Improve SMT Labor Margin Per Unit

Bose Lean EnterpriseBose Confidential

Project : Improve LMPU by increasing

SMT UPH.

Presented by : Damian Murphy Denis

Bose Lean Enterprise

• Reduce LMPU of HED products running at SMT by 20 June 2014.

Challenge


PlanStep 1: Define and Breakdown ProblemStep 2: Grasp Current ConditionStep 3: Set a Target ConditionStep 4: Conduct Root Cause and Gap

AnalysisStep 5: Identify Potential Countermeasures


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 IsmailChew Tzy ChingNiven LamTan Hock Lee

TEAM


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.

1 2 3 4 5 60

0.5

1

1.5

2

2.5

3

3.5

Number of days ahead

Days

Linear (Days)


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 ConditionOBSTACLES

- This reduction in LMPU requires all parties to play a role in achieving the targeted cycle-time/UPH.


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

machineManual 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


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


DoStep 6: Develop & Test CountermeasuresStep 7: Refine & Finalize

CountermeasuresStep 8: Implement Countermeasures


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 modelsii. Simulate theoretical SMT cycle timeiii. Bridge the gap between i & ii.iv. Do line balancing for SMT linesv. Improve hand load cycle time process

Brainstorming & Subject Matter Expertise

Step 6: Develop & Test Countermeasures


Analysis of the above matrix is on the next slide.

Countermeasure Selection thru Prioritization Matrix


Selection Criteria Business Impact Resource Availability Effort/Impact Ability to leverage Weighted SumList of potential countermeasures: 3 4 5 2Measure actual SMT cycle time for all models 9 9 5 9 106Simulate SMT cycle time for all models 9 9 9 9 288Bridge the gap between actual and theoretical UPH 1 9 9 9 252Do line balancing 5 9 9 9 248Improve cycle time for hand load process 1 5 9 9 212

LEGEND Relationship 1 Weak Relationship5 Medium Relationship9 Strong Relationship



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?


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

DoneMassive opportunity for improvement

NoWill reflect in reduce LMPU

IE

Simulate SMT cycle time Done NA No NA Engineering

Bridge the gap DoneGap 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 DoneTo be done simultaneously during line balancing activity

No NA Core team


Step 8: Implement Countermeasures

Progress checks – Below is the timeline to wrap up all countermeasures by end of May 2014.


CheckStep 9: Measure Process Performance


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/PLANSMODEL Tijuana BSM % Previous Improved % Tijuana BSM % Previous Improved %Reframe AMP 1178 1250 6.11 0.25 0.24 -5.76Reframe Dock 1296 1400 8.02 0.23 0.21 -7.43Reframe 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 -5.76Phoenix 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 0.00Bruiser 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 -4.44Seine 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 -6.25VIA 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 -12.73VIA 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 -10.00Machine 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 0.00Spotty Button/Mojo 541 900 66.36 0.55 0.33 -39.89 925 1100 18.92 0.32 0.27 -15.91Shelby 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 ACHIEVEMENTHED LMPU BSS HED LMPU TSSHED UPH BSS HED UPH TSS



New SMT UPH & LMPU Results

TSS UPH & LMPU ResultsTotal Models – 15Improved UPH & LMPU – 12% of Improvement – 80%

Financial Benefits : - BSM LMPU is reduced aggressively without increasing the number of lines and headcount!

BSS UPH & LMPU ResultsTotal Models – 18Improved UPH & LMPU – 16% Improvement – 88.88%



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:-3) We needed to go beyond our comfort zone so as to

continually improve ourselves as a TEAM in key KPI’s.


ActStep 10: Refine, Standardize and Stabilize

the processStep 11: Monitor Process PerformanceStep 12: Evaluate Results, Share Learning


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.


QUESTIONS?

COMMENTS?

Documents

Improve SMT Labor Margin Per Unit