Product category: Electronics Manufacturing Services
News Release from: DEK | Subject: Continuous Improvement Programme
Edited by the Electronicstalk Editorial Team on 4 September 2003
Subcontract print process
management cuts costs
When the going gets tough, the tough cut costs - by subcontracting print process management says Mike Besant of DEK
With difficult economic conditions continuing throughout the electronics assembly industry, cutting production costs has become an ongoing effort for every manufacturer. EMS providers in particular are challenged to meet new production requirements and maintain yield levels even as batch sizes shrink.
This article was originally published on Electronicstalk on 4 September 2003 at 8.00am (UK)
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At the same time, they must reduce costs in order to remain profitable in an increasingly competitive marketplace.
In what may be the start of a new trend, EMS providers, which began as subcontractors themselves, are exploring ways to reduce costs by subcontracting out the management of one or more steps within their own assembly process.
While third-party maintenance agreements have been available for some time, a new concept incorporates not only maintenance but also overall management of an entire process step, with the goal of continuous improvement in performance.
The concept is built on the foundation of process expertise amassed over the years by an equipment supplier.
In any assembly step, those who develop and refine the equipment are expected to be knowledgeable about the process and to transmit this expertise to the user.
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The question for the user, whether it is an OEM or EMS provider, is to determine the most efficient allocation of its resources: is it more cost-effective to invest in maintaining process expertise in-house or to rely on an existing in-depth resource?
For the screen printing process, the supplier's expertise is often crucial to achieving a desired result.
While the accuracy and repeatability of modern printing equipment has made significant advances over the years, the inherent nature of SMT solder paste application remains highly process-dependent.
As new designs, components, materials and procedures are introduced, applications expertise becomes critical to incorporating those advances quickly and successfully.
The procedure of transferring management of the screen printing process from the user to the supplier begins with an on-site audit to determine baseline performance.
The equipment is optimised and an assessment of the entire process is conducted, covering not only print parameters and machine performance but also the processes and people involved.
A multitude of seemingly minute process details are observed and measured.
Are boards conveyed into and out of the printer most effectively?
Is the printer platform specifically configured to an optimum level of capability?
Are suitable alignment offsets being used?
Are optimal stencil handling and cleaning protocols being followed?
Is the environment too warm, cold, dry or humid?
Should operators wear gloves?
Are board fiducials located correctly?
The results of the initial audit are used to establish a printing efficiency baseline and to set goals for improvement.
The performance of each factor in the audit can be recorded using the familiar concept of the equipment beacon: green for a factor in control, yellow for one requiring monitoring and red for one out of control and requiring immediate attention.
Each factor is tracked individually and incorporated into an overall baseline rating.
As part of the audit, opportunities for cost reductions and improvements in both throughput and yield, as expressed by effective printed boards, are all identified.
If the initial audit determines that the printing process is functioning at an efficiency rating of, say, 75% and the manufacturer sets a goal of 85%, the management programme incorporates the services needed to achieve the desired goal.
It may include any combination of specific elements, depending on the size of the manufacturing operation: machine optimisation, routine monthly maintenance, spare parts, operator training, on-site support, 24/7 availability and engineering support.
Applied process engineering is a particularly critical element of the programme for EMS providers, who are faced with new product introductions and rapid ramp-up requirements on a regular basis.
Once the process management programme is established and amortised on a monthly basis over the course of a contract, the manufacturer can begin to realise cost reductions rapidly.
Individual expenditures for items such as spare parts or maintenance services are no longer required.
Internal resources used to support the printing process may be redeployed to other uses, with overhead reduction in mind.
The programme also reflects fluctuations in machine usage.
If one machine is removed from service due to falling production volumes (not an uncommon occurrence in a difficult economic climate), the programme is adjusted.
When internal resources are used, they cannot always be scaled back in direct proportion as fewer machines are used.
Additionally, if portions of the process management programme are not required over time, the manufacturer receives a rebate.
As the programme continues, its performance benefits also become apparent.
After measures such as operator training and process improvements are implemented, periodic audits track their effects.
Even seemingly minor adjustments, such as moving barcode labels placed too close to a solder pad location on the substrate, can produce significant enhancements to a line's yield level.
Over time, the proportion of green, or in control, factors can be seen to rise as the red factors, those needing attention, fall until the manufacturer's efficiency target can be achieved and maintained.
Under one implementation of this concept, a major multi-national EMS provider has transferred responsibility for the management of its screen printing process to the equipment supplier on a monthly contractual basis.
The programme, which was initially deployed at one of the manufacturer's facilities, has demonstrated cost-cutting and yield maintenance results that have led to its introduction at additional company facilities.
Through reductions in indirect headcount and purchasing process support, the programme has enabled the EMS provider to lower its overall cost of printing process support by approximately 15%.
Process downtime for screen printing has also been reduced, from 12% to 7%.
Yield results are more difficult to quantify, since the manufacturer's product portfolio has gone through a transition familiar to many in the EMS sector, from high-volume, low-mix production to the reverse: fewer high-volume runs and an increasing number of smaller batch sizes.
Under such conditions, experience has shown that yield levels are more likely to drop.
Yet the manufacturer has determined that right first-time yields have remained constant at 89% through the process while batch sizes have fallen to one-third their former average and build complexity has increased.
The new programme is considered a major contributor to this achievement.
The industry's initial subcontracting trend, of manufacturing being transferred from OEMs to EMS providers, has become accepted over time as an effective means of encouraging each segment of the industry to focus on its own specialised area.
A concentration on increasing throughput and yield while reducing costs did help to fuel years of strong growth in the EMS sector.
As manufacturers now search for techniques to help them survive in a more challenging environment, the subcontracting model may again prove to be an effective strategy, in this case for process management.
Taking steps now to reduce costs and increase process efficiency can help companies position themselves to take advantage of improving economic conditions in the future.
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