SMS Technologies, Inc.

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SMS Technologies, Inc.

• Employees - 120 in San Diego
• Low volume / high mix EMS - Electronic
  Manufacturing Services including Design, Layout,
  Rapid Proto-Typing, DFM DFT, RF Technology,
  Supply Chain Management
• AS9100, ISO/TS 16949, ISO 9001 13485
• Aerospace Military Customers

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COP Home
Universal Support Processes
What Strategic Planning Values
Vision Mission Customer Satisfaction Organization
al Review
Who Quality Council Champions / Process
Owners Subject Matter Experts /
Trainers Customer-focused Teams Other Supply
Chain Members
Universal Support Processes
Business Planning
Continuous Improvement Management Test Eng. Mgr.
Corrective Preventive Action
Input Customers need continually increasing
quality, productivity service value
Output Customers get continually increasing
quality, productivity service value
Document Control
Information Services
Purchasing
Maintenance
Management Review
How WI 5.6.1.1.01 The Quality Council Selects
strategic improvement priorities Assigns team
members to improvement projects Provides teams
with direction, guidance support Reviews
improvement project progress Improvement
Teams Include champions, SMEs, other members
Utilize PDCA problem-solving tools, etc. Make
results available to the organization Are
recognized for their contributions
Measures Team Performance Metrics Team Process
Improvement Metrics CI Management Process
Improvement
Measurement Improvement
Staffing
Workforce Development
Internal Auditing
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HOW WI 5.6.1.1.01
The Quality Council Selects strategic
improvement priorities Assigns team members to
improvement projects Provides teams with
direction, guidance support Reviews improvement
project progress Improvement Teams Include
champions, SMEs, other members Utilize PDCA
problem-solving tools, etc. Make results
available to the organization Are recognized for
their contributions
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WI 5.6.1.1.01 Continuous Improvement Management
Process (SEA Continuous Improvement Management
Process 1.1.4) 1.0 PURPOSE To establish,
document and maintain a standard work instruction
as part of the overall Continuous Improvement
Management Process appropriate to the SMS
Technologies Quality Management System and its
customer base. 2.0 SCOPE This work
instruction explains how SMS manages its
continuous improvement management process. The
council members identify improvement projects
based on both internal and external customer
needs and reviews each initiative's progress.
Each initiative is assigned a team and guidance
is provided as needed. A standard toolbox
containing problem-solving methods is deployed
throughout the organization. Continuous
improvement team members typically include the
respective process owner, master trainer(s), and
strategic champion of that domain as well as any
other member of the organization that may add
value to the process. The output of the
continuous improvement process will document the
initiative's results, including success and
lessons learned. 3.0 REFERENCE DOCUMENTS 3.1
AS91002004 (B) Quality Management Systems
Aerospace Requirements 3.2 ISO 90012008
Quality Management Systems Requirements 3.3
ISO/TS169492009 Quality management systems
Particular requirements for the application of
ISO 90012008 for automotive production and
relevant service part organizations 3.4 ISO13485
2003 (E) Medical Devices Quality Management
Systems Requirements for Regulatory
Purposes 3.5 ISO 14969 2004-10-15 Devices
Quality Management Systems Guidance on the
application of ISO 134852003
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4.0 TERMS AND DEFFINITIONS 4.1 Value Stream
All the processes required to produce a product
or service of value to a customer. The term value
stream applies to product families or individual
products or services. The value stream includes
the flow of materials in production as well as
information flow. The customers of a value stream
could be internal or external. 4.2 Process A
series of steps to produce an intended output. A
process may be part of the Value Stream for a
product/service or a business process necessary
to run the business and help employees and
departments do their jobs. 4.3 Process Group or
Value Stream Champion A senior executive who
manages a group of business management processes
and/or value streams with common or related
purposes. For purposes of the SEA program, at
minimum Champions are needed for Leadership,
Operational excellence, Workforce Development,
and each Value Stream or Product Line. The
Champion supports Process Owners, prioritizes
improvement initiatives, and charters improvement
teams. 4.4 Process Owner A designated person
responsible for achieving ever-higher levels of
process maturity and effectiveness a focus point
for the company on issues related to their
assigned process. Usually reports to the Process
Champion either directly or indirectly. 4.5
Master Trainer A person trained and qualified to
train and qualify others. The master trainer
documents work instructions, trains and
cross-trains those who will work in a particular
process, and verifies that they can perform the
work and quality checks according to the work
instructions in the time allowed. 4.6 Subject
Matter Expert A person who has experience and/or
expertise in the process. The SME has not
necessarily been qualified to train others but
serves as a resource to the Master Trainer. SMEs
can become master trainers through
certification. 4.7 Managed Process A process
selected by senior management for improvement.
This process might be selected during strategic
planning or other coordinated leadership
activities. Managed Processes have a process
owner, master trainer, and SME assigned to
improve the process. Managed Processes have a
team assigned for Kaizen, Six Sigma, or other
Process Maturity improvement activities as
appropriate.
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5.0 PROCEDURE 5.1 SMS Quality Council sets
improvement priorities 5.1.1 Quality Council
selects improvement projects based on strategic
planning criteria 5.1.2 Quality Council assigns
team members to the improvement project 5.1.3
Quality Council provides team members with
project direction, guidance and support 5.1.4
Team members utilize the appropriate
problem-solving tools including but not limited
to the PDCA model 5.1.5 Team members are
comprised of process champions/owners, SMEs, and
other members of the organization that may
provide relevant insight into the problem domain
5.2 SMS Quality Council reviews improvement
project progress 5.2.1 Team members are
recognized for their contribution to the project
success 5.2.2 Project results are made available
to the organization so they can build on the
experiences of past projects
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Selecting Improvement Priorities

