f-TOF

DEPARTMENT OF THE NAVY

OFFICE OF THE ASSISTANT SECRETARY(SHIPBUILDING AND LOGISTICS)WASHINGTON, D.C. so

AD-A221 014

BEST MANUFACTURING PRACTICES

DTTCELECT -EAPR27 1990 REPORT OF SURVEY

czi1 CONDUCTED AT

IBM CORPORATIONFEDERAL SYSTEMS DIVISION

OWEGO, NY

D~i?:znoNSTATiE?~

Appzoved for public releasel

IDisail~utno Urilim nod

OCTOBER 1986

10 04 26 O56

Form Approved

REPORT DOCUMENTATION PAGE OMB No. 0704-0188Pubc reortig burden for this collection of information is estimated to average I hour per response, including the time for rewewing instructions, searching existing data sources.

gathering and maintaining the data needed, anD com letig and reviewing the collection of Information. Send comments regarding th burden estimate or any othei e of thscollection of information, including suggestions for reducing this burden, tO Washington Headquarters Services. Directorate for information Operations and Reports, 1215 JeffersonDavis Highway. Suite 1204. Arlington. VA 22202-4302. and to the Office of Management and Budget. Paperwork Reduction Project (0704-0188), Washington, DC 20S03.

1. AGENCY USE ONLY (Leave blank) j 2. REPORT DATE 3. REPORT TYPE AND DATES COVEREDIOct 86 BMP Report Oct 86

4. TITLE AND SUBTITLE 5. FUNDING NUMBERSBest Manufacturing Practices Survey Conducted atIBM Corporation, Federal Systems DivisionOwego, NY6. AUTHOR(S)

Office of the Assistant Secretary of the Navy (RDA)Best Manufacturing Practices Program

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATIONOffice of the Assistant Secretary of the Navy REPORT NUMBER(Research, Development & Adquisition)Product Integrity DirectorateWashington, D.C. -)o3(o)5--CX9

9. SPONSORING I MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORINGAGENCY REPORT NUMBER

Same as Number 7.

11. SUPPLEMENTARY NOTES

12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE_T li.J..---

13. ABSTRACT (Maximum 200 words)

The purpose of the Best Manufacturing Practices (BMP) survey conducted atthis facility was to identify their best practices, review manufacturing problems, anddocument the results. The intent is to extend the use of progressive managementtechniques as well as high technology equipment and processes throughout theU.S. industrial base. The actual exchange of detailed data will be betweencontractors at their discretion. A company point of contact is listed in the report

The intent of the BMP program is to use this documentation as the initial stepin a voluntary technology sharing process among the industry. 7:

A ,

-'Ii * .I 4

14. SUBJECT TERS 15. tUMBER Of PAGES

16. PRICE CODE

17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTR4CT

OF REPORT OF THIS PAGE OF ABSTRACT

UNCLASSIFIED CLASSIFIED CLASSIFIEDNSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89)

Prescribed by ANSI Std. Z3I.IS

REPORT OF SURVEY

CONDUCTED AT

IBM CORPORATION

FEDERAL SYSTEMS DIVISION

Accesion For

OWEGO. NY NTIS CRA&IDTIC TAB 0

STATEMENT "A" per Adrienne Gould Utianoounced 0

Office of the Assistant Sec. of Navy Justifcabon

Attn: RDA-PI, Washington, DC 20360-5000

TELECON 4/27/90 VG 19

0isr ibution I

Avdilabulity Codesi Avi iid lor

DiMt Spccial

OCTOBER 1986

TABLE OF CONTENTS

Page

I. INTRODUCTION ......... .................. 1A. Scope .......... ................... 1B. Review Process ....... .............. 2C. BMP Review Team ....... .............. 2

II. SUMMARY ....... .................... 3

III. BEST PRACTICES ......... ................. 4

A. ManagementRespect for the Individual ... ....... 4Excellence Plus Program ..... ........ 6Quality Focus on the Business Process . 6Employee Opinion Survey .... ......... 7Management Personnel Exchange Training . 7Computer Automated Subcontract System . 7Vendor Quality Monitoring System . . .. 8Vendor Rating System ..... .......... 8

B. Design ........................ 9Design Practices .................. 9Digital Test Technology .... ......... 9Manufacturing Test Equipment ... ...... 10Engineering Information Data System . . . 10

C. Manufacturing .... . . ....... 10Part Verification Test'Program. ........ .. 10Automation Technology .... ..... . 11Continuous Flow Manufacturing .. ...... 11Circuit Card Assembly and Processing

