1 NEC Computers International Activity report for year 2000 Manufacturing Unit Notebooks and Servers JP CABRERA, MUNS Manager, 03/01/2001

1NEC Computers International

Activity report for year 2000

Manufacturing Unit Notebooks and Servers

JP CABRERA, MUNS Manager, 03/01/2001


MUNS Production Chart

B ab in V eron iq u eA ss is tan t M an ag er P rod u c tion

P 4 7 7 9

M elin M ich e lS tock In ven to ry

P 7 1 4 2

C ed ric L iauJé ré m ie B ru n

C P U s tock roomP 7 1 8 3

A n ton y B ou d au dO fficeP 4 9 8 0

S té p h an e C og n o la toR ece ivin g L ead

P 7 0 6 9

G u illau m e Q u em en erJé rô m e G u ed on

S tock L ead sP 7 0 7 4

P h ilip p e M E S L E TW areh ou se S u p erviso r

P 7 1 3 7

A la in B u reauP rek its /A ccessories

P 4 8 5 7

R é m y L ecom teK itt in gP 7 0 6 7

Jean -M arc P A L M IE RS h ift L ead s

P 5 0 9 7

E tien n e A L L A IR ES ervers S u p erviso r

P 5 0 6 6

B ru n o L erou xY H am on G . L ep ag e

S h ift L ead sP 5 0 9 6

B en o it H eriteauN oteb ooks ac tin g as su p erviso r

P 5 0 9 8

F ran ck M an seauS ervers O L R

P 4 0 1 5

B ern ard S au vag e tN o teb ooks O L R

P 7 0 1 4

D an ie l M artinF A , M eth od s

P 7 2 9 3

F ré d é ric B en o itF A ,IS O ,M eth od s

P 4 6 3 1

M an u fac tu rin g Tech n ic ian s

Jean -P ie rre C A B R E R AM an u fac tu rin g M an ag er

P 7 1 5 0


Our Team Values

• Polyvalence, Flexibility, Motivation, Involvement• Autonomy, Professional integrity, Enthusiasm• Presenteism, Punctuality• Rigor, Method, Serious, Pro Activity• Dexterity, Rapidity, Agility, Reactivity• Competence, Knowledge, Confidence, Reliability• Communication, Respect for others, Welcome• Frankness, Team work, Competition• Innovation, Quality, Energy, Customer facing


Global process

CustomersBrandsNEC

PBELLBULL

US

Marketing

Engineering

Maintenance

Industrial Engineering

Production Planning

Material PlanningQuality

Order Adminsales

Purchasing

Human Resources & Facilities Receiving

Assembly

Kitting

Stockrooms

Burn-in & Preload

On Line Repair

Packing

Shipping


Production for Year 2K

• 113511 notebooks– 20000 in December 2K (25000 in full year 1998)– average of 25 units per manufacturing order

• 14282 servers– 15 models, racks and tower– 10 new product introductions– 2 units per manufacturing order (ATO)

• 140000 accessories – for servers, notebooks and desktops

• 10,5 M$ of stocks, 17500$ adjustment ie 0,0016%


Quality internal audit Y2K

• Servers ( 30/03/2000) : Satisfaction : 95%– Remarks :

• FA & security instruction not written : done

• Notebooks (18/12/2000) : Satisfaction : 85%– Remarks and status :

• procedure is not up to date : in progress• torque of screw drivers not calibrated : tool must be

replaced, 19KF, Investment proposal to be done• ESD rules not respected : verify that everybody

conforms the ESD rules• working instruction list not up to date : in progress


BUDGET Y2K :

• Stockroom :– Actual (November) : 474729$– Budget : 427719$

• Servers :– Actual : 402213$– Budget : 641095$

• Notebooks :– Actual : 771892$– Budget :611998$


Investments Y2K :

• Stockroom :– Increase stockroom capacity in order to shorten

the servers lead time : shelves + receiving– Amount = 48630$

• Notebooks :– Increase production capacity from 600/day to

900/day in order to achieve the target for end of the year : new layout + 6 trolleys for preload

– Amount = 138000$


METHODS :

• Quality measurement on the lines : – Acceptable Quality Level : cosmetics & docs– On Line Repair ratios

• KAIZEN : the processes are always improved by the operators, in brainstorming meetings, controlled by leads or supervisors,

• Progress group at receiving• Weekly meeting for OLR Quality improvement• Daily meeting for business & material management• New operators:2 days training + 3 (practice servers)


