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• American Standard Vietnam
Copyright(c)LIXIL Corporation, All rights reserved.
MM SAVING IMPROVEMENT17 Oct 2012
Presented by Tran Thanh Nhan
2Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
MM SAVING IMPROVEMENT
Define
3Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
MM SAVING IMPROVEMENT
Benefits: (in K USD @ AOP rate)Direct Saving = 343K USD per yearCash Flow Improvement = XXXXIndirect Saving = XXXXProgram Budget:
Project Leader: Tran Thanh NhanProject Sponsor: Tran Dinh GiangLBB: Tran Gia HuanMBB: Somprasert PrapatsaranonTeam Members: Nguyen Thi Hoang Anh, Phung Thi My Dung, Nguyen Manh Dan, Chau Ngoc Hoai Trang, Nguyen Thi XuanLoan, Nguyen Thi Thanh Thuy, Tong Thi Kim Giao
Key Metrics:Primary metric: - Actual saving 2011: 293.19 K USD saving on MM - Target Archive Saving 343 K USD Saving as AOP_2012Secondary metric:- Limited 25 bil VND for payment in advance to supplier in the period of the year
Key Initiative: MM SAVING IMPROVEMENT AP-VN030
Business Errors:
• No techincal support to testing new source of material• Not enough warehouse to keep material• Low sale & Not enough money to payment to supplierBarriers:- Price of Fuels is increasing around 15% Vs end of 2011- Transportation are increasing- High inflation - VND de-valuation
Completion Schedule: Define: 01/03/2012 Measure: 01/06/2012 Analyze: 15/06/2012DMAIC Improve: 30/06/2012 Control: 15/07/2012 Close: 31/12/2012
Actual saving 2011
-20.040.060.080.0
100.0120.0140.0160.0
Groups material
Valu
es S
avin
g (K
USD
)
4Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
MM SAVING IMPROVEMENT
Benefit Category (K USD)
DIRECT BENEFITA. Cost Takeout
B. Incremental Margin(1) Net Increased Capacity
= 343K USD(2) New Product Net Sales
=
C. Increased Cost Expense=
Total Direct Benefit (A+B-C)
= 343K USD
CASH FLOW BENEFITNet Cash = XXXX
INDIRECT BENEFITa. Cost Avoidance =
b. Non-Value-Added Reduction =
c. Non Financial Benefit=
Microsoft Excel Worksheet
Project # Project Title Project Leader Project Sponsor MBB / LBB AP-VN030 MM Saving Tran Thanh Nhan Tran Dinh Giang Tran Gia Huan
improvement
Detailed Computation by Category
Total saving = Total buying volume(AOP price – Actual price)
D M A I C
5Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Trend chart Actual saving 2011 and target 2012
Chart Saving target 2012 & actual 2011
-20.040.060.080.0
100.0120.0140.0160.0
Slip
-Cla
y R
Ms
Slip
-Sili
caR
Ms
Pac
kagi
ng
Com
pone
nts-
Sea
t & C
over
s
Mis
cella
neou
s
MR
O re
bate
Top
10co
nsum
able
Cha
nge
sour
eof
Fau
cet f
rom
Opt
imiz
atio
nLo
adin
g
Group Materials
Valu
es S
avin
g (K
USD
)
2011 SavingTarget 2012 saving
D M A I C
6Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Executive Summary
1. DEFINE:
- Base on AOP 2012 for MM saving, we set the target following AOP, It say total saving of this project is 343 K USD for full year
- Limited 25 bil VND for payment in advance to supplier in the period of the year
2. MEASURE:
- We apply some tools of SS to show the status of project
- We defined three Clues:Clue#1: 95.6% of each group materialS & others impact to MM SavingClue#2: we will be focus to these suppliers who have contribute 80% of
spendingClue#3: we will be focus to these spending
7Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Executive Summary
3. Analysis:
05 Why AnalysisFind out the root cause via FMEA and action suggested
4. ImprovementAction taken:- Locked the price for key materials: KO, DO, S&C No.45, tank fitting AS19, Components, packing materiak- Worked with regional to negotiation with material supplier to lock the price minimize the price increasing - Change the outlet of tank fitting AS13S to have saving- Follow up strickly the market price of key material like PP material, Fuels, Iron, Zinc
8Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
5. Control- Work closely with Lab to change the source of DeeDee feldspar to Yen Ha Feldspar- Negotiation with Sanipro to rebate for this year- Looking new shipping line to reduce the logistic cost- Strickly follow up the project to changing KO to CNG- Lock price of packing, components
Executive Summary
9Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
MM SAVING IMPROVEMENT
Measure
10Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Monthly / Purchasing team
Sampling plan / Responsible person
Monhtly report of MM saving which verified by FI
How to ensure the reliability of data source?
