Innovating with
QUALITY & VALUE
forever
Quality Challenges of Low
Volume High Mix Manufacturing
Jairam P Sampath
COO
Kaynes Technology
Innovating with
QUALITY & VALUE
forever
Outline of Presentation
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Manufacturing Getting Redefined
Understanding “Low Volume – High Mix” Manufacturing
The Business Aspirations & Imperatives
Key Challenges
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Managing Quality in “Low-Volume High-Mix”
Manufacturing
How do we then deliver Best-in-Class quality?
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Conclusion and Recap
About Us
Innovating with
QUALITY & VALUE
forever
Manufacturing Getting Redefined
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Focus on Core Competencies, Increased outsourcing.
More Sources of Economies than Scale alone 
Specialization, Network, and Competency
Transformation of the nature of work and expectations:
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“Job-Work” at one end to “ODM” at the other
Functional Knowledge to Domain Specific Knowledge
Partner to Collaborator to Developer
Technological advancements forcing the pace  Autoelectronics, etc.
Innovating with
QUALITY & VALUE
forever
Understanding “Low-Volume High-Mix” Manufacturing
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Low volume (Single piece to hundreds at a time)
Higher rate of “NPD”, Large number of Products in
Portfolio
Specialized Niche Applications, Multiple Certifications
Flexible Production Lines, Combination of Generic
and Customized Equipment
Versatile People, Multi-Skilling, Multi-Tasking
Sophisticated Supply Chain Practices
ALERT MANUFACTURING!
Innovating with
QUALITY & VALUE
forever
The Business Aspirations & Imperatives
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Customer Expectations Built at an Early Stage:
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Gets more demanding over time
Scaling up process:
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The Difficulty in Focusing
Structure, Systems, and Organizational Culture Challenge
Strategic Choices May Reflect an Urgency to Scale-up and
Growing Profitably:
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Grow with Each Customer
Enter New Industry Sectors
Consolidations in Supply Chain
Innovating with
QUALITY & VALUE
forever
Key Challenges
Area
Technology adoption
Production process
Challenges
Acquire Newer Skills and Competencies on an ongoing basis
New Capex with Low Utilization
Small Production Runs lead to Higher Un-recoverable Costs
Rapid Change-overs
Ever-increasing Engineering Resource Demand
New product development Greater challenges in cross-functional co-ordination
Process and product
Compliance to Standards accurately and efficiently
engineering
ECO and revision control
Managing different Supply Chain Requirements
Supply chain management Non-moving accumulations, Obsolescence
Customer relationship
Understanding Different Industry Domains as We Scale Up
management.
Higher expectations over time
Dynamic demand patterns
Business growth
Focus problems
Innovating with
QUALITY & VALUE
forever
Managing Quality in Low-volume High-mix Mfg.
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Definitions are more inclusive now Reflect expectations across
the customers value chain
Quality systems + Process quality + Product quality  Standards
and compliance
Scope  In-house, Vendor, Partner, Sub-contractor, …
Equal contributions by “Hardware” and “Software” of manufacturing
Many sources of disturbances  NPI, ECO, delay in part arrival,
forecasts variances
Small lot size and changeover High potential for errors
Quality as perceived by customer is a net result of all actions
Innovating with
QUALITY & VALUE
forever
How do we then deliver best-in-class Quality?
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High-level Actions
Train, Re-train, Up-skill, Cross-skill, Qualify, Certify People
Close and pro-active relationship with NPI team
Monitor the manufacturing “Software”
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Engineering Documentations
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System Masters and Records
Quality incident management
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Follow-through CA, PA, and CM
Create a Culture of Quality-Best-Practices
Even high level actions need sharp focus depending on the
manufacturing environment
Innovating with
QUALITY & VALUE
forever
How do we then deliver best-in-class Quality?
Enquiry / Prospecting / Proposal:
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Understand Customer’s Urgent Needs and Challenges, Set appropriate
expectations
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Keep communications on “Hot-Line” with the Customer
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Get Feedback and Implement Corrections
NPI:
Purchasing:
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Prepare and Analyze the Procurement Plans Early
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Upfront and Quick Communication with Suppliers
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Evaluate and Audit Key Suppliers
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Be extra careful with “Customer-Supplied” Parts
Innovating with
QUALITY & VALUE
forever
How do we then deliver best-in-class Quality?
Engineering Support:
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Implement a “Workable” NPD process
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Create specific teams for “Major” NPDs
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Audit the “Engineering Support” Process frequently
Production & Quality:
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Strive for Consistency of Compliance during Changeovers
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Link Processes Effectively to Shorten “Start-to-Finish” time
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Adopt “Standards-Based” Manufacturing Practices & Monitor Yields
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Monitor Material “Wastages”, Proportion of Rework, and “Abandoned” WIP
Program Management:
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Exhaustive Agreement with Customer on various aspects of contract
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Assess the ongoing “Health” of a particular program and engage with
customers for corrective actions
Innovating with
QUALITY & VALUE
forever
About Kaynes Technology
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700 people working at six locations across India and targeting US$ 100 Million by 14-15
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Serving Customers in India, US, UK, Europe, Australia & SE Asia
People are our strength, Systems our foundation
ISO 14001 : 2004
ISO/TS 16949:2009
OHSAS 18001:2007
ISO 9001 : 2008
AS 9100 Rev. B
IRIS Rev. 01
ISO 13485 : 2003
Innovating with
QUALITY & VALUE
forever
KAYNES Technology – ISO /TS 16949, ISO14001, OHSAS 18001 IRIS, ISO 13485 & AS 9100 Certified
Company
Prototyping and Design
Validation/Verification
Turnkey
Manufacturing
Sourcing
Support
Embedded
Design Services
Job work
PWA’s
Servicing
Support
OEM Product
Mftg..
Allied Parts
Development
Product
Testing
Full Module
Assembly
Testing
Defense and Avionics
IT Peripherals
Telecommunication
Industrial Controls/ Automation
Instrumentation
Medical Electronics
Railway Signaling
Navigation Systems
Automotive .
Power & Energy
Innovating with
QUALITY & VALUE
forever
About Kaynes Technology
Innovating with
QUALITY & VALUE
forever
Recap
•
•
•
•
Manufacturing Getting Redefined
Understanding “Low Volume – High Mix” Manufacturing
The Business Aspirations & Imperatives
Key Challenges
•
•
Managing Quality in “Low-Volume High-Mix”
Manufacturing
How do we then deliver Best-in-Class quality?
•
•
Conclusion and Recap
About Us
Innovating with
QUALITY & VALUE
forever
……Thank You !