Lean Operations and Supply Chain
Excellence: A Competitive Weapon
Brian C. Quirk Vice President, Global Operations
SEMI Northeast Forum September 11, 2013
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Large supplier of process control instruments, components and subsystems – Broad technology base and applications expertise
Focused on enhancing productivity – Reduce manufacturing and maintenance costs – Improve yields – Easily integrated
Lifecycle support
Global Process Control Experts
Technology for Productivity
The MKS Story
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MKS’ Strategic Operational Mission: Assist MKS in achieving a sustainable competitive
advantage by developing and maintaining world class operations and supply chain management
Attain unrivaled performance in the areas of quality, speed, & flexibility; establishing lean operations as a core competency for the company.
Achieve success through constancy of vision, purpose and long term partnerships
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Global Strategies
Focus on Lean Strategies to achieve Customer Satisfaction
Develop and replicate operational best practices
Design the global supply chain to provide optimal customer service at lowest costs
Develop and expand LCC manufacturing beach heads
Maximum utilization of all internal and external global resources
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Lean Operations Strategies
Forward Demand Mgt. •Capacity/Shipment Planning •Cross Trained Operations •Flex Capacity/85% Load •Shop Floor Control •Daily Huddles •Mgt. Contact
Yield •Customer Awareness •Six Sigma “Light” •Daily Feedback •Training •Efficiency •Mgt. Contact
Cycle Time Reduction •Blitzes •Constraint Mgt. •24/7 Operation •Mgt. Contact
Supply Chain Mgt. •Performance Measures •Outsourcing •Quarterly Meetings •Supplier Business Reviews •Mgt. Contact
Consistent Reporting •Hoshin Goals •Report Cards •Load vs. Capacity •Mgt. Contact
TOTAL CUSTOMER SATISFACTION
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World Class Metrics
1st pass yield 99-100% Five year improvement in 1st pass yield 40% Warranty as a % sales .5% Scrap rework costs as % sales less than 1% Five year mfg. cycle time reduction 20% per year On time delivery 98% Lead-time less than customer expectations
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Lean Supply Chain Management
Supply chain Management Make it a profit center! Multiyear contracting Global suppliers Performance measures Strategic/tactical commodity planning Pull systems/VMI Consolidate spend to leverage your cost Long-term contracting ( mitigating exposure) Earned volume discounting
Quality and Reliability as an Operations and
Supply Chain
Outline and Backdrop Semiconductor Manufacturing Equipment Needs
to be More Reliable with Less Downtime (a chip fab now costs $7,000,000,000)
To Meet Challenge: MKS Invested Significantly to Improve Quality and Reliability of our Products – Financial, Structural and Organizational – Enabling Entire Organization: Structured Problem
Solving, SSQA Continuous Improvement, Design for Reliability, Application Engineering
Results Encouraging: 80% Reduction in Incidents, 30% Reduction in warranty costs, 30% Reduction in Annual Failure Rates on New Products
Lessons Learned MKS Confidential 10
MKS Quality Policy Deliver Products and Services that Consistently
Meet or Exceed Customer Requirements Continually Improve our Products, Processes and
Management Systems Be the #1 Value Provider within the Markets We
Service – Quality Vision: Continuous Improvement Towards
Zero Defects – Mission: Enable QSR Culture: Quality then
Schedule Yields Results
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Quality and Reliability Improvement Timeline
2009 2010 2011 2012 2013
SSQA Journey
Refocus & Revitalization
Achieved 6.3
Target 6.6, BKMs
Achieved 6.5
DFMEA Centralized database
Living document & issues capture
Lessons Learned
Structured Prob. Solving
KT/8D
Monthly Executive Review
Centralized dB: 100 KT/8D
Leading Indicators,
BKMs DfR
Guidelines
Training in 8D, FTA
Q & R Organization Centralize Q&R
Continue Org Development
-Training
Investments: -Rel/Qual Capital -Training
Investments: - Rel Capital - Personnel
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MKS Q&R Improvements 2011-2013 Q&R Organization: Unified and Expanded Quality & Reliability
Team; Millions Invested in Reliability Labs
Structured Problem Solving using KT/8D – 2011: 723 Trained vs 800 goal, 67 KT/8Ds added – 2012: 930 with 1116 goal. 122 KT/8Ds added vs 100 goal in focus areas.
