sms technologies, inc

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.

http://www.sigeng.com/index.html

http://www.ittsystems.com/default.html

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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I

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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


Customers

Requirements



Productrealization

ResourceManagement

Customers

Satisfaction

ProductOutputInput


Customers

Requirements



Productrealization

ResourceManagement

Customers

Satisfaction

ProductOutputInput


Information flow

AS9100C:2009-01, Page 6 of 33

Model of a Process-based Quality Management System


Customers

Requirements



Productrealization

ResourceManagement

Customers

Satisfaction

ProductOutputInput


Information flow


Customers

Requirements



Productrealization

ResourceManagement

Customers

Satisfaction

ProductOutputInput


Customers

Requirements



Productrealization

ResourceManagement

Customers

Satisfaction

ProductOutputInput


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,


DIALOGUE AND DEBATE,


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




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




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:




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

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91%92% 94% 95% 96% 97% 98% 98% 99% 99% 100% 100% 100%

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20

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140

Areas of focus

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10%

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Par

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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





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

[email protected]

sms technologies, inc

Documents

continuous improvement

council members

respective process owner

strategic champion

initiatives results

results available

pdca problemsolving

productivity service