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IJLSS
3,3 Reducing electronic component
losses in lean electronics
assembly with Six Sigma
206
approach
Tan Ping Yi, Chin Jeng Feng, Joshua Prakash and Loh Wei Ping
School of Mechanical Engineering, Universiti Sains Malaysia, Penang, Malaysia
Abstract
Purpose – In electronics assembly, the losses of electronic components throughout the
surface-mounting process (including kitting and setup) are hard to trace. This affects accurate
material planning and manufacturing costing. This paper aims to investigate this issue and to
generate a suitable mixture of strategies for the relevant causes.
Design/methodology/approach – The project is executed by an undergraduate manufacturing
engineering student and several company engineers over a period of ten weeks. Define, measure,
analyze, improve, and control (DMAIC) approach delineates the project stages. The solutions devised
must be in agreement with lean philosophies and practices currently upheld in the company.
Findings – Component losses stem from multiple sources and are complicated by inherent
information inaccuracies. A right mixture of strategies is envisaged on analysis on these sources. An
average 18 percent of decrement in component losses in monetary value is achieved in the initial
16 weeks of the improvement phase.
Research limitations/implications – The DMAIC approach induces a focused, systematic and
thorough study on the selected area. For the limitations, this study is based on a single industrial case.
The evidence may be anecdotal and idiosyncratic to the electronics assembly industry. The final
solutions which emerged need to factor in the organization current maturities in Lean and Six Sigma
concepts.
Practical implications – Component loss is a common problem faced by electronics assembly
industries. In this paper, the nature of the problem and the related investigation are extensively
illustrated in the context of the case study. As many electronics assembly industries have embarked on
Lean or Lean Six Sigma journeys, the savings and data accuracy improvement achieved in this case
study provide valuable benchmarks.
Originality/value – The issues related to electronic component losses have not been reported in
established literature to date. This is also the first reported success case study of applying DMAIC to
address these issues in a lean company.
Keywords Electronics assembly, Component losses, Variability reduction, DMAIC, Electronics industry,
Electronic equipment and components, Lean production, Six Sigma
Paper type Research paper
1. Introduction
Lean manufacturing and Six Sigma are the two emergent production management
International Journal of Lean Six paradigms prevailing in recent years. Lean manufacturing concentrates on total
Sigma elimination of production wastes to create a production system highly adaptive to meet
Vol. 3 No. 3, 2012
pp. 206-230
q Emerald Group Publishing Limited
2040-4166
The authors wish to acknowledge Universiti Sains Malaysia (USM) for the full financial support
DOI 10.1108/20401461211282718 through the short-term grant no. 60311042.
market demands. Six Sigma seeks improvement on output qualities in customer Reducing
perspective, primarily by minimizing all forms of variability and occurrences of process component
errors. While both paradigms share many commonalities, they coexist in a management
system complementarily in many cases. Industrial enterprises adopted these paradigms losses
have gained substantially in efficiency, response speed, and production flexibility, and
consequently enable them to diversify products at low cost, with high productivity,
prompt delivery, minimum stock levels, and optimum quality (Cuatrecasas Arbós, 207
2002). One example of this gain is highlighted in Breyfogle (2010), where project
improvement efforts of a business management system are tackled. Similarly, in Sharma
and Chetiya (2010), success of the Six Sigma project selection approach in the Indian
manufacturing industry are studied and several critical factors are identified.
One of the common goals shared by both paradigms is to reduce variability.
Succinctly, variability or variation is any unwanted condition or the difference between
a current and a desired end state (Motley, 2005). In enterprises today, identifying and
reducing variability in key product features and manufacturing processes have
become imperative. The root cause of variability, nevertheless, is often multifold and
largely dependable on the technology used, types of processes, its development, and
handling.
In surface mounted technology (SMT) process, electronic components, from dozens
to hundreds, are interconnected and mounted on a printed circuit board (PCB). The
sizes of these electronic components are not homogeneous, with some measuring as
tiny as in millimetres. The process often results in a percentage of component losses,
which are difficult to trace. The losses have caused wastages as well as significant
discrepancies in material planning and manufacturing costs. To understand the extant
of the problem in this industry, we approached several electronic assembly plants with
previous established research relationships, at the early stage of the project. The
consensus corroborates the prevalence of component losses at SMT process. The losses
aggravate in high mix low volume productions due to increased changeovers and
higher component variety. Normally, customers have agreed levels of lead in (setup or
splicing loss) and wastage based on types of components, approximately 2-4 percent.
