1. IET 627 ADVANCED APPLIED INDUSTRIAL MANAGEMENT SPRING 2014 DR. 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?