Solectron Confidential
Six Sigma Lean – Solectron Production System Productronica - Munich
Peter Peetz – Solectron GmbH - Germany16. November 2005
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Solectron SixSigma Lean Initiative Overview
! Solectron Introduction
! What is Lean, SixSigma?
! Introducing Solectron SixSigma Lean
! Solectron Production System™
! SixSigma and Zero Defect
! Solectron Zero Defect Approach – Examples
! SixSigma and Design for SixSigmaIntroduction
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• Founded in 1977
• Headquartered in Milpitas, Calif.
• Sales of $10.3 billion in fiscal 2005
• More than 50 locations worldwide
• More than 50,000 employees
• Spans five continents, in more than 20 countries
• Serving customers in communications, networking, computing and storage, consumer products, automotive, medical and industrial markets
• Traded on the NYSE, under the symbol SLR
• Two-time winner of the Malcolm Baldrige Award
Solectron SixSigma Lean InitiativeIntroducing SOLECTRON
Introduction
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Product Stewardship
Product Design
Collaborative Design
Product Launch/NPI
DFX Engineering Services
System Integration
Post-ManufacturingServices
Parts Management
Inventory Management
Forward/Reverse Logistics
Repair (Same for Same, Like for Like)
Recovery/Remarketing
Feedback to Design and Manufacturing for Quality/Serviceability
Product Design &Launch Support
Lean Manufacturing& Fulfillment
Solectron Production System (SPS)TM
Solectron Supply Chain Solutions SuiteTM
Culture of Continuous Improvement
Global Network For Lowest Landed Cost
Solectron SixSigma Lean InitiativeIntroducing SOLECTRON - Services
Introduction
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FremontMilpitas (3)
Bordeaux
Penang
Austin
HerrenbergMunich
Koriyama Ibaraki/ShonanTokyo""""
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Hillsboro
Winnipeg
Jaguariuna
ChihuahuaGuadalajara
LouisvilleMemphis
Newmarket
Ostersund
CwmcarnDunfermline
Sydney
BudapestTimisoara
Istanbul
HuizhouShenzhen (2)
HongKongTaipei
Shanghai (4)Suzhou (2)
BeijingMontrealSherbrooke/Kanata
Singapore (3)Batam
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Westboro
Raleigh/CreedmoorCharlotteColumbia
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AmsterdamRotterdam
TurnhoutRosmalen####
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""""Ottawa
#### Baltimore
####Bangalore
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Office""""
Services with Logistics
Services####
Manufacturing / Services Co-location
Manufacturing####
Puerto Rico#### ####
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""""Detroit""""
Solectron SixSigma Lean InitiativeIntroducing SOLECTRON – Global Footprint
Introduction
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Computing & StorageNetworkingCommunications
Consumer ProductsAutomotive Industrial Medical
CO
RE
MA
RK
ETS
STR
ATE
GIC
GR
OW
TH M
AR
KET
SSolectron SixSigma Lean InitiativeIntroducing SOLECTRON – Market Segments
Introduction
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Solectron SixSigma Lean InitiativeIntroducing Lean – Historical Background
LEAN
! Toyota Motor Company after World War II
! Production System! Disciplined, Process-Focused: Takt-Time! “Toyota Production System” = “Lean Production”
! MIT Popularized Lean Concepts in the U.S.A. in 1990’s
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
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Solectron SixSigma Lean InitiativeIntroducing Lean – Elevator Speech
ValueDefinition
1
VALUE DEFINITION! Business Processes! Customer Needs
! Quantity! Delivery! Quality
ValueStream
Analysis
2
VALUE STREAM ANALYSIS! Value Stream Map
! Minimize MUDA! Cycle Times
HEIJUNKAJIDOKA
3
ESTABLISHFLOW
! Sequencing! Level Loading
! Stop at Abnormality
JIT / PULL
4
JIT / PULL! KANBAN! Pull Production! Single Piece Flow! Takt Time Production
PERFECTION! KAIZEN! GEMBA! ANDON
5
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
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Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean
! Integration of Best Practices for Process Improvement and Increased Customer Satisfaction
! Capture the Concepts of
! Lean! Eliminate Non Value Add (MUDA)! Reduce Cycle Time! Reduce Work in Progress (WIP)
! SixSigma! Statistical Measures! Data Driven Approach! Breakthroughs
6 LLLLEANEANEANEAN
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
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Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean –What is the customer paying for ?
