six sigma lean – solectron production...

Solectron Confidential

Six Sigma Lean – Solectron Production System Productronica - Munich

Peter Peetz – Solectron GmbH - Germany16. November 2005

2Solectron Confidential

Solectron SixSigma Lean Initiative Overview

! Solectron Introduction

! What is Lean, SixSigma?

! Introducing Solectron SixSigma Lean

! Solectron Production System™

! SixSigma and Zero Defect

! Solectron Zero Defect Approach – Examples

! SixSigma and Design for SixSigmaIntroduction


• Founded in 1977

• Headquartered in Milpitas, Calif.

• Sales of $10.3 billion in fiscal 2005

• More than 50 locations worldwide

• More than 50,000 employees

• Spans five continents, in more than 20 countries

• Serving customers in communications, networking, computing and storage, consumer products, automotive, medical and industrial markets

• Traded on the NYSE, under the symbol SLR

• Two-time winner of the Malcolm Baldrige Award

Solectron SixSigma Lean InitiativeIntroducing SOLECTRON

Introduction


Product Stewardship

Product Design

Collaborative Design

Product Launch/NPI

DFX Engineering Services

System Integration

Post-ManufacturingServices

Parts Management

Inventory Management

Forward/Reverse Logistics

Repair (Same for Same, Like for Like)

Recovery/Remarketing

Feedback to Design and Manufacturing for Quality/Serviceability

Product Design &Launch Support

Lean Manufacturing& Fulfillment

Solectron Production System (SPS)TM

Solectron Supply Chain Solutions SuiteTM

Culture of Continuous Improvement

Global Network For Lowest Landed Cost

Solectron SixSigma Lean InitiativeIntroducing SOLECTRON - Services

Introduction


FremontMilpitas (3)

Bordeaux

Penang

Austin

HerrenbergMunich

Koriyama Ibaraki/ShonanTokyo""""

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Hillsboro

Winnipeg

Jaguariuna

ChihuahuaGuadalajara

LouisvilleMemphis

Newmarket

Ostersund

CwmcarnDunfermline

Sydney

BudapestTimisoara

Istanbul

HuizhouShenzhen (2)

HongKongTaipei

Shanghai (4)Suzhou (2)

BeijingMontrealSherbrooke/Kanata

Singapore (3)Batam

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Westboro

Raleigh/CreedmoorCharlotteColumbia

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AmsterdamRotterdam

TurnhoutRosmalen####

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""""Ottawa

#### Baltimore

####Bangalore

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Office""""

Services with Logistics

Services####

Manufacturing / Services Co-location

Manufacturing####

Puerto Rico#### ####

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""""Detroit""""

Solectron SixSigma Lean InitiativeIntroducing SOLECTRON – Global Footprint

Introduction


Computing & StorageNetworkingCommunications

Consumer ProductsAutomotive Industrial Medical

CO

RE

MA

RK

ETS

STR

ATE

GIC

GR

OW

TH M

AR

KET

SSolectron SixSigma Lean InitiativeIntroducing SOLECTRON – Market Segments

Introduction


Solectron SixSigma Lean InitiativeIntroducing Lean – Historical Background

LEAN

! Toyota Motor Company after World War II

! Production System! Disciplined, Process-Focused: Takt-Time! “Toyota Production System” = “Lean Production”

! MIT Popularized Lean Concepts in the U.S.A. in 1990’s

ConclusionSolectron Production SystemIntroduction Lean, SixSigma


Solectron SixSigma Lean InitiativeIntroducing Lean – Elevator Speech

ValueDefinition

1

VALUE DEFINITION! Business Processes! Customer Needs

! Quantity! Delivery! Quality

ValueStream

Analysis

2

VALUE STREAM ANALYSIS! Value Stream Map

! Minimize MUDA! Cycle Times

HEIJUNKAJIDOKA

3

ESTABLISHFLOW

! Sequencing! Level Loading

! Stop at Abnormality

JIT / PULL

4

JIT / PULL! KANBAN! Pull Production! Single Piece Flow! Takt Time Production

PERFECTION! KAIZEN! GEMBA! ANDON

5



Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean

! Integration of Best Practices for Process Improvement and Increased Customer Satisfaction

! Capture the Concepts of

! Lean! Eliminate Non Value Add (MUDA)! Reduce Cycle Time! Reduce Work in Progress (WIP)

! SixSigma! Statistical Measures! Data Driven Approach! Breakthroughs

6 LLLLEANEANEANEAN



Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean –What is the customer paying for ?


