Lean Management implementation in electronics industry in South India

1. CASE STUDY OF LEAN IMPLEMENTATION IN ELECTRONICS INDUSTRY
Background:
Client is a leading Indian Electronics Systems Design and Manufacturing company with it
manufacturing facilities in Mysore. The company has been in operation for more than two
decades with its customers in India, North America, Europe, Japan and China.
Objective:
 To streamline the operations in one of its units
 To introduce Lean manufacturing in its operations
The scope of workshop was in Unit I of the company which carries out job work on energy
meters and also makes set top boxes.
Diagnostic Study
The lean journey commenced with a current state assessment and road map setting exercise for
energy meters which was being job worked by the company. Keeping in mind the objectives, the
current state of the manufacturing process was defined in a value stream map (VSM) that was
made using the actual cycle times measured for each activity involved in the manufacturing
process. The inventories, number of operators involved were also physically verified on the shop
floor. The summary of the VSM exercise is as follows
Operation Workstation Manpower Cycle time WIP Capacity
Place 250-300
components
in each PCB
3 pick and
place
machines
4 15 secs 3 days 3500
PCB/day (2
shifts)
Reflow
soldering
1 1 8 secs 2 hours 3500
PCB/day (2
shifts)
Testing 1 1 30 secs 1 hour 1800
PCB/day (2
shifts)
Manual
placement of
50-60
components
in each PCB
6 8 3 min. 2 days 2700
PCB/day (3
shifts)
Wave
soldering
1 1 20 secs 1 day 3500
PCB/day (3
shifts)
Manual
placement
and soldering
60 60 12 - 30 secs 2 days
(varying
inventory at
each
workstation)
1800-3800
PCB/day
Testing 3 3 30 secs to 60
secs
- 2000
PCB/day
Drying 1 1 8 hours per -

2. batch
Back Cover
Assembly
8 8 12 - 30 secs 1 days 1800-3800
/day
Final
Assembly
4 4 12 – 30 secs 1 days 1800-3800 /
day
Baseline study: The existing throughput time for a batch of energy meter to come out of the
facility was varying from 4-6 days. The production rate per day was varying from 1800 to 3200
energy meters per day depending on the demand as well as the number of shifts of production of
various workstations
Due to inventory at almost every workstation, it was observed that there were various instances
of many of the WIP becoming obsolete. The data at various testing workstations showed that the
present quality level was around 98% (20,000 ppm) with some instances of ppm going down to
even 1,00,000 ppm especially after wave soldering.
System Potential: Based on the current state map and our observations, the future state map was
drawn out. It was decided that the throughput time of a batch of energy meters would be brought
down to 2 days considering that 8 hours drying time was essential for every energy meter. The
improvement themes identified were as follows
Improvement themes:
 Reduce the throughput time of energy meters and other products
 Improve the FTR (First Time Right) % of the various workstations
 Provide the flexibility on the lines in order to be able to take up different product mix as
per customer requirement
 Reduce the changeover time of pick and place machine
Roadmap for Lean implementation:
S.No. Current State
Observation
Action Plan Expected
results
Action Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
1 Throughput
time – There
are more than
40
workstations.
Each
workstation had
inventory and
was working
independently.
The total
throughput time
for a batch to
be delivered to
the client was
4-6 days
Future state map
with redesigning
of workstations to
be done. Flow to
be implemented
after the automated
operations till the
drying process
which is in batch
mode. This will
ensure each
workstation pulls
from its upstream
workstation
The
throughput
time was
expected to
be brought
down to 2
days
2 The pacemaker
process was the
Detailed study of
the changeover to
Changeover
time to be

3. pick and place
process which
places 250-300
components in
each PCB.
Changeover
time in the pick
and place
machines from
one product to
another was
around 90 min.
be carried out.
SMED concepts to
be used to reduce
the changeover
time
reduced to
around 15
min.
3 Defects were
being detected
downstream
much later.
This resulted in
the various
workstations
continuing to
produce bad
quality
components as
feedback is not
received in
time. (Reflow
soldering and
wave soldering
workstations)
Point of
occurrence and
point of detection
to be brought
closer to each
other. Quality
check to be
introduced
immediately after
reflow soldering
and after wave
soldering
PPM is
expected to
be reduced
from 20000
ppm to
around
10000 ppm
4 Reflow
soldering and
wave soldering
were the key
workstations
which
contributes to
the FTR being
low
Identify the root
causes of the
defects and
address them with
temporary and
then permanent
countermeasures.
Expected
that the ppm
of these
workstations
will come
down to
1000 ppm
5 Cycle time at
each of the
workstations
was much
different from
the TAKT time
of pacemaker
process. This
results in line
not being
balanced
Change in the
design of the
workstation to
enable
standardization of
work and equal
distribution of
work across
workstations. This
will also ensure
that irrespective of
product the core
processes are
standardized
All
workstations
to work with
even TAKT
time of
pacemaker
process (15
seconds)
6 All the
workstations
have to be
synchronized
Synchronize and
level schedule
based delivery
dates. Improve the
Reduce the
throughput
time by 10%

