Training Strategie Action Learning

Lean Manufacturing and Organization Development

A Case Study of Implementing Lean Manufacturing

in Carsem

By Laurence Yap

Carsem (M) Sdn Bhd

24 June 2008Maxis Academy, Kuala Lumpur

ContentsContents

1. Lean Manufacturing Background

2. McKinsey 7S Framework

3. Team Learning Tool: Action Learning to

solve Business Issues

4. Implementation Tools: PDCA to cultivate

effective manufacturing processes

5. The Next Phase…

6. Learning Points

“ The most dangerous kind of waste is the

waste we do not recognize ”

~Shigeo Shingo 新郷重夫Toyota Production System

(1909 – 1990 )

Shingo is the author of numerous books including: A Study of the Toyota Production System; Revolution in Manufacturing: The SMED System; Zero Quality Control: Source Inspection and the Poka-yoke System; The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement; Non-Stock Production: The Shingo System for Continuous Improvement; and The Shingo Production Management System: Improving Process Functions.

Date 2008 MAR 12

Carsem (M) Sdn. Bhd. is one of the world’s top 10 leaders in providing Assembly & Test services to the Semiconductor industry.

Founded in 1972. Employing well over 10,000 employees today, Carsem has plants in Ipoh (2) + Suzhou (1).

A member of the Malaysian Pacific Industries Group (MPI), it also is a part of the Bursa Malaysia listed Hong Leong Group.

http://www.carsem.com/services/package.php

http://www.carsem.com/services/test.php

http://www.carsem.com/services/process.php

Carsem – M Site Founded in 1972 Acquired by Hong Leong Group in 1984 Floor Space : 436K sq.ft. (40,500 sq. m.)

Workforce : 3,100 employees

CARSEM MANUFACTURINGCARSEM MANUFACTURING

Carsem – S Site Production Commenced in 1992 Floor Space : 640K sq.ft. (60,000 sq. m.)


Carsem – Suzhou Production Commenced in July'04 Floor Space : 175K sq.ft. (16,000 sq. m.)


Packages: MLPQ & MLPD

MANUFACTURING SITESMANUFACTURING SITES(Malaysia)(Malaysia)

MANUFACTURING SITESMANUFACTURING SITES(Suzhou, China)(Suzhou, China)

SALES & MARKETING LOCATIONSSALES & MARKETING LOCATIONS

Dallas

Silicon Valley

London

Ipoh

Boston

Sales Office

Manufacturing Site

Suzhou L.A.

Taichung

ULTIMATE DESTINATION OFULTIMATE DESTINATION OF OUR PRODUCTSOUR PRODUCTS

APPLICATION OF CARSEM’S APPLICATION OF CARSEM’S PRODUCTSPRODUCTS

PROCESS FLOW OVERVIEWPROCESS FLOW OVERVIEW

ContentsContents

1. Lean Manufacturing Background2. McKinsey 7S Framework






6. Learning Points

1. Background: Lean Manufacturing

Background of Lean ManufacturingBackground of Lean Manufacturing

Lean Manufacturing = Toyota Production System (TPS)

2007 – Toyota made a gross Profit of USD 10 Billion

Biggest Car Manufacturer in the world ~ worth more than 4 combined US auto mobile companies!

Today, lean practices extend from Manufacturing to Lean Office, Lean Health Care, Lean Accounting and Lean Product Development

about LEAN

A. Elimination of waste

B. Improve productivity

C. Create value for customers

Defects

Overproduction

Waiting

Non-utilized People

Transportation

Inventory

Motion

Extra Processing

A Member of the Hong Leong Group

A. Elimination of A. Elimination of wastewaste

B. Improve ProductivityB. Improve Productivity

Output = 3

* 30% Waste reduction

Output = 3.9

Before

After

Quality

Cost Cycle Time

CustomerValue

C. Create Value for CustomersC. Create Value for Customers

More Customers = More Sales

What Are The Benefits ?What Are The Benefits ?

Increase Throughput (reduce over - production)

Reduce Inventory

Reduce Operating Expense

Lean Office Lean Supply Chain

Leanmanufacturing

Lean Product Design

Lean Concepts and ToolsLean Concepts and Tools

Books by James Womack and Daniel Jones (Books by James Womack and Daniel Jones (conceptualconceptual))

Books by Jeffrey Liker (practical)

ContentsContents








6. Learning Points


Overall Game Plan to Implement Lean

McKinsey 7S Framework to implement McKinsey 7S Framework to implement Lean ManufacturingLean Manufacturing

2:00 – 5:00 min Video

Strategy A set of actions that you start with & must maintain

Structure How people & tasks / work are organized

Systems All the processes and information flows that link the organization together

Style How people behave

Staff How you develop people

SuperordinateGoals

Longer-term vision & goals that shapes the destiny of the organization

Skills Dominant attributes or capabilities that exist in the organization

ContentsContents



3. Team Learning Tool: Action Learning to solve Business Issues




6. Learning Points

3. Action Learning for LEAN TEAM

Solving Real Business Issues

WORKING ON BUSINESS PROBLEMS IN TEAMS

FOR DEVELOPMENT PURPOSES

Centerpiece: A real business challenge or opportunity

Action Learning Definition:Action Learning Definition:

What is Action Learning?What is Action Learning?A dynamic tool used to:

• Drive strategic change

• Transform the organization

• Accelerate development

• Achieve business breakthroughs

• Develop leadership capabilities, etc.

