Assembling Smartphones

Rameeze Ahmed Khan Garv Vadehra Gourav Didwania Abhishek Jay Kumar Anvesh Reddy Ajitha Kondabala Anurag Tyagi

Contents
Introduction Flextronics International The EMS Business Switching Smartphone Production Moonshine Concept

SWOT Analysis

Introduction
LEAN Manufacturing Takt Time

Cycle Time

Flextronics International
Fortune 500 Company
Its a supply chain solution company

Worlds 2nd largest EMS

Timeline
1969: Founded

1994: Got listed on NASDAQ

2000: 3rd among 100-Best Managed Company

2005: Acquired Nortel Networks

2006: Acquired part of LEGO

2007: Acquired Solectron

2012: Incubated Elementum for SCM

Business Area
High Reliability Solutions
eg: Wire harness, Night Vision, Security & Surveillance System

High Velocity Solutions

eg: Covers consumer electronic products

Integrated Network Solutions

eg: telecommunications, Optic networking, servers, cloud computing

Industrial and Emerging Industries

eg: Navigations technologies, product integration, SBS

Video

The EMS Business

Competition
Many firms in the business Global manufacturers like Flextronics, Jabil Circuits & Celestica

BIG Customers

Global customer with huge demands. Customers with big sums of capital

Profits
Thin profit margins. Dependent on economies of scale. Tight cash management practices. Purchasing power of manufacturers. Cost effective and efficient production sites.

THE Dilemma : FROM WHERE TO OPERATE ???

FdM site in America

The North Campus Site
LEAN manufacturing 15000 employees State-of-the-art equipment Easy accessibility to North American market Overhead scheme based on factory floor space

North Campus vs Doumen Site

Higher Labour Rates(3 times) 15000 employees Lower Labour Rates 45000 employees

Superior Capability & Geographical proximity

Mid-sized

More productive & lower costs

Largest Site in the world

Switching Smartphone Production

Conveyor Based Straight Line Assembly Anticipated Result 1 Shift = 8 hours Desired Production= 1920 units/shift Takt Time= 8x60x60/1920 = 15 sec Floor Area Covered= 1232 sq. ft.

Conveyor Based Straight Line Assembly

Net Result 1 Shift = 8 hours 24 workers Takt Time Target = 15 seconds Net Production= 135-138 units/hour = 1092units/shift Floor Area Covered= 1232 sq.ft

Non-Conveyor Straight Line Assembly

1 Shift = 8 hours 22 workers Takt Time Target = 15 seconds Net Production= 1104 units/shift Floor Area Covered= 1232 sq.ft

The Takt Time Target was too stressful and caused more waste at the end

Shorter Straight Line Assembly

1 Shift = 8 hours 10 workers Takt Time Target = 30 seconds Net Production= 640 units/short line = 1280/two short lines Floor Area Covered= 616 sq.ft/short line

Reduction in number of operators implied reduced costs Increased Takt Time reduced stress

U-Shaped Line Assembly

1 Shift = 8 hours 9 workers Takt Time Target = 15 seconds Net Production= 960 units/line Floor Area Covered= 616 sq.ft

Reduction in number of operators implied reduced costs Area become half, So two lines can operate in same space Cross-trained operators balancing work among themselves

Moonshine Concept
moon-shine (moonshin) n. A method of disruptive action, that occurs in secrecy, under and around organizational boundaries and procedures, producing order-of-magnitude improvement to any process. A Lean Manufacturing tool that uses fast and inexpensive prototyping to develop and prove a concept, prior to full implementation.

It is a LEAN power tool

Try Before You Buy ! aka Try-Storming Moonshine Team Requires creative machine designers and creative maintenance people.

Moonshine shops in FdM

Unique support service for implementing changes In-house workshop to modify, adapt or build entirely new production fixtures, tables, carts end up assembling entire new lines Shop operators work with line operators. Use pipes, connectors and boards Quick and cost-effective

SWOT Analysis
Strengths
Robust inorganic growth Strong production base Diversified customer base Over 100 sites in 30 countries which provide economies of scale (India, China, Brazil) Weaknesses Fluctuating margins High debt burden High customer concentration fluctuations in China, India

Opportunities Positive outlook for electronics manufacturing services market Growing global computers and peripherals industry Growth in semiconductors market More marketing & brand awareness would boost global penetration

Threats Slowdown of the global economy Intense competition Inflation, labour and other costs in low cost Asia economies have been increasing. The ROHS and WEEE directives

SWOT Analysis...
Competition
1. Jabil Circuit, Inc. 2. Celestica Inc. 3. Benchmark Electronics, Inc. 4. CTS Corporation 5. Nam Tai Electronics, Inc. 6. SMTC Corporation 7. ALSTOM 8. Avnet, Inc.

Thank You