Excell formatWhere:- Monthly report MM SavingWhat-Group material-Payment in advance to supplier
Total buying volume(AOP price –Actual price)
MM SAVING IMPROVEMENT
Data collection format
Related conditions (Stratification factors) to record
Operational Definition
What to collect? (Y/y/Xs)
To meet the purpose of baseline data diagnosis, we need to plan carefully on the data collection. There’re 6 key elements to take care of:
1 2 3 4 5 6
Microsoft Excel Worksheet
Data Collection Plan
D M A I C
11Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
-Monthly report MM Saving• Saving of each group material & others• Value of payment in advance to supplier
MM SAVING IMPROVEMENT
Stratify by “Where”Stratify by “What”Y/y
Baseline Analysis – Plan for Stratification Analysis
Guideline : Stratify the baseline data (Y/y) against related conditions (factors) to get patterns or clues to focus first.4
D M A I C
12Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Baseline Analysis – Stratification Analysis Saving of each group material & others
Coun
t
Perc
ent
Category
Count
43.7 21.0 14.6 8.5 4.4 3.5 4.4Cum % 43.7 64.7
150
79.3 87.8 92.1 95.6 100.0
72 50 29 15 12 15
Percent
O ther
Componen ts-
Se at & Co ve
rs
S lip-C
l ay R
Ms
Re duce i m
port t a
x
Pa cka gi
ng
Cha ng
e sour
e of F
a uce t fr
om Ove
rsea t o
Ital i
sa
Energ
y Sav
i ng
350
300
250
200
150
100
50
0
100
80
60
40
20
0
Category(Saving of each group material & others)
Clue#1: 95.6% of each group material & others impact to MM Saving in 2012
D M A I C
13Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Baseline Analysis – Stratification Analysis Value of payment in advance to supplier
P-value<0.05, so that there are significant between value of payment
TextA
mou
nt in
DC(
Mil)
Vuong T
hai Binh-TT HD 20
120011(SC)-1
Viet Hoang-TT HD 20
120001(SC)-1
Thai Son-TT PLHD 20
110065(SC)-1
Thai Son-TT HD 2
0120006(S
C)-1
Tam Anh-TT HD 2
0120010(S
C)-1
PETROLIMEX SG
-TT H
D 20110082(SC)
Italisa
-Dat coc giu gia na
m 2012
Hung An
h-TT HD 2
0120007(S
C)-1
Chu V
an Tu
an-TT HD 20
120012(SC)-1
Chien-TT H
D 20110039(SC)
20000
15000
10000
5000
0
Boxplot of Amount in DC(Mil) by Text
Clue#2: we will be focus to these supplier Jan’11 to Mar’12
D M A I C
14Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Spending 2012 vs 2011
-500
1,0001,500
2,0002,5003,0003,500
Slip
-Cla
y R
Ms
Slip
-Silic
a R
Ms
Gla
ze-
Stai
ns/G
laze
RM
s
Com
pone
nts-
Tank
Trim
s
Com
pone
nts-
Seat
& C
over
s
Mis
cella
neou
s
Man
ufac
turin
gSu
pplie
s
Mai
nten
ance
&R
epai
r Mat
eria
ls
Insu
ranc
e
Rec
ruitm
ent &
Trai
ning
Purc
hase
dSe
rvic
es
Oth
er M
isc
Supp
lies
Ener
gy (D
O, K
O,
LPG
)
Logi
stic
Spe
ndin
g
Material Groups
Valu
es (
K U
SD)
Actual spending 2011Target spending 2012
Clue#3: we will be focus to these spending
Baseline Analysis – Stratification Analysis Value of spending
D M A I C
15Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
• Clue#1: 95.6% of each group materialS & others impact to MM Saving in 2012
• Clue#2: we will be focus to these supplier who have contribute 80% of spending
• Clue#3: we will be focus to these spending
Sumary Clues on Measure phase
D M A I C
16Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
AnalyseMM SAVING IMPROVEMENT
17Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
X1-1
X2-1The government controlled the price and now import tax is 2% vs 15% as normal
The trend of fuels is on increasing
Main material
The main cost of materials is contributed by fuels
These groups are contribute 80% per total buying
The price of these material is not stable
Clue#1:95.6% of each group material & others impact to MM Saving in 2012
Potential cause
Why 6Why 5Why 4Why 3Why 2Why 1Clue
05 Whys for Clues#1: 95.6% of each group materials & others impact to MM Saving 2012
D M A I C
18Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
X3-2
X4-2
These material impacts to saving of project
They’re supplying keys materials for us and stable quantity
Inflation
They’re supplier to supply goods product in past few years
The trend price of Fuels and PP are increasing
There are good price and stable quality
Their products is made by PP material and fuels
Clue#2: we will be focus to these suppliers
Potential cause
Why 6Why 5Why 4Why 3Why 2Why 1Clue
05 Whys for Clues#2: We will be focus to these suppliers
D M A I C
19Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
X5-3
X6-3The price increasing
These are main materials for production
The impact is contribute 60-70% the cost of product
It’s paid to buy keys big volume materials for production
The market price is impactingdirectly to the spending
These spending are TOPsspending
The changing of market is also big impact to company
Clue#3: we will be focus to these spending
Potential cause
Why 6Why 5Why 4Why 3Why 2Why 1
05 Whys for Clues#3: We will be focus to these spending
D M A I C
20Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
FMEA Analysis
D M A I C
No Process Step Key Process Input Potential Failure Mode Potential Failure EffectsSEV
Potential Causes
What is the process step What is the Key Process Input? In what ways does the Key Input go wrong?Sai theo kieu gi
What is the impact on the Key Output Variables (Customer Requirements) or internal requirements?Anh Huong NTN
How
Sev
ere
is th
e ef
fect
to th
e cu
stom
er? What causes the Key Input to go
wrong?Tai Sao Sai
195.6% of each group material & others impact to MM Saving in 2012
Energy, Plastic, Packing, Slip, Glaze Prices are increasing These groups are contribute 80% per total buying 9 X1-1 Main materials
295.6% of each group material & others impact to MM Saving in 2012
The government is lose for selling fuels price
The world price is higher than local price The fuels is increasing 9
X2-1 The government controlled the price of Fuels and now import is 2% vs 15% as normal
3we will be focus to these suppliers
Petrolimex, Thai Son, MRD, Deedee, Chien, Chu Van Tuan, Vuong Thai Binh, Hung Anh, Italisa…
They requests to increase the price
They’re supplying keys materials for us and stable quantity 8 X3-2 These material impacts
to saving of project
4we will be focus to these supplier
Petrolimex, Thai Son, MRD, Deedee, Chien, Chu Van Tuan, Vuong Thai Binh, Hung Anh, Italisa…
Market price of PP and fuels are not stable
The trend price of Fuels and PP are increasing 8 X4-2 Inflation
5we will be focus to these spending
Energy (DO, KO, LPG), Components-Fittings,Components-Tank Trims,Slip-Clay RMs,Packaging, Slip-Feldspar RMs,Components-Seat & Covers, Manufacturing Supplies