Company policies in general permit operators to directly dispose short strips as long as
the length is uneconomical for splicing. In management, inventories are over issued to
production according to the component sizes. These inventory levels are continuously
readjusted according to machine scrap rates and estimated component consumptions
or when significant shortages occur.
An extensive literature survey on recent journal publications on related topic was
unfruitful. This presages the research is new and worthwhile reporting. Electronics
are becoming increasingly vital in many product function designs. For example, in the
automotive industry, electronics are widely serving four main purposes: to improve
drivability, to enhance safety features, to lower environmental burden and to realize
greater operational reliability. According to Leen and Heffernan (2002) and
Sangiovanni-Vincentelli (2003), electronics comprise more than 25 percent of a normal
car’s cost. This percentage will continue to rise in the future based on the current demand
and technology trend.
In this paper, we reported a project spearheaded to reduce electronic component
losses in an electronics assembly plant. The project follows define, measure, analyze,
improve, and control (DMAIC), a problem solving methodology originated from
IJLSS Six Sigma concepts. The current paper is organized as follows: Section 2 introduces the
3,3 study of variability in literature and general procedures proposed to solve it. Section 3
presents DMAIC methodology followed in the current research. Section 4 presents the
company in the case study. Section 5 explains the problem statement of the case study.
Section 6 reveals the process flow of raw materials and the measuring method, and
Section 7 describes the root causes of the problem after analyzing the data. Section 8
208 provides a suitable solution for solving the root causes, and Section 9 presents the
results and the outcomes of the project. Finally, the research conclusion is provided in
Section 10.
2. Literature review
Variability naturally exists in every aspect of manufacturing activity. Motley (2005)
distinguish four main sources of variability in manufacturing processes:
(1) poor design practice and unrealistic requirements causing insufficient design
margins;
(2) poorly defined operating environments and inaccurate design reference;
(3) inherent variability of manufacturing processes; and
(4) manpower, materials, work methods, machinery, and measurement.
Problem definition
DEFINE
Interview
Identify potential
areas of losses occur
Tracing model
MEASURE
selection
Data/information
verification
ANALYZE
Data analysis
Figure 1.
Monitoring &
DMAIC methodology
continuous CONTROL
flow chart
improvement
3.2 Measure phase Reducing
In the measure phase, the process flow must be well grasped. The workstations component
and models that require focus must be identified. Data are collected. The measuring
method used in the process performance must be validated to ensure data accuracy and losses
suitability for analysis.
4. Case study
4.1 Company profile
Established in the northern part of Malaysia, Company X assembles automotive
electronic components. Their products, including lamp control units, electronic parking
brakes, door lock modules, digital clocks, and so on, are supplied to renowned
automotive companies, both local and international. The plant operates three shifts
per day, six days per week (overtime on Sunday, if there is backlog), and has a total of
592 employees. An average of 10,000 products is assembled daily.
5. Define phase
5.1 Description of component losses problem
The tenet of the current project is to investigate the losses of electronic components
(such as IC, resistor, capacitor and so on) that occurs during the production process.
IJLSS As aforementioned, component loss is not unique in the electronics assembly industry.
3,3 Electronic components are retrieved from the storage to the front end processes prior to
the production based on the order received. Kit preparation is manual and the recipe of
the components is order specific. The processes take place at a sequential automatic
line with manual loading.
As a common practice, allowance for discrepancy is given, and, as long as loss is kept
212 within this allowance, the cost is absorbed into the production cost. The current problem
faced by the company’s production line is the high losses in electronic components. The
problem existed since the SMT was introduced to the company but was largely ignored.
Recently, it was bought to light due to several reasons. First, the prices for electronic
components have increased significantly in the past few years. Second, the losses on
electronic components escalate proportionally to the rising consumptions resulted from
more compact circuit designs and capacity expansion in the company. Third, stiff
industry competitions compel the company to save cost aggressively.