System .................. ....... 12Flatpack Prepping System .... . 13Robot Discrete Tinner ......... .. 13Robot Flatpack Mounting System ..... 14Quality Teardown Program . ........ .. 14

IV. PROBLEM AREAS ...... ................. . 15Component Solderability .. ......... . 16Flatpack Standards .. ........... . 16Producibility Measurement ......... 17

V. CONCLUSIONS ...... .................. 17

ii

I. INTRODUCTION

A. Scope

The purpose of the Best Manufacturing Practices (BMP)Review conducted at IBM Corporation, Federal SystemsDivision was to identify best practices, review manufac-turing problems and document the results. The intent isto extend the use of high technology equipment andprocesses throughout industry. The ultimate goal is tostrengthen the U.S. industrial base, solve manufacturingproblems, improve quality and reliability, and reduce thecost of defense systems.

To accomplish this, a team of Navy engineers reviewedIBM's Federal Systems Division (FSD) to identify the mostadvanced manufacturing processes and techniques used inthat facility. Manufacturing problems that had the poten-tial of being industry wide problems were also reviewedand documented for further investigation in future BMPreviews. Demonstrated industry wide problems will besubmitted to the Navy's Electronics Manufacturing Produc-tivity Facility for investigation of alternatives toresolve the problem.

The review was conducted at FSD in Owego, New York on7-10 October 1986 by a team of Navy personnel identifiedon page 2 of this report. FSD is primarily engaged in thedesign, development, and production of sophisticated elec-tronic information processing systems for aircraft, groundstations, space vehicles, and ships.

Based on the results of BMP reviews, a baseline isbeing established from which a data base will be developedto track best practices and manufacturing problems. Theinformation gathered will be available for disseminationthrough an easily accessible central computer. The actualexchange of detailed data will be between contractors attheir discretion.

The results of this review should not be used to rateIBM Federal Systems Division among other defense electron-ics contractors. A contractor's willingness to partici-pate in the BMP program and the results of a survey haveno bearing on one contractor's performance over another's.The documentation in this report and other BMP reports isnot intended to be all inclusive of a contractor's bestpractices or problems. Only selected nonproprietarypractices are reviewed and documented by the BMP surveyteam.

B. Review Process

This review was performed under the general surveyplan guidelines established by The Department of theNavy. The review concentrated on three major functionalareas; management. design engineering and manufacturing.IBM FSD identified potential best practices and potentialindustry wide problems. These practices and problems, andother areas of interest identified were discussed,reviewed and documented for dissemination throughout theU.S. industrial base.

C. BMP REVIEW TEAM

Team Member Agency

Ernie Renner Office of the Assistant Secretary ofChairman the Navy

(Shipbuilding and Logistics)(202) 692-1146

Leo Plonsky Naval Industrial Resources SupportTeam Leader ActivityManagement (215) 897-6684

Alan Criswell Naval Industrial Resources SupportTeam Leader ActivityDesign (215) 897-6684

Steve Rapp Naval Weapons Support CenterTeam Leader (812) 854-1854Manufacturing

Phil Broudy Naval Industrial Resources SupportActivity

(215) 897-6684

Mike Cooper Electronics Manufacturing Produc-tivity Facility

(619) 446-7706

John Essex Naval Avionics Center(317) 353-3953

Larry Halbig Naval Avionics Center(317) 353-7075

Dick Kluesner Naval Weapons Support Center(812) 854-3843

2

II. SUMMARY

The Best Manufacturing Practices Survey Team evaluatedmanagement, design and, manufacturing functions. Areasreviewed included IBM's management policies and strategy,design and production engineering, material procurement,receiving inspection, facilities, integrated testing,quality assurance, material handling, inventory control,compliter aided manufacturing, and vendor selection andcontrol. The team also discussed manufacturing problemssuch as component solderability, vendor quality control,and component standardization.

The format for this survey consisted of formal brief-ings and discussions on best practices and problems. Timewas spent on the factory floor reviewing practices, pro-cesses and equipment. In-depth discussions were conductedwith FSD personnel to document, in detail, some of thepractices and problems identified.

Some unique policies in IBM's management strategy werereviewed. They included a full employment practice whichhas been successfully maintained for the past forty years.This has required some flexibility and inconvenience attimes, but has paid off in work force continuity andloyalty. Communication and quality improvement effortsare also strong features of IBM's management. Much ofthis philosophy has filtered down to their suppliers. Tobetter control potential supplier problems, IBM hasdeveloped and implemented several automated managementsystems that provide real-time paperless contact andcontrol of their vendor base.

