Suzhou, PRC Facility Invests in Additional Equipment€¦ · vancements in web browser technology. “We want our prospects, customers and suppliers to be able to easily find the

About SigmaTron

International

SigmaTron International (NASDAQ:SGMA) is a full service EMS provider with a network of manufacturing facilities in the United States, Mexico, China and Vietnam. We focus on companies who want highly customized service plus a scalable global manufacturing footprint. We serve a diversified set of markets which include: aero-space/defense, appliance, consumer electronics, gaming, fitness, industrial electronics, med-ical/life sciences, semiconductor, telecommunications and automo-tive. Our quality certifications include ISO 9001:2015, ISO 13485:2016, IATF 16949:2016 and AS9100D. We are also International Traffic in Arms Regu-lations (ITAR) registered.

Inside this issue:

Website Redesign 2

Suzhou IATF Compliant 3

Fulfillment 3

Volume First Quarter 2019

Tango MES Enhancements Enter Phase II

SigmaTron International’s facili-

ty in Suzhou, PRC has been

investing in equipment to en-

hance its printed circuit board

assembly (PCBA) manufactur-

ing processes in the area of

automated optical inspection

(AOI) and automated confor-

mal coating.

“The current tariff situation has

impacted some of our projects.

It also underscores the need to

continue to enhance our ability

to provide a cost competitive solution both to

companies within China and those who contin-

SigmaTron International’s proprietary Manu-

facturing Execution System (MES) system

known as Tango is now in Phase II implementa-

tion.

“Phase II better integrates Tango into stock-

room in picking and kitting operations, ena-

bling automated lot-based traceability,” said

Michael Schillaci, Director, IT Development,

who has been leading the enhancement effort.

Stockrooms implementing this phase of Tango

enhancement have been outfitted with

handheld Android scanners with printers. WIFI

connections have also been established so that

that stockroom personnel can easily scan parts

as they pick. As parts are scanned, the system

validates the part against the pick list, and

records the time it was picked and the person

who picked it. The scanner also tells stockroom

personnel what items are left to be picked

based on the shop floor order and where they

Suzhou, PRC Facility Invests in Additional Equipment

are located in the stockroom. Pick lists can also

be segregated by department so if stockroom

personnel are kitting for a printed circuit board

assembly (PCBA) order that is a subassembly of

a higher level product, the pick list only reflects

the parts associated with that part of the shop

floor order. The printers print a bar code label

with receiver number, item number, shop order

number and part description. A future iteration

will assess inventory first in, first out (FIFO) sta-

tus and direct personnel to pick based on that

status.

“Phase II enhances our automated real-time

shop floor control traceability capability within

the stockroom. In about six months we will add

FIFO enforcement at time of pick, but that will

require a full cycle count of all receivers,” add-

ed Michael.

(Continued on page 4)

ue to prefer China’s expertise and logistics ad-

(Continued on page 2)

The Suzhou facility has enhanced its automated optical inspection capa-

bilities with the addition of a TRI 7750 SIII 3D AOI machine.

quickly navigate to the right

section,” said Curtis Campbell,

Vice President, Sales and Mar-

keting, West Coast Operations.

The site went live at the end of

March and can be viewed at

www.sigmatronintl.com.

SigmaTron continues to increase

its use of social media, as well.

Its company Linkedin feed can

be accessed here. Its blog can

be accessed here. Sign up as a

follower and get notifications when infor-

mational whitepapers, recent articles and

free passes to upcoming trade shows are

added.

Page 2

SigmaTron Launches Redesigned Website

SigmaTron International’s

website now has a sleek, new

look. The goal of the redesign

was to streamline navigation

for ease-of-use on both com-

puter and handheld devices,

improve the visibility of infor-

mational resources such as in-

plant videos and recent arti-

cle content, and take ad-

vantage of technological ad-

vancements in web browser

technology.

“We want our prospects, customers and

suppliers to be able to easily find the in-

formation they need. We also wanted to

make sure the new design reflected the

Suzhou

vantages for their exported

products. Our latest equipment

investments increase our ability to

ensure superior quality in leading

edge technology PCBAs and to

more cost effectively and repeat-

ably coat PCBAs requiring con-

formal coating,” said Hom-Ming

Chang, SigmaTron’s Vice Presi-

dent, China Operations.

The equipment additions include a

Test Research Inc. (TRI) 7750 SIII

3D AOI machine and an Anda

iCoat-3 Series conformal coating

system.

The TRI 7750 SIII 3D AOI delivers one of

the industry’s fastest multi-angle PCB in-

spection coupled with blue-laser-based

true 3D profile measurement for the great-

(Continued from page 1)

est automated optical defect symptoms cover-

age possible. It can provide high speed color

multi-angle inspection of up to 01005 compo-

nents. It provides options for both hybrid 2D

and 3D inspection, and true 3D profile meas-

urement, supporting a range of

inspection requirements. Its Auto

Library and offline editing capa-

bility provide a user-friendly

interface that maximizes produc-

tion uptime.

The Anda iCoat-3 Series confor-

mal coating system supports multi-

panel, high capacity requirements

in high product mix production

environments. It is capable of

coating larger panel sizes and its

valves can be configured in a

variety of arrangements to best

support coverage requirements.

The system inspects PCBA coating

coverage as the PCBAs exit the

system. Features include the ability to

selectively coat the bottom or top side of

PCBAs. It also provides accurate selec-

tive coating of components and IC pins.

