Industry 4.0 Foundations

Cantier™ Making it Simple
Industry 4.0 Foundations
Preparing For Your SMART Factory
B.C. Rigg

I will NOT share Theory with you in this talk.
I WILL share tools & methods I have personally used or developed
I believe that by using similar tools, your Smart Factory transition
will be faster & you will realize maximum benefits.
Over the past 30+ years, my Teams and I have served some of
the most discriminating Semiconductor Customers;
• NASA & the USAF
• The US, Japanese and European Automotive Manufacturers
• Medical Implantable Devices
Introduction
FROM Low Profitability, Morale, Yield, Utilization, Lost Production
Lots & High Cost, Paper, Rework, Scrap, Absenteeism, Turnover,
TO the Winner of the Philippine National Quality Award.

Industry 4.0 Foundations is about preparing the way for your future.
I will dive into details, but achieving Consistent Quality in your
products and services summarizes the result you must achieve.
What’s the connection between Industry 4.0 & Consistent Quality??
3
Introduction
QUALITY = HIGH YIELD/LOW REWORK & SCRAP
QUALITY = LOW MCT & HIGH OTD
QUALITY = LOW MANUFACTURING COST/HIGH PROFITIBLITY
SUPERIOR QUALITY = STABILITY
STABILITY IS THE KEY PREREQUESITE FOR THE SMART FACTORY

Quality
Products
Delivered On
Time @ the
Lowest Cost
People
Equipment
Systems
Components Of Quality
In Manufacturing

Is There a Difference Between;
- The Company’s “Documented” Values (respect for people…)
- The Company’s “Demonstrated” Values
5
The Impact of Leaders On Quality
“Leaders”, Lead By Example…
- Everyone Watches the Leaders in the factory
- No matter what the corporate propaganda states, the examples
Leaders demonstrate, ARE the Corporate Values & Get Emulated!
How can an organization measure if the Leaders are Living the Values?

Turn the Performance Appraisal System Upside Down
• Employees Must Anonymously Rate Their “Supervisors” Quarterly
• Rating is based on Six well researched Questions
• The Six Questions can Only Be Answered “Yes” or “No”
Values That Enable Success In Quality
6
My Tip:

7
1) Do you have a substantive, meaningful job that contributes to the success of the
company?
2) Do you know the on-the-job behaviours and have the knowledge base to be
successful?
3) Has the training been identified and been made available to continuously upgrade
your skills?
4) Do you have a personal career plan, is it exciting, achievable, and being acted upon?
5) Do you receive candid, positive & negative, feedback at least every 30 days that is
helpful in achieving your personal career plan?
6) Is there appropriate sensitivity to your personal circumstances, gender, and/or
cultural heritage so that such issues do not detract from your personal career plan?

8
• Quarterly participation from Direct Labor to direct reports of the
C.E.O..
• The expectation is to have an INCREASING # of YES Answers
Quarterly.
ACTUAL RESULTS:
• Leaders Aligned to the Organizational Values or Left the Company.
• Employee satisfaction rose as did employee retention.

9
There are Two Common Reasons for Poor Discipline;
1) No Rules/Standards/Expectations
2) No or Inconsistent Enforcement Of Existing
Rules/Standards/Expectations
Without Enforcement, Human Nature Takes Over….
Malaysia Vs Singapore in ’80’s
”Create An Island Of Discipline, In a Sea Of Optionality”
B.C. Rigg

Benchmark (steal) Good Ideas from ALL Sources
“I use not only all the brains I have, but all I can borrow.”
Woodrow Wilson
52nd St.
10
Catch People Doing This RIGHT!
“Any fool can criticize, condemn and complain – and most fools do”
Dale Carnegie
ATP – Stop the line..
Data Driven Decision!
“I believe in God. Everyone else, bring data”
B.C. Rigg
What we think we know…
Over Communicate! Leaders should always Make QUALITY, Topic #1!
Paranoia…
1 yr RIF

• Hire the BEST, better than you/constantly prepare your replacement
• Celebrate Diversity when you build your direct report Team
• Everyone has the Organizational Responsibility to Lead Upward
11
When screening resumes, really analyze the work experience!
If 2 candidates claim to have “10 years of experience”, Study the
resume Carefully/Answer 1 Question to your Own Satisfaction:
Does He/She Have Ten Years of Unique Working Experience,
OR One Year of Experience Repeated Ten Times?
Hiring Tip:
During Interviews, assess VALUES using what if scenarios…
Cadre 2000

