© Plexus Electronics Production | February 22, 2018
Autor: Jürgen Seibert, Vice President, Business Development - EMEA at Plexus.
A waste-free supply chain
Developing a Lean Six Sigma culture is not just about the tools and techniques. More importantly, it is about deciding on focus areas for improvement and involving everyone to help drive the change.
Jürgen Seibert © PlexusIn the face of continual customer pressure for cost reduction, performance improvement and to maintain competitive advantage, these principles can continuously improve the business performance of electronics manufacturers. The majority of today’s global electronics industry faces tremendous pressure to lower costs and reduce time to market, while following the rapid pace of innovation. Short lead-times can be critical to success and management teams have to keep focus on minimizing the time it takes to introduce new concepts to the market. How that process is managed is essential for an efficient product development and launch, with particular focus on the importance of a waste-free supply chain. Waste and variation are everywhere: existing in every process and every interaction between humans, systems and functions. They create performance issues, soak up resources and affect customer satisfaction. They also threaten health and safety and, potentially, even job security. The Opportunity of Lean Six Sigma The application of Lean Six Sigma principles to production process, as we know it today, started with the development of the Toyota Production System (TPS) in the 1940s and promised continuous improvement into every area of business performance. In general, Lean is focused on identifying value in the eyes of the customer (what they are prepared to pay for) and removal of waste (what they are not willing to pay for). Whereas Six Sigma takes a structured approach to reducing variation in processes to ensure products are manufactured without defects. During the last 30 years, many manufacturing companies tried to replicate Toyota’s approach and spent millions of dollars to implement both principles throughout the entire organization and the product life cycle with the ultimate objective to be more efficient and reduce operating costs. However, it has been found that Lean Six Sigma improvements within the manufacturing area do not typically present as big an opportunity as initially thought compared to those that are found in the rest of the value stream. Priority #1: Zero Defects Within the electronics manufacturing arena improvement focus areas ultimately differ, depending upon the dynamics of the business. For example, reducing the cycle time of a product by one second in a low mix high volume environment will produce a significant benefit. Conversely, in a high mix low volume environment the same approach will produce minimal benefit and the focus will be more around driving optimization of equipment changeovers. One major aspect in mature Lean Six Sigma manufacturing operations, however, is the achievement of zero defects – creating products that can be manufactured on processes that are engineered to run at an optimal capability level and produce little, if no, variation. This is especially important in highly regulated industries, such as aerospace and healthcare, where even the most minor variation can prove catastrophic. Here, the regulations are as demanding as ever, while the time from conception to production is continually being pushed down and products are increasingly pure electronics. In light of extremely stringent regulations, designing and manufacturing in these industries needs close tracking of every element and every stage in a product’s developement. Impact on the whole Supply Chain The focus on defect-free products via Lean Six Sigma also emphasizes the quality within, and the control of, the supply chain. The knock-on effect of this change is that equipment suppliers also have to develop processes and deliver components that match this quality level. Any electronics manufacturer that still employs inspection and testing, on receipt of purchased products, as a means of protecting the customer from receiving poor quality goods, should review its whole supplier development strategy from a Lean Six Sigma perspective. Today the emphasis has to be to drive improvement back into the supply base and engineer-in the quality of supplied product. If these tactics are employed effectively, the consequence is a significant reduction in the requirement to inspect and test. Lean Six Sigma development of the supply chain can lead to significant benefits in many areas as well as a significant improvement in delivery performance. There will also be an inventory reduction, which decreases the inventory holding space needed. The consequence: less working capital required with subsequent cash cycle improvement and higher operating margins. It’s a Team Effort No matter the focus area of Lean Six Sigma principles, manufactures cannot afford to rely on just replicating Toyota’s lean principles. Too often they dismiss a critical success factor: the psychological impacts, such as implementing new working methods, and convincing the dominant leader or leaders to gain executive sponsorship. In many cases, this has led to failure. The success of the implementation of a Lean Six Sigma operating philosophy depends on how these changes are introduced and managed. And the change of organizational culture differs by the dominant leader/leadership style, national/local culture, business size/demographics, existing business practices and type of products or services. Sustainability can only be achieved by creating a culture of employee engagement where people at every level of the organization embrace and believe in the change. This not only involves employees participating in Kaizen activity. It is also about job satisfaction, variety and relevance, understanding of business vision and strategy, personal development, reward and recognition, but most importantly, listening and acting upon the voice of the employee. Introducing cultural awareness programs for executives, change leaders and managers can create understanding and competence in this area. These approaches take a significant amount of time and, to be successful, require an understanding of change psychology and the human reaction to change. There is still room for further improvement of the Lean Six Sigma application within electronics manufacturing. After over 70 years of lean at Toyota, the company still believes it has a long way to way to go to remove waste entirely from its value streams.
Autor: Jürgen Seibert, Vice President, Business Development - EMEA at Plexus.