Develop participants

Address significantbusiness challenges

Results

Learning

Action

Action Learning Framework

Evaluation Implementation

Sponsors

ParticipantsTeams

Projects

RolesProgram

Education

AL Typical DesignAL Typical Design

Stage One: Education and

Projects

Stage Three:

Integration, Sharing and Proliferation

Project introduction & selection Work planning tools & techniques Team building Project specific / Just In Time (JIT) education Innovation

Mid-point progress

review

Assimilate & synthesize work Create, test & improve presentations

• What’s learnt? • Findings &

recommendations• Implementation plan

Presentations to sponsors Debriefing & planning next steps

3 - 6 Month Timeline

½ - 1 Day

Teams do projects

Stage Two: Review

The Carsem Context The Carsem Context

Set up TEAMS (36 teams)

Team learn from consultants about different Lean tools @ different Waves (3 - 4 months each)

Teams come up with projects that impact businesses

Teams carry out projects with help from Consultant

Review by Production Managers and General Managers in Council Meeting

Review by COO in Steering Council

Sharing with other teams

Example 1: Mold Package Excessive Flashes (TO220)

Camera

Tooling Csam Room - PC with Camera

Install video capture card to current PC (camera) ~ to video record the entire execution of part inspection

• Card support with voice recording feature

Benefits of video recording:• Easy inspection• Verify the effectiveness of part

monitoring process• Error-proofing to part

monitoring process• Cross-train current

technicians / new comers• Follow up the results of training

One board for each Department; Daily Briefing Session @ the Visual Control Board every morning

Example 2Example 2: Visual Control Board: Visual Control Board

Tooling Mold - Visual Control Board

Mold Wellness & Part Replacement

Reports ~ daily update

Mold Preventive Maintenance

~ daily update

Cost/ Usage & Output

Produced Reports ~

weekly update

Key Projects

Update ~ bi-weekly or monthly

update

Tooling Mold - Visual Control BoardTooling Mold - Visual Control Board

Mold Wellness Report

Tooling Mold - Visual Control Board

Mold Wellness Report

Advantages:

• See full picture at a glance – better communication.

• Trigger urgency by surfacing out problems.

• Analyze mold condition before mold PM.

• Verify effectiveness of mold after PM & tool life control.

• Trigger attention to destabilized molds.

• Cross-reference to usage (cost).

• Support the establishment of tool life

S-site

ContentsContents




4. Implementation Tools: PDCA to cultivate effective manufacturing processes


6. Learning Points

4. PDCA

Implementation Model

Background – Father of Quality in JapanBackground – Father of Quality in Japan The Deming Cycle, or PDSA cycle, is a model for

continuous improvement of quality

William Edwards Deming (October 14, 1900–December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant

From 1950 onwards, he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets)

Had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage!

http://en.wikipedia.org/wiki/October_14

http://en.wikipedia.org/wiki/1900

http://en.wikipedia.org/wiki/December_20

http://en.wikipedia.org/wiki/1993

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Statistician

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Business

The 4 parts of the Deming Cycle explained:

* PLANPlan ahead for change. Analyze and predict the results.

* DO itExecute the plan, taking small steps in controlled circumstances.

* Check Check the results.

* ACTTake action to standardize or improve the process.

ScopeScope

AL Model of Carsem: PDCAAL Model of Carsem: PDCAA. Plan

Address Organization Concerns

Engage Team and select projects

C. Check

D. Act

B. Do Provide Training

Carry out projects

Review results

Proliferate to other areas

A. PLANAddress Organization ConcernsLean Manufacturing to eliminate 30% waste

Cycle TimeCycle TimeImprovementImprovement

Cost Cost Down Down

ProjectsProjects

Zero Zero Defects Defects Today !Today !

