during WW25 is as per the new UPH/LMPU target. Reflection:- 1) We needed to go beyond our comfort zone so as to continually improve ourselves as a TEAM in key KPI’s.
  19. 19. Bose Lean Enterprise Act Step 10: Refine, Standardize and Stabilize the process Step 11: Monitor Process Performance Step 12: Evaluate Results, Share Learning
  20. 20. Bose Lean Enterprise Steps 10 – 12: Standardize / Monitor Performance / Share Learning Standards - All SMT production schedule for HED will reflect the new UPH from 30 June 2014. - To implement this new UPH/LMPU on other new SMT lines that are to be set-up in BSM. Yokoten Opportunities Next Steps - To improve SMT UPH & LMPU for ASD models.
  21. 21. Bose Lean Enterprise

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