MME IMPROVEMENT

Binh Duong Plant – 13 Jun’18

Ho, Anh Tuan
Agenda icons

Project snap shot

Loss analysis

Raw material control

HSD/Mixing & Filling control

KPL & BOM control

Business unit | Footer 2

 Project snap shot
Status:
 ME has been significantly
improved in Binh Duong
Plant through years.
 In 2014, ME was 0.39%
loss(100k Euro loss) which
is equivalent to 16.5% total
operation cost of Binh
Duong Plant.

Potential Benefits of ME
improvement:
 Hence there’re still
opportunities to improve
further, target ME 0.20%
loss from 2015 which
potentially delivers saving
of 47.8K Euro vs 2014
 ME will cover scope from
incoming RM until
dispersing, mixing, filling,
rework, scrap, stock count
and SAP data accuracy
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 Loss analysis & defined actions
• Mother A3 MME improvement staring  Actual incoming
quantity vs SAP
from 2013 and to be continued till  Leftover during
now SAP unloading
• Two Child-A3 projects:  RM preparation
 RM control A3  Charging inaccuracy
 Charging accuracy A3 RM/
• Supporting projects:  Charging inaccuracy
PM  Consume expensive
 RFT improvement
 Wrong RM/PM RM more than BOM
 NCR reduction  Consume cheap RM
 Changeover cost posting Dispersin
 Delay RM/PM less than BOM
• Initiatives for improvement g  Alternative RM
cost posting HSD/ILD  Same RM but different
 Mid-month BOM
packing size
change
 BOM inaccuracy
Mixin  Sampling
quantity
 Charging inaccuracy g  Repeated
 Consume expensive RM sampling
more than BOM  Retained
 Consume cheap RM less QC sample
than BOM chec  Rework/Write
 Batch adjustment- k off
Expensive RM
 Rework SEFI, FINI, RM – Filli
internal issue ng
 Rework SEFI, FINI, RM –
 KPL higher than
Business decision
 Alternative RM Norm KPL
 Excess filling SAP
 Same RM but different
weight (+/- 0.1%)
packing size  High left over
 Delay SEFI consumption
paint
 Packaging posting
 Delay PM consumption
damage
posting
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Business unit | Footer 4
Write off
 Main MME categories

Month SEFI Order BoM Variance

Alternative RM Cost posting Rework SEFI Rework FINI Batch adjustment Yield value Process loss due to Process loss due to Others
rework SEFI rework FINI

Jan (37,751,341.00) 7,881,300.00 392,910,983.00 219,387,547.00 4,374,108.00 (6,410,913.00) (353,241,460.00) (7,061,484.00)

Feb (3,042,798.00) 19,088,300.00 36,614,010.00 18,447,619.00 (16,684,880.00) (56,574.00)
Mar 6,907,014 - 136,254,875 40,699,307 (185,825,655) 77,301,027 (131,265,714) (28,470,336) 13,257,635
Apr 2,366,788 28,974,270 98,925,035 (339,693,401) 91,185,219 (25,198,777) (78,045,881) (32,758,133)
May (93,243,654) - 56,481,255 44,716,780 (678,072,296) 141,183,402 (42,124,825) (40,321,102) (28,227,244)
Jun 22,250,611 - 48,992,240 13,542,498 (475,867,615) 170,646,740 (44,737,134) (6,743,037) 5,960,750
YTD (102,513,380) 0 297,672,240 590,794,603 (1,423,457,410) 503,138,115 (266,422,243) (506,821,816) (48,885,050)

