Circuit board

Lean Methods for Tech Manufacturer Saves $952K

The Client

A global leader in aerospace and defense technologies, with specialization in advanced defense electronics for next-generation strike weapon systems, missile-warning and aircraft survivability, and special-mission aircraft.

The Challenge Statement

Years of traditional life cycle management approaches to manufacturing had resulted in the loss of technical capability to support this OEM’s core product line. Shrinking margins, customer cost cutting initiatives and increases in overhead cost had created an almost certain exit from this once profitable flagship product line.

Objectives

Utilize lean methods to design, justify, implement and maintain a semi-automated circuit card assembly line that would increase labor base absorption, decrease unit cost and improve yield.

Regenerate an entrepreneurial environment built on successfully executing to our commitments.

Intended Outcomes

Develop a circuit card assembly work cell capable of managing a low volume / high mix in a highly mature and competitive market space. The planning and execution should involve all level of stake holders; from production associates through to the end user.

What Did the Team Achieve?

After a $325,000 capital investment and two months planning and machine qualification the CCA Cell produced its first lot one month ahead of schedule and significantly under budget. The project attained total ROI in under six months and resulted in a $952,000 cost savings on its first production contract.

What Results Did the Solutions Yield?

Business results

  • 66% increase in First Pass Yeild
  • 86% reduction in Product Travel
  • 18% reduction in Unit Cost
  • 4 – increase in Fulltime Equivalent Heads

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