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
Value-addNon-value-
add
Waste(MUDA)
Value-enabling
• Activities which directly add value to products and services
Customer is willing to pay for this
• Activities that add no value, but are required to complete value-add work
• Activities that do not add to the value of products and services
Waste
25.212.2
7.5
4.0
1.5
Assembly WIP TotalTest Repair
Value-add and Value-enabling
Time
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Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean – MUDA Elements
WaitingWaiting on materialsWaiting on equipmentWaiting on Support AreasWaiting on next partWaiting on Authorisation
Transporting
Long distancesbetween operationMoving long distanbetween warehousand production
Defects
Scrapped produCustomer returnRe-working prod
Unnecessary
Motion
BendingStretchingTwistingWalking Over production
Make more than requestedProducing to keep busy
Over-processing
Adding unnecessary operationsAdding unnecessary procedures
UnnecessaryInventory
Batches of productsWIP (bonepile)Overstocking in warehouse
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
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Solectron SixSigma Lean InitiativeIntroducing SixSigma Lean
Voice ofthe Customer
Voice ofthe Customer
ResponsivenessWaste Elimination
Cycle Time
ResponsivenessWaste Elimination
Cycle Time
Customer Satisfaction &Competitive Cost
Customer Satisfaction &Competitive CostLEANLEAN SixSigmaSixSigma
Defect Reduction
ConclusionSolectron Production SystemIntroduction Lean, SixSigma
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Customer ShareholderKey Drivers
Why to improve
Method
How to improve
Key Focus
What to improve
Six Sigma Lean and Solectron Production SystemSix Sigma Lean and Solectron Production System
Flexibility- Fulfillment Lead Time- Manufacturing Lead Time- Equipment Flexibility
Flexibility- Fulfillment Lead Time- Manufacturing Lead Time- Equipment Flexibility
Quality- Zero Defects- Zero Returns
Quality- Zero Defects- Zero Returns
Performance- People Efficiency- Material Logistics- Equipment Efficiency
Performance- People Efficiency- Material Logistics- Equipment Efficiency
Solectron SixSigma Lean InitiativeLean Transformation – Why, What, and How?
ConclusionIntroduction Lean, SixSigma Solectron Production System
Lowest Landed Cost.Flexibility.
Responsiveness.
Lowest Landed Cost.Flexibility.
Responsiveness.On Time.
Zero Defects.On Time.
Zero Defects.Win New Business.
Outperform Competitors.
Win New Business.Outperform
Competitors.
Best in ClassTC, MSCC, SG&A
Performance.
Best in ClassTC, MSCC, SG&A
Performance.
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QualityQuality
FlexibilityFlexibilityCompetitivenessCompetitiveness
SolectronProductionSystem TM
(SPS)
The True DifferentiatorThe True Differentiator
Solectron SixSigma Lean InitiativeSolectron Production System™ (SPS)
ConclusionIntroduction Lean, SixSigma Solectron Production System
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...Leads to Measurable Improvement ...Leads to Measurable Improvement
Solectron SixSigma Lean InitiativeSolectron Production System™ (SPS)
Top ManagementTop Management
Shop FloorShop Floor
SolectronSolectronProductionProductionSystemSystem
Top Down Approach Top Down Approach
Bottom Up Approach Bottom Up Approach
Development of Standards Development of Standards and Processesand Processes
Leadership & DeploymentLeadership & Deployment
Value Stream DesignValue Stream Design
Concept of „Ideal State“Concept of „Ideal State“
! Responsible forPlanning and Doing
! Created Own „Ideal State“ Using Value Stream Mapping Starting fromCustomer‘s Value
! Responsible for Results! Understood and Assured
! Lean Principles! Standardized Processes! Tools
Key is Continuous Improvement: KAIZENKey is Continuous Improvement: KAIZENConclusionIntroduction Lean, SixSigma Solectron Production System
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Value Stream, 5S, Supermarket, Changeover..Foundation
Heijunka
JidokaJIT JidokaJidokaSix Six SigmaSigma
Solectron SixSigma Lean InitiativeSolectron Production System™ (SPS)
Stop at Any Abnormality
Takt Time Production
Single Piece Flow
Pull Production
“Autonomation”
SequencingLevel Loading
House of SPS
Basement
1st
Pillar
Two Quality Related Pillars in the “House of SPS”Two Quality Related Pillars in the “House of SPS”ConclusionIntroduction Lean, SixSigma Solectron Production System
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First Pass Yield (FPY) at ICT! Changeover: FPY Goal Reached
within First 10 Boards?! Release to Production
! Production: FPY 5% Below Goal?! Stop and Lock
Solectron SixSigma Lean InitiativeSolectron Production System™: Jidoka at ICT
JIDOKA: Stop at Any AbnormalityJIDOKA: Stop at Any Abnormality
FPY Goal
FPY Trend(20 Boards)
FPY Actual
Improvements! FPY Improved by 3% Absolute! Technical Problems Reduced by 50%! Changeover time Reduced by 75%
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeZero-Defect Line
SixSigmaSixSigmaDefect EliminationDefect Elimination 25%
Defects25%
Defects
LeanLeanDefect EliminationDefect Elimination
75% Defects75%
DefectsSee with the
Eye andTake Action
Test Test Test