• The model of a process-based quality management
  system shown in Figure 1 illustrates the process
  linkages presented in clauses 4 to 8. This
  illustration shows that customers play a
  significant role in defining requirements as
  inputs. Monitoring of customer satisfaction
  requires the evaluation of information relating
  to customer perception as to whether the
  organization has met the customer requirements.
  The model shown in Figure 1 covers all the
  requirements of this International Standard, but
  does not show processes at a detailed level.

NOTE In addition, the methodology known as
Plan-Do-Check-Act (PDCA) can be applied to all
processes. PDCA can be briefly described as
follows. Plan establish the objectives and
processes necessary to deliver results in
accordance with customer requirements and the
organization's policies. Do implement the
processes. Check monitor and measure processes
and product against policies, objectives and
requirements for the product and report the
results. Act take actions to continually improve
process performance.
Figure 1 Model of a process-based quality
management system
AS9100C2009-01, Page 6 of 33
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Model of a Process-based Quality Management System
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Developing the Hedgehog Concept
The Hedgehog Concept is a simple crystalline
concept that flows from deep understanding of
three circles
Jim Collins, 2001 pgs. 95-96
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The SMS Quality Council

• One particularly useful mechanism for moving the
  process along is a device that that Collins came
  to call the Council
• The Council consists of a group of the right
  people who participate in dialogue and debate
  guided by the three circles, iteratively and over
  time, about vital issues and decisions facing the
  organization
• Jim Collins, 2001 pgs. 114-115

