Minimizing cost of variance in the printed circuit board assembly

Controlling the Cost of Variance is essential to the manufacturing process of Printed Circuit Board Assembly (PCBA) for low volume high mix production. The material variance is identified as the additional components and resources consumed beyond the minimum required to complete the project. This Quantity Variance occurs at the effects of defects at key steps of the manufacturing process. Defects are defined as parts lost, misplaced, damaged or other. Such occurrences result in the need to purchase additional components for the completion of the order. These additional components termed Quantity Variance alter the sequence of the manufacturing process affecting quality and timely delivery of the job. Thus, Quantity Variance directly impacts the profitability of the job and hinders the ability of a small to medium size company to meet its customer requirements. The main contribution of this research is the development of a framework for studying the cost of variance and the development of a heuristic search tool for optimizing the cost.;This applied research focuses on minimizing the Cost of Variance by reducing Quantity Variance in the manufacturing process of PCBA. The key processes that this work investigates are at the Receiving Inspection (RI), Machine Placement (MP) and Repair and Rework (RR) stations. These processes are identified where material can vary producing a Quantity Variance. The total Cost of Variance is the summation of additionally purchased components and their associated cost for processing additional activities. This research investigates, measures, analyzes and develops a methodology to reduce Quantity Variance in the manufacturing process of PCBA resulting in the reduction of Cost of Variance to well over ;This research utilizes Six Sigma philosophy and methodology in addressing the Cost of Variance in the manufacturing process. A methodology is developed for the small to medium size manufacturer specializing in low volume, high mix production of PCBA. The methodology is used as a guideline for the early detection for the Cost of Variance that can be customized for the individual company. The methodology focuses on the philosophy of fire prevention rather than fire fighting with the ability to anticipate and identify variances at the time of quoting based on the company's manufacturing process capability. It provides the ability to minimize Cost of Variance at time of order.;PGF Technology Group, Inc. (PGF) has developed and tested the hypothesis to minimize the Cost of Variance in its manufacturing process. In addition, PGF has applied the customized continuous improvement methodology to its manufacturing process capabilities. Results have minimized Cost of Variance by 53.67% for selected components.