To bring our industrial operations to World Class LevelIntroductionToManufacturing ExcellencePresented by YS LinE-mail: YSLin7@Hotmail.comMobile: +886-936883828 2010-10-16

Contents Concept, Approach, Methodology Framework and System Design of Manufacturing

Excellence Gap Analysis Group Discussion

Issue Objective Strategy Tactical Plan

- ZERO DEFECT- 6 SIGMA- RELIABILITY- CUSTOMER COMPLAINT- ISO9000 ETC.- SERVICE- DELIVERY

- QUICK RESPONSE TIME- SHORT ORDER LEAD TIME- RUSH ORDER HANDLING- FLEXIBILITY OF ORDER CHANGEMANUFACTURINGEXCELLENCEHUMAN RESOURCES

- LABOR SHORTAGE- VALUE COMPETITION

- NUMBER OF COMPETITORS- IMPRROVEMENT SPEED FROM COMPETITORSPRODUCT DEVELOPMENT

- DIVERSITY- FEATURES COST

- ENVIRONMENTAL COST- WAGE INCREASE- EXCHANGE RATE- INTEREST- MATERIAL PRICE ENVIRONMENT

- PROTECTION- WASTE ELIMINATION- RECYCLING CYCLE TIME

- TIME TO MARKET- LEAD TIME (ORDER, COMPLAINT HANDLING)- TPTTHE CHALLENGES TO CORPORATE EXCELLENCEQUALITY

FLEXIBILITY

NEW PARADIGM OF MANUFACTURING EMPHASIS ON SPEED AND FLEXIBILITY I.S.O VOLUME AND COST.G4101506 DIMENSION FROM TO 1. PEOPLE SPECIALISED MULTI-SKILLED 2. STAFF NECESSARY,THE OVERHEAD,THE MORE THE BETTER LESS THE BETTER 3. REJECTS ALLOWABLE UNACCEPTABLE 4. COMMUNICATION FORMAL, INFORMAL, HIERARCHICAL HORIZONTAL 5. EQUIPMENT PROCESS UNIVERSAL, SPECIFIED GENERAL PURPOSE 6. GOODS FLOW PROCESS ORIENTED PRODUCT ORIENTED 7. FOCUS LABOR OR EQUIPMENT PRODUCTION UTILIZATION THROUGHPUT TIME 8. INVENTORY BUFFER WASTE, DEVIL 9. SUPPLIER SHORT-TERM LONG-TERM, RELATIONSHIP COOPERATIVE, PARTNERSHIP10. PRODUCT SEQUENTIAL CONCURRENT, DEVELOPMENT CROSS-FUNCTIONAL ACTIVITY TEAMSBASIC CONCEPTLEAN APPROACH

APPROACH1.FACTORIESManufacturing Excellence Self-assessmentVisits

- Experience sharing2.BGsINDUSTRIAL PLAN as a part ofBusiness plan(What? Where? How?)3.CORPORATECorp. Manufacturing CouncilManufacturing professionManagement of industrial synergy

BUSINESS PLAN - Products - Markets - FinancialsTECHNOLOGYROADMAPINDUSTRIAL PLAN - What? - Where? - How?

BASIC ELEMENT OF A GOOD INDUSTRIAL PLAN1. What to make ?Business plan / industrial plan2. Where to make ?Allocation3. How to make ?Process policyTechnology Equipment Logistics flow

People

Lines of Action Improvement drive Factory visits & audits; benchmarking; performance

indicators Spread in-house examples of world-class

manufacturing No central staff; help each other From manufacturing to MENTOfacturing Revitalize Industrial Engineering

Management development & staff planning

for industrial jobs

Group Factories/SitesNOsPeople FactoriesUnits/SitesProduct

WHAT TO MAKE ?WHAT ?Business planTechnology roadmapProducts needsCore competenciesMake or buySubcontractingVertical integrationLearning curveScale economy

No industrial ventures without business scope! Physical integration of business centers with industrial

competence centers ( - live above the shop )

WHERE TO MAKE ?1. Regionalization of global manufacturing3 regions : North-America West-Europe Asia-Pacific 2. Copy exactly issueEach region has own border zone

COMPETITIVENESS IN MANUFACTURINGQuality : Entry ticket

2. Responsiveness : Competitive edge - Flexibility - Leadtime

3. Costs : Profitability yes / no

CHAIN MANAGEMENT1. The creative chain = Product Creation ProcessNeeds/IdeasProductconceptProduct definitionProcess definition2. THE LOGISTICS CHAIN = Manufacturing plus .SuppliersManufacturingDistributionCustomers

From MANUfacturing to MENTOfacturingMANUfacturing = Made by handMENTOfacturing = Made by the mindQuestion : How to exploit the brainpower And the creativity of all our people ?

