The objective of the project was to improve return on investment and capacity of existing SMT equipment worth 10 million euros by reducing cycle times. A cross-functional team used techniques like resource optimization and setup changes to increase capacity by 23% and save over 2 million euros in costs and 200 square meters of floor space. The learning from small adjustments being able to make a big impact is being applied to optimize new product lines.
1. Executive Summary (10%)
SMT Capacity Enhancement
OBJECTIVE Improve ROI/Capacity on high value SMT equipment(~10 mil euros).
Improve capacity on existing equipment through Cycle Time reduction
APPROACH
A cross-functional team of experts brainstormed & used the following approach:
Identification of high impact and quick gainers>Identification of resources &
constraints>Optimization of available resources>Allocate>Deploy >Verify >
Release
SMT Capacity increased by ~23%
RESULTS
Cost saving of over 2 Mil €
Floor space saving of ~ 200 sqm to accommodate additional
products in existing layout
FUTURE
IMPACT
Horizontal deployment on all new product lines
Effective utilization of the approach and learning across MO
2. Approach (20%)
SMT Capacity Enhancement
Formation of
cross
functional team
Cross functional team of subject matter experts from SMT, Quality and
Production Planning formed.
Current State
Analysis
Existing capacity, cycle times & labor times were taken as baseline.
Team identified & listed the resources & constraints-feeders, heads,
nozzles, stations, modules, etc.
Project
strategy/plan
Post identification of constraints, resources & the order trend inputs
from the planning, the team agreed to focus upon maximizing capacity
by focusing upon high impact items- high volume and quick
gainer products. Detailed plan was made with time lines, milestones,
responsibilities, communication method, etc.
Cycle Time
Optimization
The team brainstormed, identified and used routine and unique
program optimization techniques for the selected products. Multiple
optimizations done with different product combinations and setups.
Comparative
Analysis &
Final Selection
The selection criteria laid for providing optimum flexibility and highest
utilization. The results of the optimized program combinations were
compared and final selections made.
3. Approach (20%)
SMT Capacity Enhancement
Trials,
verification &
release
The trials with the new improved programs were then done per
process. The new capacity was verified and released.
Main Constraint
Counter Approach
Limited time and resource for project
due to other ramp ups and routine
work
Constraint
Management
• Project manager to ensure flexibility in
No additional capital investments
• Optimize available capital resources
Limited number of capital accessories
available
• Identify and experiment new techniques
Limited line availability for
experimentation with new techniquesparts and nozzles
• Experiments/Trial to be done during
working meetings, progress meetings,
& experimentation.
normal production and during production
stops. Agree with production planning
4. Deployment (20%)
SMT Capacity Enhancement
Project Charter
• Project included representation of key stakeholders-management, production
planning, quality & Manufacturing solutions. Scope, objectives, team,
responsibilities, constraints/risks, schedule and milestones were defined.
Communication
• Project progress & actions were tracked by project manager through regular
meetings with the core team. The project milestone achievement was
communicated to the management through e-mails and monthly reports
Optimization
~23%
Improvement
• This was the key activity and was
successfully implemented through a lot
of brainstorming to identify regular and
possible unique techniques. This also
involved multiple trials/experiments at
Gemba for things like unique nozzle
allocation, axis speed adjustments, etc.
Axis speed
Optimization
Nozzle Station
Optimization
Nozzle
Optimization
Feeder
Optimization
Component
allocation to diff
machines
Head
configuration
Optimization
C
A
P
A
C
I
T
Y
5. Results:
Financial Impact (~2000KEuro)
Total Cost Savings>2Mil €
• Cost of SMT Line~1938000€
• Spares cost ~44400 € p.a.
• Labor cost ~43800 € p.a.
• Electricity cost ~18200 € p.a.
• Space saving ~200 sq m.
Capital
Spares
Labour
Electricity
Capacity Change
Bef ore
Factory floor space saving ~200 sq.m
After
Capacity created for additional products
Cycle Time reduction of avg ~23%
Competence Development
E
18
00
E
S
M
A
L2
3G
FR
G
F
2G
FI
P
A
3G
FT
F
B
3G
FI
IB
3G
FT
C
E
D
O
O
D
80
0
1
0
M
L
M
L9
0
E
90
0
Lower throughput/Lead times
6. Best Practice (bonus points)
SMT Capacity Enhancement
When planning your project, did you utilize
previous lessons learnt or other Good Practices
from external sources?
If yes, how did you locate them?
Past experience in the industry was beneficial in
analysis and technique selection.
