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In this exclusive interview, we sit down with Frank Faller, the CEO of Elexon Electronics, to discuss the remarkable business transformation program called Elexon2Zero. Under his leadership, Elexon has embraced cutting-edge technologies and innovative production methodologies that not only enhance quality and operational efficiency but also prioritise sustainability and customer satisfaction.

The industry has been describing Elexon2Zero as a very ambitious program. What inspired you to launch it?

After rebuilding our factory following last year’s devastating fire, we managed to secure top-of-the-line equipment that is made to create the best products. We also created momentum for a new beginning. With the best machines and a skilled team, we aimed to lead in quality. However, as we resumed operations and every product run was like a first production run on the new machines and new test fixtures, we identified quality challenges and recognised the need and potential for improvement not just in product quality, but also in timely delivery, especially after experiencing a backlog I thought if we have to rebuild our production and business processes, why not aiming for a quantum leap and implement best practice throughout the entire business to meet customer demands I remembered my time in the German automotive industry, where I was part of a similar program. It was a big success at that time, and I hoped we could create something similar initiative here in Australia.

You claim that you aim to achieve zero defects, zero delays, and zero returns. What’s your approach?

What makes this program different is that the Elexon2Zero initiative affects everyone. It is not just about production; it’s a comprehensive project involving all business aspects. Key pillars include engineering, supply chain management, and continuous process improvement.

In other words, we need to manufacture products designed for manufacturability. To be able to do so, we must ensure we have the right components available, machines prepared, team trained and that we continually improve our production processes to produce high-quality products.

What are the short-term and long-term targets you’ve set for the Elexon2Zero program?

The short-term goal is a cultural change where every team member feels empowered to stop production when there is a quality issue. This involves root cause analysis, using our internal task tracking system to raise and manage corrective actions.

Long-term targets focus on achieving zero defects, zero delays, and zero warranty returns. While we acknowledge that zero is an ambitious goal, the real target of this initiative is the continuous striving toward quality improvement and operational efficiency.

What equipment upgrades enabled the start of the Elexon2Zero program?

The main advancement of our manufacturing set-up lies in sophisticated inspection processes and Industry 4.0 technologies. We’ve implemented 3D automated solder paste inspection, 3D automated optical solder joint inspection, and 3D X-Ray inspection to enhance defect detection and to see what’s really going on.

These upgrades have significantly improved our process control by allowing real-time and closed loop feedback on defects. For example, if a defect is detected in one area, it can be traced back through the production line to identify the root cause immediately. This level of integration helps us maintain high standards throughout our manufacturing process. In other words, we control our product quality by controlling our process quality.

What challenges do you face in implementing these changes, and how do/did you overcome them?

One of the biggest challenges is cultural change within the organisation. Balancing production speed with quality assurance requires strong leadership to encourage stopping production when issues arise. We’ve overcome this by fostering a culture where everyone feels responsible for quality and is empowered to halt operations if necessary.

What methodologies are employed to drive the success of Elexon2Zero?

We utilise methodologies like PDCA (Plan-Do-Check-Act) and DMAIC (Define-Measure-Analyse-Improve-Control). Training our teams in these processes is vital because they possess the knowledge necessary for improvement.

Our long-term goal is zero defects, but what it really means is that we need to manage to shift our thinking and change the culture so that rework becomes unacceptable.

How do these metrics align with the key performance indicators of your defence and aerospace customers?

Metrics such as first-pass yield and on-time delivery are crucial for our defence and aerospace customers. The better our first test passes, the less risk of defects slipping through, which reduces warranty returns. We also track compliance actions to ensure continuous improvement.

How are you developing new metrics and measurements to assess the program’s progress and identify areas for improvement?

We are focusing on creating key metrics related to material availability and production streams, which help in understanding the impact on jobs. Additionally, they capture quality data for each production job and visualize it using PDCA charts, allowing them to track progress and implement lessons learned from previous jobs to enhance future performance. This approach supports continuous improvement by ensuring that all actions are recorded and analysed for effectiveness.

What are some of the early positive changes you’ve observed since implementing Elexon2Zero?

We’ve seen an increase in compliance actions over the past few months. Teams communicate better. For me, personally, the biggest change is that people no longer accept workarounds and actively stop production when problems arise.

How do you envision the Elexon2Zero program evolving and expanding in the coming years to support Australia’s sovereign manufacturing capability?

Once we achieve our goal of zero defects, we plan to halve our delivery lead times. This will enhance our offerings in strategically important defence projects related to guided weapons, autonomous systems, and AUKUS initiatives.

Can other manufacturers learn from your approach?

Of course. The Elexon2Zero model can be replicated or adapted by other electronics manufacturers who want to drive innovation and advancement within the industry. By having a focus on quality and sustainability embedded in the company strategy and thinking, manufacturers can create a robust framework that drives industry-wide improvements in quality and efficiency.

And what are the plans for the future?

The future of Elexon2Zero is about building on our successes and pushing boundaries even further. We will continue to refine our processes and integrate new technologies to enhance efficiency and quality. The program will also expand its focus to include deeper collaboration with our partners and customers, ensuring we’re aligned with industry needs and delivering exceptional value. Ultimately, Elexon2Zero is not just a program—it’s a framework for continuous improvement that will evolve to keep us at the forefront of manufacturing innovation.