COST OF THE ORGANIZATIONFar more savings possible via elimination of unnecessary indirect jobs,

than via automation of the last direct jobs

Quality AssuranceFrom PRODUCT CONTROL to PROCESS CONTROLBATCH RELEASEPRODUCT RELEASEPROCESS RELEASE ( 6 , Cpk )

Manufacturing Process Market leader ( top 5) must master/control their

own processes Concurrent Product & Process Engineering

Note: Process Engineering includes Equipment EngineeringStandardized Process and EquipmentStandardized information systemExtension of cross functional team role in manufacturingCorporate synergy via experience-sharing; avoid re-inventionSimplification before Automation

Manufacturing Revolution or Evolution?(How much time left ?)Manufacturing Mento-facturing

Directs-Indirects Added cost / added value

Management information People information

Motivation Training & Information

Functional departments Process improvement teams

How ?INSPECTOR OPERATOR

SUPERVISOR FACILITATOR

MANAGER COACH

ADDED COST ADDED VALUE

Diversity ManagementPRODUCT PLANNING WHO ?

- Product / market portfolio - Product structure ( modularity ) - Contribution margin per product

COMPONENTS MANAGEMENT WHO ?

- Supplier base ( costs per supplier ) - Component base ( costs per component ) - Quality costs due to diversity - Organizational costs due to diversity

()... .. .(Manufacturing)

....

..../ ()(Capabilities).........

(Skills).../ ().(MRP).(JIT)...... (Lean manufacturing).(BPR)..TPM........ () ............. ../. ..

BUILDING THE WINNING COMPANY199019911992199319941995199619971998RESTRUCTURINGREVITALIZATIONCOSTSPRODUCTIVITYASSETSPURCHASINGPORTFOLIOCASHPROFIT

** QUALITY* CUSTOMERS* EMPLOYEESENTREPRENEURSHIPCREATIVITYIMAGINATIONEMPOWERMENTINNOVATION*PROBLEMSOPPORTUNITIES

CUSTOMER - ORIENTED COMPANY ECONOMIC GROWTHPRODUCT-PROCESS DESIGNPRODUCTION CAPACITYINVESTMENTSUPERIOR QUALITYSUPERIOR PRODUCTIVITYSUPERIOR FLEXIBILITYPRODUCTION PLANNINGCUSTOMER DESIRESPRODUCT-PROCESSSPECIFICATIONSWORLD-CLASS MANUFACTURINGTOTAL CUSTOMER SATISFACTIONSUPERIOR PRODUCT, VALUE, AVAILABILITYWORLD-CLASS MANUFACTURING TECHNOLOGIESPEOPLE MATERIAL EQUIPMENT INFORMATIONRESEARCH AND EDUCATIONCONTINUOUSINVESTMENTANDIMPROVEMENTSOURCE : "REENGINEERING THE FACTORY", A. RICHARD SHORESOBJECTIVESTRATEGYGOALTACTICSPROCESSESRESOURCESSCIENTIFIC METHODSKNOWLEDGE

WORLD CLASS MANUFACTURING TECHNOLOGYWORLD-CLASS MANUFACTURINGMANUFACTURING RESOURCES AND PROCESSESPOMTQCSMTQFDDFMATMCIMJITWORLD-CLASS MANUFACTURING TECHNOLOGIESRESEARCH AND EDUCATIONCONTINUOUSIMPROVEMENT

(KAIZEN)- KEY : KAIZEN, CONTINUOUS IMPROVEMENT- POM : PROCESS OF MANAGEMENT- TQC : TOTAL QUALITY CONTROLSMT : SELF-MANAGED-TEAMSQFD : QUALITY FUNCTION DEPLOYMENTDFM : DESIGN FOR MANUFACTURINGATM : AUTOMATIONCIM : COMPUTER-INTEGRATED MANUFACTURINGJIT : JUST-IN-TIMESOURCE : "REENGINEERING THE FACTORY", A. RICHARD SHORES......

