Simple lean tools like EPEI, Batch Size, SMED, Standardization, Heijunka, VSM, TPM, etc. give significant improvements and cost savings.

1. SMT Optimization
SMT Optimization
Project start:
22-06-2009
22-06-2009
Project completion:
30-09-2009
30-09-2009
Core team contact person:
Diven Singla,
Diven Singla,
Org Unit:
Country:
OPS MO Chennai
OPS MO Chennai
Region:
INDIA
INDIA
Cross functional application?
INDIA
INDIA
Sub-region:
Business Line:
INDIA
INDIA
YES
YES
OPS MO
OPS MO

2. Team member details
List of team members:
Vinod Philip, OPS MO MS,
Vinod Philip, OPS MO MS,
Vasudevan Subramani, OPS MO MS,
Vasudevan Subramani, OPS MO MS,
Ramani R, OPS MO Planning,
Ramani R, OPS MO Planning,
Sivaraman B, OPS MO MEX,
Sivaraman B, OPS MO MEX,
Vivek Lobo, OPS MO MS,
Vivek Lobo, OPS MO MS,
Mohalingam, OPS MO MS,
Mohalingam, OPS MO MS,
Revathy K, OPS MO (Operator-Production)
Revathy K, OPS MO (Operator-Production)
Kokila K, OPS MO (Operator-Production)
Kokila K, OPS MO (Operator-Production)
Deepika, OPS MO (Operator-Production)
Deepika, OPS MO (Operator-Production)
Sasikala, Ops MO (Operator-Production)
Sasikala, Ops MO (Operator-Production)

3. Executive Summary (10%)
SMT Optimization
OBJECTIVE
Improve Capacity Utilization from 35% to >65% on high value (5mill €) SMT
Equipment in Chennai
 Derive clear & tangible sub-objectives & translate into execution roadmap
APPROACH  Drive Simplicity in process & minimize Non Value Add activities
 Win Together through involvement of people & enable empowerment at root.
RESULTS






Equipment Utilization
: 35.2% to 84.5%
Cost Benefit (2 lines p.a.) : 336K€*
Step impact upon process yields
: 79.2% to 85.1%
Consumable cost saving p.a.
: 50K€
SMT component attrition/scrap
: 0.9% to 0.08%
Improved Health & Safety and morale of SMT Team
* Based upon P9 benefit of 28K€ over and above 65% utilization
FUTURE
IMPACT
Horizontal deployment of best practice across future SMT investments.
Project enabled effective utilization of 3rd SMT Line(2.2 mill €) from installation
Continued cost benefit p.m. across future expansions(through better utilization,
reduced component scrap rate & consumable costs)

4. Approach (20%)
SMT Optimization
Project -1
Set up Time
Line-1<15 min
Line-2<20 min
Utilization
>65 %
Project-4
Eqpt.
Breakdown Time
Line-1<3%
Line-2<3%
Vinod,
V
asu, K
annan,
Moha,
Vivek
Common
Goal
Tangible
Objectives
Project-2
No. of Setups
Line-1<21
Line-2<21
ni
am,
aling
oh
la
d, M
Koki
Vino
a s u,
k, V
Vive
Line-1<6.3%
Line-2<6.3%
Project-5
Maintenance Time
Line-1 <2.4%
Line-2 <2.4%
n
Project-3
Speed Loss
Line-1 <5%
Line-2 <5%
V
in
od
,
D
ee S a
s
p
i ka i , M
,D o
ive ha,
n
Main project translated
into 6 sub-projects with
clear and tangible
objectives for cross
functional teams
u, Di
ve
ama
enthil, R
Diven, S
il,
th su
n a
Se , V
i, d
as ino
,S V
la a,
i
ok pik
Project-6
K e
e
Other Stops
D
Vino
d, Va
s
Team
Engagement

5. Approach (20%)
SMT Optimization
Project Constraint
Counter Approach
Very little / No data available for
analysis
Constraint
Management
• Established model to determine target KPI
• Implementation of measurement systems
• Implement obvious & quick gainers
Operator absenteeism in SMTDifficulty in implementation &
sustaining improvements
• Operator Independent improvements
• Reduce operator Inter-dependence
• Multi-skilling & empowerment on critical
activities
Adequate availability of skilled
operators
• Simplification of processes/activities
• Formation of Core team for each project- Agreement on targets
• Brainstorming sessions & mind mapping for each project & each stage
Project
Framework
• Standardized templates for communicating actions, tracking progress, recording
improvements & effects.
• Risk & constraint management through brainstorming & feedbacks from practical
implementation activities.
• Weekly monitoring & reporting of project milestone results.