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Accelerating the Iterative Process
To speed-up the formulation of the Hedgehog
Concept, increase the number of times you go
around that full cycle in a given period
ASK QUESTIONS, GUIDED BY THE THREE CIRCLES
AUTOPSIES AND ANALYSIS, GUIDED BY THE THREE
CIRCLES
DIALOGUE AND DEBATE, GUIDED BY THE THREE CIRCLES
EXECUTIVE DECISIONS, GUIDED BY THE THREE CIRCLES
Jim Collins, 2001 pg. 114
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Developing the Hedgehog Concept
The Hedgehog Strategy SMS can be the best in the
world at offering distinguished value-added
Electronic Manufacturing Services
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The Total Spectrum of Manufacturing Solutions
Product Design Services
Process Design Services
New Product Introduction
Supply Chain Management
Manufacturing Services
Logistic Services
After-Market Services
Next Generation Services
Product Engineering
Process Engineering
Prototyping
Consulting Planning
SMT PCBA
Transport Forwarding
Repair Warranty
Smart Systems
Product Development
Design For Manufacturing
Tool Mold Design
BOM Analysis
Plastic Injection Molding
Warehouse Management
Reverse Logistics
Value Engineering
Implementation Service
Process Tech. Development
Purchasing
Backplanes
Distribution E-commerce
Replace Pool
Customer Feedback
Design For Test
Environmental Engineering
Assembly Documentation
Logistics
Machining Enclosures
Customs Clearance
Failure Analysis
Continual Improvements
Engineering Documentation
Lifecycle Engineering
Info. Sys. Integration
Cabling
Information Integration
E-waste Recycle
Design for X
ODM
Regulatory Compliance
BTO/CTO
Order Fulfillment
RMA
Test Quality Assurance
Documentation Packaging
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Developing the Hedgehog Concept
The Hedgehog Passion
SMS is deeply passionate about getting 10 great
OEM customers to attribute their success to SMS
Technologies
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Developing the Hedgehog Concept
Profit per customer drives SMSs economic engine
The Hedgehog Economic Engine
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SWOT ANALYSIS
Internal Strengths
Internal Weaknesses
External Threats
External Opportunities
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CHANGE-STATE (Hoshin) PLANNING
Destination (Vision Future State)
Change-State (Hoshin) planning is the short-term
long-term process used to identify address
critical missions needs.
Where is missions now? (Present State) Where is
it going? (Future State) How will it get there?
(Plan) What are the obstacles?
How will Kingdom entrepreneurs navigate the road
to achieving the vision ?
Starting Point (Present State)
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CHANGE-STATE (Hoshin) PLANNING
Destination (Vision Future State)
Hoshin planning targets the critical few big
obstacles (Boulders) on the road. The small
obstacles (Small Stones) are handled by
operations. A common mistake is to take on too
much, dilute energy thereby, and achieve nothing
in the end.
Use Hoshin to remove big obstacles (Boulders)
Use Operations to remove small obstacles (Small
Stones) on the road
Starting Point (Present State)
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OBSTACLES OPPORTUNITIES
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Champions, Process / Measure Owners, Master
Trainers
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Team Selection Direction

• Customer-focused Support Teams
• Program Manager
• Mfg. / Quality Eng.
• Test Engineer
• Production Planner
• Value Stream Mgr.
• Purchasing Agent

• Customer-Focused Operations Teams
• Cell Leaders
• SMT Operators
• Assembly Operators
• Test Technicians
• Quality Technicians
• Route Runners

CUSTOMERS
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Team Selection Direction
Direction
Customer-Focused Operations Teams
Quality Council
Customer-focused Support Teams
Customer-focused Support Teams
Quality Council
Customer-Focused Operations Teams
Support
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Standard Problem-solving Model
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Sharing of Key Learning
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Improvement Idea Solicitation, Review, Approval
Implementation

1. Each team member silently thinks of and writes
   down as many ideas as possible in a set period of
   time (5 to 10 minutes).
2. Each member in turn states aloud one idea.
   Facilitator records it on the flipchart.
3. Continue around the group until all members pass
   or for an agreed-upon length of time.
4. Discuss each idea in turn.
5. Prioritize the ideas using multi-voting or list
   reduction.
6. Come to consensus on the teams top seven
   collective ideas.
7. Assign team members to the ideas along with
   completion times.
8. Track assignments through to completion or
   revision.
9. Recognize and reward team members for their
   contributions.

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Ensuring a High Level of Participation
Alignment
Alignment after Hoshin Planning
Alignment before Hoshin Planning
Flexibility As the business environment changes,
SMS activities change quickly with it
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How Is Improvement Recognized?
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Tracking Suggestions in the Gemba

• Suggestions are reviewed as part of regular team
  meetings
• A3 Storyboards are used to provide a history of
  improvement milestones
• Progress toward implementation is tracked through
  each teams responsibility matrix
• Awards are passed down through the teams
  beginning with the champion

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Thank You

• Other SMS Technologies Content Contributor
• John Crankshaw, Test Engineering Manager
• Contact Kenny Heifner
• kheifner_at_smstech.com