Employees - 120 in San Diego Low volume / high mix EMS - Electronic
Manufacturing Services including Design, Layout, Rapid Proto-Typing, DFM & DFT, RF Technology, Supply Chain Management
AS9100, ISO/TS 16949, ISO 9001 & 13485 Aerospace & Military Customers:
SMS Technologies, Inc.
2SPs SPsSPs SPs
SupportProcesses
USP
ContinuousImprovementManagementTest Eng. Mgr.
Input:Customers need continually increasing quality, productivity & service value
Output:Customers get continually increasing quality, productivity & service value
What:Strategic Planning
Values
Vision
Mission
Customer Satisfaction
Organizational Review
Measures:Team Performance Metrics
Team Process Improvement Metrics
CI Management Process Improvement
Who:Quality Council
Champions / Process Owners
Subject Matter Experts / Trainers
Customer-focused Teams
Other Supply Chain Members
How: WI 5.6.1.1.01
The Quality Council:Selects strategic improvement prioritiesAssigns team members to improvement projectsProvides teams with direction, guidance & supportReviews improvement project progress
Improvement Teams:Include champions, SMEs, & other members Utilize PDCA problem-solving tools, etc. Make results available to the organizationAre recognized for their contributions
Universal Support Processes:
COP Home Universal Support Processes
Business Planning
Corrective &Preventive Action
Document ControlInformationServices
Purchasing
Maintenance
ManagementReview
Measurement &Improvement
Staffing
Internal Auditing
Workforce Development
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HOW: WI 5.6.1.1.01
The Quality Council:Selects strategic improvement prioritiesAssigns team members to improvement projectsProvides teams with direction, guidance & supportReviews improvement project progress
Improvement Teams:Include champions, SMEs, & other members Utilize PDCA problem-solving tools, etc. Make results available to the organizationAre recognized for their contributions
WI 5.6.1.1.01 Continuous Improvement Management Process(SEA Continuous Improvement Management Process 1.1.4)
1.0 PURPOSE: To establish, document and maintain a standard work instruction as part of the overall
Continuous Improvement Management Process appropriate to the SMS Technologies’ Quality Management System and its customer base.
2.0 SCOPE: This work instruction explains how SMS manages its continuous improvement management
process. The council members identify improvement projects based on both internal and external customer needs and reviews each initiative's progress. Each initiative is assigned a team and guidance is provided as needed. A standard toolbox containing problem-solving methods is deployed throughout the organization. Continuous improvement team members typically include the respective process owner, master trainer(s), and strategic champion of that domain as well as any other member of the organization that may add value to the process. The output of the continuous improvement process will document the initiative's results, including success and lessons learned.
3.0 REFERENCE DOCUMENTS:3.1 AS9100:2004 (B) Quality Management Systems – Aerospace – Requirements3.2 ISO 9001:2008 Quality Management Systems – Requirements3.3 ISO/TS16949:2009 Quality management systems – Particular requirements for the
application of ISO 9001:2008 for automotive production and relevant service part organizations
3.4 ISO13485: 2003 (E) Medical Devices – Quality Management Systems – Requirements for Regulatory Purposes
3.5 ISO 14969: 2004-10-15 Devices – Quality Management Systems – Guidance on the application of ISO 13485:2003
4.0 TERMS AND DEFFINITIONS:4.1 Value Stream: All the processes required to produce a product or service of value to a
customer. The term value stream applies to product families or individual products or services. The value stream includes the flow of materials in production as well as information flow. The customers of a value stream could be internal or external.
4.2 Process: A series of steps to produce an intended output. A process may be part of the Value Stream for a product/service or a business process necessary to run the business and help employees and departments do their jobs.
4.3 Process Group or Value Stream Champion: A senior executive who manages a group of business management processes and/or value streams with common or related purposes. For purposes of the SEA program, at minimum Champions are needed for Leadership, Operational excellence, Workforce Development, and each Value Stream or Product Line. The Champion supports Process Owners, prioritizes improvement initiatives, and charters improvement teams.
4.4 Process Owner: A designated person responsible for achieving ever-higher levels of process maturity and effectiveness; a focus point for the company on issues related to their assigned process. Usually reports to the Process Champion either directly or indirectly.
4.5 Master Trainer: A person trained and qualified to train and qualify others. The master trainer documents work instructions, trains and cross-trains those who will work in a particular process, and verifies that they can perform the work and quality checks according to the work instructions in the time allowed.