6. Deployment (20%)
SMT Optimization
Project 1: Setup Time<15 min
Common Setups, Optimised reflow profile
PCBs labeling and loading made offline
Setup tools moved closer to working area
Dedicated stackers for volume products
Ergonomic Trolley for stacker loading
Operators empowered to verify own work
Project 2: No. of Setup Changes < 21
Production sequence optimized
Batch size for weekly demands defined
Buffer definition/stackers for volume products
Project 3: Speed/Efficiency Loss
Component attrition rate/scrap reduction
Easy to use Splicing Tool
Project 4: Eqpt. Breakdown Time < 3%
System for tracking breakdown times
Work model for effective closure of issues
Periodic meetings with all suppliers
Training/Multiskilling for all technicians
Level-1& 2 spare ordering & management
Key service agreements in place
Project 5: Preventive Maintenance
Time<2.4%
Operator involvement in maintenance
activities
Maintenance during production breaks
Some maintenance activities made offline
Project 6: Other Stops
Optimize cleaning paper size for all products
Bigger reel sizes for major components
 Eliminated Non VA activities
-1675
min/wk/line
 Operator Wait Time reduced by -1043 min/wk/line
 Online activities taken offline -1162
min/wk/line
 Consumables Cost Savings
- 50K€ p.a.

7. Results (50%)
SMT Optimization
SMT UTILIZATION
125
Avg
Line 1
UTILIZATION.
105
Target
Line 2
85
65
45
25
P6
P7
P8
P9
P10
P11
Period
Line 2: Average Set up Time
50
50
C/O Time
40
Avg. Set Up Time
Average Set up Time
Line-1: Average Set Up Time
30
20
10
0
27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Week No.
C/O Time
40
30
20
10
0
28
29
30
31
32
33
34
35
36
Week No.
37
38
39
40
41
42

8. Results (50%)
SMT OPTIMIZATION
Component Attrition/Scrap
Value
0.8
Rate
0.6
0.4
0.2
0
P7
P8
P9
P10
8000
7000
6000
5000
4000
3000
2000
1000
0
Value(Euros)
Rate (%age of
components placed)
1
P11
Financial benefits are
as summarized in the
executive summary
Period
%
Equipm ent Dow ntim e
6
5
4
3
2
1
0
Line 1
P5
P6
P7
P8
Line 2
P9
P10
Target
P11

9. Best Practice (bonus points)
SMT OPTIMIZATION
When planning your project, did you utilize previous
lessons learnt or other Good Practices from external
sources?
If yes, how did you locate them?
Past experience in the industry was beneficial in implementing some
good practice actions.
The planning and the mathematical model were developed based
upon local constraints.
What are the key learning from this project to you
and your project team/ unit?
What made you different?
The team learnt and experienced that ambitious and sustainable
results can be achieved only through systematic, structured and
focussed team approach.
Why do you think that your project could serve as a
Good Practice example for others within NSN?
This project demonstrates how best results can be achieved. Many
manufacturing practices are new and can be adopted across sites to
simplify processes.
Has your project solution/ approach already been
used as inspiration for another project?
Or are you aware if a similar approach or solution
has been adopted elsewhere in NSN due to your
Good Practice communication?
Best practices that came out of the project have been successfully
implemented on 3rd SMT line enabling quick ramp up.
What has been your and/or the team's specific
contribution in communicating / sharing and
supporting the adoption and usage of this best
practice in the other projects?
Some key cost saving ideas like consumable cost reduction have
been shared with the NSN Board Assembly community.

10. Best Practice (bonus points)
SMT OPTIMIZATION
When planning your project, did you utilize previous
lessons learnt or other Good Practices from external
sources?
If yes, how did you locate them?
Past experience in the industry was beneficial in implementing some
good practice actions.
The planning and the mathematical model were developed based
upon local constraints.
What are the key learning from this project to you
and your project team/ unit?
What made you different?
The team learnt and experienced that ambitious and sustainable
results can be achieved only through systematic, structured and
focussed team approach.
Why do you think that your project could serve as a
Good Practice example for others within NSN?
This project demonstrates how best results can be achieved. Many
manufacturing practices are new and can be adopted across sites to
simplify processes.
Has your project solution/ approach already been
used as inspiration for another project?
Or are you aware if a similar approach or solution
has been adopted elsewhere in NSN due to your
Good Practice communication?
Best practices that came out of the project have been successfully
implemented on 3rd SMT line enabling quick ramp up.
What has been your and/or the team's specific
contribution in communicating / sharing and
supporting the adoption and usage of this best
practice in the other projects?
Some key cost saving ideas like consumable cost reduction have
been shared with the NSN Board Assembly community.