SigmaTron International : Source Q4 2021

James Barnes

Inside this issue:

Automated Soldering	2
Lean Six Sigma Project	2
	3

	Fourth Quarter 2021	Volume

Barnes Named President, Fairhead Continues as Chairman and CEO

Articles of Interest

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: industrial, consumer and medical/life sciences customers. Our quality certifications include ISO 9001:2015, ISO 13485:2016, IATF 16949:2016 and AS9100D. We are also International Traffic in Arms Regulations (ITAR) regis- tered.

On Oct. 13, James Barnes was named President of SigmaTron International. Gary Fairhead continues as Chairman of the Board and Chief Executive Officer

(CEO). Jim has been with the Company since October 2004 and has risen through the ranks, most recently holding the position of Executive Vice President, Operations and Global Accounts. His experience at SigmaTron has ranged from manufacturing operations to program management to business develop- ment. He has worked with all seven manufacturing locations as well as the Company's international purchasing office in Taiwan. He received a Bachelor of Arts degree in Business Administration from Illinois State University in 2004 and a Master of Business Administration

degree from DePaul University in 2010 in Operations Management.

"This was an important next step for the Company as it executes its strategic vision. We are hopeful that we will be in a position to close our Wagz transaction shortly. The addition of Wagz, which would report to me, and the growth of our EMS business required the Company to fill this position with someone who can continue to drive the recent trends we have seen and capitalize on the opportunities we see in the future. The Board is pleased that we had several viable internal candidates for this position and Jim's promotion should result in a seamless transition as we move forward," said Gary Fairhead.

"I appreciate the Board's offer to take on the challenges that come with this position and the confidence and trust they have shown in my abil- ity. I'm excited about the opportunities that we believe we see in the EMS marketplace and look forward to continuing to work with our seasoned and exceptional SigmaTron team," added Jim.

Reiman Named Chief Financial Officer

On Nov. 9, James Reiman was named Chief Financial Officer (CFO), Vice President Finance, Treasurer and Secretary of Sigma- Tron International. As previously an-

nounced, Linda James Reiman Frauendorfer has

retired as CFO, but will remain a member of the Board of Directors.

"On behalf of the Board of Directors and the SigmaTron team, I want to welcome Jim to Sig- maTron. His extensive experience in senior finance roles, manufacturing, international business and SEC reporting experience will assist the Company as it grows and expands," said Gary Fairhead, SigmaTron's CEO and Chairman.

Jim previously served as Corporate Controller for Chroma Color Corporation. He earlier served as Director of SEC Reporting for Methode Electron- ics. He also served in a variety of senior finance

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Reducing Costs Through Use of Automated Soldering Machines

One challenge many electronics manufacturing services (EMS) companies face is determining whether use of wave soldering remains efficient as the percentage of through-hole components on printed circuit board assemblies (PCBAs) drops. While through-hole components are considered legacy technology, the robustness of through-hole interconnections can make them a bet-

ter choice in limited applications. The result is a PCBA with only a few components requiring wave solder. SigmaTron's Suzhou, PRC team recently utilized Lean Six Sigma core tools to analyze whether an automated soldering machine would be a better choice than use of a wave solder machine on assemblies with only a few through-hole components.

(Define, Measure, Analyze, Improve, Control) process for the project. In the Define phase

they selected metrics from September 2021 and set a goal to determine if

automated soldering equipment could reduce solder bar use and solder dross generation by 40-45 percent. Two assemblies were selected for comparison of the pro- cesses.

In the Measure phase, the team determined that while less solder was utilized on the sample PCBAs due to the small number of through- hole components, solder dross generation remained the same since it was a by-product of machine operation regardless of through-hole component count.

In the Analyze phase, the team utilized fishbone diagrams to evaluate man, machine, environment, method and material in a brain-

The team utilized a DMAIC	The new automated soldering machine reduces soldering costs on	(Continued on page 3)
projects with only a few through-hole components.

Tijuana Facility's Lean Six Sigma Program Takes a Holistic Approach

One of the benefits of the Tijuana facilities Lean Six Sigma training and tools such as Gemba walks is that it has created teams looking for opportunities to improve even small issues. In a world where many costs are increasing due to market dynam- ics, finding simple ways to cut costs through focused improvement is beneficial.

One recently closed DMAIC (Define, Measure, Analyze, Implement, Control) project led by Manufacturing Engineer Karen Garcia, looked at packing materi- al. Pallets require corner protectors to add extra strength in areas where shipping damage could otherwise likely occur. However, the stacked pallet height ex-

ceeded the length of a standard shipping corner protector significantly, so workers in shipping were overlapping two units per corner. This utilized more material than needed and added packaging time.

The team analyzed the number of pallets shipped with this issue and then looked at options. The stacked pallet height was 50 inches and the current corner protector length was 40 inches. The team identified a 48-inch corner protector that was slightly less costly in bulk than the 40 inch option. They determined that since the 48-inch option would cover 96 percent of the pallet, it was acceptable to utilize a single unit per corner. This reduced the material cost by nearly 50

percent and the amount of time necessary to pack each pallet.

An engineering change order (ECO) was initiated and the new part number was placed in the system. Min-max levels within the ERP system database were also updated to ensure ordering and stocking patterns would reflect the lower quantity. The team in shipping was informed about the new process.

While this project represents one of the smaller improvements generated through the Lean Six Sigma program, it demonstrates the focus that program has placed on eliminating inefficiency.

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Recent Article of Interest

SigmaTron International's bimonthly column in Circuits Assembly looks at ways Lean Manufacturing principles can be applied to improve efficiency and quality and its blog includes informational whitepapers. Additional best practice information is available on SigmaTron's blog: News,

Events and Best Practices Tips

Read Article

CFO

(Continued from page 1)

and accounting roles at Gendex, CorSolutions, Matria Healthcare, Centiv, Telular Corporation, Bell & Howell and Dytel Corporation.

He holds a Bachelor of Science degree in accounting from Northeastern Illinois University.

Soldering

(Continued from page 2)

storming activity. This process led to the conclusion that the number of through-hole components did not justify the cost elements of wave solder.

In the Improve phase, the team developed component count-based criteria to determine which process was more cost effective, when tooling, energy use, solder use and solder dross generation were considered. They also found that bill of materials (BOM) solder usage assumptions were incorrect when actual solder use was measured.

In the Control phase they defined the new process and determined that its use re-

duced cost by over 72 percent. Cost reduction assumptions did not include the savings likely to be found in indirect labor associated with wave soldering machine maintenance, wave fixture cleaning and solder dross removal.

Their final conclusions found that PCBAs with less than 20 through-hole pins were good candidates for the automatic soldering machine. The machine itself had a cost of less than $10,000 and generated almost zero solder dross resulting in no loss of solder. Additional benefits included that the automatic soldering machine is much easier to clean as well as maintain, there is no solder dross to be recycled or handled, and no excess flux residue left on PCBA. The automatic soldering machine option

typically delivers a more consistent result than wave soldering when the solder joint is close to the edge of the wave solder fixture, there are temperature sensitive components with a narrow process win- dow, or specific solder volume is required in a through-hole. That said, there is still room for improvement in design of fixturing for the automatic soldering machine and the team is addressing that issue.

"The cost of solder, along with other material and production costs, is increasing globally. Utilizing focused improvement processes such as Lean Six Sigma helps us to identify opportunities to balance cost increases with efficiency improvements," said Hom-Ming Chang, VP China Opera- tions.

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