Lean Enterprise Approach

SupplierSupplierof Choiceof Choice

Organization concerns are:

• Higher Quality

• Shorter Delivery Time

• Lower Cost

A. PLANEngage HRD, Consultant, Team and Projects

HRDDepartment Structure

LAURENCE

Training Administration( Ros )

5 persons

~ Support training

arrangements &

Financing

Human Capital( Malar) 3 persons~ Leadership

Dev &Soft Skills

Frontline Employees ( Salbiah/Din)

60 persons ~ Instructors support new procedures

Lean( KS Chew )3 persons

~ Coordination, Facilitating

Technical Skills Development

( Ramond ) 3 persons

~ Support Quality Training, Event Management &

Publicity

OD( KW Cheah )

3 persons~ Planning

& Coordinatio

n

Lean ConsultantsLean Consultants

The AMC founders & principal consultants are:

- Ramesh Victor Rajathavavaram

Lean Master (USA)

- Soundarajan Pitchay Lean Master (USA)

2007 MAR 26

Assessment CriteriaAssessment Criteria

11 Production Lines

Choose 3 Pilot Lines = 12 teams per line = 36 teams

1 team = 10 members

Production Managers, Engineering Managers, Engineers, Technicians

LEAN & Strong

Lean Implementation –pilot teams

Management Involvement

Corporate Communication Session by COO SW Woo

Training classes are compulsory

Report of attendance

Constantly stresses the importance of Lean in all meetings

Query of non-committed

team members

Training Attendance Summary

Group Training Site

Training Date Attendance %

1 S-site

Lean Executive Overview

2007-May-16 & 18

26/27 96.30%

2 M-site 2007-May-22 & 23

27/27 100%

3 M-site 2007-May-24 & 25

23/23 100%

4 S-site 19/20 95%

B. DoProvide Training

Lean Manufacturing Training

Carsem Malaysia Sdn Bhd

TRAINING INVITATION You are cordially invited to attend Lean Manufacturing Overview Training This overview training session is designed to provide an executive overview of the concepts associated with lean manufacturing, including the benefits of lean manufacturing and how to get started. Venue: Auditorium, M Site Date: 22nd and 23rd May 2007 Time: 8.30 am to 6.00 pm Contact: KW Cheah (8413) and KS Chew (8491) Organizer: HRD Department Special Opening Speech by Chief Operation Officer

For further detail, please refer to the Lean Manufacturing Training Overview Brochure

Wave 1Wave 1

•Lean overview•Value Stream Mapping•Set-up Reduction•5S•Change Management

Wave 2Wave 2

• Visual Management• Standardized Work• Error Proofing• Handling Resistance

LEAN IMPLEMENTATION IN CARSEM

• Factory will be more Visual & Organize• Reduced set-up time

• Factory will have less error• Work will be more standardize/repeatable

Wave 3Wave 3

• Material Control (Kanban)• Total Production Mgt (TPM) • Overall Engineering Efficiency (OEE)• Performance Measurement

• Introduce pull mechanism through Kanban• Working with lower level of inventory• Improve equipment OEE

Wave 4Wave 4

• Theory of constraints• Lay-out optimization• IT Tools• Lean Diagnostics

• Further strengthen the whole Value Stream Map after the 3 waves project.

• Lean Masters have advanced diagnostic ability for continuous improvement on their own VSM (Value Stream Mapping)

• Lean lay-out

Lean Master Wave 1 Trg Pilot Day 1 Day 2 Day 3 Day 4 Venue

Power (M) 28-May 29-May 31-May 1-Jun M-AudiMLP (S) 7-Jun 8-Jun 11-Jun 12-Jun S-AudiBU2 (test) 28-May 29-May 31-May 1-Jun S-Audi

Lean Master Wave 2 Trg (WW 27- WW 29)Pilot Day 1 Day 2 Day 3 Day 4 Venue

Power (M) 2-Jul 3-Jul 9-Jul 10-Jul M-AudiMLP (S) 11-Jul 12-Jul 17-Jul 18-Jul S-AudiBU2 (test) 2-Jul 3-Jul 9-Jul 10-Jul S-Audi

Lean Master Wave 3 Trg (WW 33 - WW 34)Pilot Day 1 Day 2 Day 3 Day 4 Venue

Power (M) 15-Aug 16-Aug 20-Aug 21-Aug M-AudiMLP (S) 22-Aug 23-Aug 27-Aug 28-Aug S-AudiBU2 (test) 8-Aug 9-Aug 13-Aug 14-Aug S-Audi

Lean Master Wave 4 Trg (WW 40 - WW 42)Pilot Day 1 Day 2 Day 3 Day 4 Venue

Power (M) 1-Oct 2-Oct 8-Oct 9-Oct M-AudiMLP (S) 3-Oct 4-Oct 10-Oct 11-Oct S-AudiBU2 (test) 1-Oct 2-Oct 8-Oct 9-Oct S-Audi

Done

LEAN MASTER 4-WAVE TRAINING

4 days of training in each Wave

Lean Enterprise PlanLean Enterprise Plan LEAN

MANUFACTURING

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec20082007

W1 W2 W3 W4

W 1

W 2

W 3

W 4

Legend:Model Line

Proliferation Ongoing

Done

Planned Actual

LEAN WAVE 1 TRAININGLEAN WAVE 1 TRAINING

LEAN TRAINING -- MANAGEMENT GROUP

The Training ApproachThe Training Approach

The Learn – Do The Learn – Do –– Mentoring Approach Mentoring Approach

CLASS ROOM LECTURES

Lecture on Lean for graduate IE students (Asia Institute of Technology, Bangkok.