NCAB Group acquires Altus-PCB in USA Altus-PCB is a full-service supplier of PCBs based in New Jersey, USA, that has a business model similar to NCAB’s. Tee US company has a high level of technical expertise and sells mainly to original equipment manufacturers (OEMs).
Mycronic's Thomas Stetter looks back at a successful year As the company is moving more and more towards becoming a full solutions provider, business is taking off and the numbers show very much confirms that the Mycronic's strategy is working.
IBL Löttechnik reviews 2019 IBL Löttechnik GmbH is staying on top of the market thanks to continues R&D investments.
Second install for EFI at Mid America Display Silicon Valley’s EFI will install a second EFI Nozomi C18000 single-pass inkjet, direct-to-board printer later this month to Mid America Display.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
Ron Jakeman of Electrolube looks back at a successful 2019 Electrolube has been growing, both in terms of its footprint and financially, for a number of years not; Ron Jakeman details the company's progress.
Etteplan and Scanfil to start strategic cooperation in joint customer projects Engineering company Etteplan and contract manufacturer Scanfil have today agreed to enter a strategic partnership in Finland.
The lovechild of ACE Production and InterSelect Carlos Bouras of Nordson Select gave us the rundown of the result of the integration and combination of ACE Production and InterSelect GmbH - the new Integra.
American Battery Metals, U.S. lawmakers convene American Battery Metals Corporation has completed a series of meetings with lawmakers and personnel in the Department of Energy and Department of the Interior in Washington, D.C., to discuss issues critical to the domestic battery production and storage industry.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Cogiscan, Critical Mfg. form strategic partnership Quebec, Canada-based Cogiscan and Critical Manufacturing, headquartered in Portugal, have forged a strategic partnership to deliver smart factory solutions for electronics manufacturers.
Collins Aerospace expanding in North Africa Collins Aerospace Systems, a unit of United Technologies Corp., has taken the first step toward the expansion of its existing site in Casablanca, Morocco.
The advantage of Vantage - Garrett Wong tells the tale Nordson Asymtek's Garrett Wong gives us a rundown of the business year and also details the Vantage Advantage
Saki’s Eddie Ichiyama details a very successful business year Eddie ichiyama from Saki gave us an update on how 2019 has been for the company and also shared some details on the recent expansion in the Czech Republic.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
The ripple effect of Enrico Krog Iversen while being an active part in creating one of the fastest growing robotics companies in modern time might have been enough for most people, that does not seem to have slowed down a certain Danish entrepreneur.
Yamaha's Ichiro Arimoto on the business year and the company's new ventures Evertiq had the opportunity to talk to Ichiro Arimoto, General Manager of Yamaha Motor Europe, about the business year and the company's new ventures.
Mycronic, Indium forge strategic partnership Indium Corporation has announced a strategic partnership with Sweden-based Mycronic, to develop no-clean and water soluble solder pastes for jetting applications.
SCHMID delivers PlasmaLine to Hofstetter PCB SCHMID announced it has installed the company’s first PlasmaLine comprising ICP etch & sputter deposition of its Korean JV SCHMID AVACO at Hofstetter PCB AG in Switzerland.
Cobot market to reach USD 9+ billion by 2025 A new report from Tractica is forecasting continued rapid growth for the global collaborative robot (cobot) market over the next few years, reaching revenue of USD 9.7 billion by 2025.
MixComm scores USD 8+ million in series B round New Jersey-based fabless semiconductor company MixComm has secured USD 8.6 million in series B funding led by existing investor, Kairos Ventures.
SIA elects 2020 leadership The Semiconductor Industry Association (SIA) Board of Directors has elected ON Semiconductor CEO Keith Jackson as its 2020 Chair and Qorvo CEO Robert Bruggeworth as its 2020 Vice Chair.
Si wafer shipments recede for fourth straight quarter Worldwide silicon wafer area shipments slid for the fourth consecutive quarter of 2019, according to the SEMI Silicon Manufacturers Group (SMG) in its most recent quarterly analysis of the industry.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
Decline in Q4 DRAM contract prices lessens as buying momentum recovers According to the latest analysis from the DRAMeXchange research division of TrendForce, Q4 DRAM ASP is as of yet undergoing a slight QoQ decline, but this decline has shrunk down to 5%.
Technica forms growth-focused equity fund San Jose-based Technica USA has reached an agreement on an equity investment centered on future growth for the global PCB fab and assembly supplier.
IHS Markit: 5G economy in the trillions by 2035 The IHS Markit 5G Economy Study, commissioned by Qualcomm Technologies Inc., is forecasting that 5G will generate USD 13.2 trillion in sales enablement by 2035.
ZEUS Battery partnering with Kruvand Associates ZEUS Battery Products and Texas-based Kruvand Associates Inc. have come to a formal agreement on a collaboration that began in January and covers Texas, Arkansas, Oklahoma, Louisiana, New Mexico, Arizona and Mexico.Load more news