A top down approach is used to better standardizehardware design. Guidelines have been developed andreviews put in place to smooth the transition to produc-tion. These reviews often include front end involvementwith operations and manufacturing engineering. A varietyof automated design tools are used to interface andtranslate between design process areas. Simulations andanalysis are key elements of the process. To bettermanage all of the elements of design, IBM has developed adivision-wide, computer networked Engineering InformationData System. Updated design data is maintained forretrieval and generation of bills of material, part numberdata, parts selection, cost estimating, and engineeringchange notices.

IBM Federal Systems Division is the prime contractorto the Navy for the development of a Circuit Card Assemblyand Processing System (CCAPS). This project has lead tothe development of state-of-the-art hardware and softwarefor the flexible production of defense circuit card assem-blies. Five subsystems have been developed and incor-porated into FSD's manufacturing operation. A flatpack

3

prepper, robot discrete tinner, laser part marker, DIPinserter, and robot flatpack mounter are operating withsubstantial increases in productivity, reduced defects/rework, and yields in the upper 90% range. Thesesubsystems were developed in a modular concept forindividual or collective adaptation in other defensecontractors' facilities.

Many of the manufacturing problems identified anddiscussed were similar to those discussed at other plants;i.e.. component solderability and vendor quality control.IBM has component quality problems related to their highutilization of automated equipment. It is related to thelack of standard flatpack mechanical and carrier require-ments. Since IBM is leading the industry in automatedassembly of flatpacks, the problem has not reached thatmuch of industry. Automated prepping and assembly equip-ment buiilt to flatpack standards and used several yearsago is often not easily adaptable to changing flatpackmechanical features and new style carriers. This isviewed as a potential problem to all of industry as theyevolve to automated assembly with flatpacks. IBM recom-mends development of an industry standard for flatpackmechanical characteristics and carriers.

The best manufacturing practices and problemsidentified at FSD will be evaluated and reviewed by theNavy team during future BMP surveys. Those practicesidentified as being among the best in the electronicsindustry will be documented in a central data base fordissemination throughout the industrial base. Theindustry wide problems will be investigated by the Navy inan effort to develop alternatives for their resolution.

III. BEST PRACTICES

The practices listed in this section are thoseidentified by the Navy BMP survey team as having thepotential of being among the best in the electronicsindustry. This judgment is based on experience fromprevious BMP surveys and expertise gained by team membersthrough years of working relationships with industry.

A. Management

RESPECT FOR THE INDIVIDUAL

Respect for the Individual is one of IBM's three majorprinciples of operation. This principle is defined as"caring about the dignity and rights of every person inthe organization, not just when it is convenient to do so."

4

Aside from the obvious components of such a principle(i.e., equal opportunity, promotion and merit pay,corporate responsibility, benefits, etc.), there areseveral components that are particularly worth noting.

Full Employment Practice: IBM has a no layoff prac-tice backed up by 40 years of history. Workload peaks andvalleys are smoothed out by subcontracting, overtime,voluntary transfers, interplant transfers of workload, andretirement incentives. This practice, while inconvenientat times, ensures continuity and loyalty of the work force.

Open Communications: There are several effectivemechanisms in place for establishing a two-way communi-cation vehicle. The "Open Door Policy" enables everyemployee to approach anyone in the company (including theChairman) about a problem. Typically, employees will usethis vehicle to talk to a second line manager about aproblem that cannot be resolved with the first linesupervisor. Conversely, every second line manager isrequired to schedule an annual voluntary "Skip LevelInterview" with every employee two levels below him.These interviews are confidential and are used by themanagers to evaluate employee morale and to rectify anydeveloping problem.

The "Speak Up" program is another formalized communi-cation vehicle. Special Speak Up forms are available atthe bulletin boards. Employees may use these forms, or adesignated telephone number, to voice their opinions onany matter. These forms are sent to the General Manager'sstaff after the employ-ee'46 name and identification hasbeen removed by the "speak up office." The matters arethen investigatea and repies preparted cn a confidentialbasis.

The "Employee Opinion Survey," which will be discussedlater, is still another vehicle that complements theothers as part of an integrated communication policy.

Human Resource Management: A key indicator of theimportance that IBM places on human resource management isin the appraisal criteria for its managers. Humanresource management counts for at least 30% of a manager'soverall appraisal. In addition, a manager's overall rat-ing cannot be higher than his human resources managementrating. Obviously, this makes every manager very cogni-zant of this issue.