Month FINI Order BoM Variance Material Movement

KPL Rework Delay in Cost posting Wrong BOM Others In-coming RM RM charging Stock check - Scrap Others
consumption Consumption
posting posting
Jan 139,304,306.00 - - (20,935,221.00) - 5,573,699.00 (166,049,860) 0
Feb 41,762,899.00 (10,382,886.00) 234,400.00 1,881,959.00 7,599,335 0
Mar 147,964,662 - - (7,674,954) 243,776 5,010,738 (72,978,999) 52,325,766
Apr 126,714,621 (593,893) (38,558,683) (179,290,032) 8,172,457
May 118,442,364 - - 9,740,316 - 69,185,879 (103,136,939) 0
Jun (68,924,217) - - (14,309,829) - 75,511,368 (193,778,723) 3,676,653
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YTD 505,264,635 0 0 (44,156,467) 478,176 118,604,960 (707,635,218) 64,174,876
 Analysis for loss & gain
categories
Loss item May-18
Rework SEFI 14,356,430
Rework FINI 4,395,678
KPL 118,442,364
Cost posting 9,740,316
Yield value 141,183,402
Others 40,958,635
Total 329,076,825

Gain item May-18

Alternative material (93,243,654)
Batch adjustment (678,072,296)
Stock check (103,136,939)
Total (874,452,889)

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 Raw material control

• Set tolerance for each RM

• Control incoming weight per
delivery • Control left over RMs
• Inform supplier if there’s loss • Change the mindset
• Monitor for top 20 expensive &
fast moving RMs

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 Monitor stock check for
expensive and cheap material
No. Tank Sap code Kind Item J an-18 Feb-18 Mar-18 Apr-18 May-18 J un-18 Total % hao hụt

Actual vs Book 508.3 289.0 429.8 (35.5) (167.0) 319.0 1,343.6

1 T207 113296 Expensive Total usage 11,762.0 1,996.0 8,306.0 10,045.0 7,512.0 8,945.0 48,566.0
% Variance 4.3 14.48 5.17 (0.35) (2.2) 3.57 2.8
Actual vs Book 1,570.0 95.0 1,002.0 1,082.0 951.0 832.0 5,532.0
2 T210 118756 Expensive Total usage 66,539.0 14,619.0 59,185.0 44,682.0 47,408.0 53,589.0 286,022.0
% Variance 2.4 0.65 1.69 2.42 2.0 1.55 1.93
Actual vs Book 103.9 47.7 (200.4) 40.0 96.0 110.0 197.2
3 T302 113656 Expensive Total usage 9,948.0 1,391.0 7,618.0 5,541.0 5,988.0 3,722.0 34,208.0
% Variance 1.0 3.43 (2.63) 0.72 1.6 2.96 0.6
Actual vs Book (456.8) (106.0) (365.7) (442.0) (187.0) (1,259.5) (2,817.0)
6 T306 113670 Expensive Total usage 42,055.0 5,953.0 28,414.0 22,185.0 26,239.0 38,030.0 162,876.0
% Variance (1.1) (1.78) (1.29) (1.99) (0.7) (3.31) (1.73)
Actual vs Book (1,961.0) 1,310.0 (407.3) 1,971.0 (15,506.0) (2,866.0) (17,459.3)
ST4010 -
11 4058005 Cheap Total usage 1,274,194.0 237,989.4 665,872.7 923,076.2 1,408,225.0 587,327.1 5,096,684.3
ST4016
% Variance (0.2) 0.55 (0.06) 0.21 (1.1) (0.49) (0.3)
Actual vs Book (13,102.0) 549.0 (1,375.9) (5,975.0) (6,801.0) (4,276.0) (30,980.9)
ST4013 -
12 4070012 Cheap Total usage 781,877.0 160,780.2 464,112.7 567,411.4 734,513.0 489,924.1 3,198,618.4
ST4019
% Variance (1.7) 0.34 (0.30) (1.05) (0.9) (0.87) (0.97)
Actual vs Book (755.3) 339.7 (274.6) (495.0) 84.0 (491.0) (1,592.2)
13 ST4014 4058003 Cheap Total usage 87,228.0 15,145.9 78,715.0 39,702.1 43,718.9 70,940.2 335,450.0
% Variance (0.9) 2.24 (0.35) (1.25) 0.2 (0.69) (0.5)