What are the key learning from this project to
you and your project team/ unit?
What made you different?
The key learning is that small changes sometimes can
add up to make a big impact.
The small adjustment techniques used in optimization
of the programs added to reduce cycle times
significantly. Also a cross-functional approach is must
to optimize operational resource considering all aspects
Why do you think that your project could serve
as a Good Practice example for others within
NSN?
The learning of optimization techniques from this
project can be used across NSN MO for effective
utilization of high value SMT equipment
Has your project solution/ approach already
been used as inspiration for another project?
Or are you aware if a similar approach or
solution has been adopted elsewhere in NSN
due to your Good Practice communication?
The results i.e. reduced cycle times, increased capacity
achieved from this project are being used as a
benchmark for optimizations of new product programs.
This has been implemented on new products like 3G
transport, FPR & FRGP.
What has been your and/or the team's specific
contribution in communicating / sharing and
supporting the adoption and usage of this best
practice in the other projects?
The results have been communicated to global teams
through monthly reports and also through technology
platform community meetings.
7. Best Practice (bonus points)
SMT Capacity Enhancement
When planning your project, did you utilize
previous lessons learnt or other Good Practices
from external sources?
If yes, how did you locate them?
Past experience in the industry was beneficial in
analysis and technique selection.
What are the key learning from this project to
you and your project team/ unit?
What made you different?
The key learning is that small changes sometimes can
add up to make a big impact.
The small adjustment techniques used in optimization
of the programs added to reduce cycle times
significantly. Also a cross-functional approach is must
to optimize operational resource considering all aspects
Why do you think that your project could serve
as a Good Practice example for others within
NSN?
The learning of optimization techniques from this
project can be used across NSN MO for effective
utilization of high value SMT equipment
Has your project solution/ approach already
been used as inspiration for another project?
Or are you aware if a similar approach or
solution has been adopted elsewhere in NSN
due to your Good Practice communication?
The results i.e. reduced cycle times, increased capacity
achieved from this project are being used as a
benchmark for optimizations of new product programs.
This has been implemented on new products like 3G
transport, FPR & FRGP.
What has been your and/or the team's specific
contribution in communicating / sharing and
supporting the adoption and usage of this best
practice in the other projects?
The results have been communicated to global teams
through monthly reports and also through technology
platform community meetings.
Editor's Notes
The Executive Summary is limited to one page.
The Executive summary will be assessed along the following questions:
How clear are the Objectives / Scope described?
How clear is the general Approach described?
How clear are the achieved Results described?
How clear is the possible Future Impact described?
How clear have the key messages been communicated within the targeted organization / outside project?
How clear did the executive summary reflect the content of the application?
NOTE:
In case your project will be selected for the finals, only this executive summary slide will be delivered to the Grand Jury.
So please ensure that you present the most relevant accomplishments here.
The Approach section is limited to two pages.
The Approach section will be assessed along the following questions:
Evaluate the included financial business case calculation and documented framework (e.g. clear baseline, SMART targets, assumptions,…)
Evaluate the set-up of the main Project & Quality Management methods and tools within the project. (e.g. key milestone plan, resource plan, Six Sigma...)
How well were the roles & responsibilities of project team and steering group defined and communicated within the involved stakeholder groups?
Evaluate how well the project involved the stakeholders/customer in the approach phase?
How well has risk management been set up?
The Approach section is limited to two pages.
The Approach section will be assessed along the following questions:
Evaluate the included financial business case calculation and documented framework (e.g. clear baseline, SMART targets, assumptions,…)
Evaluate the set-up of the main Project & Quality Management methods and tools within the project. (e.g. key milestone plan, resource plan, Six Sigma...)
How well were the roles & responsibilities of project team and steering group defined and communicated within the involved stakeholder groups?
Evaluate how well the project involved the stakeholders/customer in the approach phase?
How well has risk management been set up?
The Deployment section is limited to one page.
The Deployment section will be assessed along the following questions:
How the project progress was tracked and measured, how the voice of the customer has been taken into account? (Business case, milestones, etc..)
Evaluate, if Results and Deployment are in line with original Approach
How well has risk management been performed throughout the project?
How well have the stakeholder/customer interfaces (e.g. communication / escalation path, feedback loop) been utilized?
Evaluate, how did the team work well together and feel empowered to take personal responsibility
The Best practice section is limited to one page.
Please state your answers directly in the respective cells of the table given on the Best Practice page of the application!
In this case, a font size of 12pt is permitted!