CPH – The Hidden Loss
The surface mount technology (SMT) process is well known and mostly measured in terms of efficiency, cycle time (CT) and first time quality (FTQ). Once the Customer’s needs are fulfilled (demand needs covered and FTQ meeting expectations), most companies feel comfortable enough to do the regular key process indicator (KPI) monitoring, guaranteeing the process is under control. Nevertheless, we must start to look deeper to find the “hidden losses”, so we can extract as much performance as possible from the process. The main goal of the SMT process is to add value by placing surface mount devices (SMDs) as fast as possible and with zero defects. To do so, it is a must to have the right technology and optimized placement machines, according the product specifications.
A certain SMT process might have a great OEE, higher than 85% and single digit ppm FTQ, but still not be fully using all installed capacity. If the total placement installed capacity is 150000 chips per hour (cph) and it is being used to place 100000 cph, it means a 30% loss of potential capacity. The components per hour metric (CPH metric) is poor in this example and leads to the “hidden losses”. Keep in mind that efficiency is still 85%, FTQ at single digit and customer demand are being met.