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 HSD & Mixing
Charging accuracy control Batch adjustment
• Daily monitoring charging • Closely monitor RFT
• Weekly count stock and analysis • Strictly control batch adjustment, avoid using expensive
trend, focusing on expensive RMs or RM (titanium, latex, additive or colorants)
over charge issue
MTD - control out of tolerance (final) :
Actual 92.94% / Target 97% 92.9
120 120%
100 93% 95% 96% 97% 98% 98% 99% 99% 99% 99% 100% 100% 100%
87% 90% 91%
80 82% 85% 80%
72% 78%
67%
60 60% 60% 91 97
53%
46%
40 37% 40%
27% Actual
20 20%
0 0% 95 Charging 97
2016 Final 2017
11/07/2018
Hightlighted Bars Remainning Bars Cumul% Target improve: 53%
600 120%
500 100%
400 79% 84% 80%
67%
300 52%
60%
51%
200 40%
100 126 126 0 22 126 48 18 32 116 38 288 95 212 386 278 461 136 124 114 63 293 304 489 14 46 58 207 78 206 102 108 253 202 57 71 20%
0 0%

No.of loading %IN - under-85% %IN - under-97% Perfect

MTD - offset adjustment : result 90.47% / 97% 90.5

100 120%

80 94% 95% 97% 98% 99% 100% 100% 100%

88% 90% 92%
84% 86%
74% 78% 81% 80%
60 67% 71%
63% 60%
52%
57% 85 97
40 47%
40% 40%
32%
20 Actual
18% 20%
95 Charging 97
0 0%
DeltaV
2016 2017
11/07/2018

Hightlighted Bars Remainning Bars Cumul% Target improve: 32%

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 Charging accuracy control

Actual wt Mixer-Tank
Result b/t (A) & (B)Result b/t (B) & (C)Result b/t (A) & (C)
based on Loadcell Actual wt
Required (Flowmater, based on DeltaV b/t Final Final
M Date Time From To mixer Product PO Raw
wt (A) Tank LOADCELL (A) &(B) (A) &(B) Result
Loadcell) Before After (C) Diff. % Diff. % Diff. %
(B)

6 1 7:36:02 AM ST4013 M511 4110703 P30582227100 4070012 1396.5 1397.907 1.41 0.10 IN IN IN
6 1 9:25:42 AM ST4013 M110 4110724 P30582228800 4070012 228.8 231.1834 0 231.2031 2.38 1.04 IN IN IN
6 1 9:31:25 AM ST4013 M111 4110739 P30582228900 4070012 228.8 227.2417 10.0046 237.197 -1.56 -0.68 IN IN IN
6 1 10:03:42 AM ST4013 M2010 4057686 P30582229000 4070012 1116 1122.22 6.22 0.56 IN IN IN
6 4 6:47:41 AM ST4013 M110 4110693 P30582304700 4070012 264.25 255.7826 0.5117 256.5895 -8.47 -3.20 OUT OUT OUT
6 4 6:44:28 AM ST4013 M1010 4115946 P30582302800 4070012 3180 3187.36 7.36 0.23 IN IN IN
6 4 8:02:03 AM ST4013 M111 4110693 P30582304800 4070012 264.25 258.6718 2.5774 261.2 -5.58 -2.11 OUT OUT OUT
6 4 7:09:06 AM ST4013 M112 4074180 P30582307400 4070012 201.6 190.2584 301.121 491.4276 -11.34 -5.63 OUT OUT OUT
6 4 9:52:57 AM ST4013 M510 4057684 P30582302700 4070012 1154.25 1157.53 3.28 0.28 IN IN IN
6 4 10:06:13 AM ST4013 SP31X 4118109 P30582307700 4070012 150.5 151.2096 -0.2145 151.0668 151.2813 0.71 0.47 0.07 0.05 0.78 0.52 IN IN IN
6 4 12:03:41 PM ST4013 SP31X 4110695 P30582307200 4070012 140 140.4703 -0.2145 140.3275 140.542 0.47 0.34 0.07 0.05 0.54 0.39 IN IN IN
6 4 11:48:17 AM ST4013 M110 4110703 P30582304900 4070012 264.25 258.9805 1.8 260.9 -5.27 -1.99 IN IN IN
6 4 1:15:38 PM ST4013 M111 4110716 P30582305200 4070012 262.5 256.9011 7.1026 264.0036 -5.60 -2.13 OUT OUT OUT

