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36 SMT007 MAGAZINE I MARCH 2021 Adoption of Lean material management logistics can also enhance fluidity and mitigate losses. 3. Seventy-five percent of raw materials in an SMT factory need not be there. Lean material logistics is essential to SMT production today, particularly for its effec- tiveness in enhancing inventory accuracy. Adoption of Lean material management can both remove 95% of WIP material on the shop floor and increase data accuracy via the collection of data directly from each SMT machine. Further, Lean material logistics can reduce warehouse inventory by as much as 75%, without the risk of shortage occurrences, and affords greater flexibility to production schedules. 4. Thirty percent of products leaving the factory were never tested. Testing and inspection processes cannot find all defects. Let's move the emphasis for qual- ity away from testing and toward three steps in manufacturing: • Step 1: Verify setup and operations are administered correctly, consistent with instructions. • Step 2: Strict operational adherence to a process; remove all operational variances. • Step 3: e application and use of traceability data within manufacturing; data that is essential in finding the scope and elimination of any market-quality issue. Complete and accurate traceability data can be a company's greatest weapon against mar- ket quality issues and can benefit your manu- facturing far more than standard testing pro- cesses. Today, we can even offer another layer of traceability by using machine learning to identify counterfeit components. 5. Eighty percent of factory management know these statistics, but feel powerless. Executive leadership can view manufactur- ing as a nonprofit operation, a strictly budgeted entity creating a barrier that prevents perfor- mance issues from getting their due attention. It can and needs to be a crossable barrier. Put the above in financial terms and include a vol- atile customer base. e conclusion is that extreme flexibility from factories is becom- ing a requirement. It is not just the operation, but also the location of the manufacturing pro- cesses that need reassessment. Applying the information above in a fac- tory that is closely coupled with the market can yield very positive results, but only once people who are responsible for a business ask these questions in a serious way. If you plan to achieve production excellence, please PM me on LinkedIn. SMT007 Sagi Reuven is a business development manager for the electronics industry at Siemens Digital Industries Software. Download your free copy of the book The Printed Circuit Assembler's Guide to… Advanced Manufacturing in the Digital Age and visit I-007eBooks.com for other free, educational titles. You can also view Siemens' free, 12-part, on-demand webinar series "Implementing Digital Twin Best Practices From Design Through Manufacturing." Figure 2: Busy does not mean productive.