Value-addNon-value-

add

Waste(MUDA)

Value-enabling

• Activities which directly add value to products and services

Customer is willing to pay for this

• Activities that add no value, but are required to complete value-add work

• Activities that do not add to the value of products and services

Waste

25.212.2

7.5

4.0

1.5

Assembly WIP TotalTest Repair

Value-add and Value-enabling

Time


Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean – MUDA Elements

WaitingWaiting on materialsWaiting on equipmentWaiting on Support AreasWaiting on next partWaiting on Authorisation

Transporting

Long distancesbetween operationMoving long distanbetween warehousand production

Defects

Scrapped produCustomer returnRe-working prod

Unnecessary

Motion

BendingStretchingTwistingWalking Over production

Make more than requestedProducing to keep busy

Over-processing

Adding unnecessary operationsAdding unnecessary procedures

UnnecessaryInventory

Batches of productsWIP (bonepile)Overstocking in warehouse



Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean

Voice ofthe Customer

Voice ofthe Customer

ResponsivenessWaste Elimination

Cycle Time

ResponsivenessWaste Elimination

Cycle Time

Customer Satisfaction &Competitive Cost

Customer Satisfaction &Competitive CostLEANLEAN SixSigmaSixSigma

Defect Reduction



Customer ShareholderKey Drivers

Why to improve

Method

How to improve

Key Focus

What to improve

Six Sigma Lean and Solectron Production SystemSix Sigma Lean and Solectron Production System

Flexibility- Fulfillment Lead Time- Manufacturing Lead Time- Equipment Flexibility

Flexibility- Fulfillment Lead Time- Manufacturing Lead Time- Equipment Flexibility

Quality- Zero Defects- Zero Returns

Quality- Zero Defects- Zero Returns

Performance- People Efficiency- Material Logistics- Equipment Efficiency

Performance- People Efficiency- Material Logistics- Equipment Efficiency

Solectron SixSigma Lean InitiativeLean Transformation – Why, What, and How?

ConclusionIntroduction Lean, SixSigma Solectron Production System

Lowest Landed Cost.Flexibility.

Responsiveness.

Lowest Landed Cost.Flexibility.

Responsiveness.On Time.

Zero Defects.On Time.

Zero Defects.Win New Business.

Outperform Competitors.

Win New Business.Outperform

Competitors.

Best in ClassTC, MSCC, SG&A

Performance.

Best in ClassTC, MSCC, SG&A

Performance.


QualityQuality

FlexibilityFlexibilityCompetitivenessCompetitiveness

SolectronProductionSystem TM

(SPS)

The True DifferentiatorThe True Differentiator

Solectron SixSigma Lean InitiativeSolectron Production System™ (SPS)



...Leads to Measurable Improvement ...Leads to Measurable Improvement


Top ManagementTop Management

Shop FloorShop Floor

SolectronSolectronProductionProductionSystemSystem

Top Down Approach Top Down Approach

Bottom Up Approach Bottom Up Approach

Development of Standards Development of Standards and Processesand Processes

Leadership & DeploymentLeadership & Deployment

Value Stream DesignValue Stream Design

Concept of „Ideal State“Concept of „Ideal State“

! Responsible forPlanning and Doing

! Created Own „Ideal State“ Using Value Stream Mapping Starting fromCustomer‘s Value

! Responsible for Results! Understood and Assured

! Lean Principles! Standardized Processes! Tools

Key is Continuous Improvement: KAIZENKey is Continuous Improvement: KAIZENConclusionIntroduction Lean, SixSigma Solectron Production System


Value Stream, 5S, Supermarket, Changeover..Foundation

Heijunka

JidokaJIT JidokaJidokaSix Six SigmaSigma


Stop at Any Abnormality

Takt Time Production

Single Piece Flow

Pull Production

“Autonomation”

SequencingLevel Loading

House of SPS

Basement

1st

Pillar

Two Quality Related Pillars in the “House of SPS”Two Quality Related Pillars in the “House of SPS”ConclusionIntroduction Lean, SixSigma Solectron Production System


First Pass Yield (FPY) at ICT! Changeover: FPY Goal Reached

within First 10 Boards?! Release to Production

! Production: FPY 5% Below Goal?! Stop and Lock

Solectron SixSigma Lean InitiativeSolectron Production System™: Jidoka at ICT

JIDOKA: Stop at Any AbnormalityJIDOKA: Stop at Any Abnormality

FPY Goal

FPY Trend(20 Boards)

FPY Actual

Improvements! FPY Improved by 3% Absolute! Technical Problems Reduced by 50%! Changeover time Reduced by 75%



Solectron SixSigma Lean InitiativeZero-Defect Line

SixSigmaSixSigmaDefect EliminationDefect Elimination 25%

Defects25%

Defects

LeanLeanDefect EliminationDefect Elimination

75% Defects75%

DefectsSee with the

Eye andTake Action

Test Test Test

See with theMeasurement System,Analyze Feedback, and

Take Action

P R O D U C T I O N F L O WP R O D U C T I O N F L O W

Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean ActivitiesConclusionConclusionIntroduction Lean, SixSigma Solectron Production System


Solectron SixSigma Lean InitiativeLean Defect Elimination

LeanLeanDefect EliminationDefect Elimination

! Poka Yoke (Mistake Proofing)

