EMS ‘Lean Sigma’ shortens cycle time, reduces costs & improves quality
manufacturing and Six Sigma to reduce ously and communicate well with
the limitations of each program and com- each other to share best practices.
bines the best of what each has to offer. Proper training should be of-
Together they bring more efficiency. Lean fered to all participants to assure
Sigma takes into account the mindset of the principles are implemented
optimizing process flow while at the same smoothly at all times.
time continuously improving quality levels It is the role of the EMS to
with a fact-based approach. The benefit is coordinate the process and the
a dramatically reduced throughput time supply chain. The EMS has the
with much fewer defects than in a normal responsibility to get the correct
production or process flow. products, in the right quantity,
In the traditional Six Sigma approach where they should be delivered,
there are several levels of training and on time, while achieving perfect
five steps for problem solving (define, workflow and minimizing waste
measure, analyze, improve, control). Lean by reducing the total cost. This
Sigma takes a more holistic view. Create a entails more than just setting up
single piece flow and try to reduce defects, production correctly with material
balance product line and move closer to flows. It involves immediately
just-in-time (JIT) delivery using the kanban identifying root commonalities
system. in defects and making immediate
Lean Sigma removes some of those improvements whether within the
Six Sigma elements and replaces them EMS company itself or in another
with lean concepts. For example, process part of the supply chain.
mapping is replaced with value stream Collaboration and transpar-
mapping, and instead of being introduced ency between the OEM and EMS
later in the program, the 5S’s are immedi- help them anticipate market
ately incorporated into the working process changes and provide agility to
to remove white noise or special cause evolve with market demands.
variation from the ordinary Six Sigma When the OEM and EMS work together
project and improve the results, implemen-
training. The idea is to keep the workplace there is less chance for unexpected changes
tation was divided into phases.
organized and clean, with only those tools and costs. They can anticipate changes in
Phase 1: Improve demand flow in the
needed to perform the required tasks. the supply chain and react to them more
manufacture of semiconductor products in
This structure is integrated as part of the quickly. With an honest exchange and un-
the surface mount (SMT) line. The inven-
routine, not an occasional activity initiated derstanding of the goals of both the OEM
tory level for the SMT and final assembly
when things get too messy. The cost of and EMS and an open appreciation for
(FA) lines were defined based on a process
poor quality (COPQ) concept of Six Sigma what it takes for each company to be suc-
map to maintain an optimal buffer level to
is replaced with the principle of eliminat- cessful, the companies can jointly reduce
improve cash flow and reduce warehouse
ing the seven wastes—defects, overproduc- cost of ownership and increase each other’s
space.
tion, transportation, waiting, inventory, profits as well.
Phase 2: Transform the final assembly
motion and processing—which is a lean
to a demand-driven flow assembly and
concept necessary to improve quality. a lean manufacturing case history
share use of the general and common
Incorporating these principles into Because Lean Sigma is an adaptation of
parts of the test and assembly operations
a company’s operation improves value two well-documented and used concepts,
in individual production lines to increase
streams and material flow, builds qual- many companies individualize their ap-
total production line capacity.
ity into the processes, keeps the factories proach, incorporating the aspects of each
Phase 3: Align material and capacity
clean, orderly, and visually appealing and concept they find to be successful for
available with flexibility targets set towards
involves everyone in continuous improve- their company. The Lean Sigma program
fluctuations in the customer’s demand and
ment. Lean Sigma principles require not described in this paper is unique to this
apply a computerized software system to
only converting processes or machinery EMS. They have applied these techniques
closely monitor the daily requirements of
but also adapting mindset, behavior, and throughout their plants globally to gain
materials from the customer and execute
management tools. The whole concept is consistency in their manufacturing opera-
quick changeover.
more than cutting costs in the factory and tions and structure.
Benchmarking and sharing best prac-
beyond the production level. The transfor- This EMS specializes in the communi-
tices were conducted after the project was
mation requires companies to identify and cations technology industry. Six Sigma and
completed. The result was that line capac-
measure the main sources of waste and de- lean manufacturing principles have been in
ity increased about 40% and the plant’s op-
fine opportunities to eliminate them. It de- practice for many years, but the company
eration could respond daily to the changes
mands a sustained leadership commitment saw significant improvement when it
in the customer’s demand more efficiently.
and a thoughtful approach to introduce started implementing a Lean Sigma pro-
This approach incorporates Lean Sig-
and roll out change and involves efficient gram. The concept is based on the plant’s
ma using a kanban pull production model
management of software and hardware for demand flow, which involves analysis of
implementation between SMT and final
the whole process. The participants in the the plant’s processes, systems, technical
assembly. Operation is based on a daily
process should be able to recognize how to capabilities, customer demands and review
production plan. There is visualization
maintain or improve the system continu- of responsiveness. To better monitor the
planning, so there is actual on-site data of
www.globalsmt.net Global SMT & Packaging – May 2009 – 11
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