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Innovating with QUALITY & VALUE forever Quality Challenges of Low Volume High Mix Manufacturing Jairam P Sampath COO Kaynes Technology
Innovating with
QUALITY & VALUEforever
Quality Challenges of Low
Volume High Mix Manufacturing
Jairam P Sampath
COO
Kaynes Technology
Innovating with
QUALITY & VALUEforever
Outline of Presentation
• Manufacturing Getting Redefined
• Understanding “Low Volume – High Mix” Manufacturing
• The Business Aspirations & Imperatives
• Key Challenges
• Managing Quality in “Low-Volume High-Mix” Manufacturing
• How do we then deliver Best-in-Class quality?
• Conclusion and Recap
• About Us
Innovating with
QUALITY & VALUEforever
Manufacturing Getting Redefined
• Focus on Core Competencies, Increased outsourcing.
• More Sources of Economies than Scale alone Specialization, Network, and Competency
• Transformation of the nature of work and expectations: – “Job-Work” at one end to “ODM” at the other
– Functional Knowledge to Domain Specific Knowledge
– Partner to Collaborator to Developer
• Technological advancements forcing the pace Auto-electronics, etc.
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Understanding “Low-Volume High-Mix” Manufacturing
• Low volume (Single piece to hundreds at a time)
• Higher rate of “NPD”, Large number of Products in Portfolio
• Specialized Niche Applications, Multiple Certifications
• Flexible Production Lines, Combination of Generic and Customized Equipment
• Versatile People, Multi-Skilling, Multi-Tasking
• Sophisticated Supply Chain Practices
ALERT MANUFACTURING!
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The Business Aspirations & Imperatives
• Customer Expectations Built at an Early Stage:– Gets more demanding over time
• Scaling up process:– The Difficulty in Focusing
– Structure, Systems, and Organizational Culture Challenge
– Strategic Choices May Reflect an Urgency to Scale-up and
• Growing Profitably:– Grow with Each Customer
– Enter New Industry Sectors
– Consolidations in Supply Chain
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Key Challenges
Area Challenges
Technology adoptionAcquire Newer Skills and Competencies on an ongoing basisNew Capex with Low Utilization
Production processSmall Production Runs lead to Higher Un-recoverable CostsRapid Change-overs
New product developmentEver-increasing Engineering Resource DemandGreater challenges in cross-functional co-ordination
Process and product engineering
Compliance to Standards accurately and efficientlyECO and revision control
Supply chain managementManaging different Supply Chain RequirementsNon-moving accumulations, Obsolescence
Customer relationship management.
Understanding Different Industry Domains as We Scale UpHigher expectations over time
Business growthDynamic demand patternsFocus problems
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Managing Quality in Low-volume High-mix Mfg.
• Definitions are more inclusive now Reflect expectations across the customers value chain
• Quality systems + Process quality + Product quality Standards and compliance
• Scope In-house, Vendor, Partner, Sub-contractor, …
• Equal contributions by “Hardware” and “Software” of manufacturing
• Many sources of disturbances NPI, ECO, delay in part arrival, forecasts variances
• Small lot size and changeover High potential for errors
Quality as perceived by customer is a net result of all actions
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How do we then deliver best-in-class Quality?
High-level Actions
• Train, Re-train, Up-skill, Cross-skill, Qualify, Certify People
• Close and pro-active relationship with NPI team
• Monitor the manufacturing “Software”
• Engineering Documentations
• System Masters and Records
• Quality incident management
• Follow-through CA, PA, and CM
• Create a Culture of Quality-Best-Practices
Even high level actions need sharp focus depending on the manufacturing environment
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How do we then deliver best-in-class Quality?
Enquiry / Prospecting / Proposal:– Understand Customer’s Urgent Needs and Challenges, Set appropriate
expectations
NPI:– Keep communications on “Hot-Line” with the Customer
– Get Feedback and Implement Corrections
Purchasing:– Prepare and Analyze the Procurement Plans Early
– Upfront and Quick Communication with Suppliers
– Evaluate and Audit Key Suppliers
– Be extra careful with “Customer-Supplied” Parts
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How do we then deliver best-in-class Quality?
Engineering Support:– Implement a “Workable” NPD process
– Create specific teams for “Major” NPDs
– Audit the “Engineering Support” Process frequently
Production & Quality:– Strive for Consistency of Compliance during Changeovers
– Link Processes Effectively to Shorten “Start-to-Finish” time
– Adopt “Standards-Based” Manufacturing Practices & Monitor Yields
– Monitor Material “Wastages”, Proportion of Rework, and “Abandoned” WIP
Program Management:– Exhaustive Agreement with Customer on various aspects of contract
– Assess the ongoing “Health” of a particular program and engage with customers for corrective actions
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About Kaynes Technology
• 700 people working at six locations across India and targeting US$ 100 Million by 14-15
• Serving Customers in India, US, UK, Europe, Australia & SE Asia
• People are our strength, Systems our foundation
ISO 9001 : 2008
ISO 14001 : 2004 OHSAS 18001:2007
ISO/TS 16949:2009
AS 9100 Rev. B ISO 13485 : 2003
IRIS Rev. 01
Innovating with
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KAYNES Technology – ISO /TS 16949, ISO14001, OHSAS 18001 IRIS, ISO 13485 & AS 9100 Certified Company
Servicing
Support
Prototyping and Design
Validation/Verification
Turnkey
Manufacturing
Allied Parts
Development
Sourcing
Support
Job work
PWA’s
TestingFull Module
Assembly
Product TestingOEM Product
Mftg..
Embedded Design
Services
Defense and AvionicsIT Peripherals
TelecommunicationIndustrial Controls/ Automation
InstrumentationMedical ElectronicsRailway Signaling
Navigation Systems Automotive .
Power & Energy
Innovating with
QUALITY & VALUEforever
About Kaynes Technology
Innovating with
QUALITY & VALUEforever
Recap
• Manufacturing Getting Redefined
• Understanding “Low Volume – High Mix” Manufacturing
• The Business Aspirations & Imperatives
• Key Challenges
• Managing Quality in “Low-Volume High-Mix” Manufacturing
• How do we then deliver Best-in-Class quality?
• Conclusion and Recap
• About Us
Innovating with
QUALITY & VALUEforever
…………Thank You Thank You !!