In a preliminary investigation ran by the company, the production department was
unable to clearly identify of which workstation or process generated the highest
percentage of losses as well as to relate one type of component loss to specific causes.
Their efforts were also hampered by serious inaccuracy in the inventory data. An
undergraduate student is sent to Company X for a period of ten weeks to investigate
the matter as internship project. The student is assisted by a team of mechanical and
industrial engineers from the company on non regular basis. The engineers have
knowledge with the relevant machines and the processes. One engineer from the team
has involved in Six Sigma projects in her previous working experience. The student is
equipped with the fundamental knowledge in quality management including Six
Sigma. Trainings on general lean concepts have been provided to him. Lean concepts
have been extensively practiced in Company X, exemplified by complete process
cellularization at backend processes and active kaizen project cycles for more than five
years. Six Sigma tools including SPC are exclusive for quality department.
Each department needs to improve process along selected key performance
indicators annually. The company suffered losses of over USD 300,000 the previous
year on the component losses. The persistence of the problem is perceived as a good
platform for investigation and improvement by the student dedicated fully on the
project. The management has not set any budget limit for the improvement, despite any
proposal require additional purchase of instruments must be financial justifiable.
Based on the previous year figure, the management suggests a 10 percent reduction in
component losses in term of monetary value over the first three months of project
completion. This is translated into saving of USD 800 per month.
Any improvement proposed should be in agreement with lean concepts. Any
solution resulting larger batch size in production, loading parts on rule beside first
come first served (FCFS) or increase in non value added time is not permitted. System
with self-monitoring and right first time, such as Poka-yoke is encouraged.
6. Measure phase
6.1 Process flow
The production of all models is relatively similar, albeit with different electronic
components. Each model goes through nine operations, which begins at Station 1: reel
weighing station and ends at Station 9: visual inspection station. The process flow of the
components during the surface-mounting process is shown in the raw material process Reducing
flow (Figure 2). The three process charts of electronic components repeating loading, component
in-process and unloading are shown in Figure 3. At the outset, the electronic components
are transported from the warehouse to the production department after the line losses
supervisor calls for the build number, which is an artificial parent determined by
grouping similar models scheduled to run. Each build number consists of dozens
213
Transporting partial reels from Transporting reels from warehouse
production department to warehouse. to production department.
Warehouse
CheckingReel
partial reels quantity.
Amount . Flow of unused reel
Machine
Reel Weighing Machine
Stencil
rack
Waiting for checking unused
reels quantity. Waiting for checking received
reels quantity. Standby
Standby Area Area
Fire Hose
Waiting for setup. Visual Quantity produced was backflush after
Waiting for return to Check visual inspection.
Setup Station Table
warehouse.Feeder Trolley Conveyor
Rack Table Loading reels into feeders.
Lifter
Trolley Table
PC
AOI
Table Table Table Table
Unloading reels from
feeders.
Rack Setup Station Conveyor
Table
Trolley
PC Table
Trolley Table
Feeder
Table Table Table Table
Rack
Reflow Oven
Stencil Conveyor
Rack
Load reels into machine.
Raw PCB Standby Area
Placement Machine 2
Fire Hose
Placement Machine 1
loader
Manual
Label Figure 2.
PC Material flow of electronic
components investigated
Note: The terms and machine used is explained in the subsequent paragraph
IJLSS Raw materials/reels
(calls according to
Loaded trolleys will be setup
into placement machine.
3,3 Trans-
portation
Build Number)
moves from Placement
Placement process will be
done by picking and placing Trans-
portation
The trolleys will be
sent back to setup
warehouse to Machine the electronic components station
production on the printed circuit board
department (PCB)
to hundreds of reels based on the corresponding bill of materials. Each reel holds
hundreds to thousands of electronic components in rolls of perforated tape. Normally,
the electronic components are sent to the production line seven up to 13 times a day
(Figure 4).