Visual evaluation of a good factoryIs the flow of the assembly-process visible?

(Can you find your way?)2. Non-quality level? - How many . Inspection? . Testing? . Repairs? - Sets and sub-sets waiting beside the lines?3. Goods flow - Limited material on the lines - No sub-stores4. Transparency (=supervision) Can one supervise the manufacturing area?

Visual evaluation of a good factory5. Performance-information on the line per line per workplace Information on . Quality (short loop) . Efficiency (output)6. Number of indirects on the floor? How many people hanging-around for . Supervision? (why?) . Q-problems . Material supply7. Contact pattern? . Management presence on the floor? . Open offices?

Visual evaluation of a good factory8. Is production the heart of the business? Are support departments really supporting?9. Housekeeping Is the place clinically clean?10. Working atmosphere? Do we smell the winning spirit ?11. Would you like your son or daughter to work here in the production ?

Manufacturing Excellence Road MapIIIIVIIIIIIExecutionDiscipline/ Training

QualityProcess/ Follow up

Waste ReductionCIFO/ Demand pull

Add ValueSpeedVisual FactoryPerformanceIPerformanceQ404Q105Q205Q405IQ305

1st Stage ME Initiatives ( Actual )5S and manufacturing disciplineEnhance ESD and MSD processes controlSupervisor shift start-up checkKit release control and All-in-one schedulingVisible material replenishing trigger system Flag systemHourly tracking and escalation processDaily Manufacturing Excellence roving audit checkingWIP reduction and FIFO process implementation

2nd Stage ME Initiatives ( Plan )To enhance new employee orientation and skill trainingOperator skill certification and re-certification programSIC certification programSource quality control and poke-yoke processIndustry benchmark and performance trackingSMT zero wrong partsRepair processes and quality controlMinimum 95% yield control and top 5 OQA defect controlDepartment knowledge sharing

3rd Stage ME Initiatives ( Plan )

Product grouping and streamline production flowEnhance the pilot run and 1st time run capabilityEnhance the cascade training activitiesEnhance middle management training and developmentCompany wide engineering and technology sharingConvert organization to CFT oriented organization Nurture an excellence working environment

Establish NPI capabilityEstablish high mix low volume capabilityBuild up an excellent quality environmentBuild up one day turn around capability

4th Stage ME Initiatives ( Plan )

1. Progress of company Posting company-wide activities on the wall

2. AwardsPosting company-wide activities on the wall

Posting company-wide activities on the wall3. Improvement activities and performance scoreboard

Posting company-wide activities on the wall4. Recent presentations

5. Status of team projectsPosting company-wide activities on the wall

Posting company-wide activities on the wall6. General information and pictures of the shop floor

The New Shop Floor Management Model Glass wall management Scoreboard Floor meeting Organization of a work station Suggestion Storyboard Mini-company (Mission,Objectives,Business plan,PDCA) Improvement group Banker's meeting (Progress report,Monthly report ,Annual report) Study group Company awareness day Top management round table Sharing of progress (Display,Free lunch,Presentation ,Newsletter,Awards)

Policy management Cross-functional management Management by exception Management by objectives Managing by wandering around Career planning 5S SOP JIT TPM Flow lines Poka-yokeContinuous ImprovementCore values Vision Roles & responsibilities Management process Genba Exposing problems 5 Whys Empowerment Ownership Involvement of everybody Teamwork Collective wisdom Self-management Problem-solving tools Assessment Checklist Visual aids Benchmarking Upgrading skills Learning Recognition,Reward Communication Cross-training Job rotationCustomer NeedCustomer-supplier relationshipThorough practiceAdequate leadershipInnovative cultureCustomer orientationProgressive organizationPeople-oriented organizationIncreased capabilitiesWaste eliminationSurvival of the fittestShop floor excellenceCONCEPT/APPROACHACTIVITIESGOALS