See with theMeasurement System,Analyze Feedback, and
Take Action
P R O D U C T I O N F L O WP R O D U C T I O N F L O W
Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean ActivitiesConclusionConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeLean Defect Elimination
LeanLeanDefect EliminationDefect Elimination
! Poka Yoke (Mistake Proofing)
! Auto Quality Matrix
! Operator Touch Reduction
! Share Best Practices
Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean Activities
! Zero-Defect Line
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeLean Defect Elimination – Poka Yoke (Mistake Proof)
Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean Activities
BEFORE
REVERSED BI-COLOR THD LED
Difficult to Identify Polarity
AFTER
CHECK POLARITY ELECTRICALLY
Verify Orientation Before Insertion
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeLean Defect Elimination – Poka Yoke (Mistake Proof)
Generate Immediate Impact with Lean ActivitiesGenerate Immediate Impact with Lean Activities
BEFORE
SOLDER POT CONTAMINATION
Leaded vs. Lead-Free
AFTER
TRIANGULAR SOLDER BARS
Make Insertion of Lead Impossible
LEAD-FREE
WAVE SOLDERING
PROCESS / EQUIPMENT
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeLean Defect Elimination – Auto Quality Matrix
Stop Failure as Soon as it OccursStop Failure as Soon as it Occurs
Auto Quality Matrix
! Internal Quality Feedback
! Customer Feedback and Complaints
! Identification of Assignable Causes
! Elimination of Recurring Failures
! Focus on Non-Assignable Causes
! Prioritization by Customer Impact
! Operator Involvement
! Auto-Control by Working Cells
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeSixSigma Defect Elimination
SixSigmaSixSigmaDefect EliminationDefect Elimination
! SixSigma Projects
! Gage Repeatability & Reproducibility (Gage R&R)
! Design of Experiment (DoE)
! Statistical Process Control (SPC)
! Engineering Simulations (Monte Carlo)
! (Component) Failure Analyses
Generate Sustaining Impact with SixSigma ActivitiesGenerate Sustaining Impact with SixSigma Activities
“80% of Common Cause Defects are Design Related”
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeSixSigma Defect Elimination
Define Design Integrate Launch Support
SixSigma is Not Just a Value – it’s a Full MethodologySixSigma is Not Just a Value – it’s a Full Methodology
ReactiveReactive
DEFINEDEFINE
MONITORMONITOR
MEASUREMEASURE
ANALYZEANALYZE
IMPROVEIMPROVE
CONTROLCONTROL
ProactiveProactive
DEFINEDEFINE
MONITORMONITOR
IDENTIFYIDENTIFY
DESIGNDESIGN
OPTIMIZEOPTIMIZE
VERIFYVERIFY
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma Tool Box
DesignIdentify Optimize VerifyDefine Monitor
AnalyzeMeasure Improve Control
! Vision / Technology Planning! Business Metrics ! Sigma Assessment ! Multi-Generational Planning! Risk Assessment! Change Management! Process Mapping / Cause & Effect! Program / Project Management! Design Dashboard
! Customer Data Gathering! QFD / CTQ Flowdown ! Kano Analysis! Survey Analysis ! Focus Groups! Benchmarking
! Tolerancing! Robust Design! Multiple Response Optimization! Design Simplification! Mistake Proofing! HALT Testing! Launch Planning
! Pugh Selection Matrix! Historical Regression! Modeling / Simulations! DoE / Response Surface ! Failure Modes Effects Analysis! Sensitivity Analysis
! Gage R & R / Test Effectiveness! Normality / Box Cox! PM / CE / CNX / SOP! Capability Assessment! SPC
! Change Management! Automated Testing! Long vs. Short Term Data
SixSigma/Design for SixSigma Utilize More Than 60 ToolsSixSigma/Design for SixSigma Utilize More Than 60 ToolsConclusionIntroduction Lean, SixSigma Solectron Production System
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Leadership
Champion
Master Black Belt
DfSS Champion (50%)! Develop Strategy & Plans! Drive Execution & Remove Barriers
Master Black Belt (100%)! Train & Mentor! Complete Projects
Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma – The Machine
Worldwide SixSigma/Design for SixSigma Organization in PlaceWorldwide SixSigma/Design for SixSigma Organization in Place
Green Belts
Green Belt! Learn and Apply DfSS as Part of
Current Job
Black Belts
Black Belt (100%)! Lead and Do High Impact Projects
ConclusionIntroduction Lean, SixSigma Solectron Production System
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LeadershipLeadership
Champion
Master Black Belt
Champion
Master Black Belt
Green Belts
Black Belts
CustomerR&D
Solectron SixSigma Lean InitiativeSixSigma/Design for SixSigma – The Machine
Use Green-Belts for External SixSigma PenetrationUse Green-Belts for External SixSigma Penetration
On-Site Engineering
! Use DfSS Methods forProjects with the Customers
Supplier
Green Belts
Black Belts
ConclusionIntroduction Lean, SixSigma Solectron Production System
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Solectron SixSigma Lean InitiativeZero-Defect-Strategy
Start With What is Necessary,
Then Do Your Very Best,
And Suddenly You Will Achieve the Impossible.
Franz von Assisi
Introduction Lean, SixSigma Solectron Production System Conclusion
THANK YOU VERY MUCH!
If you have further questions, please get in contact with:
Halle A6, Stand 516 or
Peter PeetzEngineering Manager&Lead Local Salesemail. [email protected]. +49 7032 998 268