Upon arriving at the material acceptance station, a batch of electronic components
goes through the reel weighing machine. Handled by an operator, the machine weighs,
labels, and records the quantity of components on the reels to verify the actual quantity
received with information stored in a database. The components are then sent to the
setup station and loaded manually into detached feeders. Some of the feeders are shared
by different build numbers, thus, the feeders, each supported by a trolley, are
commonly loaded at the maximum level. Upon completion of the task, the trolley will
be pushed to the surface-mounted equipment (SME) line. An SME line contains a series
of processes in a largely synchronous continuous flow. The processes include solder
pasting, automatic optical inspection (AOI) solder paste, placement of electronic
components, heating from reflow oven, and, finally, AOI and visual inspection. Belt
conveyors interlink these processes.
Upon request, e.g. changeover, the trolleys are fitted accordingly into the electronic
components placement machines, which pick and place electronic components onto
solder-pasted PCBs using a vacuum mechanism. Depending on the design, a PCB
usually has to undergo four stages of placement process before entering the reflow
oven. The reflow oven slowly heats the solder paste to form a solder joint at the
electronic component’s legs. After an interval of rapid cooling, AOI follows. The solder
Cover tape Reducing
component
losses
Carrier tape
215
Embossed
cavity tape
Figure 4.
Reel and its components
Bar-code label
7. Analyze phase
In this stage, the data and information collected are analyzed. The root causes of the
problems are identified using a Ishikawa diagram (cause-and-effect diagram).
Process Percentage
Unloading component 11
Placement process 27 Table III.
Others 62 Percentage of losses
Total 100 categorized by process
Method is the procedure of loading and unloading electronic components. In this study,
there is exclusion of two other commonly present categories in a Ishikawa diagram,
namely environment and measurement. Electronics assembly is run in a controlled
environment of which electronic components understudied and process equipments
IJLSS Machine Human
3,3 Setup
Placement Malpractice
machine
Inadequate oversight
from supervisors
218 Reel weighing machine
Human errors during
data input Electronic
Components
Loading & unloading Quantity Losses
Backflush Quality
Splicing Adhesive
Figure 5.
Ishikawa diagram Method Material
219
Figure 6.
Pareto chart based on
percentage of losses
.
Malpractice (C2). A policy states that any length of reel that drops off from
the machine must be scrapped. In this situation, the reel cannot be reused
because mistakes can easily be made in identifying the components the reel
is actually carrying. Nevertheless, few operators take advantage of this
policy to save the trouble of splicing.
.
Inadequate oversight from supervisors (C3). The priority, as perceived by
supervisors, is to ensure the continuous feeding of components at the SME
lines. In fact, an increase in component losses is seldom reprimanded by the
management.
.
Human errors during data input (C4). The quantity produced is written and
keyed in by operators at the end of AOI, thus, human error is likely.
Occasionally, the system is not updated to account for PCBs sent back from
the rework department.
(2) Machine:
.
Placement Machine (C5). Defect components are removed by machine as scrap
during the placement process. Maintenance is done when there are machine
errors, during the placement process. Machine errors, such as machine
conveyor stop or high components throw out rate, are repaired by a technician.
However, the technician merely solves the problem, not the root cause.
.
Reel weighing machine (C6). The reel weighing machine is only accurate
when the input information of the reel is correct. Any uninformed change
of input information, e.g. packaging material, affects the reading. Manual
counting is impractical with the time required.
IJLSS (3) Method:
3,3 .
Loading and unloading (C7). The loading standard operating process (SOP)
does not emphasize the precautionary steps aimed to prevent component
losses during handling. In addition, the corresponding monitoring is weak,
resulting in noncompliance amongst operators.
.
Backflush (C8). The balance on component usage is estimated, not exact. The
220 system writes off the planned quantity of components of one batch, rather than
the actual consumption of these components. The defective components and
the drop off during setup and placement process are, in fact, not considered.
.
Splicing (C9). The final length of a reel at the feeder is combined with a new
reel to avoid machine stoppage in SME line. Splicing requires small overlaps
of the two reels. Drop off during the handling is not uncommon. There are a
number of steps involved, including bar code scanning verification. Without
enforcement, some steps, e.g. bar code scanning verification, are either omitted
or improvised without authorization. This complicates the investigation
because the information in the system is not updated accordingly.