Capacity calculation : on Wednesday, 11:00

Capacity requiredby order admin

Material availability

Capacity calculationparameters =

number of working hours or number of people

Wednesday, 12:00Mail : working hours & capacity for the following week


METHODS : 5S or Housekeeping

• Quality can only grow in a clean workshop• Seiri = to throw away useless things• Seiton = everything at its place• Seiso = to clean• Seiketsu= to be methodical, organized• Shitsuke= to learn rigor


METHODS : New product Introduction

ProductsFCS datesroadmaps

Marketing

Engineering

Production:operator training,

quality,routing times,

efficiency,productivity,

practice1 unit forFA test

FA team :assembly method

working instructionstest process

Materialplanning

PurchasingProductionplanning

MOs

Tests &support


Mission for the server production team

• To produce servers • with Excellence in quality, • delivered in time to the customer, • and with respect of the budgeted costs.

– This must be done with well trained people, in respect of the working conditions and environment, and continuously searching for improvement of the process.


Layout : Servers


Process for servers

KittingAssembly

10 work stations45 mn (Average)

Burn-In180 entry pointsEntry = 6 hoursHigh = 12 hoursOn Line

Repair

Quality

Packing1 work station

Nationalizationkits

Stockroom

Shipping

Max Capacity :300/day/3 shifts


Objectives and results for servers

• Quality : – On Line repair, Objective : 6.7 % current : 6.8%

– Non conform products– Process issues– assembly errors

– DOA, Objective 1 % , current : 0.1%

• Lead times : Objective : 4 days from order placed to FOB – current lead time : 10 days (average)– production cycle time : 3 days (average)

• Costs : – productivity : Objective :4/day/operator, current 3,35


Production cycle for servers

• J = order is placed in SOPSYS• J+1 = MO is planned at J+2• J+2 = production, pretest, burn-in, • J+3 = delivery to shipping


QUALITY Y2K : Servers

% OLR SERVER

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

Process

Assembly

Suppliers

Goal



%QUALITY OUTGOING SERVER

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

7,00%

8,00%

1999

janv-0

0

févr-

00

mars

-00

avr-

00

mai-00

juin

-00

juil-

00

août-

00

sept-

00

oct-

00

nov-0

0

déc-0

0



RMA (12 month rolling)

0,00%

0,50%

1,00%

1,50%

2,00%% other (12 month)

% NDF(12 month)

% Failed(12 month)

goal


Manpower Y2K : ServersEffectif par semaine, SERVEURS

0

5

10

15

20

25

30

35

40

45

Semain

e 1

Semain

e 3

Semain

e 5

Semain

e 7

Semain

e 9

Semain

e 11

Semain

e 13

Semain

e 15

Semain

e 17

Semain

e 19

Semain

e 21

Semain

e 23

Semain

e 25

Semain

e 27

Semain

e 29

Semain

e 31

Semain

e 33

Semain

e 35

Semain

e 37

Semain

e 39

Semain

e 41

Semain

e 43

Semain

e 45

Semain

e 47

Semain

e 49

Semain

e 51

Semaine

CD

I C

DD

TE

MP

S

INT

CDD

CDI

JP CABRERA21/12/2000


Productivity Y2K : ServersProductivité

0

4

8

12

16

20

24

28

32

36

40

UNITS/DAY/OPERATOR Nbre de personnes présentesobjectif Polynomial (UNITS/DAY/OPERATOR)


Efficiency Y2K : ServersEfficience Assemblage Serveurs

0

50

100

150

200

0

20

40

60

80

100

120

Efficience heures perdues Heures non productives Polynomial (Efficience)


Mission for the notebooks production team

• To produce notebooks • with Excellence in quality, • delivered in time to the customer, • and with respect of the budgeted costs.



Layout : Notebooks


Process for notebooks

KittingAssembly

12 work stations10 mn (Average)

Pretest/Preload192 entry points

3,5 hoursOn LineRepair

Quality

Packing

Nationalizationkits

Stockroom

Shipping

Max Capacity :900/day/3 shifts


Objectives and results for notebooks

• Quality : – On Line repair, Objective : 2.7 % current : 2.7%

– Non conform products– Process issues– assembly errors

– DOA, Objective 2 % , current : 1%

• Lead times : Objective : 3 days from order placed to FOB – current lead time : 10 days (average)– production cycle time : 3 days (average)

• Costs : – productivity : Objective :4/day/operator, current 3


Production cycle for notebooks

• J = order is placed in SOPSYS• J+1 = MO is planned at J+2• J+2 = production, pretest, preload, • J+3 = delivery to shipping