EXCELLENCE PLUS PROGRAM

The Excellence Plus Program is an IBM Federal SystemsDivision Quality Improvement Program initiated in 1982based on the premise that the opportunity exists for everyprocess in business to be improved. The four key compon-ents of the program are management commitment, a site-widenetwork of employee Quality Improvement Teams (QIT's) com-mitted to working towards improving the quality of theirproducts and services, quality education and awareness,and quality improvement recognition. The goal of theprogram is to eliminate business and product defects.Excellence Plus has a Program Manager and an ExecutiveLevel Quality Council which is chaired by the VicePresident/General Manager. The council meets monthly todiscuss QIT efforts, site quality measurement, and programplanning.

The program achieves its objectives through QIT'swhich address specific quality problems. The problems areeither selected by the teams or assigned by management.The teams meet about one hour per week and follow formalprogram procedures. The team is dissolved after theproblem is resolved, unless it goes into a monitoringmode. Performance measurements charts are posted in theapplicable shop areas showing status of the problem.These charts were very evident throughout the manufactur-ing areas. QIT recognition is in the form of a personalthank you or a letter, and nonmonetary awards presented ata breakfast, luncheon, or off-site dinner (for site levelawards).

QUALITY FOCUS ON THE BUSINESS PROCESS

Federal Systems Division has implemented an IBMcorporate-wide program to reduce costs and improveefficiency in an often neglected area, the businessprocess. The program is entitled "Quality Focus on theBusiness Process." It is dedicated to implementing 1l-)gical. disciplined process of conducting all aspects ofthe business. This program deals with administrative/business processes and is not applied to hardwarefunctions. The improvement process uses a four stepprocess to inL rease business quality. These steps are:define, measure, stabilize, and improve the process.

A corporate Quality Instruction provides the mandatefor this program. Quality Focus on the Business Processhas been very successful in reducing business costs.

6

EMPLOYEE OPINION SURVEY

IBM Federal Systems Division invites its employees toparticipate in an Employee Opinion Survey, which isconducted every 18-24 months. Although participation inthe survey is voluntary, the employee participation ratei in the 90% range. These surveys are conducted by thecorporation and include approximately 100 questions.Typical questions deal with job and facility satisfaction,career development, and management relations. Anonymityis guaranteed the employees who participate in thesurvey. The results of the survey are used by all tiersof management to attempt to better working conditions,improve personnel relationships, etc. The results ofsubsequent surveys are compared to those of previoussurveys in an effort to recognize trends, measureimprovements, etc. The conduct and subsequent follow-upof the employee opinion survey by IBM is an excellentemployee relations activity.

MANAGEMENT PERSONNEL EXCHANGE TRAINING

It was evident to the BMP survey team that IBM has apolicy in place for cross training management personnel.Several instances were presented of managers being rotatedfrom one functional group to another.

This policy has obvious benefits. It tends to teardown organizational barriers and leads to better informeddecisions by these managers. In the long run, such apolicy leads to a more well rounded and effectivemanagement team.

COMPUTER AUTOMATED SUBCONTRACT SYSTEM

Computer automation is playing a major role in themanagement of manufacturing operations. Federal SystemsDivision has developed three computer applications toimprove the administration of subcontracts. Eachapplication is discussed below.

The Computer Automated Subcontract System (CASS) is atool for subcontract administrators and buyers to use inwriting procurement documents by interfacing with thecomputer. CASS is an interactive system which allows theuser to select standard procurement clauses and use themin preparing final documents. The text of the selectedstandard clauses is displayed on an IBM 327X terminal,added to, modified, edited, etc. to produce a finaldocument displayed on the terminal or printed in finalform at the user location. CASS eliminates preparation ofsubcontract procurement documents from scratch andrewriting or retyping of standard clauses.

7

The Supplier Support Subsystem (S3) provides for ter-minal-to-terminal communications between the subcontractorand the IBM subcontract administrator. S3 improvescommunications by eliminating the delays associated withsending paper between sites.

Federal Systems Division also uses personal computersfor developing major negotiation positions. They saveman-hours, increase accuracy, and provide for quickerturnaround and ease of making changes, corrections, andoffers during the negotiation process.

VENDOR QUALITY MONITORING SYSTEM

IBM Federal Systems Division (FSD) has a computerizedvendor quality monitoring system in place that is veryeffective. FSD has several resident quality controlrepresentatives located at vendor facilities at locationsall around the country. Each of these "residents" has acomputer by which he can communicate instantly with hismanager at the Owego site. The timeliness of this systemwas witnessed while conducting the BMP survey. In aperiod of approximately 40 minutes, the AcquisitionQuality Control manager received three messages from"residents" located in such distant locations as Salt LakeCity, UT; Dallas, TX; and Teterboro, NJ. Each messagedealt with a "real-time" vendor quality situation. Theinformation and response capability offered by this systemis probably the most efficient and speedy of any similarsystem.