4.6 Subject Matter Expert: A person who has experience and/or expertise in the process. The SME has not necessarily been qualified to train others but serves as a resource to the Master Trainer. SMEs can become master trainers through certification.
4.7 Managed Process: A process selected by senior management for improvement. This process might be selected during strategic planning or other coordinated leadership activities. Managed Processes have a process owner, master trainer, and SME assigned to improve the process. Managed Processes have a team assigned for Kaizen, Six Sigma, or other Process Maturity improvement activities as appropriate.
5.0 PROCEDURE:
5.1 SMS Quality Council sets improvement priorities5.1.1 Quality Council selects improvement projects based on
strategic planning criteria5.1.2 Quality Council assigns team members to the improvement
project5.1.3 Quality Council provides team members with project
direction, guidance and support5.1.4 Team members utilize the appropriate problem-solving tools
including but not limited to the PDCA model5.1.5 Team members are comprised of process champions/owners,
SME’s, and other members of the organization that may provide relevant insight into the problem domain
5.2 SMS Quality Council reviews improvement project progress5.2.1 Team members are recognized for their contribution to the
project success5.2.2 Project results are made available to the organization so they
can build on the experiences of past projects
Selecting Improvement PrioritiesThe model of a process-based quality management system shown in Figure 1 illustrates the process linkages presented in clauses 4 to 8. This illustration shows that customers play a significant role in defining requirements as inputs. Monitoring of customer satisfaction requires the evaluation of information relating to customer perception as to whether the organization has met the customer requirements. The model shown in Figure 1 covers all the requirements of this International Standard, but does not show processes at a detailed level.
NOTE In addition, the methodology known as “Plan-Do-Check-Act” (PDCA) can be applied to all processes. PDCA can be briefly described as follows.Plan: establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies.Do: implement the processes.Check: monitor and measure processes and product against policies, objectives and requirements for the product and report the results.Act: take actions to continually improve process performance.
Figure 1 — Model of a process-based quality management system
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Value-adding activities
Information flow
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Value-adding activities
Information flow
AS9100C:2009-01, Page 6 of 33
Model of a Process-based Quality Management System
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Value-adding activities
Information flow
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Continual Improvement of the Quality Management System
Customers
Requirements
Managementresponsibility
Measurement, analysis and improvement
Productrealization
ResourceManagement
Customers
Satisfaction
ProductOutputInput
Value-adding activities
Information flow
Developing the Hedgehog Concept
WHAT YOU ARE DEEPLY PASSIONATE ABOUT
WHAT YOU CAN BE THE BEST IN THE WORLD AT
WHAT DRIVES YOUR
ECONOMIC ENGINE
The Hedgehog Concept is a simple crystalline concept that flows from deep understanding of three circles:
Jim Collins, 2001 pgs. 95-96
The SMS Quality Council• One particularly useful mechanism for moving
the process along is a device that that Collins came to call the Council
• The Council consists of a group of the right people who participate in dialogue and debate guided by the three circles, iteratively and over time, about vital issues and decisions facing the organization– Jim Collins, 2001 pgs. 114-115
Accelerating the Iterative Process
ASK QUESTIONS,GUIDED BY THE THREE CIRCLES
EXECUTIVE DECISIONS,
GUIDED BY THE THREE CIRCLES
AUTOPSIES AND ANALYSIS,
GUIDED BY THE THREE CIRCLES
DIALOGUE AND DEBATE,
GUIDED BY THE THREE CIRCLES
To speed-up the formulation of the Hedgehog Concept, increase the number of times you go around that full cycle in a given period:
Jim Collins, 2001 pg. 114
Developing the Hedgehog Concept
WHAT YOU ARE DEEPLY PASSIONATE ABOUT
WHAT YOU CAN BE THE BEST IN THE WORLD AT
WHAT DRIVES YOUR
ECONOMIC ENGINE
The Hedgehog Strategy: SMS can be the best in the world at offering distinguished value-added Electronic Manufacturing Services:
ProductDesign
Services
ProcessDesign
Services
NewProduct
Introduction
SupplyChain
Management
ManufacturingServices
LogisticServices
After-MarketServices
NextGenerationServices
ProductEngineering
ProcessEngineering
PrototypingConsulting &
PlanningSMT & PCBA
Transport Forwarding
Repair &Warranty
SmartSystems
ProductDevelopment
Design ForManufacturing