QUALITY Y2K Notebooks

% OLR NOTEBOOK

0,00%0,50%1,00%1,50%2,00%2,50%3,00%3,50%4,00%4,50%5,00%

1998

1999

janv

-00

févr

-00

mar

s-00

avr-

00

mai

-00

juin

-00

juil-

00

août

-00

sept

-00

oct-

00

nov-

00

déc-

00

Process

Assembly

Suppliers

Goal


QUALITY Y2K : Notebooks

% OUTGOING QUALITY CHECK NOTEBOOK

0,00%

0,20%

0,40%

0,60%

0,80%

1,00%

1,20%

1,40%

1,60%

1,80%

2,00%

1998

1999

janv-0

0

févr-

00

mars

-00

avr-

00

mai-00

juin

-00

juil-

00

août-

00

sept-

00

oct-

00

nov-0

0

déc-0

0


QUALITY Y2K : Notebooks

% OLR NOTEBOOK

0,00%0,50%1,00%1,50%2,00%2,50%3,00%3,50%4,00%4,50%5,00%

1998

1999

janv

-00

févr

-00

mar

s-00

avr-

00

mai

-00

juin

-00

juil-

00

août

-00

sept

-00

oct-0

0

nov-

00

déc-

00

Process

Assembly

Suppliers

Goal

% OUTGOING QUALITY CHECK NOTEBOOK

0,00%0,20%0,40%0,60%0,80%1,00%1,20%1,40%1,60%1,80%2,00%

1998

1999

janv

-00

févr

-00

mar

s-00

avr-

00

mai

-00

juin

-00

juil-

00

août

-00

sept

-00

oct-0

0

nov-

00

déc-

00

RMA (ARR) repartition

0,00

0,50

1,00

1,50

2,00

2,50

3,00

1999

janv

-00

févr

-00

mar

s-00

avr-

00

mai

-00

juin

-00

juil-

00

août

-00

sept

-00

oct-0

0

nov-

00

déc-

00

other

NDF

Failed

goal


Manpower Y2K : NotebooksEffectif par semaine, NOTEBOOKS

0

10

20

30

40

50

60

70

Semain

e 1

Semain

e 3

Semain

e 5

Semain

e 7

Semain

e 9

Semain

e 11

Semain

e 13

Semain

e 15

Semain

e 17

Semain

e 19

Semain

e 21

Semain

e 23

Semain

e 25

Semain

e 27

Semain

e 29

Semain

e 31

Semain

e 33

Semain

e 35

Semain

e 37

Semain

e 39

Semain

e 41

Semain

e 43

Semain

e 45

Semain

e 47

Semain

e 49

Semain

e 51

Semaines

CD

I C

DD

TE

MP

S

INT

CDD

CDI



Mission for the warehouse team

• To receive and stock each component • with Excellence in inventory accuracy, • delivered in time to the productions or to the

other warehouses, • and with respect of the budgeted costs.



Layout : Stockroom


Process for warehouse

Office :following up

of MOs

DocksReceiving

Prod.Planning

Max Capacity :900 notebooks or 50 MOs/day/3 shifts+ 300 servers or 100 Mos/day/3 shifts