VENDOR RATING SYSTEM

Vendor source selection usually includes a "point"rating system of 1 through 100. A typical rating struc-ture is:

1 - 50 Unacceptable51 - 60 Barely Acceptable61 - 80 Acceptable81 - 100 Highly Acceptable

IBM Federal Sybtems Division (FSD) has recentlyadopted a U.S. Air Force color code system for ratingvendors. This system removes any opinionated ratings in apoint system range; i.e., 82 vs. 86, and assigns thevendor to a color code according to capability. Vendorratings are then further defined by the assignment of a"risk factor" code. These codes are:

8

Color Risk Factor

Red - Unacceptable H - HighYellow - Marginal M - MediumGreen - Acceptable L - LowBlue - Highly Acceptable

FSD is very satisfied with the color code ratingsystem and feels it is an improvement over the pointsystem.

B. Design

DESIGN PRACTICES

IBM is in the process of developing a set of Struc-tured Design Guidebooks. These guidebooks will cover allaspects of the development process as they apply to thedevelopment engineering disciplines. It is a formalframework for a disciplined design approach as well as anexcellent training curriculum for junior engineers. Theguidebook presents an overall approach from the individualdesign pers ective and contains a set of guidelines andchecklists which tie the many company detailed guidelinesand policy statements together. The following guidebookswill be available.

a. Program overviewb. Logic designc. Mechanical designd. Analog designe. Diagnostic softwaref. Microprogrammingg. Power supply design

DIGITAL TEST TECHNOLOGY

IBM Owego is developing a prototype system for auto-matic test generation and robotic diagnostics for digitaland memory subassembly using signature analysis.

Signature analysis is a very attractive test methodo-logy for LSI, VLSI and VHSIC device technology and fortransient failures. Signature analysis (1) is independentof device complexity, (2) permits shop replaceable assem-bly. test, and troubleshooting at operational performancelevels, and (3) offers a high degree of fault (transientas well as fixed) detections and isolation, and (4) isrelatively easy to automate.

9

MANUFACTURING TEST EQUIPMENT

In an effort to reduce test system cost, use off-the-shelf/modular equipment, improve operator interface,provide comprehensive testing capability, and integratetest systems, IBM has been designing test systems utiliz-ing personal computers (PC). This PC based test equipmentsupports manufacture of processor products and unit leveltesting.

ENGINEERING INFORMATION DATA SYSTEM

IBM developed the Engineering Information Data System(EIDS) to supplement CAD/CAM (non-graphic documentation)and provide design, component, manufacturing, and otherengineering a tool for obtaining information on parts. Itis also used by program offices for configuration manage-ment. Through terminals (approximately 500 in use), thedifferent engineering disciplines can input and retrievedesign data. Each data file has a responsible group tomaintain current updated files (i.e., part cost is theresponsibility of cost engineering). As new programs comeon-line, new data is added, old data updated, errorscorrected in a standard format, and new requirements/capabilities added. Its current configurations providethe following data bases.

a. View/generate bill of materialsb. Part number datac. "Where used" for components or assembliesd. Parts selection systeme. Preliminary cost estimating for designersf. Write engineering release/change notices

As an engineering tool, the system appeared to bewidely used. The files provide current and accurate dataand establish a common baseline for all the engineeringdisciplines; data becomes a permanent retrievable record.The system automates engineering notebooks and maintainsconfiguration and design release control.

A new EIDS feature allows for paperless approval ofchange notices which reduces cycle time.

c. Manufacturing

PART VERIFICATION TEST PROGRAM

IBM Owego is in the process of increasing theircapability to perform 100%, full temperature, functionaltesting on all incoming DIP's, IC's, memories, and flat-

10

packs. Equipment has been procured and programs are beinggenerated to automatically test these components.

Test engineers have devised test methods that utilizestandard programs (portions of previously writtenprograms) in order to reduce programming time in half.They have also modified test equipment handling fixturesto enhance component feed throughput.

Although these testing practices are in common use andemploy available off-the-shelf equipment/technology, IBMis applying the best practices available to meet thesetest requirements.

AUTOMATION TECHNOLOGY

IBM Owego is in the early development phase of theRemote Query Support Terminal (REQUEST) Program.Basically, REQUEST will utilize a computer network systemfor the following applications:

a. Collect labor information from operators (time onjobs).

b. Provide ready access to assembly drawings anddocuments.

c. Manufacturing routings.d. Manufacturing document creation/access.e. Reject notice information collection.f. Work instructions.