Quarterly Executive Reviews to Reinforce – 2013: 8D/FTA Training: 70 YTD vs 100 KT/8D goal
SSQA (MKS Continuous Improvement Model) – 2011 Goal: Increase KQE to 6.3. Achieved – 2012 Goal: increase KQE to 6.5. Achieved – 2013 Goal: Increase KQE to 6.6. On track with 6.7
MKS Quality Improvement Program – 80% Reduction in Incidents Q2’13 from Q4’10 exceeding 50% goal
Design Failure Modes Effects Analysis Improvements – Moving Risk Management earlier into Product Development. Living
Document. 123 Field Issues Captured in 83 DFMEAs
Reliability Improvements – Design for Reliability: Improve and standardize BKMs across MKS. Utilize
leading indictors to proactively eliminate/prevent failure (reliability scorecard and problems prevented)
KT and 8Ds Available in Searchable Database for Lessons Learned
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Keys to Effective Use of Structured Problem Solving Tool to Manage Problems and Communicate Need Technical Experts Define Root Cause: Turn Problem Off AND On Define when Done Focus on Systematic Actions (Get out of “whack a
mole” in chasing problem after problem) MKS Uses KT and 8D Processes
– KT: To define problem: What, Where, When, Size – 8D Process to Focuses Team on Systematic
Actions
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The SSQA Application
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What is SSQA?
The quality management system of MKS and our suppliers based upon SSQA requirements. SSQA stands for Standardized Supplier Quality Assessment, which is a set of world class quality standards developed by SEMATECH.
SSQA: MKS Continuous Improvement Model Executive Champion: Eric Snyder Team Lead: Pat Sackal Objective: Business processes maturity, measurable results tied to annual
plans Results:
2013 Goals: – Goal to Increase Score to 6.60 with focus on defect reduction – Exceeding
goal – Focus teams with BKM, CIP actions & improvement roadmaps - ongoing – Train Additional Certified Auditors: 1 at Nogales - on track MKS Confidential 18
Product Group
Baseline KQE Score (08/09)
KQE Score FY2011
KQE Score FY2012
KQE Score FY2013
PFMC 6.36 6.31 6.47 6.72
Controls 6.07 6.31 6.65 6.71
ENI 6.19 6.26 6.53 6.76
China 6.50 6.54 6.71 Sep ’13
ASTeX 6.17 6.28 6.41 6.69
Mexico 5.07 6.16 6.42 Sep ’13
Goal 6.00 6.30 6.50 6.60
Avg 6.06 6.31 6.53 6.72
Increased SSQA Score Tracks with Reduced Returns Over Time
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Correlation between SSQA scores & Returns reductions over time.
Failu
re R
ate
Quality Product Design Design FMEA: Pragmatic Approach Provides
Repository of Lesson Learned Design for Reliability Guidelines Developed:
Tracked on Each Project with Reliability Scorecard
Reliability BKM Database Developed to Share BKM Company Wide
PCBA Design Guidelines for Reliability Developed Results:
– Warranty costs Reduced by 30% – 100+ Problems Prevented
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Lessons Learned from Quality and Reliability Improvements
Structured Problem Solving including KT/8D and Preventative Actions helps Sustain Reductions over last 3 years. – Improvements to ICT/FCT Test, Test Stand
Improvements/Poke-Yoke, SPC
SSQA identifies Key Areas for Systematic Process Improvement to Prevent Problems
DFMEA and DfR Improvement Teams Used to Feed Issues/BKMs Back into Design to Prevent Reoccurrence in New/Updated Products – Design Practices, Component Selection and Application
Replacing Legacy Designs Reduced Returns and Improved Reliability
Improved Communication with Field Enabled with Application Engineering Investment
– MKS Local Application Engineers (Taiwan, Korea, Singapore, etc.) helped to identify the problem quicker and understand the application
– Provides closer linkage with end user and application to prevent problems
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Future Planned Q&R Improvements
Continued Improvements via SSQA Process: Focused on Defect Reduction via BKMs
Enhanced Critical Part Program SPC Enhancement: Focused on Key Products
and Excursion Management EQRS: Enterprise-wide Quality and Reliability
System for RMA, CAPA, Audit and Customer Complaints
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