Linked Goals System
GM/Plant Manger
METRIC SUB METRIC WT BASELINE
JULY
AUG SEP OCT NOV DEC
CUSTOMER
QUALITY
INCIDENTS
COMMITED LINE
ITEM
PERFORMANCE
(CLIP)
% Compliance 50 75% 85% 90% 92% 95% 95%
COST LESS CHIP
OVERALL LBC
UPTIME
25 70% 75% 80% 85% 90% 95%
42 34 2525 506784QDN
Everybody is rowing the boat in
same direction towards
“ONE” SET OF GOALS!!!
The “Factory” goals are the GM’s goals
GM goals are translated to each level of the org
Each “individual” in the Org Knows how he/she
supports the Plant Goals…
JULY
AUG SEP OCT NOV DEC
CUSTOMER
QUALITY
INCIDENTS
COMMITED LINE
ITEM
PERFORMANCE
(CLIP)
% Compliance 50 75% 85% 90% 92% 95% 95%
COST LESS CHIP
OVERALL LBC
UPTIME
25 70% 75% 80% 85% 90% 95%
42 34 2525 506784QDN
Operations Mgr
12
JULY
AUG SEP OCT NOV DEC
CUSTOMER
QUALITY
INCIDENTS
COMMITED LINE
ITEM
PERFORMANCE
(CLIP)
% Compliance 50 75% 85% 90% 92% 95% 95%
COST LESS CHIP
OVERALL LBC
UPTIME
25 70% 75% 80% 85% 90% 95%
42 34 2525 506784QDN
Department Mgr
JULY
AUG SEP OCT NOV DEC
CUSTOMER
QUALITY
INCIDENTS
COMMITED LINE
ITEM
PERFORMANCE
(CLIP)
% Compliance 50 75% 85% 90% 92% 95% 95%
COST LESS CHIP
OVERALL LBC
UPTIME
25 70% 75% 80% 85% 90% 95%
42 34 2525 506784QDN
Supervisor
JULY
AUG SEP OCT NOV DEC
CUSTOMER
QUALITY
INCIDENTS
COMMITED LINE
ITEM
PERFORMANCE
(CLIP)
% Compliance 50 75% 85% 90% 92% 95% 95%
COST LESS CHIP
OVERALL LBC
UPTIME
25 70% 75% 80% 85% 90% 95%
42 34 2525 506784QDN
Direct Labor
How to Enable Quality In The Work Force
My Tip:

Aligned to the Linked Goals System “Differentiate” Your Workforce
How to Enable Quality In
The Work Force
13
• “Pay for Performance”. Paying everyone the same salary increases,
simply breeds Mediocrity & potentially even bigger problems!
• A Mandatory Quarterly Forced Ranking
• Bottom performers are identified & helped, or terminated if
help is unsuccessful
• Top performers are identified, rewarded, motivated & become
role models
My Tip:

• Always be ready for the “next” headcount reduction.
– When a RIF in needed, it is typically difficult for leaders at all
levels of the organization to come up with the names quickly.
Emotions come into play…
– The benefit of the Quarterly all employee Ranking is that the
names are always ready with a good historical reference to make
the cuts at any percentage level your superiors dictate.
• Keep ~ 20% of your workforce as “contract employees”
– RIF, 1st groups to go, minimizing the pain to “your” employees
– During boom time, you can hire from a pool who have
“demonstrated competency”
How to Enable Quality In
The Work Force
14
My Tip:

• “Effective” communication regarding Perfect Quality Work
must occur at New Employee Orientation/regularly.
• To Communicate this effectively, you need to know your
audience and get inside their heads.
15
How to Enable Quality In The Work Force
My Tip:

16
How I Failed Letter… The Wrong Priority/Disaster Strikes…
One Companies Innovation …

17
The Sad Farewell … The Disappointed Mother …
One Companies Innovation …

18
What I Learned…
But For Me, Too Late …

Quality
Products
Delivered On
Time @ The
Lowest Cost
People
Equipment
Systems
Components Of Quality
In Manufacturing

Equipment and Quality
• Manufacturing Equipment Performance is typically the single
biggest contributor to consistent product quality (> people).
• Todays Manufacturing Equipment are in many cases
programmable robots, whose repeatability & reproducibility
far exceed levels of human capability.
• The above is TRUE “IF” properly programmed, operated and
maintained.
• Quality products need Not be produced on the “latest
generation” or most expensive equipment –Aizu…
20

– EMMS
– Assure you MEE Team Leadership are present in 8D Reviews
– As well as Cost Review - Mold Compund ..
– Consider looking at the MEE Organizational Structure …
21
My Tip:
• With the level of equipment complexity we are seeing today,
Maintenance & Equipment Engineering (MEE) Team training and
execution must be the best.
• How can we assure our MEE Team is adding maximum value?