The REQUEST system will utilize PC's at operator workstations for accessibility to the operators. With theREQUEST system, IBM will consolidate all the documents andprocelures used on the manufacturing floor and ultimatelyobtain the ideal paperless factory. Benefits which couldbe derived include:

a. Reduction of paper in the plant.b. More rapid/timely availability and quality of

information.c. Improved productivity and capacity.d. Improved quality of work.

The first of two phases (labor claiming) will beoperational during 1987. Phase II operation will begin inthird quarter of 1987.

CONTINUOUS FLOW MANUFACTURING

Continuous Flow Manufacturing (CFM) is a manufacturingsystem that supports the concept of scheduling and produc-ing only what is needed, when it is needed. The CFM con-cept is similar to Just-In-Time (JIT). CFM at IBM is anongoing examination and improvement effort which requires

11

integration of all elements of the manufacturing processto reduce processing cycle time, inventory, work inprocess (WIP). resources per unit, material handling,scrap, rework, etc. while improving employee morale andproduct reliability.

CFM has been implemented in the multilayer circuitcard area. The following improvements speak for them-selves. (Data is for February 1985 to February 1986.)

a. Work-in-process has been reduced from 10,000 to4.000 panels.

b. The average WIP age was reduced from 40 to 20 days.c. Cycle time: (65 day/order reduced to 33 day/

order; 1988 goal is 20 days/order).d. Asset turnovers have doubled.e. Less space is required.f. Operation hours have been reduced for rework and

manufacturing.g. Employees are more involved; ownership appears at

lower levels.h. Many problems are brought to the surface which

were previously hidden by volume.i. Finally, and more importantly, there is less

pressure to work numbers and more emphasis toimprove quality.

CIRCUIT CARD ASSEMBLY AND PROCESSING SYSTEM

The Circuit Card Assembly and Processing System(CCAPS) is a unique attempt by IBM to develop a trulyflexible manufacturing cell for. Circuit Card Assemblies(CCA's). The program is funded by the Navy ManufacturingTechnology Program and is designed for automated operationin an environment that features a large number of differ-ent CCA's and small lot sizes. The intent is to developand demonstrate an integrated modular manufacturing systemthat is transportable to other DOD contractors. Theemphasis will be on improved quality, productivity, andturn around time.

The CCAPS manufacturing philosophy is based on thefollowing:

a. Automation for quality and productivity.b. Continuous flow (just-in-time) manufacturing.c. Pull scheduling.d. 15 day release to stock cycle.e. One piece orders.f. Zero setup goal.g. Smooth order release.h. Engineering changes worked outside production line.i. Complete orders to manufacturing.

12

CCAPS consists of four basic elements. The two inte-grating elements are the Computer Automated ManagementSegment (CAMS) and the Material Transfer System. Theactual value added is created in the receiving interfaceand preparation module and in the card assembly and testmodule.

It is important to note that while flexible manufac-turing systems for machined parts are in place or underdevelopment at several firms, CCAPS will be the first suchsystem for CCA's. The technology will be made availableto other firms who may choose to implement the entiresystem or any number of individual modules.

The program is scheduled to be completed and demon-strated in 1989-1990.

FLATPACK PREPPING SYSTEM

To handle the relatively large amount of flatpacksused in in-house assembly, IBM Owego designed their ownflatpack prepping system. NETCO (Northeastern ToolCompany) built the two working models used at IBM.

The flatpack prepper automatically tins and formsflatpacks. This includes removing them from the carriers.pre-straightening the leads, fluxing, solder dipping,checking for lead straightness using a vision system.forming and trimming, then vision scanning again prior toauto unload of the flatpack back into the carriers. Thesystem processes up to 424 flatpacks per hour. Thealternative to this system is hand forming of the flat-packs and hand trimming, which is a slower and lessefficient process. IBM boasts a 4.6:1 boost in produc-tivity and a 98% yield using the auto prepping system overhand processing.

The effort IBM has put forth in designing their ownautomatic flatpack prepper demonstrates a commitment toadvanced manufacturing.

ROBOT DISCRETE TINNER

The robotic discrete component tinning process wasdeveloped as a subsystem of the Navy's ManufacturingTechnology CCAPS Project. Its purpose is to solder coatdiscrete component leads for a variety of configurations.The system cleans, solder coats, packages, and labelsparts.

Slightly less than 2,000 parts can be processed eachhour. Productivity improvement is a staggering 11:1. Theoverall yield is in excess of 99% including scrap andrework.