Tool & MoldDesign
BOMAnalysis
Plastic InjectionMolding
WarehouseManagement
ReverseLogistics
ValueEngineering
ImplementationService Design For Test
Process Tech.Development
Purchasing BackplanesDistributionE-commerce
ReplacePool
CustomerFeedback
EnvironmentalEngineering
EngineeringDocumentation
AssemblyDocumentation
LogisticsMachining &Enclosures
CustomsClearance
FailureAnalysis
ContinualImprovements
LifecycleEngineering
Info. & Sys.Integration
CablingInformationIntegration
E-waste &Recycle
Design for X
ODMRegulatoryCompliance
BTO/CTOOrder
FulfillmentRMA
Test & QualityAssurance
DocumentationPackaging
The Total Spectrum of Manufacturing Solutions
Developing the Hedgehog Concept
WHAT YOU ARE DEEPLY PASSIONATE ABOUT
WHAT YOU CAN BE THE BEST IN THE WORLD AT
WHAT DRIVES YOUR
ECONOMIC ENGINE
The Hedgehog Passion:
SMS is deeply passionate about getting 10 great OEM customers to attribute their success to SMS Technologies:
Developing the Hedgehog Concept
WHAT YOU ARE DEEPLY PASSIONATE ABOUT
WHAT YOU CAN BE THE BEST IN THE WORLD AT
WHAT DRIVES YOUR
ECONOMIC ENGINE
The Hedgehog Economic Engine
Profit per customer
drives SMS’s economic
engine:
SWOT ANALYSIS
Internal Strengths
Internal Weaknesses
External Threats
External Opportunities
Starting Point(Present State)
Destination(Vision – Future State)
Where is missions now? (Present State)
Where is it going? (Future State)
How will it get there? (Plan)
What are the obstacles?
Howwill Kingdom
entrepreneurs navigatethe road to achieving the vision ?
Change-State (Hoshin) planning is the short-term & long-term process used to identify & address critical missions needs.
CHANGE-STATE (Hoshin) PLANNING
CHANGE-STATE (Hoshin) PLANNING
Starting Point(Present State)
Destination(Vision – Future State)
Hoshin planning targets the critical few big obstacles (Boulders) on the road. The small obstacles (Small Stones) are handled by operations. A common mistake is to take on too much, dilute energy thereby, and achieve nothing in the end.
Use Hoshin to remove big obstacles (Boulders)
Use Operations to remove small obstacles
(Small Stones) on the road
OBSTACLES & OPPORTUNITIES
117
96
61 59 58 55 52 5044
3733
28 27 25 24 22 20 1611 11 9 8 7 6 6 5 4 1 0
13%
24%
31%
37%
44%
50%
61%
66%
71%
74%77%
80%83%
86%88%
91%92% 94% 95% 96% 97% 98% 98% 99% 99% 100% 100% 100%
56%
0
20
40
60
80
100
120
140
Areas of focus
Ran
kin
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Par
eto
Champions, Process / Measure Owners, & Master Trainers
PROCESS / MEASURE CHAMPION PROCESS OWNER MASTER TRAINER1.0 Leadership & Culture VP, Quality & Operations1.1.1 Strategic Planning Process VP, Quality & Operations President & COO VP, Quality & Operations1.1.2 Leadership Communication Process VP, Quality & Operations VP, Quality & Operations VP, Quality & Operations1.1.3 Organizational Performance Review Process VP, Quality & Operations Controller VP, Quality & Operations1.1.4 Continuous Improvement Management Process VP, Quality & Operations Test Engineering Manager VP, Quality & Operations1.1.5 Workforce Development Process VP, Quality & Operations VP, Quality & Operations VP, Quality & Operations1.2.1 Supply Chain Integration Process VP, Quality & Operations VP, Quality & Operations VP, Quality & Operations1.3.1 New Product Startup Process VP, Quality & Operations Director of Engineering VP, Quality & Operations2.0 Workforce Development Director of Manufacturing2.1.1 Job Skills & Cross-Training Certification Process Director of Manufacturing Director of Manufacturing VP, Quality & Operations2.2.1 Work Area Continuous Improvement Process Director of Manufacturing Production Manager VP, Quality & Operations3.0 Operational Excellence Test Engineering Manager3.1.1 Kaizen Process Test Engineering Manager VP, Quality & Operations VP, Quality & Operations3.1.2 6S Visual Workplace Process Test Engineering Manager Director of Manufacturing VP, Quality & Operations3.1.3 Quick Changeover/SMED Process Test Engineering Manager Production Manager VP, Quality & Operations3.2.1 Material Management Process Test Engineering Manager Materials Manager Materials Manager3.2.2 Production Planning Process Test Engineering Manager Production Control Manager Production Control Manager3.2.3 Development Process Test Engineering Manager Director of Engineering Director of Engineering4.0 Business Results Controller4.1.1 Inventory Turns Controller Controller Controller4.1.2 Sales/Employee Controller Director of Manufacturing Director of Manufacturing4.1.3 On-Time Delivery Controller Materials Manager Materials Manager4.1.4 Parts per Million Controller VP, Quality & Operations VP, Quality & Operations4.3.1 Process Maturity 3 and above Controller VP, Quality & Operations VP, Quality & Operations4.3.2 Quick Ratio Controller Controller Controller
Team Selection & Direction
Customer-focused Support Teams
•Program Manager
•Mfg. / Quality Eng.
