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April, 2012


Firstronic: Eliminating Hidden Costs


Continued from page 21


Suppliers also proactively provide updates on component lifecycle trends. This information is added to the overall recommendations that Firstronic’s team makes in its new product introduction (NPI) process and during the ECN process if appli- cable. To minimize liability yet sup- port variable demand, both raw materials and finished goods invento- ry kanbans are established. Suppliers agree to a bonded invento- ry based on each customer’s forecast and likely variations in demand. A finished goods kanban is also in place and is normally sized to cover two weeks of demand. Firstronic builds to forecast and pulls on demand. In the event demand changes radically, forecasts and bonds are revised. The Plex implementation will further reduce transaction costs within the supply chain by supporting a two-bin kanban system with suppliers.


Flexibility on the Floor Firstronic rounds out its holistic


Lean manufacturing approach with special focus on production resources. Production equipment, floor layout and personnel cross-training con- tribute to maximized flexibility at


minimal cost. Key principles include: l


time. l


Select equipment that facilitates minimized setup and changeover


with a single setup. l


process (WIP). l


work toward minimal work-in-


tion to drive high throughput. l


Produce entire product families Schedule smaller batches and


Focus on high yield via assembly design input and process optimiza-


of panels to be processed and scanned through the wave solder. As an example, Firstronic uti-


Fixturing which enables a variety


lizes a dual-pot wave solder machine. Through-hole assembly and leaded technology are often overlooked in


assembly optimization efforts, because both represent technologies in decline. Firstronic has chosen to invest in wave technology that allows changes between leaded and lead- free on the fly, because leaded assem- blies with mixed technology are still a significant portion of production in many complex projects. Assemblies carry an RFID tag which determines its profile in the wave. Leaded and unleaded assemblies can be pro - cessed simultaneously because the system matches the pot used to the RFID tag information. This elimi- nates the need for multiple changeovers or multiple machines, while enabling the company to sup- port customers that have products with both requirements without the concerns of mixing product and/or process.


The Cost Equation As these examples indicate,


eliminating hidden costs is a combi- nation of good processes, robust com- munication, trust and teamwork. A key difference in the Firstronic equa- tion is the blending of team expertise with sound Lean principles and evolving technology. Solutions aren’t simply bought off-the-shelf, they are enhanced to support the unique chal- lenges found in the EMS environ- ment through the development of robust in-house tools such as the ProManage system. Firstronic provides advanced


electronics manufacturing services and optimized supply chain solutions for the electronics industry. The com- pany has a 35,000 square foot facili- ty, state-of-the-art equipment and a seasoned management team with an average tenure of 20 years. Contact: Firstronic LLC, 1655


Michigan Street NE, Grand Rapids, MI 49503 % 616-456-9220 fax: 616-456-9230 E-mail: info@firstronicllc.com Web: www.firstronic.com r


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