(4) Material:
.
Quantity (C10). The quantity of components stored in each reel depends on
component size, supplier, packaging material, and previous usage. If a model
requires 1,000 component A, and with a standard quantity of 800, two reels,
with a total of 1,600 components are needed. The balance of 600 components
will be returned after production.
. Quality (C11). The quality of components may differ. If quality is poor,
machine throw out rate will inevitably increase.
.
Adhesive (C12). The adhesive protective cover of the components is
designed to withstand only a small amount of pulling force, as machine
requirements stipulate. Applying force, such as manual handling, usually
exposes the adhesive and the associated components prematurely.
8. Improve phase
8.1 Proposed solutions
Each root cause was carefully studied by the team consists of the investigator and
company engineers, accompanying by verification through Gemba walks (on-field
studies) when skepticism arises. Eight solutions are proposed. Some were suggested by
company engineers during brainstorming sessions.
8.1.1 Develops new standard operating procedure (S1). A new SOP for the loading
and unloading process is developed at the setup area. The new SOP is presented in
dual language, English and Bahasa Malaysia (local language), to accommodate local
and foreign operators.
Awareness is raised through poster displays, in which dos and don’ts are given. For
instance, tweezers should be used, not scissors, during the setup. Training sessions
would be duly provided.
8.1.2 Kaizen team (S2). A cross-functional kaizen team would be formed, consisting
of the setup and the machine operators. One example of the kaizen team structure is
shown in Figure 7. Shift leaders are appointed as kaizen team leaders, who are overseen
Reducing
Kitting Supervisor
component
losses
Shift Leader H
(Kaizen Team
Shift Leader I
(Kaizen Team
Shift Leader J
(Kaizen Team
221
Leader) Leader) Leader)
by the kitting supervisor. Weekly component losses during shifts are selected as one of
the key performance measurements. This would motivate operators to improve their
individual performances. Table V shows the schedule and tasks to be performed by the
kaizen team.
8.1.3 Install close-circuit television (S3). Close-circuit television (CCTV) cameras are
installed in the setup area to act as deterrent and to monitor the operators. Footages
provide a form of evidence for any misconduct, ensuring accountability and
responsibility from the operators. The assistant executive (head of line supervisor) is in
charge of the CCTV footage and will provide review reports to the production manager
regularly.
9. Control phase
9.1 Kaizen team
The regularity of kaizen meetings is monitored. The meetings are used as venue to
reinforce the kaizen concept, seven wastes, value stream mapping, importance of
maintaining work quality, value added, and nonvalue added activities to the team
members. Some common practices in identifying waste are constantly explained,
Setup Station Reducing
Feeder Table component
Rack
losses
Trolley
Table
PC
Trolley 223
Table
Trolley
Table
Trolley
Feeder
Table
Rack
Trolley
Table
Trolley
Table
Setup Station
Table
Trolley
Table
Trolley
Table
Trolley
Table
Trolley
Table
Trolley
Table
Trolley Figure 8.
Table Old setup station shop
floor layout
such as the observation method and quantifying the waste into the same standard
for measurement purposes. Aside from these, the brainstorming process is held to
identify potential improvements that may be carried out, e.g. changes on task
schedules.
IJLSS CCTV
3,3
Setup Station
Feeder Table
Rack
224 Trolley
Table
PC Table
Trolley
Table
Feeder
Table
Table
Table
Rack
Setup Station
Feeder
Rack Table
Trolley
Table
PC Table
Trolley
Table
Feeder
Table
Table
Table
Rack
Figure 9.
New setup station shop
Table
Table
Table
Table
Table
Table
Table
the evaluation form is shown in Figure 11. The actual content of the form breaks into two
sections of each listing critical check points for procedure conformance. The reason of
any non-conformance of interest is collected by the additional follow-up questions, as
part of the continuous improvement process. The mark will attribute to the team’s 5S
performance score.
226
IJLSS
Table VI.