•Test Engineer
•Production Planner
•Value Stream Mgr.
•Purchasing Agent
Customer-Focused Operations Teams
•Cell Leaders
•SMT Operators
•Assembly Operators
•Test Technicians
•Quality Technicians
•Route Runners
CUSTOMERS
Team Selection & Direction
Quality Council
Quality Council
Customer-focused Support Teams
Customer-Focused Operations Teams
Customer-focused Support Teams
Customer-Focused Operations Teams
Direction
Support
Standard Problem-solving Model
PLAN
DOCHECK
ACT
Define
Measure
Analyze
ImplementImprove?
Control
PLAN
DOCHECK
ACT
Define
Measure
Analyze
ImplementImprove?
Control
Sharing of Key LearningCustomer Focused Teams
Industry Customer PM MQE PC TE VS Mgr.
Defense ITT (C Band) Steve Sean JoAnn J.C. Rommel
Industrial Ideal Steve Tony Joann J.S. Trung
Medical Tandem Mel Sean Dawn J.C. Rommel
Industrial E-Band Mel Sean Dawn Rumaldo Trung
Automotive LHV Troy Kraig JoAnn J.S. Trung
Defense Thales Steve Kraig JoAnn Rumaldo Rommel
Defense Irvine Sensors Troy Tony Dawn J.C. Rommel
Medical RF Surgical Troy Tony Kate J.S. Trung
Defense Secure Com Mel Sean JoAnn Rumaldo Rommel
Improvement Idea Solicitation, Review, Approval & Implementation
1. Each team member silently thinks of and writes down as many ideas as possible in a set period of time (5 to 10 minutes).
2. Each member in turn states aloud one idea. Facilitator records it on the flipchart.
3. Continue around the group until all members pass or for an agreed-upon length of time.
4. Discuss each idea in turn.
5. Prioritize the ideas using multi-voting or list reduction.
6. Come to consensus on the team’s top seven collective ideas.
7. Assign team members to the ideas along with completion times.
8. Track assignments through to completion or revision.
9. Recognize and reward team members for their contributions.
Ensuring a High Level of Participation
Alignment before Hoshin PlanningAlignment after Hoshin Planning
Flexibility: As the business environment changes, SMS activities change quickly with it
Alignment
How Is Improvement Recognized?
S ponsor ed by ES ponsor ed by E -- BandBandFr iday, M ar ch 5Fr iday, M ar ch 5 t ht h
11: 30 am 11: 30 am –– 12: 30 112: 30 1 stst shif tshif t7 : 30 pm 7: 30 pm –– 8: 30 28: 30 2 ndnd shif tshif t
Lunch f r om O r ganic T o GoLunch f r om O r ganic T o GoPasta & Chicken M ar inar a, Gr illed M ixed Pasta & Chicken M ar inar a, Gr illed M ixed
Vegetables, S alad & Desser tVegetables, S alad & Desser tA p p r e c i a t i o n o f O u ts ta n d i n g
R e s u l ts a n d T e a m w o r k i n C o n q u e r i n g a S i g n i fi c a n t
P r o d u c t i o n R a m p !!
Tracking Suggestions in the Gemba
• Suggestions are reviewed as part of regular team meetings
• A3 Storyboards are used to provide a history of improvement milestones
• Progress toward implementation is tracked through each team’s responsibility matrix
• Awards are passed down through the teams beginning with the champion
Thank You
Other SMS Technologies Content Contributor:
John Crankshaw, Test Engineering Manager
Contact: Kenny Heifner