4. with the
pacemaker
process.
monitoring system
through 5S
7 Standardize the
complete
process of
scheduling for
different
product mix
based on client
requirements
Establish SOPs,
visual
management,
monitoring
systems etc.
Consistently
achieve
OTIF (On
time In Full)
of 99.9%
Implementation Methodology
KIAP has a unique intensive workshop methodology to improvement and problem solving in strategic
areas. 2-3 day workshops were conducted in each stage taking up projects in accordance with the lean
roadmap. During these workshops, process improvement and Problem Solving are accelerated thereby
giving significant improvement.
In each workshop, cross-functional teams were formed, each team working on improvement of one
strategically important area. Over a one-year period, participation was ensured from all functions
including finance, stores, marketing and HR. The participants in the workshop simultaneously learn the
relevant lean tools and techniques by actually implementing them. Top Management (owner)
commitment is the pre-requisite for the success of any such initiative and this was obtained by their
physical presence during the presentation/ experience sharing sessions at the start and end of each day of
the workshop.
Standardization of the improvements made was reviewed within 3-4 weeks after each workshop.
Improvement Projects
Project 1 – Implementation of flow
The automated pick and place machines were identified as the pacemaker process as they were
the main influencers in determining the capacity of the entire line. Accordingly, all the manual
workstations were redesigned in terms of processes at each workstation, in such a manner that
every workstation had a cycle time close to the cycle time of pick and place operations i.e.
approx 15 secs. A total of 40 workstations were thus established.
The workstations were then relaid and flow was established from the pick and place process till
the drying process. This ensured that a particular PCB whose processing was started was able to
complete all the processes and reach the drying stage within 2 hours.
Flow was then established, post the drying process, till the final assembly. The total throughput
time achieved for one PCB to get converted to an energy meter was approx 16 hours spread over
two days, including the drying time of 8 hours
The total shop floor space occupied in the new layout was 60% less than the earlier layout.
Project 2 – Changeover time reduction in pick and place machines
The total changeover time in pick and place machines from one product to another was
approximately 90 min. The changeover process involved unloading and reloading of cartridges
carrying various components. The various activities in the changeover process was classified into
online and offline activities and all offline activities were carried out before the start of the actual
changeover. Without the presence of all the cartridges needed for the changeover, the
changeover was not started. This resulted in the total changeover time being reduced to 15 min.

5. Project 3 – Point of detection of mistakes was made as close to point of occurrence as
possible
The wave soldering operations was identified as the point of occurrences for a number of defects.
However since these defects were actually detected atleast two or three workstations downstream
of the wave soldering workstations, it resulted in a number of PCBs being defectively produced
even thought the defects had already been detected. An inspection workstation was introduced
for the PCBs coming out of wave soldering. This ensured that feedback on wave soldering was
immediately provided and this prevented further defective components produced from wave
soldering. This brought down the ppm after wave soldering from a range of around 20000 ppm
to 10000 ppm
Project 4 – Lifting of components during wave soldering causing quality defects
One of the root causes of quality defects out of wave soldering was the lifting of a transformer
when it is passing over the solder wave. A jig was designed to hold down the transformer which
resulted in the ppm coming down by further 4000 ppm. Thus the quality defects reduced to 6000
ppm after wave soldering.
The above improvements were implemented during the first workshop carried out by us. Further
improvements are still in process and the lean journey is continuing in the organization.
Summary of Results obtained
Parameter Before After Improvement
Throughput time 4 – 6 days 2 days 60% reduction
Floor space occupied 7500 sq.ft. 3000 sq.ft. 60% reduction
Changeover time 90 min. 15 min. 83% reduction
FTR 20000 ppm 6000 ppm 70% reduction
No. of persons 80 persons 60 persons 25% reduction
WIP > 10 days 2 days 80% reduction
The benefits obtained have resulted in the company being able to service the customer with
shorter lead times, take orders of different products and thus be in tune with the market
requirements without compromising on the productivity and quality.