13

ROBOT FLATPACK MOUNTING SYSTEM

To handle the volume of flatpack assembly, IBM Owegodesigned and built a robotic flatpack mounting system.There are currently two in use at the IBM FSD Owegofacility.

Flatpacks from the flatpack prepper are loaded ontocarriers and placed in tubes. The tubes are then loadedinto inventory racks on the mounting system. The flatpackmounter uses an IBM robot to pick up the desired flatpackfrom the inventory rack and places it at one of threemounting stations. The system can handle 39 unique partnumbers and can process three unique or identical circuitcard assemblies (CCA's) at the same time. The CCA's arehand loaded onto fixtures at the mounting stations. Ahead assembly then swings over the board and uses a visionsystem to line up the pads for the flatpack to be placed.The head then picks up the flatpack dropped off by therobot and uses a vision system to verify lead straightnessand to center the flatpack to fit its pad pattern. Theflatpack is then placed and solder reflowed into placeusing two hot contact knives. The system is data driven.It can be programmed to place selective parts on anyconfiguration CCA. The development of this systemreflects IBM's commitment towards advanced manufacturing.

QUALITY TEARDOWN PROGRAM

IBM Owego relies rather heavily on outside procurementto supply various electronic subassemblies for theirprograms. When IBM writes a contract with an outsidesource, certain quality measures are written into thecontract. For major electronic subassemblies, somecontract requirements that IBM places on the vendorinclude:

a. Provisions for source audits by IBM qualitypersonnel.

b. Provisions for production line audits by IBMquality personnel.

c. Requirements for production reliability acceptancetesting (component functionality, vibration, andthermal stress).

d. Provisions for at least one teardown audit at thevendor's facility.

A teardown audit is a nondestructive disassembly andevaluation of a product prior to acceptance by thecustomer. The burden of the actual teardown is placed onthe vendor, in that he is responsible for the actualdisassembly of the item. An IBM team of quality personnelis present to observe the teardown and to do the actualtesting and evaluation. In the audit, the IBM audit crewfollows a standard check list, and with its own

14

instruments, tests various components and inspects forworkmanship defects.

The performance of at least one teardown of a sub-assembly is a condition of the purchasing contract thatmust be met prior to IBM taking delivery of the item(s).Actual hardware selected for teardown is done on animpromptu/random basis. IBM lets the vendor decide atwhich point during the manufacture of the subassembly theteardown will occur. IBM prefers that it be done duringthe production reliability acceptance testing cycle.

After the teardown, the IBM team informally debriefsthe vendor's personnel. This is followed up by a formalletter of the findings.

IBM uses the teardown audit as a tool to insure (1)that the hardware configuration is in place according tothe specifications, (2) the vendor is following anypreviously established corrective action, and (3) theworkmanship of the product is acceptable.

Additionally, electronic subassemblies manufacturedwithin IBM Owego or FSD facilities are subject to similarteardown audits by IBM quality personnel. This serves asan internal check and balance. DCAS personnel observethese internal teardowns.

Results of teardowns are disseminated formally in areport. This report is forwarded to IBM Owego uppermanagement including the General Manager.

IV. PROBLEM AREAS

The problems discussed below were identified by IBMFSD as having the potential of being industry wide prob-lems. The BMP survey team will collect more data on theseproblems from other contractors and government agencies.This data will be reviewed and those manufacturing prob-lems considered to have an industry wide impact will beforwarded to the Electronics Manufacturing ProductivityFacility, China Lake, California for research andreso)uticn. Some of the problem areas may lead to theestablishment of a government/industry ad hoc group toevaluate the concern and propose alternative solutions.

15

COMPONENT SOLDERAB IL ITY

Attempts have been made by most defense electronicsprime contractors to get solderable components from theirsuppliers. Improvements have been noted by some, but theproblem is still there. Most primes have gone to 100%pretinning of vendor supplied parts to assure goodsolderability during assembly.

The BMP survey team has noted that most primes justhave not had much success in getting vendors to supplygood solderable components. Each company surveyed hasIdentified component quality/solderability as a realproblem. The defense electronics industry does not getany support from the commercial industry because they donot have the same specification requirements. Withoutthat support, it has been difficult to apply any realpressure on the vendor base because the defense sectorrepresents such a small fraction of the total business tothe vendor.

Establishment of a defense electronics industrycommittee to address this problem has been discussed byseveral primes. This subject will be discussed at tLeIndustry/Navy BMP workshop scheduled for May 1987 in ChinaLake. CA.

