IET 627 Advanced Applied Industrial Management Spring 2014 Dr. Hans Chapman

1. IET 627Advanced Applied Industrial ManagementSpring 2014Dr. Hans Chapman Final Group Project Team 1 Tange Awbrey Chris Smith

2. 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.

3. 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

4. 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 Systems Printed Circuit Board Surface Mount SMT

5. 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

6. 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

7. 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

8. 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

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. Questions?