Evaluation of solutions
Cost
Implementation Causes solved
Solution Planning requirement feasibility Maintenance difficulty C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12
S1 Two weeks of Needs to ensure the new Requires training for all Requires time to time * * * * *
production engineer SOP is justified and setup operators monitoring
time to prepare the SOP accepted
S2 One week of production Cooperation from the Explanation and Self-motivation within * * * *
engineer time for management level to training of the kaizen the kaizen team member
conducting the training operators is essential concept is needed
course
S3 CCTV system cost and Suitable location for Personnel monitoring Willingness to * * * *
installation cost CCTV camera the footage recorded continuously review the
needs to be chosen footage recorded
wisely
S4 Five weeks of Requires justification of Operators require time Debugging required for * *
production engineer and the effectiveness of the to endure the changes in the software
software engineer time new layout and error the shop floor
for changing and checking in the software
preparing the layout written
software needed
S5 Four weeks of Checking accuracy of Train operators to Computer server needs * *
production engineer and server data acquire data from to be protected from
software engineer time server viruses and
breakdowns
S6 Require extra working Requires scheduling for Cooperation from the Management needs to *
hour from maintenance preventive maintenance maintenance ensure preventive
engineer and time slot department maintenance is running
technicians accordingly from time
to time
S7 Take four weeks of Needs to design the Train operators to use Authority is needed to *
software engineer and FIFO system flow the FIFO system ensure the operators
production engineer pattern follow the system all the
time time
S8 Patent cost Patenting the Request approval from Cooperation from all the *
numbering reel method the management using suppliers to use the
the patented method patent
Certified Setup Operator Evaluation Form Reducing
Employee Name : Date : component
Employee Number : Score :
losses
24
Loading 227
Q1. Does all the 6 SOP steps being followed by the operator? Followed ___________/6 Steps
Q2. Does “Tweezer” used by the operator during the setup? Yes/No
Q3. Does the empty pocket have been positioned at the pickup window Yes/No
_____________________________________________________________________
_____________________________________________________________________
Unloading
Q1. Does all the 9 SOP steps being followed by the operator? Followed___________/9 Steps
17,045
Start of S1 and S4 implementation
14,205
Losses (USD)
11,364
8,523
5,682
2,841
0
Week1
Week2
Week3
Week4
Week5
Week6
Week7
Week8
Week9
Week10
Week11
Week12
Week13
Week14
Week15
Week16
Week17
Week18
Week19
Week20
Week21
Week22
Week23
Week24
Week25
Week26
Week27
Week28
Week29
Week30
Week31
Week32
Week33
Week34
Week35
Week36
Week37
Week38
Week39
Week40
Week41
Figure 12.
Week Graph of total losses from
weeks 1 to 41 (2010)
Total losses Linear (Total losses)
IJLSS Many problems occurred on these areas have not been studied as intensely as the
3,3 critical processes. Second, variability and its impact on costing and management are
largely overlooked. The project reveals that these improvement opportunities are
significant particularly on cost savings and the undertakings are likely to be highly
rewarded.
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IJLSS About the authors
Tan Ping Yi is a Graduate Student from School of Mechanical Engineering, Universiti Sains
3,3 Malaysia. Part of the work presented here belongs to her final year project.
Chin Jeng Feng obtained his Doctor of Philosophy (PhD) from University of Birmingham, UK
and currently is a Senior Lecturer in the School of Mechanical Engineering, Universiti Sains
Malaysia. The research areas of interest include production planning and control, lean
manufacturing and intelligent manufacturing system. Chin Jeng Feng is the corresponding
230 author and can be contacted at: [email protected]
Joshua Prakash is a Postgraduate Student from School of Mechanical Engineering, Universiti
Sains Malaysia undertaking a Doctor of Philosophy (PhD) in Mechanical Engineering majoring
in Lean Manufacturing. He received his Bachelor Degree (BSc) in Manufacturing Engineering
with Management from School of Mechanical Engineering, Universiti Sains Malaysia.
Loh Wei Ping obtained his Doctor of Philosophy (PhD) from Universiti Sains Malaysia,
Malaysia and currently is a Senior Lecturer in the School of Mechanical Engineering, Universiti
Sains Malaysia. The research areas of interest include data mining, mathematical modeling and
applied biomechanics.