FLATPACK STANDARDS

IBM is having difficulty automating their flatpackoperation because there are no standards for flatpackcarriers or carrier tubes. When IBM began using flatpacksand designed their automated equipment. they representedthe major part of the market. As other manufacturersstarted using flatpacks, the suppliers began to change todifferent carriers and tubes for cost and other reasons.This presented a problem for IBM since their automatedequipment was designed to a specific carrier and tube.There is no leverage to require a supplier to ship in aspecific carrier or tube because there is no standardspecification.

To further complicate the problem for IBM, theflatpack itself has broad mechanical tolerances. Someotherwise acceptable flatpacks are just not adaptable toIBM's automated equipment making manual prepping andmounting mandatory. IBM believes tighter front endcontrols need to be placed on mechanical features to makethem suitable for automation. Just because a vendor shipsan Approved Parts List flatpack, that does not mean itwill be compatible with an automated process/equipment.

16

PRODUCIBILITY MEASUREMENT

IBM has established a producibility assurance programto enhance their competitiveness, hardware design struc-ture, quality focus, and overall performance. Many com-panies have established similar programs. What is missingand appears to be a common problem in the electronicsindustry is a system to measure producibility improve-ments. The benefits of such a program are evident butactual quantitative payoff cannot be determined.

DOD, Army, Navy, and Air Force all have producibilityguidelines to assist industry in improving their disci-plinGs and practices. Some educational institutes andprivate firms have researched producibility measurementcriteria but have not agreed on a system. IBM believesthis is an area that should be addressed by the industryrather than each company attacking the problem on theirown.

V. CONCLUSIONS

After reviewing IBM Federal Systems Division's bestpractices, it was apparent that much attention is given toresource management, material, people, etc. The corporatepolicy of Respect for the Individual is among the bestwitnessed by the BMP survey team. Even though FSD is adefense oriented division which is often subjected to afluctuating production schedule, they have managed tomaintain full employment. This in itself builds employeeloyalty and a motivation to strive to do better. Thisfactor coupled with an open communication policy, qualityimprovement programs, and employee opinion surveys hashelped FSD build a stable work force that takes pride intheir job and the company.

Management of the vendor base is a critical element ofFSD's operation. They realize the importance of puttinghigh quality parts into their product. Even with thisemphasis on suppliers, problems will occur. To controlthe problems before they get too far out of hand, IBM hasimplemented a computer network between FSD and their majorsuppliers. This capability not only highlights problemsin real-time, but provides the mechanism to resolve themwithout the normal delays of sending letters and documen-tation through the mail. Most problems are identified andresolved in a real-time environment. The system alsoprovides the information needed to rate the vendors, animportant consideration when procurements are being placed.

17

Automation of data is also a major concern in theengineering ar-na. An Engineering Information Data Systemwas designed at IBM Owego and implemented throughout thedivision to provide a wide range of capabilities. Thesystem can be queried to display a bill of materials, partnumber data, part selection criteria, cost estimating, andengineering change notices. Approximately 500 computerterminals have access capability to the system, which ismaintained in a current and accurate status by differentresponsible engineering groups. The system appeared to bewidely used by the engineering community.

Being the Navy's prime contractor for development of aflexible Circuit Card Assembly and Processing System(CCAPS), IBM has designed and incorporated state-of-the-art equipment into their manufacturing process. Much ofFSD's electronics has evolved to circuit card assembliesusing flatpacks. Development of CCAPS subsystems such asthe flatpack prepper. robotic discrete tinner, laser partmarker, DIP inserter, and robotic flatpack mounter havesubstantially improved productivity and reduced defects,rework and cost. These subsystems were designed tooperate as individual modules or as a complete system inany defense ?lectronics facility. The CCAPS program isscheduled to be completed and demonstrated in the1989-1990 timeframe.

To complete the improvement cycle, IBM conducts partverification tests on incoming material and quality tear-downs of completed products. This gives them reasonableassurance that the parts going into the product beingbuilt are good and remain that way through assembly andtest. The teardown also helps identify workmanshipdefects that may not be apparent during the test cycle.The results of both part verification tests and theteardowns are used to make changes/improvements in sup-pliers. supplier quality, and manufacturing procedures.

Most of IBM's manufacturing problems are similar tothose of the rest of the defense electronics industry(component solderability, vendor quality control, etc).As we collect more data on the common problems, a baselinewill be established from which action can be taken toresolve some of the more critical ones. The Navy andindustry will have an opportunity to discuss a course ofaction for these concerns at the BMP workshop scheduledfor May 1987 at the Electronics Manufacturing ProductivityFacility in China Lake, California.

18