SMTA International Conference Proceedings


LEAN CULTURE STRATEGY DRIVES COST SAVINGS FOR EMS PROVIDERS

Author: Jim Lanigan
Company: Preco Electronics, Inc.
Date Published: 9/26/2004   Conference: SMTA International


Abstract: This paper focuses on a 5S approach for Electronics Manufacturing Services (EMS) providers to use to create a lean culture that provides Original Equipment Manufacturers (OEM) with significant cost reductions, without the headaches of re-qualifying design changes. OEMs are continually demanding cost reductions while tasking EMS providers with their system requirements such as ISO, FDA Registration, 6 Sigma, etc. Meanwhile, most OEMs are downsizing their Engineering staff as they outsource so they do not want to, or have the resources to support the easiest form of cost reductions (i.e. redesigns & part substitutions due to re-qualification, compliance testing, etc.).

What can an EMS company do to meet these dynamic demands, differentiate themselves, and be profitable? The answer lies in tapping knowledge at all levels of the organization to keep the product moving, getting everyone involved in reducing waste, and taking control of the things that are controllable. The answer lies in LEAN philosophies. EMS providers can use a lean culture to take control of their processes to reduce costs, which in turn creates competitive advantages. How does a company create a system to foster a lean culture? Based on the results seen in this case study, it will be discussed that 5S is one of the best ways to accomplish this.

Key words: Lean, 5S, culture, cost savings



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