SMT Capital Equipment Road Map

SMT Hours in 2015

SMT Hours in 2020

100% capacity in 6 months

Know you SMT capacity

50K CPH Capacity = 1 hour placing 50K parts

Seven Steps

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Chart The Past

Project The Future

Calculate Your Capacity

Choose your Vender

Driving Factors

Use the software

Present Case Studies

supporting ROI

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Chart The Past • SMT Hours Earned Over the Past 5 Years • Since 2011 we have seen a 226% growth in SMT Hours Earned

3 Data provided by finance

Project The Future SMT Hours Projections for the Next 5 Years We will look at the net increase using 3 methods. 1. 50% Straight increase each year as seen from History 2. 20% Straight increase each year from lowest yearly increase 3. 20% increase the first year, decreasing by 4% (20%-16%-12%,

ect…) every year after

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Calculate Your Capacity • SMT Hours Earned VS Capacity SMT lines

– 80% OEE netting hours in a 5 day work week per quarter • total hours in a 5 day work week, across all smt lines per quarter

• With modest growth, we need to add an SMT line capable of at least ****** SMT hours a week, every year each year for the next 5 years.

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We should never let ourselves be at maximum production capacity, as we will be unable to responded quickly to customer demand. (Production hours per day) hours a day, times 5 days a week, times 13 weeks equals = total hours per SMT

line in a quarter.

80% OEE of SMT hours worked equals = SMT line hours per quarter.

More SMT Capacity Required • By the start of the third quarter of 2016 we will need to add another SMT

line to keep up with production. • The current lines we have are failing with limited parts available for repairs.

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• Each line has a trackable CPH or you might use a factory standard. Many factors will influence this number. The best to collect a running average over several production runs.

If it is new equipment, de-rate the stated IPC placement rate by 20% to be in the ball park. We will use 50,000 CPH for a duel CP7 line with a flex placer. • Finance has been tracking the loaded production hours. They have your

production history • You now have what you booked over the past 5 years and what capacity you

currently have. Now we just have to project and increase

Choose Your Vender

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Top Tear Equipment Manufacture A high production quick change operation that will last 20+ years. Best in class technology Best in class Service and Support

Driving Factors • Manufactures planned support for their equipment. • Technical capability of the SMT equipment.

– Can place 0250125 (.25mm X .125mm) • Placement rate, Production tracking, Optimization. • Quote placement time reduction.

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03015 metric 0.3mm X 0.15mm

Technical Capability of the SMT Equipment

• Efforts should be made to insure we can routinely place 01005 and 12 mil pitch devices with little effort.

• As new lines are selected, the key factors are: – Accuracy – Placement rate – Technical support, and – Offline setup

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.65mm CSP

SMT Equipment at End of Life • A CP6, small package camera went

out and was no longer carried by Fuji. • The following equipment is at end of

life and should be replace in the next 5 years – screen printers – chip shooters ( all CP6’s lines) – flex placers – reflow ovens

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As with any manufactured item, the old 10 year unwritten rule applies. If it's been approximately 7-10 years since a model was produced for new sale distribution, then discontinuation of certain items for that model is possible. Dave Byker, Fuji America

Use The Software • Offline program and feeder setup • Optimal setups for multiple production programs • Real-time monitoring of production • Non-stop production Warnings before parts run out • Prevention of misplacements through smart feeders • Improve manufacturing processes

– Faster placement speeds – Increase yield – Enhance margins

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High Capacity Line (104K CPH) • Eight NXTIII M6 Modules (4-H24, 2-V12, 1-H08, 2-H02 heads)

– 03015 at ±25 μm@>1.00 Cpk – 10 mil IC at ±25 μm@>1.00 Cpk

• 120 nozzles • 534 x 610 mm PCB size

• All within the foot print of a single cp6

219,000 CPH Stated 130,835 CPH IPC 104,668 CPH at 20% de-rate from IPC

Reclaimed Floor Space

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Further Floor space can be saved by placing these lines back to back

Present Case Studies • Product “A” currently require 25% of the total SMT

hours available with a 7.56 sec top placement and 3.6 sec for bottom placement.

• The new equipment as quoted will deliver these in 2.06 sec and .61 sec respectively.

• Product “A” times will improve by 8.49 sec per unit for a product savings of (8.49 sec X SMT line price)

• SMT labor savings are (reduction of head count)

There is also a return of capacity of 5188 smt hours with a value of (5188 X Line price)**

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Case Study / A Day of Small Runs

• A single customer required 147 total SMT hours (27 assemblies) in a single day.

• A single high capacity line would optimize that days production running it by it self in only two days

• Return SMT production hours back to other production. • Running small production 3 days a week (42%) nets 11,232

hours a year

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Added Benefits Not Included in the cost savings

• 22% energy reduction over perching a CP6 line and 122% with the reduction of a CP6 line.

• In line Laser Bar code marker will all but eliminate labels on the new line.

• Training a JIT work force burden will be reduced with each line bought. No more added head count.

• Feeder setup group to reduce change over, and burden from the SMT line.

• Software should be used to the verify the feeder bank before it is brought to the line.

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The Solution Add a line each year, with more then double the placement capacity of a current line that is ready for retirement.

– screen printer $166k – Placement modules $1.5 mil – Oven $100k – AOI $140k – Conveyors $120k – Software $100K – Laser PCBA marker $140K

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Return on Investment • “A” mas production (30% utilization) • “B” production high mix (42% utilization) • 10% Reduction of quoted times with the addition of a line yearly

savings on 50% setup reduction of this line • Floor Space

– leased space annually for each line – production line gain of 25%.

• Running these case studies offers a gross return of over $2mil a year based on a variable cost payback

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