MEE Organization Optimized for Quality
Operations
Director
Manufacturing
(MEE)
Maintenance &
Equipment
Engineering
PM Team
Unscheduled
Maintenance
Continuous
Improvement Team
Procurement
Specialist
Process Engineering
With EMMS, the Continuous Improvement Team:
• This Team Focus on RECURRING Equipment Issues
• One Off Events that were catastrophic (Quality, Cost, etc.)
• They Analyse the EMMS output, current and Past 8D Reports,
looking for patterns in the Equipment Performance and
Opportunities for Control Automation.
• Then designing true Permanent Preventive Actions
My Tip:

Equipment Automation Role In Quality
Vital Few Controls Are Exercised by
Supervisors and Managers
Control is Exercised By The
Work Force
Control is Exercised by Nonhuman
Means; Stable Processes:
Automated Processes:
Servo-Mechanisms
The Control Pyramid*
*Juran’s Quality Control
Handbook Fourth Edition
As you move toward the SMART Factory, you move toward more
human independent controls.
“Automated Controls” represent a NEW RISK, Unless they are part of
your Preventive Maintenance Program!
23
My Tip:
The FIRE…

Quality
Products
Delivered On
Time @ The
Lowest Cost
People
Equipment
Systems
Components of Quality
In Manufacturing

• Real Time Transaction
• Real Time Yield Loss
• Cycle Time Improvement
• WIP Integrity Improvement;
Hold Lots / Problem Lots Disposition / Lost Lots
Barcode defects
Barcode Mold Press
Barcode Mold tool
Barcode Scanner
Barcode Script
for mold
25
Lot Tracking Bar Code System
In the late 90’s…

Mold Tool Life Monitoring
Auto Shutdown Feature Using MES
E.E. fills out
Part Replace
Form.
Q.A.
Countersign
& forwards
to I.T. for
MES counter
Reset.
Return Mold
Tool to
Production
I.T. Team
adds to table
Average Lot
Quantity &
Actual Lot
Transactions
to calculate
total quantity
produced
since last PM
(tool usage
vs tool life).
When Tool
Life reaches
80%,weekly
Exception
Report signals
Purchasing to
order parts,
@95%
Schedule PM
@100% MES
Inhibits
further Log
Transactions
from tool.
26
MEE Team
Creates table
Documents
Subassembly
Tool Life
• Pots
• Plungers
• Gates
• Runners
• etc.
Document
last Sub Assy
Replacement
date
My Tip:
Use the Lot Tracking System to COUNT parts produced & NOTIFY users
when predetermined usage levels are reached.

27
• A software tool (EMMS) has been a very successful approach.
• Preventive Maintenance can be performed based upon
Calendar, Usage or other methods (vibration sensors, etc.).
• Unscheduled Maintenance time intervals and Technician
performance can be closely monitored to help identify ways
to improve the maintenance process.
• EMMS can retain past repair Actions & be used to greatly
reduce Technician Learning cure, improve Technician
productivity and Factory Performance = $$$.
My Tip:

Electronic Maintenance Management Software
 Features :
 Automatic PM Scheduling,
 Auto Date & Time Stamps,
 Multiple Security Levels,
 Forced Screen Entries,
Technician Call Back,
 Potential Solutions,
 Standard Reports,
 Priority Selection,
 Event Monitoring,
 Custom Reports,
 Extended Down,
 Look up Lists
• Accurate Data Regarding Equipment Problems & Solutions
• Analysis … Focused Resources & Continuous Improvement
Operator Logs Down
Machine for repair
Technician Logs in to
Start repair job
Technician Logs in to
Complete after a
repair job
RESPONSE
Time
REPAIR
Time
Repair job in
process
START OF DOWN TIME
START OF RESPONSE TIME
END OF RESPONSE TIME
START OF REPAIR TIME
END OF REPAIR TIME
END OF DOWNTIME
28

MSMS NETWORK ARCHITECTURE
 The light pole driver terminals of the machine are connected to the MSMS
PCB to convert signals understandable in data base to compute:
 MTBA (Meantime between assist)
 Actual Idle Time due to: No WIP, No operators, Frequent Machine Stoppages,
 True OEE Can Be Calculated Once Assist & Idle Losses are Accurately Quantified.
 MSMS (Machine Status Monitoring System) is electronic system
which aimed to monitor real time performance of manufacturing
equipment through Light pole state changes:
 Red means equipment is DOWN
 Yellow means equipment is IDLE
 Green means equipment is OPERATION
 No light means equipment is SHUTDOWN
MFG EQUIPMENT
MSMS PCB
OPTO
ISOLATOR MCU
RS 485
...
...
......
R
Y
G
DRIVE BOARD
MSMS WEB
Server
MSMS
ACCESS
Database
INPUT / OUTPUT
29
My Tip:

