Assembling SmartphonesRameeze Ahmed Khan

Garv VadehraGourav Didwania

Abhishek Jay KumarAnvesh Reddy

Ajitha KondabalaAnurag Tyagi

Contents

Introduction

Flextronics International

The EMS Business

Switching Smartphone Production

Moonshine Concept

SWOT Analysis

LEAN ManufacturingLEAN Manufacturing Takt TimeTakt Time

Cycle TimeCycle Time

Introduction

• Fortune 500 Company

• It’s a supply chain solution company

• World’s 2nd largest EMS

Flextronics International

• 1969: Founded

• 1994: Got listed on NASDAQ

• 2000: 3rd among 100-Best Managed Company

• 2005: Acquired Nortel Networks

• 2006: Acquired part of LEGO

• 2007: Acquired Solectron

• 2012: Incubated Elementum for SCM

Timeline

Business Area

• High Reliability Solutionseg: Wire harness, Night Vision, Security & Surveillance System

• High Velocity Solutionseg: Covers consumer electronic products

• Integrated Network Solutionseg: telecommunications, Optic networking, servers, cloud computing

• Industrial and Emerging Industrieseg: Navigations technologies, product integration, SBS

Video

The EMS Business

Competition•Many firms in the business•Global manufacturers like Flextronics, Jabil Circuits & Celestica

‘BIG’ Customers•Global customer with huge demands.•Customers with big sums of capital

Profits•Thin profit margins.•Dependent on economies of scale.•Tight cash management practices.•Purchasing power of manufacturers.•Cost effective and efficient production sites.

THE Dilemma : FROM WHERE TO OPERATE ???

FdM site in America

The North Campus Site

•LEAN manufacturing•15000 employees•State-of-the-art equipment•Easy accessibility to North American market•Overhead scheme based on factory floor space

North Campus vs Doumen Site

• Higher Labour Rates(3 times)

• 15000 employees

• Superior Capability & Geographical proximity

• Mid-sized

• Lower Labour Rates

• 45000 employees

• More productive & lower costs

• Largest Site in the world

Switching Smartphone Production

Conveyor Based Straight Line Assembly

Anticipated Result

1 Shift = 8 hoursDesired Production= 1920 units/shiftTakt Time= 8x60x60/1920

= 15 secFloor Area Covered= 1232 sq. ft.

Conveyor Based Straight Line Assembly

Net Result

1 Shift = 8 hours24 workersTakt Time Target = 15 secondsNet Production= 135-138 units/hour

= 1092units/shiftFloor Area Covered= 1232 sq.ft

Non-Conveyor Straight Line Assembly

1 Shift = 8 hours22 workersTakt Time Target = 15 secondsNet Production= 1104 units/shiftFloor Area Covered= 1232 sq.ft

• The Takt Time Target was too stressful and caused more waste at the end

Shorter Straight Line Assembly

1 Shift = 8 hours10 workersTakt Time Target = 30 secondsNet Production= 640 units/short line

= 1280/two short linesFloor Area Covered= 616 sq.ft/short

line

• Reduction in number of operators implied reduced costs• Increased Takt Time reduced stress

U-Shaped Line Assembly

1 Shift = 8 hours9 workersTakt Time Target = 15 secondsNet Production= 960 units/lineFloor Area Covered= 616 sq.ft

• Reduction in number of operators implied reduced costs• Area become half, So two lines can operate in same space• Cross-trained operators balancing work among themselves

Moonshine Concept

moon-shine (moon’shin’) n. A method of disruptive action, that occurs in secrecy, under and around organizational boundaries and procedures,

producing order-of-magnitude improvement to any process. A Lean Manufacturing tool that uses fast and inexpensive prototyping to develop and prove a concept, prior to full

implementation.

• It is a LEAN power tool

Moonshine Team - Requires creative machine designers and creative maintenance people.

“Try Before You Buy !” aka Try-Storming

Moonshine shops in FdM

Unique support service for implementing changes

In-house workshop to modify, adapt or build entirely new production fixtures, tables, carts – end up assembling entire new lines

Shop operators work with line operators. Use pipes, connectors and boards

Quick and cost-effective

SWOT Analysis

Strengths

•Robust inorganic growth•Strong production base•Diversified customer base•Over 100 sites in 30 countries which provide economies of scale (India, China, Brazil)

Threats

•Slowdown of the global economy•Intense competition•Inflation, labour and other costs in low cost Asia economies have been increasing.•The ROHS and WEEE directives

Weaknesses

•Fluctuating margins•High debt burden•High customer concentration fluctuations

in China, India

Opportunities•Positive outlook for electronics manufacturing services market•Growing global computers and peripherals industry•Growth in semiconductors market• More marketing & brand awareness would boost global penetration

Competition

1. Jabil Circuit, Inc.2. Celestica Inc.3. Benchmark Electronics, Inc.4. CTS Corporation5. Nam Tai Electronics, Inc.6. SMTC Corporation7. ALSTOM8. Avnet, Inc.

SWOT Analysis...

Thank You