Issue link: https://iconnect007.uberflip.com/i/757488
34 SMT Magazine • December 2016 • Slide line operators • Single station build operators • Engineer or technician to develop and program the wave solder machine • Wave solder machine operator • Board cleaning operators • Cleanliness testing personnel • In-process inspectors • Test engineers to develop ICT and functional tests • Personnel to conduct the testing • Engineers and technicians to troubleshoot failed circuit boards and products • Technicians who troubleshoot automated equipment and process defects • People who perform production equipment maintenance and repair • Sales and marketing people • Finance people • Supervisors and managers for procurement, production, process engineering, test engineering, and quality assurance, finance, marketing, sales • Human resources • Factory safety officer • Office and manufacturing cleaning personnel • IT people to maintain and upgrade computer equipment Whew! Other Costs In addition to the salaries and hourly wag- es for each of the employees used to meet the task requirements described above, the follow- ing costs and benefits for each employee must be absorbed in the labor selling rate: • Medical insurance • Unemployment compensation tax • Worker compensation insurance • Social Security tax • Medicare taxes • Holiday pay • Vacation pay • Sick pay • Pension or retirement plan contributions • Training costs Fixed overhead costs include: • Building costs • Utilities: power, natural gas, water, and sewer for the facility • Computer and communication systems for the facility • Spare parts for the operations and facilities • Depreciation on the automated assembly equipment and the remaining facility capital equipment • Insurance and property taxes on the assembly equipment and facilities • Safety and environmental costs Next month, we'll group all the personnel into an org. chart and assign individual labor costs. Then, look at an alternate organization- al structure—one that permits a more efficient and cost effective way to manage electronic product assembly. Hey, what do YOU say? I'd like to hear your thoughts and experiences. SMT References 1. T. Borkes, "'Like Holding the Wolf by the Ears…' – The Key to Regaining Electronic Pro- duction Market Share: Breaking Free of the Divi- sion of Labor Manufacturing Model in High La- bor Cost Global Regions," SMTA International Conference Proceedings, Orlando, Florida, Au- gust 2008. 2. T. Borkes; P. McDonough, "The Economic Development of a Lead-Free Assembly Process: A Practical Case Study that Minimized Conver- sion and Operational Costs," SMTA Interna- tional Conference Proceedings, Orlando, Flori- da, October 2007. 3. T. Borkes, "Paper or Plastic? Choosing to Move Offshore," SMT Magazine, April 2006. 4. T. Borkes. "Leadership in Your Company: Something to Worry About?" SMT Magazine, November 2016. Tom Borkes is the founder of The Jefferson Project and the forthcoming Jefferson Institute of Technology. To reach Borkes, click here. A NEW ORGANIZATIONAL MODEL USING LOGIC, COST EFFECTIVENESS AND CUSTOMER SERVICE