Background of the story:
After becoming the new vice president of the Technology and Productivity department, Patti faced her first tricky task after taking office, and she needed to find a more reasonable measure of total electronics assembly productivity. At the professor's suggestion, Patti quickly found the answer in the 1998 National Electronics Manufacturing Action Plan and the 2011 International Electronics Manufacturing Technology Roadmap and Electronics Assembly Chapter – dividing the total conversion cost by the total number of pins of the product produced.
Patti arrived at the office an hour early to prepare for a meeting with ACME's CEO, Mike Madigan. Nineteen days ago, Mike asked Patti to submit a profitability-related electronics assembly productivity metric to identify areas for continuous improvement.
Mike gave Patty three weeks, and Patty completed the task two days early. It just so happened that Mike was in the New Hampshire factory for a meeting, so PattyI'm going to report back to him.
In her research, Patti found that dividing input-output by non-material assembly costs (NMAC IO) is a good measure. She then went to five of ACME's factories for a day or two at each to gather all the data she needed to prove her point. Rob helped her write an Excel file with macros that was used to calculate the NMAC IO indicator and plot the profitability of the relationship. The results showed a correlation coefficient of up to 0983。
As she examines the five factories, Patti is constantly thinking about the reasons for the poor performance of the factories with poor metrics. After digging deeper, she and Pete found that underperforming factories often had poor assembly line time allocation, inefficient placement machines, low print speeds, and poor solder paste pause responsiveness. There is even a factory that uses a full wave soldering process, but in fact it can be done with a reflow soldering process with only 8 solder lugs, which can be significantly more efficient. But if you only focus on line uptime, none of these "problems" will be apparent. After learning about these situations, she also developed an improvement plan based on the data of the NMAC IO indicator.
PattiCome onSam's officeSam's administrative assistant invites Patty into the conference room and lets Patty goIn advanceConnect to set up her laptop. Just as she was setting up and the PowerPoint presentation was showing up on the screen, Sam and Mike walked in.
Coleman, we're counting on you to improve your production and take it to the next level. Mike said a little rudely. "So, let's get started. ”
Patty looked at Sam and could tell that he was not at ease with his boss as well.
My team and I have conducted a series of surveys over the past three weeks and have concluded that using input-output divided by non-material assembly costs (NMAC IO) is a better measure of productivity. Patty began.
That's great, Coleman, but what is that non-material?Madigan interrupted.
Patty's phone vibrated a little, but she ignored it.
Patti replied, "NMAC IO is the total cost of operation of the plant minus the electronic components, hardware and printed circuit boards used, etc., which some people call the conversion cost. ”
If you think about it, it's clear that this is the best metric. Patti continued, "It measures the cost of all non-materials divided by the yield. ”
I understand. Sam said. "What we get is the number of pins of input and output, we measure the total cost of input, and then divide it by the number of pins of output, it's as simple as that. ”
That's right. Patti replied.
I now understand that looking at uptime alone is not a complete metric, because even if it is running normally, it can still be inefficient. Mike said, with a rare smile on his face.
Patty's phone vibrated again.
That's right. Patti commented.
Okay, so we're going to measure the actual nmac i o of the production line. Mike said without question. "What does it have to do with profits?”
The two are almost completely related. Patti said.
Patty then presented Mike and Sam with data on the correlation between the NMAC IO indicator and profitability, as well as a new productivity improvement program, which Patty will lead.
After the debriefing, when Patty got up to leave, Mike said, "Coleman, let's find out why so few people use the NMAC I O metric these days." ”
Patty nodded yes, but thought to herself that she would have to listen to the professor first.
As Patty walked out of Sam's office, Claire Perkins, an administrative assistant, stopped her and said, "Ms. Coleman, your mother-in-law just called** to say that your husband, Rob, has been taken to the hospital. ”
Why did Rob suddenly get hospitalized?What wonderful stories will be followed up?Stay tuned for the next episode, "Case Study (32): Running Costs of Patti Analysis MRI Scans".