+ 50 Mos for accessories

Mass Stockroom

Goods

Shuttles

Picking Stockroom

Protected Stockroom

Pickingwarehousemen

Prekitpreparation

Production

Manufacturing Orders

& picking listsInventory

Resupply


Manpower Y2K : WarehouseEffectif par semaine, STOCK

0

5

10

15

20

25

30

35

Semain

e 1

Semain

e 3

Semain

e 5

Semain

e 7

Semain

e 9

Semain

e 11

Semain

e 13

Semain

e 15

Semain

e 17

Semain

e 19

Semain

e 21

Semain

e 23

Semain

e 25

Semain

e 27

Semain

e 29

Semain

e 31

Semain

e 33

Semain

e 35

Semain

e 37

Semain

e 39

Semain

e 41

Semain

e 43

Semain

e 45

Semain

e 47

Semain

e 49

Semain

e 51

Semaine

CD

I C

DD

TE

MP

S

INT

CDD

CDI



Valeur ajustement

-1.387,92 -382,84 -720,90 -546,53

0,00

-3.011,60

61,48

-4.123,44

-7.788,69

326,54-1.068,71

-2.347,63

1.829,222.283,62

-1.764,44

672,460,00

-1.795,00 -1.413,66

-11.104,25

4.026,84

-7.190,33

19.198,78

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

Fév

rier

Mars

Avril

Mai

Juin

Juillet

Août

Septe

mbr

e

Octo

bre

Novem

bre

Décem

bre

Janvie

r

Fév

rier

Mars

Avril

Mai

Juin

Juillet

Aout

Septe

mbr

e

Octo

bre

Novem

bre

Décem

bre

Inventory Adjustments Y2K

1999 2000

Transfer from St Sylvain


Efficiency Y2K : picking & delivery to production

Efficience semaine

128%

120%

123%

122%

108%111%

115%

112%

110%

117%

109%

114%

100%

110%

113%

108%

114%

104%

130%

119%

109%

136%

113%

109%

119%

124%120%

112%

121%

123%

129%

117%

91%

110%

128%

151%

139%

102%

107%

99%98%

108%

134%

146%

134%

139%

115%116%

127%

119%

111%

143%

135%

129%

132%

134%

117%

117%

116%

126%

107%

143%

127%132%

126%

96%

99%

108%

138%

125%

117%

97%

102%

121%

98%

86%

98%

85%

101%

74%

85%

83%

90%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Nouveau calcul d'éff iciencesuite au gain de productivité en 99


Weakness and axes of improvement

• Global : • supply chain : forecasts accuracy, bids not taken in

account, specific components with low volumes => suppliers not flexible

• dependence of engineering on Boxborough• production planning : launch of production with

components arriving the same day => shortages• too many temporary people => low skills level

• Stockroom :• not enough space on the docks and shelves• no software for picking list nor MO grouping


Weakness and axes of improvement

• Notebooks:• Quality management must be improved by 10 points• Floor and walls to be repaired

• Servers : • Packing becomes very hard because of the weight of

servers : a handling tool has to be developed, in progress

• Not enough light on the line : budgeted, IP to be done

• both Nb & Sv: • compressed air screw drivers : budgeted for 2001• On Line working instructions : budgeted for 2001


Training : proposal for 2001Cost Center Name Training Heading Date Cost Total Training Cost Total Cost center

3500 Babin V Anglais individuel 6.500 F 6.500 F3500 Babin V Finance 3.200 F 9.700 F 9.700 F3530 Guedon J Anglais classique 1.850 F 11.550 F3530 Quemener J Anglais classique 1.850 F 13.400 F3530 Cognolato S Anglais classique 1.850 F 15.250 F3530 Meslet P L' Entretien Annuel d'activité 1.300 F 16.550 F3530 Guedon J Douane + Transport 0 F 16.550 F3530 Quemener J Douane + Transport 0 F 16.550 F3530 Cognolato S Douane + Transport 0 F 16.550 F3530 Cabrera J Douane + Transport 0 F 16.550 F3530 3 pers Outlook 0 F 16.550 F 6.850 F9373 Taconne. A réseau 5.000 F 21.550 F9373 Allaire. E Anglais classique 1.850 F 23.400 F9373 Benoit. F Anglais classique 1.850 F 25.250 F9373 Juret. A Anglais classique 1.850 F 27.100 F9373 Leger. C Anglais classique 1.850 F 28.950 F9373 Pilard. J Anglais classique 1.850 F 30.800 F9373 Cabrera J Anglais individuel 8.000 F 38.800 F9373 Palmier JM Construire, Animer et gérer son équipe 2.100 F 40.900 F9373 Lecomte R Construire, Animer et gérer son équipe 2.100 F 43.000 F9373 Allaire. E L' Entretien Annuel d'activité 1.300 F 44.300 F9373 Cabrera J Manager un centre de responsabilité 44.000 F 88.300 F 71.750 F9383 Heriteau B Anglais classique 1.850 F 90.150 F9383 Leroux B Anglais classique 1.850 F 92.000 F9383 Martin D Gestion de temps 1.400 F 93.400 F9383 Heriteau B Perfectionnement gérer son équipe 715 F 94.115 F9383 Leroux B Perfectionnement gérer son équipe 715 F 94.830 F9383 Sauvaget B Certification Multiplatforme 16.500 F 111.330 F9383 Geffard P L' Entretien Annuel d'activité 1.300 F 112.630 F

3530-9373-9383 6 pers Formation Secouriste 0 F 112.630 F9373-9383 8 pers Technique Servers 0 F 112.630 F 24.330 F


END

Documents

1 NEC Computers International Activity report for year 2000 Manufacturing Unit Notebooks and Servers JP CABRERA, MUNS Manager, 03/01/2001