INTEGRATION
DATABASE
MSMS
6 LOSSES REPORT
DATA COLLECTION SYSTEM INTEGRATION
MANUFACTURING EXCUTION SYSTEM
EMMS
LOT
TRANSACTION
OUTPUT
& YIELD
30
My Tip:

6 LOSSES
FAILURE
SET-UP
IDLE
SPEED
DEFECT
INITIAL
Machine
Broken
Set Up/
Changeover
No Operator/
No Lots
Machine
Speed
Rejects
Good Units
Lost @ Set Up
31
6 Major Losses

Report Part 1 : Key Features
2. Actual output per station per package
3. Unit loss versus capacity
4. Equivalent hour loss/% per 24hr operation
1. Equivalent loss hours and units / category
(per individual equipment and total package group)
32
Sample Die Attach Line

Report Part 2 : Key Features
9. Equivalent loss units due to defects
8. EMMS data showing response, repair, wait
for parts and repair idle time detail.
6. Calculated or rated UPH
based on actual output
5. MSMS data
showing IDLE
time (equipment
yellow light).
33
7. Speed Loss – Output/Unit Time
(Machine to Machine Variation)
ENABLING
DATA DRIVEN DECISIONS

Preventive Controls
Protecting Quality
• What is the Worst Thing that can happen in a factory?
– Customer Quality Issue
– Can These Be Predicted and Prevented?
Internal
•Factory QA
Internal Audit
Deviation
Internal • Prediction?
}UNRECOVERABLE
}RECOVERABLE
34
External
•Customer
Quality
Accident
External
•Customer
or 3rd
Party
Audit
Deviation

Preventive Controls – MSA
Protecting Quality
Manufacturing Self Audit System (MSA). Thought Process;
– Many quality incidents can be prevented
– Prevention is based on going down lower in the event chain
35
My Tip:
Organization:
Production Sup Audit for WPO, Housekeeping, Safety, etc.
MEE Team – Audit for DL & MEE engagement with the Control Plan
Process Engineers - Audit DL & MEE Engagement w/Control Plan
Audits to be photo documented. GM validates surprise audits.
GM holds Weekly “No Notice” Review of a one of the above groups
Metrics:
1. # Deviations Documented – Must be > 0
2. # Past Deviations Closed – Must be “approaching” 100%
3. # Past Deviations Repeats – Must be “approaching” 0

Vital Few Controls Are Exercised by
Supervisors and Managers
Control is Exercised By The Work Force
Control is Exercised by Nonhuman means;
Stable Processes: Automated Processes:
Servo-Mechanisms
The Control Pyramid*
Engineering Systems That Drive Quality

M/PCpS DMAIC
Process Characterization Define
Metrology Characterization Measure
Capability Determination Analyze
Optimization Improve
Control Control
• Characterize, Optimize and Control the Process Right From The Start!
• Use the M/PCpS Methodology*.
• A stepwise analytical investigation of a machine and process
• Born in Motorola’s 6Sigma era, predates DMAIC, but w/similarities
*Copywrite by Mario Perez-Wilson
Quality Incidents & Process Engineering Time have been wasted trying
to fix Manufacturing Processes, that were Never Properly Characterized.
My Tip:
Engineering Systems That Drive Stable Quality

Searchable
Database
Inv.
and WIP
Management
EMMS Factory
Model
Rework, Reject,
Scrap Analysis
Calendars
Generic
/Custom
Reports
DCC
SPC
Eng.
Data
Collection
Raw Material
Management
Product
Configuration
Manufacturing
Execution
System
Archiving
Charts
Manufacturing Execution System
An Enabler for Industry 4.0
LAST TIP:

MES Benefits – In MY World
• Real Time, Believable Data About YOUR Factory, Leading to Data
Driven Decisions
• Better lot planning, more in depth understanding of line flow
• Better product traceability
• Reduced manufacturing cycle time and late customer shipments
• More accurate/meaningful manufacturing & engineering data
• Better understanding of equipment utilization and OEE
• Reduced Rework and Scrap
• An enabler to paperless manufacturing
• Reduced manufacturing costs

MY PERSONAL HIGHLIGHTS…
• How many of you can know the total value of your inventory as of
8:00 am this morning?
• How long does it take and how many people are needed to do the
data mining required / track down the root cause and affected
product in a quality accident?
• How many weeks or months and how many people does it take,
to pull together the data needed for your ISO, QS or TS
certification or recertification audits?
• The ability to REACT quickly when the Unexpected Happens…
• CONFIDENCE… The Ability to tell any of your superiors Exactly
What is going on in your factory in the past and real time…
MES Benefits – In MY World

Thank You
For Your Time & Attention
Industry 4.0 Foundations
by
B.C. Rigg

Industry 4.0 Foundations

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