Control in lower limit Control in upper limit

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 Filling control

Control filling weight for each batch Issue change over Categorize leftover paint
(+/-0.1%) and cleaning process for rework and community program

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 KPL norm review
• Cp/Cpk analysis for all SKUs every
6months
• Review actual KPL vs QC
specification and Norm KPL in SAP
• Revise norm if Cpk<0.8

Inspire White, actual KPL is higher

than Norn and targeted KPL
=> Revised spec and Norm to avoid
loss

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 KPL review monthly

KPL review monthly on each product to adapt quickly abnormal (production side )
BPCS Code Filling date

48C-75450 5968 - Express... 66AB-75060 66AB-Base A 66AB-Base B 66AB-Base C 66AB-Base D 74A-75445 74A-75445 3.5G 02/04/2018 04/04/2018 05/04/2018
74A-A 74A-A 3.5G 74AB-75445 S... 74AB-A SHEEN 74AB-B SHEEN 74A-BP 7974-15330 79A-75500 79A-A 11/04/2018 18/04/2018 26/04/2018
79A-B A901-1 A901-1P A901-2 A901-21312 A901-21340 A901-22528 A901-25272S A901-25285 27/04/2018 28/04/2018 02/05/2018
A901-25286 A901-25287 A901-71119 A901-73260 A901-76146 A901-76522 A915G-25155 A915G-25155 ... A915G-71760 03/05/2018 07/05/2018 08/05/2018
A915G-71761 A915G-A A915G-A Refr... A915G-B A915G-B Refr... A915G-C A915G-C Refr... A915G-D A915G-D Refr... 11/05/2018 16/05/2018 17/05/2018
A918G-25155 A918G-25155 ... A918G-71760 A918G-A A918G-A Refr... A918G-B Refr... A918G-C Refr... A918G-D A918G-D Refr... 21/05/2018 22/05/2018 23/05/2018
A919-70375 A919-71155 A919-71734 A919-71747 A919-73134 A919-75079 A919-75101 A919-76306 A919-76310 25/05/2018 26/05/2018 28/05/2018
29/05/2018 30/05/2018 14/06/2018

A901-25272S / (out of control - 36.1%) 20/06/2018 26/06/2018 29/06/2018

00/01/1900 03/04/2018 06/04/2018
0.006
0.004 0.004 09/04/2018 10/04/2018 12/04/2018
0.004
13/04/2018 14/04/2018 16/04/2018
0.002 17/04/2018 19/04/2018 20/04/2018

0 21/04/2018 23/04/2018 24/04/2018

04/05/2018 05/05/2018 09/05/2018
-0.002
-0.004 -0.004 -0.004 -0.004 10/05/2018 12/05/2018 14/05/2018
-0.004 -0.005 -0.005 -0.005 -0.005
15/05/2018 18/05/2018 24/05/2018
-0.006 -0.006 -0.006 -0.006 -0.006

-0.006 -0.007 -0.007 -0.007 31/05/2018 01/06/2018 04/06/2018

-0.008 -0.008
05/06/2018 06/06/2018 07/06/2018
-0.008
-0.01 -0.01 08/06/2018 11/06/2018 12/06/2018
-0.01
13/06/2018 15/06/2018 18/06/2018
-0.012 19/06/2018 21/06/2018 22/06/2018
23/06/2018 25/06/2018 27/06/2018
28/06/2018 30/06/2018

Average of Diff Average of LCL Average of UCL Average of Out of control

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 BOM change control

Notice:

 Production manager and MME team

leader always involved in any change

in BOM (new product launch or

product improvement)

 Cost posting is at month-end

 Any change with gain is happened at

earlier of month

 Any change with loss is happened as

close as month-end is possible

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Thank you