These spending will be increasing
It paid to buy keys big volume materials for production 7 X5-3 These are main
materials for production
6we will be focus to these spending
Energy (DO, KO, LPG), Components-Fittings,Components-Tank Trims,Slip-Clay RMs,Packaging, Slip-Feldspar RMs,Components-Seat & Covers, Manufacturing Supplies, Logistic Spending
These spending impacts to cost of product
The impact is contribute 60-70% the cost of product 7 X6-3 The price increasing
21Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
ImproveMM SAVING IMPROVEMENT
22Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Plan for Cause Verification
D M A I C
Xs (Potential Causes) Theory of Impact on y How to Verify Who & When
X1-1 Main materialsThese groups are contribute 80% per total buying Compare with AOP_2012 Price Ms Loan _ FI, Monthly
X2-1 The government controlled the price of Fuels and now import tax is 2% vs 15% as normal The trend of fuels is increasing Follow up with Market on the
internet and supplier information Mr Nhan _ Daily
X3-2 These materials impacts to saving of project
They’re supplying keys material for us and stable quantity Follow up with supplier request Purchasing team and FI_ Monthly
X4-2 InflationThe trend price of Fuels and PP are increasing
Follow up with Market on the internet and supplier information and AOP_2012 price Purchasing team and FI_ Monthly
X5-3 These are main materials for production
It paid to buy keys big volume materials for production Base on monthly spending Purchasing team and FI_ Monthly
X6-3 The price increasing The impact is contribute 60- 70% the cost of product Base on monthly spending Purchasing team and FI_ Monthly
23Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Verification X1-1 – Main Materials
P-Value = 0.005 < 0.05. It had different cost of each group materials, so that we’ll focus on high cost of materials.
240016008000
Median
Mean
6005004003002001000
A nderson-Darling Normality Test
V ariance 406351.36Skewness 2.9369Kurtosis 10.3323N 27
Minimum 1.15
A -Squared
1st Q uartile 18.59Median 146.253rd Q uartile 527.10Maximum 2992.39
95% C onfidence Interv al for Mean
148.62
2.99
652.96
95% C onfidence Interv al for Median
36.17 401.72
95% C onfidence Interv al for S tDev
502.01 873.59
P-V alue < 0.005
Mean 400.79StDev 637.46
95% Confidence Intervals
Summary for Cost of AOP 2012
Go to next slide to see stratification main materialsD M A I C
24Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Coun
t
Perc
ent
Categor y
Count
43.7 21.0 14.6 8.5 4.4 3.5 4.4Cum % 43.7 64.7
150
79.3 87.8 92.1 95.6 100.0
72 50 29 15 12 15
Percent
O th e r
Compo nen ts-Sea t &
Covers
S lip-C
l a y RMs
Reduce i m
port ta
x
Pa cka g in g
Ch ange so
ure o
f Fauce
t from O
verse
a to It
al isa
E nerg
y Sa vi n
g
350
300
250
200
150
100
50
0
100
80
60
40
20
0
Category(Saving of each group material & others) will be focus
95.6% of each group material & others impact to MM Saving in 2012
Verification X1-1 – Stratification on Main Materials
D M A I C
25Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Verification X2-1 – Fuels increasing
Follow up with Market on the internet and supplier information
D M A I C
26Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Quick action Plan