Organization of a Mini-Company Meeting Area

Management of Mini-Company 1.Name of mini-company 2.Mission 3.Names and pictures of people 4.Customer-supplier relationship chart 5.QCDSM Measurements 6.Customer survey results 7.Plans of action(summary of business plan) 8.Samples of defects(with comments) 9.Skill matrix(cross-training matrix)10.Status of team projects11.Improvements of the month(before-after)12.Attendance chart and vacation plan13.Safety clock(Nr. of days without accident)14.Quality clock(Nr. of days without defects)15.Status of suggestions16.Awards received17.Focus item/slogan of the month18.Documents,reference books

Business plan Mini-company annual report Shift book,daily meeting notebook Case example of suggestions Reference books on shop floor management Miscellaneous manuals,etc. 1.Name & description of work station 2.Name & picture of operator 3.Standard operating procedure 4.Andon(trouble light to call for help) 5.Line stop button(to call supervisor) 6.Sample board(to check the quality) 7.Explanation of poka-yoke 8.Machine checklist for self-maintenance 9.Machine downtime log10.Safety checkpoint11.Description of recent improvement12.Layout of the area13.SPC chart14.QC process sheet15.Sample product16.Production control board17.Marking of floor

Organize the meeting areaOrganize an efficient work stationPractice

Mini-Company's Management Support System Name of the mini-company Mission statement Company profile -Names of employees -Skills of employees -Machines, layout, products , processes, etc. Customer-supplier relationships Major objectives Analysis to achieve objectives Action plan (5W2H) Measurement & reporting method

Name of the mini-company Mission statement Company profile -Names of employees -Skills of employees -Machines, layout, products , processes, etc. Customer-supplier relationships Major objectives Analysis to achieve objectives Achievements Existing problems Plans for the future

Business Policy-Strategic DirectionCoordinationCooperationCommunicationBusiness PlanAnnual ReportShare Progress

FORMULATION OF MANUFACTURING STRATEGYL.TOBJECTIVEBUSINESSSTRATEGYMANUFACTURINGSTRATEGYCORECOMPETENCECOMPETITIVEADVANTAGESL.TBUSINESSSUCCESSBUSINESS ENVIRONMENTMANUFACTURINGTECHNOLOGYORGANIZATIONALCAPABILITYTYPEELEMENTCHARACTERISTICEXTRINSIC, MECHANICINTRINSIC, SUBSTANCE- SKILL & KNOWLEDGE

- PHYSICAL SYSTEM

- MANAGERIAL SYSTEM

- VALUESSELECTPRACTICETO BUILD DESIRED COMPETENCES- POM (PROCESS OF MANAGEMENT)- TQC (TOTAL QUALITY CONTROL)- SMT (SELF-MANAGED TEAMS)- QFD (QUALITY FUNCTION DEPLOYMENT)- DFM (DESIGN FOR MANUFACTURING)- ATM (AUTOMATION)- CIM (COMPUTER INTEGRATED MANUFACTURING)- JIT (JUST IN TIME)

SUPPLIERSInvolvement in Product Creation Process chain

- Co-design - Functions versus components / parts

2. Involvement in logistics chain - Co-makership - Subcontractor

3. Supply Base Management - Supplier selection - Supplier evaluation - Supplier development - Partners in progress

Training Courses designGeneric training, distinguished levels and focus:Level 1: Shop floor Management (Grade 50/60/70; 5x3 days) Control and improvement Textbook: The New Shop Floor Management Author: Kiyoshi Suzaki The free press- A division of Macmillan, Inc. NY Training material: Period 1-5, Value 20,000 USDLevel 2: Manufacturing management (80/90;10 days in 3 blocks) Defining improvement and renewal, managing implementation and changeLevel 3: Industrial management (100/directors; 5 days) Defining manufacturing strategy Determining performance gap Determining opportunity gap Managing implementation and change

MANUFACTURING EXCELLENCE

SELF-ASSESSMENTSee separate self-assessment brochure/file

Manufacturing Excellence Self-Assessment

BENCHMARKING Product benchmarking Process benchmarking Spec Quality / Reliability

