IET 627ADVANCED APPLIED INDUSTRIAL MANAGEMENTSPRING 2014DR. HANS CHAPMAN

F INAL G

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UP P

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TEAM 1

TANG

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BREY

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SM

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ORGANIZATION

• SMC Manufacturing Services Located in Nicholasville, KY (smckyems.com) They are ISO 9001 (2008) & ISO

13485 medical certified.

• Interviewed Kevin Baskin Quality Engineering Manager (Featured in segment in video below using

DMAIC Process)

• Kevin has over 15 years experience in Quality Assurance, Six Sigma Master Black belt, and Shainin Red-X Certified. Needs 18 hours at EKU to complete

Bachelors degree in Industrial Technology.

MISSION STATEMENT VISION

• Lead with Our Principles

• Do what is Right

• There is Strength in the Truth

• Teamwork is a condition of Employment

• Practice Continuous Improvement

• Delight Our Customers

PRODUCTS

• Manufacture Surface Mount Technology or (SMT) printed circuit boards for industrial controls, security integration products, and miscellaneous electronic products such as DVD & Blue Ray Players.

• Also have small division of Large Wiring Harness Assembly for Link-Belt

• Main Customers: Exide Technologies, Wayne Water SystemsPrinted Circuit Board Surface Mount

SMT

WORKFORCE

• Workforce has around 100 employees

• 60-70 hourly

• 2-5 midlevel Supervision

• 6-8 managers: Quality, Human Resources, Customer service, Engineering, Systems Engineering, Buyer, Accounting

• 3 executive, VP Sales, CFO, President

• Owner

DIVERSITY

• Utilize standard Equal Opportunity Employer Act.

• Hispanic, African American, and Caucasian make up vast majority with Caucasian as the majority.

• Male to Female Ratio is 60% Female 40% male

• Management Level is 70% Male 30% Female

CUSTOMER SERVICE

• Utilize Exact Max ERP Microsoft Access System

• Tracks Customer Complaints and Returns Issues and Automatically Paretos Issues.

• Also has integrated based Algorithm which utilizes MRP ordering system to reorder parts and ship to customer parts are defective.

• Utilize DMAIC (Define, Measure, Analyze, Improve, Control) Problem Solving Process for internal and external issues

WORK TEAMS

• During Launch they extrapolate ideas from shop floor personnel on suggestion and improvements that can be made before launch.

• Ideas are harvested by group leaders for review in change of process, or tooling/fixture enhancements.

• Also Management has Cross Functional Team Meeting Daily Morning Operations at 9:00am to review, Quality, Productivity, Design, Purchasing, and Human Resources issues.

Actual Work Team at SMC

INNOVATION

• SMC is now implementing a $40,000 AGEIS Manufacturing Execution System.

• This innovative system serializes every step in the process and assigns a birth stamp which includes a time stamp of every component used.

AGEIS FEATURES

• It also has a touch screen for operators at each station.

• Has a Quality standard Work Portal for Operator review

• Electronic Visual Aids

• Real Time Blue Prints and bill of Materials

• Wont Allow defects to go the next process if fails parameters.

• Calculates Sigma for each step in the process.

• Calculates real time Scrap rate which takes 3 seconds and once tool hours to complete.

GLOBALIZATION

• No overseas plans currently to expand

• They do have partnership with Radiance Electronics in China if they need a low cost outsourcing company.

• They will get Radiance to quote if business in the US plant is cost prohibitive.

• They receive a percentage of profit if outsourced.

GROWTH

• With new business with Exide technologies they are adding an additional 20,000 square feet onto the current 20,000 square feet of space doubling the size.

• They keep organic growth slow to maintain a small business model to ensure they maintain their core values within their mission statement.

MANAGERIAL CHALLENGES

• Due to added growth Managers must wear many hats which increases workload.

• Ensuring they keep growth at a slow rate

• Keep specific customers that want a strong supplier/customer bond to ensure a long strong partnership for continuous improvement.

• They have turned added growth away from customers only looking for commodity and not partnership.

SOLUTIONS

• Keep Growth slow by utilizing trade shows and ensuring they partner with customers that are a good fit.

• They offer a tier one customer service for a tier 3 company.

• Ensure the managers delegate tasks to subordinates to avoid work overload.

• Add additional jobs to handle growth if necessary slowly.

CONCLUSION

• SMC has a very small business model which is successful due to the types of Professional Talent they recruit.

• They form strong partnerships with their customer base which helps with long term success.

• Diversity is not a priority but occurs inherently with their business model.

• Globalization is not a priority

• Careful Selection of Customers Leads to Long Term Partnerships.

• Continuous Improvement is a Central Focus

• Strength in the Truth is a very powerful Mission statement that leads to long lasting trust with their customers.

QUESTIONS?