D M A I C
No Potentials Cause Supplier Name Material Description Deadline Remark1 X1-1 Thai Son S&C No.45 Locked the price for AOP demand of Feb, Mar, Apri Locked for July_2012
X1-1 Tank Fitting AS19S Locked the price for AOP demand of Feb Locked from Feb to end of April
2 X1-1 Chien Top & Tail Carton packing Locked the price for AOP demand until end of Q2_2012 Locked from Feb to end of June
X1-1 Wooden Crate Locked the price for AOP demand until end of Q2_2012 Locked from Feb to end of June
3 X2-1 Petrolimex KO
Make good relationship with supplier, they will have advising to them when they have information from gorvment to increase the price Locked price to end of June ( AOP volume)
X2-1 DO
Make good relationship with supplier, they will have advising to them when they have information from gorvment to increase the price Locked price to end of June ( AOP volume)
4 X3-2 Chu Van Tuan Hanger for LavaWe're working with supplier locking the price to End of June 2012 05-Mar-12 Locked price to end of June ( AOP volume)
5 X3-2 Tam Anh OverflowringWe're working with supplier locking the price to End of June 2012 05-Mar-12 Locked price to end of June ( AOP volume)
6 X3-2 Hung Anh Tank fitting HA13We're working with supplier locking the price to End of June 2012 05-Mar-12 Locked price to end of June ( AOP volume)
7 X3-2 Vuong Thai Binh SS connecting bolt for tank fittingWe're working with supplier locking the price to End of Sep_2012 05-Mar-12 Locked price to end of June ( AOP volume)
8 X4-1 Sanipro Tank Fitting AS13S Change the outlet of tank fitting Apr-12 Done 9 X6-3 WDI S&C Rebate from WDI Jun-12 Done
10 X5-3 WG Recli A55 Change source of Recli A55 Apr-12 Done 12 X3-2 Italisa Local Faucet Locked price of Faucvet Jan-12 Done 13 X3-2 Sibelco Kaoling Ranon g Combine volume of all country to keep the price Mar-12 Done 14 X3-2 Smarlink Shipping line Change source from RCL to Smarklink Apr-12 Done
27Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
RESULT ACTUAL JAN-AUG-2012 DEPOSIT TO SUPPLIER
Unit: Mil VND Jan_2012 Feb_2012 Mar_2012 April_2012 May_2012 June_2012 July_2012 Aug_2012
Text Pmnt date Total Payment
in advance Deposit Deposit Deposit Deposit Deposit Deposit Deposit DepositPETROLIMEX SG-TT HD 20110082(SC) 15/02/12 20,258 - 20,258 15,929 11,525 7,706 3,642 138 - Thai Son-TT PLHD 20110065(SC)-1 20/01/12 2,000 2,000 2,000 2,000 1,300 600 - - - Tam Anh-TT HD 20120010(SC)-1 12/03/12 138 - - 138 138 138 138 138 138 Vuong Thai Binh-TT HD 20120011(SC)-1 12/03/12 266 - - 266 266 266 266 266 266 Chu Van Tuan-TT HD 20120012(SC)-1 12/03/12 500 - - 500 500 500 500 500 500 Chu Van Tuan-TT HD 20120012(SC)-1 09/04/12 478 - - - 478 478 478 478 478 Thai Son-TT HD 20120006(SC)-1 22/03/12 3,600 - - 3,600 3,600 3,600 3,600 2,348 1,139 Hung Anh-TT HD 20120007(SC)-1 12/03/12 580 - - 580 580 580 580 580 580 Italisa-Dat coc giu gia nam 2012 01/11/11 5,009 5,009 5,009 5,009 5,009 5,009 5,009 5,009 5,009 Chien-TT HD 20110039(SC) 01/12/11 500 420 340 260 180 80 - 100 - Chien-TT HD 20110039(SC) 21/12/11 350 290 230 170 110 60 - 50 - Viet Hoang-TT HD 20120001(SC)-1 13/04/12 500 - - - 500 - - - - Total 34,179 7,719 27,837 28,452 24,185 19,026 14,213 9,607 8,109
D M A I C
Stratification for Y2 - Limited 25 bil VND for payment in advance to supplier in the period of the year
28Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Dat
a
Slip after actionSlip before action
35
30
25
20
15
10
5
0
Boxplot of Slip before action, Slip after action
One-way ANOVA: Slip before action, Slip after action
Source DF SS MS F P
Factor 1 535.1 535.1 7.47 0.014
Error 18 1288.7 71.6
Total 19 1823.9
S = 8.461 R-Sq = 29.34% R-Sq(adj) = 25.42%
Individual 95% CIs For Mean Based on
Pooled StDev
Level N Mean StDev +---------+---------+---------+---------
Slip before acti 15 4.498 8.317 (-----*------)
Slip after actio 5 16.444 8.948 (----------*-----------)
+---------+---------+---------+---------
0.0 7.0 14.0 21.0
Pooled StDev = 8.461
Action X1-1 – on main Materials –SlipLocked price of Slip
P-value = 0.014<0.05. There are significant before vs after action
Before from Jan’11 to Mar’12After from Apr’12 to Aug’12
D M A I C
29Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
M o n t h ly
Ind
ivid
ua
l V
alu
e
A ug -12J un -12A p r-1 2F e b -12D e c-11O ct-1 1A u g -11Ju n -1 1A p r-1 1F e b -1 1
60
40
20
0
-20
_X= 16 .44
U C L= 52 .51
LC L= -19 .6 3
S lip B e fo re a ct io n S lip a f te r a ctio n
M o n t h ly
Mo
vin
g R
an
ge
A ug -12J un -12A p r-1 2F e b -12D e c-11O ct-1 1A u g -11Ju n -1 1A p r-1 1F e b -1 1
40
30
20
10
0
__M R = 13 .56
U C L= 44 .31
LC L= 0
S lip B e fo re a ct io n S lip a f te r a ctio n
1
11
I-M R C ha r t o f R e s ult_ 1 by B e fo r e V s A fte r _ 1
The Slip there are difference result before versus after action.Mean before = 4.5, Mean after = 16.44.
The trend of Slip saving Before Vs After action
Action X1-1 – on main Materials –Slip Locked price of Slip
D M A I C
30Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Dat
a
Packing after actionPacking before action
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
Boxplot of Packing before action, Packing after action
One-way ANOVA: Packing before action, Packing after action
Source DF SS MS F P
Factor 1 16.067 16.067 20.33 0.000
Error 17 13.436 0.790
Total 18 29.503
S = 0.8890 R-Sq = 54.46% R-Sq(adj) = 51.78%
Individual 95% CIs For Mean Based on
Pooled StDev
Level N Mean StDev --+---------+---------+---------+-------
Packing before a 14 1.3357 0.9765 (----*----)
Packing after ac 5 3.4240 0.5096 (-------*--------)
--+---------+---------+---------+-------
1.0 2.0 3.0 4.0
Pooled StDev = 0.8890
P-value = 0.000<0.05. There are significant before vs after action
Before from Jan’11 to Mar’12After from Apr’12 to Aug’12
Action X1-1 – on main Materials –PackingLocked price of Packing
D M A I C
31Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
M o n t h ly
Ind
ivid
ua
l V
alu
e
A ug -1 2J un -1 2A p r-1 2F e b -1 2D e c-1 1O ct-1 1A ug -1 1Jun -1 1A p r-1 1F e b -1 1
4 .5
3 .0
1 .5
0 .0
_X= 3 .4 2 4
U C L= 4 .9 1 3
LC L= 1 .9 3 5
P a ck ing B e fo re a ct io n P a ck ing a f te r a ct io n
M o n t h ly
Mo
vin
g R
an
ge
A ug -1 2J un -1 2A p r-1 2F e b -1 2D e c-1 1O ct-1 1A ug -1 1Jun -1 1A p r-1 1F e b -1 1
4
3
2
1
0
_ _M R = 0 .5 6
U C L= 1 .8 3 0
LC L= 0
P a ck ing B e fo re a ct io n P a ck ing a f te r a ct io n
1
1
1
I-M R C ha r t o f R e s ult by B e fo r e V s A f te r
The Packing there are difference result before versus after action. Mean before = 1.336, Mean after = 3.424.