Faculty of Industrial Engineering)

Class Room Lecture during Lean Master training (MMI JB)

HANDS-ON SIMULATIONS & ACTIVITIES

Hands-On practical simulation-Quick Changeover

(Seagate, Wuxi)

Hands-On Value Stream mapping session (MMI Yixing, China)

HANDS-ON SHOP FLOOR ACTIVITIES

Shop-Floor exercises (NSK, KL)

Shop-Floor exercises Video-Shooting (NSK, KL)

B. DOCarry Out Projects

M-site

Measurement Baseline Initial result

1 WB Lifted Weld (QSOP)

KF Wong QASI Trend Average of 11 cases per month from May - July

Average of 3 cases per month from Aug - Sep

2 WB Bent Frame (SOT 223)

KK Ch'ng No of Bent Frame

Average of 32 bent frames per week from WW 33 - WW 34

Average of 11 bent frames per week from WW 37 to WW 38

3 Laser Mark

Wrong Marking Instruction

Kenny Wong VOC 4 cases from Jan - Dec 20061 case from Jan - Mac 20072 cases from April - Jun 2007

_ No result yet as team target to complete the pilot run by Jan 2008. Project requires longer timeline.

4 TF & Final Visual

Bent Lead (QSOP)

SK LiewWH Yeow

kppm Average 0.6 kppm from Jan - Jun 2007

Average of 0.2 kppm from Jul to Oct 2007

VOC 2 cases reported from Jun 2006 - Jun 2007

0 case

5 System Audit - 2 times system audit carried out, 100 % detection

System audit is mixing faulty part in the part inspection process.

6 MF Plating Variance (SOT223)

WF Lee Quantity of Frame

Average of 64 frames per month from May to Jul 2007

-Initial results not positive & currently under monitoring for further finetuning.

No RESULTSLean Master Project Remark

Error Proofing & Standardized

Work

Mold Mold Side Package Excessive Flashes (TO220)

Mani CC Yip

Process

Council Meeting

Carry out projects

Project Milestone (Setup Reduction Teams) ~ Power + Test

ConsultingConsulting

C. CHECKReview Results

Secretariat

IC Power QA Material

Various LEAN Project Teams

CSIC/AP/MLP/MF

SteeringComm.Level

Council Level

WorkingComm.Level

Teams

2nd

3rd

4th

1st

Department Working Committees (Include Value Stream Champion meeting)

Structure To Support Lean Structure To Support Lean

M-site councilLeader: TL SOO

S-site CouncilLeader: CS Lim

Steering Comm.Leader: SW WOO

Test councilLeader: WT CHIM

Once a month

STEERING COMMITTEE STEERING COMMITTEE

Senior Managers including those from Support Group (IT, Finance, Material, PC, HRD)

Review and Encouragement

Monthly Management Shop Floor Visit

Daily Gemba Walk (8.30 - 9.30 am)

D. ACTProliferation

Wave 1 Set-up improvement:

Average 30% to 40%30% to 40% set-up time reduction

Proliferation Methodology

Sharing of projects by LM to all Area(Attendees - Product Manager, Identified Project Doer)

Council to review & ensure proliferation is done at their own area.

Complete every wave at Pilot line

Select Projects that is recommended to be proliferated by Council & Consultant

Training - JIT Tool for Proliferation(Conducted by LM / HRD)

Proliferation of recommended projects and identify new opportunities at own Area

Wk 1

Wk 1

Wk 1

Wk 2-6

Wk 6

Time line

Product Manager to identify suitable members for proliferation and exploration of new opportunities

Rewards

ContentsContents





5. The Next Phase…6. Learning Points

Lean Manufacturing Phase 2Lean Manufacturing Phase 2Lean Supply ChainLean Supply Chain

HRD ContributionHRD Contribution

Repositioned HRD as a strategic partner in organizational change

Aligned HRD activities to business needs of the company

Assisted through implementing lean ~ eliminate waste (cost saving) & increased productivity

ContentsContents






6. Learning Points

SummarySummary

Key Points

7S, Action Learning & PDCA are OD tools to improve organization effectiveness

Lean Approaches has helped the organization in eliminating waste, improving productivity & increasing customer values

Possible HRD Key Actions Align training to critical business needs Gain management support Set up teams to address issues & provide short training sessions

(Just In Time) for them

Any questions?

Training Strategie Action Learning

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