Responsiveness Cost

Business Value Chain Analysis.Planning forecast.Capacity build up.Inventory control.Purchasing .Vendor QA .Partnership.OEM-ODM-OBM .Design QA .Equipment/tool design .Automation .Initial production mgt .Core competence.Goods flow control.Process control.Fool-proof devices.Equipment mgt.Manufacturing QA .5S, JIT, SFC, PAC.Quick change-over.Waste elimination.Production scale.QMT/QCC.Mini-factory.Glass wall management.Stock operation.Shipment handling process.Drop shipment.Global logistics.Customer satisfaction.SS QA.Responsiveness.Technical support .Organization structure .Culture .Recruitment .Appraisal system .Training. Multi-skill .Mgt development .Employee Needs/Motivation .ID .Accounting system .Annual budgeting .ERP. OA.EIS.DSS.ES .Internal control.Cost control .Investment mgt .Business planning .Policy management.Risk mgt .Energy control .Pollution control Marketing& Sales Support Activities Primary Activities FirmInfrastructureHumanResourcesTechnologyDevelopmentProcurementServiceOutboundLogisticsOperationsInbound Logistics.Sales forecast.Customer database.Market research.Competitive analysis.Time to market.Promotion.Local market penetrationMarginCompetitive Advantage

Manufacturing Accounting Review ....Act-Forecast .Act-Std.WIP-> .A/R.MSPBOMRouting -..- ..ERPVariance RuleG/LCost ComparisonCost down Action Plan ..Task settingKPI: to be enhanced

Observation

Sheet1

C) Progress report

Proposal

-Two many stock points

3.MRP

.Daily production meeting

.Small lot production

.Real time WIP tracking

1.

. Process parameters setting/Optimization

.Cpk 1.0-1.3

.FQC DPPM

' + Initial production management

.Glass wall management

-FQC only

3.QC--> QA

Sheet2

Sheet3

Sheet1

C) Progress report

Proposal

3.Manual MRP

.Daily production meeting

.Small lot production

.Real time WIP tracking

1.

.Cpk 1.0-1.3

' + Initial production management

.Glass wall management

-FQC only

3.QC--> QA

External

External appraisal

DimensionOpportunityThreat

Trend

ItemCurrentFuture

Mass productionJIT

PushPull. Flow line

LayoutBlock by processLine by product

N=1

HrSMED

QC

PPM

Top down

Internal

Internal appraisal

DimensionStrengthWeakness

Shared value

.Reactive--> Proactive organization

Style

.Vision- Top 3 worldwide

Staff

Skill

Strategy

Structure

System.ISO 9001:2000

.PIM, ERP.Profit sharing. Win-Win

System

PlanDoCheckAction

Top 3

Roadmap

Gate control

ZBB

progress report

Action plan

3.In-effectiveness of corrective actions

KPI

.Sales.Yield loss

.Time to profit.Cost down%.Rework

.NPD%.Productivity

.IFO

.Hourly rate

.ROTA%, ROE%

.Obsolenscence ratio

.Cash flow

.Top 30 %.Time to market.Cycle time.IQC-LAR

.Capacity utilization.WIP.IPQC- PPM

.Lead time reduction

.Market share.Down time

.Complaint response time.ID Saving

.Power cut

.Scrap

.Change over time

Manufacturing accounting Review

ItemCurrectProposal

Approach

PDCA cycle, Close loop

Post explanationCorrective, Improvement

Figures. DataInformation

Focus

Rate calculationTask setting, Improvement plan

Fixed

Capacity utilization

Method

Work Center 1

Progress report

Materials

Labor- man, machine,tools

Overhead

QA

MaintainKaizen

Approach

-

-QC 7-tool/ N7

.Multi-skill training-DOE

-QFD

-APQP

.Process control enhancement-FMEA

.ISO refinement

-Control chart

-OCAP

-MSA

-Total control methodology(TCM)

-Design review

-Reliability management

-QS9000/TS16949

-QCC

-Quality improvement status(QIS)

.Customer visit /Q-review

Policy

Department Manager's Policy

Dept:

PolicyEmphasis Items(Activity Plan)Control PointGoalPeriodDeployed to

Activity

Activity Plan Sheet

Dept:Date of issue:

No.Superior's policy and directionNo.Activity itemsActualGoalTarget datePersonMonthly schedule(plan/result)ControlStatusControl documentRemark

in chargepoint no.

100%

Activity Plan SheetAction ItemGoalControl PointWhoWhenEvidenceClose (V)

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