The Anda iCoat-3 Series conformal coating system supports multi-

panel, high capacity requirements

visual preferences of our users. Site naviga-

tion scrolls down for easier viewing on mobile

devices. Icon and photo content has been

increased on main pages to help viewers

cates we have passed our audit. How-

ever, until we cannot become fully

certified to the standard until we are

in full production on an automotive

program. We have made significant

investments in our automotive manu-

facturing capability over the last two

years and this compliance audit now

validates that our processes and qual-

ity management system meets IATF’s

requirements,” said Hom-Ming Chang,

Vice President, China Operations.

Page 3

Suzhou, PRC Now IATF 16949 System Compliant

SigmaTron International’s Suzhou, PRC

facility completed an audit for system

compliance to IATF 16949:2016 last year

and has now been granted IATF

16949:2016 system compliance. IATF

replaced ISO/TS16949 as the automo-

tive quality standard, when the stand-

ard’s governing body was switched from

the International Standards Organization

(ISO) to the International Automotive Task

Force (IATF).

“The ‘system compliant’ classification indi-

SigmaTron International’s Fulfillment Expertise Helps Customers Get to Market

Achieving lowest total cost of own-

ership requires strong focus on

eliminating redundancies. Partner-

ing with an electronics manufactur-

ing services (EMS) provider to elim-

inate inefficient logistics activities is

one way to eliminate a shipping

leg. Consolidating manufacturing

and post manufacturing activities

under one roof ensures inventory

transparency and leverages on the

economies of scale of a single pro-

gram team. Most importantly, it

adds a layer of speed and flexi-

bility since there isn’t transit lead-

time between production and ful-

fillment.

For example, SigmaTron Interna-

tional’s Union City, CA facility is

assembling 30 different product types for

one telecommunications customer. The cus-

tomer provides a blanket forecast which is

reviewed by SigmaTron’s program man-

ager and updated via a weekly review

meeting. A finished goods Kanban has

been set up, sized to mutually agreed up-

on forecast numbers and is replenished

based on program management review of

shipments. PCBAs are built and stocked in

a supermarket arrangement to optimize the

number of scheduled production runs at that

level. Two products are built in a configure-to-

order scenario based on a 24-hour response

window and the rest are built and stocked

based on mutually agreed upon forecast num-

bers. This arrangement is flexible enough to

provide the responsiveness the customer

needs; yet disciplined enough to leverage EMS

economies of scale and process efficiency.

SigmaTron utilizes label printers in

the production process, assigning

a bar code label with serial num-

ber at the PCBA level tracked by

an internal shop floor control sys-

tem that enables case and box

labels to be generated at point

of use when the production oper-

ator scans PCBA bar code label.

The PCBAs are assembled into

cases in a dedicated work cell.

In all but two products, SigmaTron

pulls products scheduled to ship

from a drop ship finished goods

Kanban that includes finished

units and purchased accessories.

The customer owns the finished

goods inventory that is resident in

SigmaTron. Typically, SigmaTron

ships to 20-40 end customers per day.

Bulk orders of more than 25 units are

picked and packed in the morning to

assure same day shipment from time of

request. Individual unit orders are

shipped at time of request, with 2 pm

being the cutoff for same day shipment.

Two products are configured-to-order. A

special email box has been set up that

(Continued on page 4)

A bar code label with serial number is generated at the PCBA level

and racked by an internal shop floor control system.

The Suzhou facility continues to enhance its SMT

capabilities to meet the rigorous requirements of

automotive manufacturers.

Copyright © 2019 SigmaTron International, Inc. All Rights Reserved.

Have a suggestion or article idea?

Contact Curtis Campbell, VP Sales, West Coast Operations

Phone: 510-477-5004

Email: [email protected]

Tango

The system also supports return to stock

activities.

“Return to stock typically happens in

SMT when a reel isn’t fully consumed in

a higher mix program. Tango will track

this return, segregate it from work-in-

process (WIP), record an accurate re-

maining part count, and once FIFO en-

forcement is implemented, ensure the

reel picked later in FIFO order. Accu-

rate return to stock tracking is very

important in high mix programs to en-

sure appropriate levels of inventory

are maintained. Because SMT opera-

tions have a setup/attrition factor in

addition to actual parts consumed to

fulfill demand, recording an accurate

parts returned number is critical in

(Continued from page 1) avoiding shortages,” said Michael.

SigmaTron’s Elk Grove Village facility

went live with its system on March 25th.

The Tijuana facility is going live in April

and the Union City facility will go live in

early June. SigmaTron’s other facilities

have a different picking process due to

different customer requirements.

“This phase gives our team a powerful

tool that provides better visibility into

shortage planning. It can be set up to

be exception-based, notifying select

personnel if low stock or shortages are

detected as parts are picked,” added

Michael.

Fulfillment

transmits orders to the production work

cell. The units are configured and

ready to ship within 24-hours from

receipt of order. Configured items

have a segregated shelf in the Kanban

area. They can only be pulled and

packed from that shelf to minimize the

possibility that incorrect items might be

pulled.

Poka-yoke or “mistake proofing” has

(Continued from page 3) also been done on standard product stor-

age in Kanban inventory. For example,

three boxes have very similar product

graphics. Since the customer has not inte-

grated scannable part numbers on their

product packaging, they are not stored

adjacent to each other on the shelf to

eliminate the possibility that a shipping

clerk might grab the wrong box if select-

ing based on graphics instead of stock

number.

Refurbishment is done based on OEM

request within the final assembly work

cell.

“We’ve tailored our services to meet

the needs of this customer, while helping

them understand the benefit of having

a disciplined process in terms of fore-

casts, stocking practices and shipping

cutoff times. The end result has been a

scalable solution that has supported

their growing product offerings,” said

Keith Wheaton, SigmaTron’s Vice Presi-

dent Business Development.

Stockroom personnel can now access

pick lists via handheld devices.