Circuits Assembly - September 2008 - (Page 41)

Cover Story • 35% reduction loading parts into feeders  132 kitting/ setup man-hours. • 12% reduction in overall product cycle times. • 15% increase in line capacity: Current 179 hr. to produce  Proposed 135 hr. to produce. • Increase possibility to produce within one shift, with occasional OT or 2d shift based on demand spikes. To improve OEE, improvements had to be made in the changeover processes, as well as the other unplanned downtime activities because, as mentioned, the improvement in cycle time alone would have resulted in a negative impact to OEE. The new average cycle time reduced to 0.78 minutes from 1.1 minutes. To offset this impact, improvements were made in the changeover processes to reduce the time from 20 to 10 minutes, and unplanned downtime from 25 to 5 minutes, by improving kitting activities. Larger minimum lot sizes of 60 or more also were considered to achieve above the new 76% OEE rate. Further steps are in place to further reduce changeover time and increase lot sizes to around 105, which would help achieve an 85% OEE (Figure 9). The result provided a well-balanced flow between kitting/ prepping and the production lines. Consolidating non-value processes and improving OEE permitted the potential to generate an additional $6 million/year in revenue and improved net profitability. Small lot sizes then could be used while still maintaining higher OEE levels. A combination of reduced unplanned downtime and changeover time with better cycle time optimization provided an increase in plant capacity and the reduction of one production line. Not only were three lines now able to produce what four lines were producing, they also were able to consider the possibility to operate on only one shift, if necessary. The main objective was achieved: to improve on-time delivery while having the flexibility to run small lot sizes to meet customer daily demand changes while maintaining a higher OEE level. In summary, a combination of improvement initiatives (Lean, Six Sigma, etc.) is necessary for EMS and OEM SMT manufacturers to be profitable. Taking the time to calculate the true net benefit of the improvements is a must. All departments within the facility must work as a team to guarantee the savings captured is real. Allowing purchasing to buy a cheaper component because it saves 5 cents/board doesn’t make sense if it results in a 15-cent increase in scrap, rework or labor time required to use the cheaper component. Processes need to be in place to ensure scrap, rework and labor times improve or remain constant, so any cost reductions truly can be captured and contribute to the bottom dollar. Inviting a third-party consultant to review your operations is an inexpensive option to gain insight and higher confidence that an alternative hasn’t been overlooked. These types of engagements generally result in a 10:1 ROI benefit. n States Mead is senior solutions engineer at Panasonic Factory Solutions (panasonicfa.com), meads@us.panasonic.com.ad for CA.qxp:Layout 1 8/21/08 NEA quarter pg puzzle 10: Your Answer to the Your Answer to the Factory Automation Puzzle Factory Automation Puzzle ! NEA Offers it All Since 1988, NEA, Inc. has been providing the industry with certified remanufactured assembly and automated test equipCertified Equipment ment which operates as well as or Sales/Service/Installs better than new with the latest upgrades available and at an affordable price. But did you know that NEA is also a comprehensive, turnkey operation providing world-class service, installs, long-term operator/maintenance/programming training, regular and emergency service, complete spare parts, feeders, and the best warranty in the industry? Spare Parts/Feeders Figure 8. Redesigned location detail used fixed feeder setup. ! Contact NEA, Inc. today to find out more about how this all-in-one partnership can benefit you, your company Long-term Training and your bottom line. Tel: 800.225.1632 www.neainc.com Figure 9. OEE% relation to lot size, showing process improvements. circuitsassembly.com Circuits Assembly SEPTEMBER 2008 41 http://www.panasonicfa.com http://www.panasonicfa.com http://www.neainc.com http://www.neainc.com http://circuitsassembly.com

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Circuits Assembly - September 2008 Contents Caveat Lector Industry News Market Watch Talking Heads Focus on Business Global Sourcing On the Forefront Screen Printing Better Manufacturing Reflow Soldering with a SnCu Eutectic Pb-Free Alloy Improving OEE in High Mix Facilities Effectively Managing RF Design in Utility Metering Applications Solder Joint Reliability of Different BGAs Reworked Using Low Melting Point Pb-Free Alloys Tech Tips Wave Soldering Pb-Free Lessons Learned Materials World Process Doctor Equipment Advances Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - September 2008

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