Resources Optimization and Capacity Analysis in the Electronics Manufacturing Industry

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Executive Summary

A world leader in the field of electronic interconnect technology engaged Production Modeling India (PMI) to analyze and improve their production capacity and resource utilization. Although they had a very capable manufacturing facility, the customer was experiencing problems with different product demands, shift schedules, and internal bottlenecks. PMI undertook a careful simulation study to check capacity, determine production constraints, and check the feasibility of different scheduling approaches. The study found that the existing plant would be able to hit monthly targets within 15 working days, with much unused potential. Solutions centered on resource utilization, shift reorganization, and capacity planning over the long term—ultimately proving that with only slight changes, the factory could triple its production.

Client Background

The client is a privately owned, globally known industry leader in the electronics interconnect industry. Known for manufacturing and technological innovation, the company has a wide portfolio of high-performance solutions such as high-speed board-level interconnects, cable assemblies, optical solutions, panel and mid-board optics, and glass core technology. Its extensive portfolio also includes the broadest array of board-to-board interconnects in the industry. Having a global presence, the organization fulfils market demands in terms of data centers, telecommunications, and advanced computing, where performance and reliability are given the highest importance. Efficient use of production assets is imperative to preserving their competitiveness and adapting to rapidly changing customer requirements.

Business Challenges

The customer's plant, despite having state-of-the-art equipment and trained personnel, had some operational limitations:

  • Diverse Product Demands: A wide product mix brought in product complexity in terms of batch sizes, cycle times, and resource utilization.
  • Upper Production Limit: There was doubt whether the existing configuration could ramp up to respond to peak demands or future expansion.
  • Shift Patterns: Management needed to assess the most efficient combination of shift lengths and workdays to meet targets without overstaffing.
  • Bottleneck Identification: There was limited clarity on which stations or machines were restricting the overall production flow.
  • Inter-process Storage: Inefficiencies existed in storing semi-finished goods between production stages, adding to lead time.
  • Batch-Based Lead Times: The batch processing approach required careful coordination to minimize idle time and maximize throughput.

Resources Optimization and Capacity Analysis in the Electronics Manufacturing Industry

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PMI’s Approach

PMI took a six-step approach to thoroughly evaluate the manufacturing system and provide data-based recommendations:

Data Verification & Static Analysis

Data provided by clients was checked for correctness. Machine cycle times, yield ratios, and batch sizes were reviewed to determine theoretical capacity and utilization.

Conceptualization

PMI created a versatile simulation framework that reflected rules of operation, SKU-based parameters, and multiple scenarios for scheduling.

Model Building & Verification

A virtual twin of the production line was created with industry-standard simulation software. It was validated against the static analysis for accuracy.

Validation

The simulation model was validated with historical data to validate congruence with actual production performance.

Scenario Testing

Various variables like machine numbers, shift timings, and SKU combinations were simulated to determine bottlenecks and optimization potential.

Results & Conclusion

All the scenarios were explored and quantified with actionable advice for machine optimization, shift reorganization, and planning in the long run.

The project had extensive interaction between PMI (1 Project Manager and 1 Simulation Engineer) and the client (1 Project Coordinator), with a clear and focused execution.

Resources Optimization and Capacity Analysis in the Electronics Manufacturing Industry

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Findings & Recommendations

The simulation and analysis provided several telling conclusions:

• Production Efficiency: Production for the monthly target could be accomplished within half of the calendar month, demonstrating that the system is underutilized.

• Capacity for Growth: With optimal shift scheduling and extending operating hours, the plant might be able to triple its current production levels without requiring new machinery.

• Shift Optimization: The most efficient output was achieved with 8-hour shifts, providing both productivity and workforce amenity, with scope for off-shift working if required.

• Resource Right-Sizing: The analysis indicated that the number of machines could be decreased or re-allocated between processes for improved overall balance.

• Lead Time Visibility: The model tracked WIP levels, batch-wise lead times, and cycle time variances, enabling improved scheduling and logistics coordination.

• Scalability and Flexibility: The simulation model remains flexible, capable of testing new SKUs, machine additions, and production scenarios on demand, supporting ongoing process improvement.

Conclusion

PMI’s capacity and resource optimization study provided the client with a clear roadmap to improve production planning, reduce idle resources, and prepare for future demand increases. The simulation-based insights not only quantified existing inefficiencies but also uncovered potential to increase capacity up to 3x, with minimal capital expenditure. The agile modeling infrastructure enables the client to continue to simulate and respond to changes in operations, staying competitive in a fast-moving electronics marketplace. As a result of this project, PMI was able to showcase the strength of simulation as a strategic leverage in contemporary manufacturing optimization.

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