! Auto Quality Matrix

! Operator Touch Reduction

! Share Best Practices

Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean Activities

! Zero-Defect Line



Solectron SixSigma Lean InitiativeLean Defect Elimination – Poka Yoke (Mistake Proof)


BEFORE

REVERSED BI-COLOR THD LED

Difficult to Identify Polarity

AFTER

CHECK POLARITY ELECTRICALLY

Verify Orientation Before Insertion



Solectron SixSigma Lean InitiativeLean Defect Elimination – Poka Yoke (Mistake Proof)


BEFORE

SOLDER POT CONTAMINATION

Leaded vs. Lead-Free

AFTER

TRIANGULAR SOLDER BARS

Make Insertion of Lead Impossible

LEAD-FREE

WAVE SOLDERING

PROCESS / EQUIPMENT



Solectron SixSigma Lean InitiativeLean Defect Elimination – Auto Quality Matrix

Stop Failure as Soon as it OccursStop Failure as Soon as it Occurs

Auto Quality Matrix

! Internal Quality Feedback

! Customer Feedback and Complaints

! Identification of Assignable Causes

! Elimination of Recurring Failures

! Focus on Non-Assignable Causes

! Prioritization by Customer Impact

! Operator Involvement

! Auto-Control by Working Cells



Solectron SixSigma Lean InitiativeSixSigma Defect Elimination

SixSigmaSixSigmaDefect EliminationDefect Elimination

! SixSigma Projects

! Gage Repeatability & Reproducibility (Gage R&R)

! Design of Experiment (DoE)

! Statistical Process Control (SPC)

! Engineering Simulations (Monte Carlo)

! (Component) Failure Analyses

Generate Sustaining Impact with SixSigma ActivitiesGenerate Sustaining Impact with SixSigma Activities

“80% of Common Cause Defects are Design Related”



Solectron SixSigma Lean InitiativeSixSigma Defect Elimination

Define Design Integrate Launch Support

SixSigma is Not Just a Value – it’s a Full MethodologySixSigma is Not Just a Value – it’s a Full Methodology

ReactiveReactive

DEFINEDEFINE

MONITORMONITOR

MEASUREMEASURE

ANALYZEANALYZE

IMPROVEIMPROVE

CONTROLCONTROL

ProactiveProactive

DEFINEDEFINE

MONITORMONITOR

IDENTIFYIDENTIFY

DESIGNDESIGN

OPTIMIZEOPTIMIZE

VERIFYVERIFY



Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma Tool Box

DesignIdentify Optimize VerifyDefine Monitor

AnalyzeMeasure Improve Control

! Vision / Technology Planning! Business Metrics ! Sigma Assessment ! Multi-Generational Planning! Risk Assessment! Change Management! Process Mapping / Cause & Effect! Program / Project Management! Design Dashboard

! Customer Data Gathering! QFD / CTQ Flowdown ! Kano Analysis! Survey Analysis ! Focus Groups! Benchmarking

! Tolerancing! Robust Design! Multiple Response Optimization! Design Simplification! Mistake Proofing! HALT Testing! Launch Planning

! Pugh Selection Matrix! Historical Regression! Modeling / Simulations! DoE / Response Surface ! Failure Modes Effects Analysis! Sensitivity Analysis

! Gage R & R / Test Effectiveness! Normality / Box Cox! PM / CE / CNX / SOP! Capability Assessment! SPC

! Change Management! Automated Testing! Long vs. Short Term Data

SixSigma/Design for SixSigma Utilize More Than 60 ToolsSixSigma/Design for SixSigma Utilize More Than 60 ToolsConclusionIntroduction Lean, SixSigma Solectron Production System


Leadership

Champion

Master Black Belt

DfSS Champion (50%)! Develop Strategy & Plans! Drive Execution & Remove Barriers

Master Black Belt (100%)! Train & Mentor! Complete Projects

Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma – The Machine

Worldwide SixSigma/Design for SixSigma Organization in PlaceWorldwide SixSigma/Design for SixSigma Organization in Place

Green Belts

Green Belt! Learn and Apply DfSS as Part of

Current Job

Black Belts

Black Belt (100%)! Lead and Do High Impact Projects



LeadershipLeadership

Champion

Master Black Belt

Champion

Master Black Belt

Green Belts

Black Belts

CustomerR&D

Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma – The Machine

Use Green-Belts for External SixSigma PenetrationUse Green-Belts for External SixSigma Penetration

On-Site Engineering

! Use DfSS Methods forProjects with the Customers

Supplier

Green Belts

Black Belts



Solectron SixSigma Lean InitiativeZero-Defect-Strategy

Start With What is Necessary,

Then Do Your Very Best,

And Suddenly You Will Achieve the Impossible.

Franz von Assisi

Introduction Lean, SixSigma Solectron Production System Conclusion

THANK YOU VERY MUCH!

If you have further questions, please get in contact with:

Halle A6, Stand 516 or

Peter PeetzEngineering Manager&Lead Local Salesemail. [email protected]. +49 7032 998 268

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