The trend of Packing saving Before Vs After action
Action X1-1 – on main Materials –Packing Locked price of Packing
D M A I C
32Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Two-Sample T-Test and CI: Components Before action, Components After action
Two-sample T for Components Before action vs Components After action
N Mean StDev SE Mean
Components Befor 15 4.86 3.46 0.89
Components After 5 16.44 5.00 2.2
Difference = mu (Components Before action) - mu (Components After action)
Estimate for difference: -11.5826
95% CI for difference: (-17.7710, -5.3942)
T-Test of difference = 0 (vs not =): T-Value = -4.81 P-Value = 0.005 DF = 5
Boxplot of Components Before action, Components After action
Dat
a
Components After actionComponents Before action
25
20
15
10
5
0
Boxplot of Components Before action, Components After action
Before from Jan’11 to Mar’12After from Apr’12 to Aug’12
P-value = 0.005<0.05. There are significant before vs after action
Action X1-1 – on main Materials –Components-Locked price of Components
D M A I C
33Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
M o n th ly
Ind
ivid
ua
l V
alu
e
A ug-12Jun-12A p r-1 2F eb -12D ec-11O ct-11A ug -11Jun-11A pr-1 1F eb -11
30
20
10
0
_X= 16.44
U C L= 33.22
LC L= -0 .3 4
C om pone nts B e fo re a ctio n C om po nen ts A fte r a ctio n
M o n th ly
Mo
vin
g R
an
ge
A ug-12Jun-12A p r-1 2F eb -12D ec-11O ct-11A ug -11Jun-11A pr-1 1F eb -11
20
15
10
5
0
__M R = 6.31
U C L= 20.62
LC L= 0
C om pone nts B e fo re a ctio n C om po nen ts A fte r a ctio n
1
I-M R C har t of R esult_ 2 by Be fore V s After_ 2
The Components there are difference result before versus after action. Mean before = 4.86, Mean after = 16.44.
The trend of Packing saving Before Vs After action
Action X1-1 – on main Materials –Components Locked price of Components
D M A I C
34Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Two-Sample T-Test and CI: Energy saving be, Energy saving af
Two-sample T for Energy saving before action vs Energy saving after action
N Mean StDev SE Mean
Energy saving be 15 1.62 2.77 0.72
Energy saving af 5 23.72 2.93 1.3
Difference = mu (Energy saving before action) - mu (Energy saving after action)
Estimate for difference: -22.0985
95% CI for difference: (-25.7479, -18.4492)
T-Test of difference = 0 (vs not =): T-Value = -14.82 P-Value = 0.000 DF = 6
Dat
a
Energy saving after actionEnergy saving before action
30
25
20
15
10
5
0
Boxplot of Energy saving before action, Energy saving after action
Before from Jan’11 to Mar’12After from Apr’12 to Aug’12
P-value = 0.000<0.05. There are significant before vs after action
Action X2-1 – on main Materials –FuelsLocked price of Fuels
D M A I C
35Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
M o n t h l y
Ind
ivid
ua
l V
alu
e
A u g -1 2Ju n -1 2A p r-1 2F e b -1 2D e c-1 1O c t-1 1A u g -1 1J u n -1 1A p r-1 1F e b -1 1
3 0
2 0
1 0
0
_X= 2 3 .7 2
U C L= 3 1 .4 1
LC L= 1 6 .0 3
E n e rg y s a v in g b e fo re a c t io n E n e rg y s a v in g a f te r a c t io n
M o n t h l y
Mo
vin
g R
an
ge
A u g -1 2Ju n -1 2A p r-1 2F e b -1 2D e c-1 1O c t-1 1A u g -1 1J u n -1 1A p r-1 1F e b -1 1
1 0 .0
7 .5
5 .0
2 .5
0 .0
_ _M R = 2 .8 9
U C L= 9 . 4 5
LC L= 0
E n e rg y s a v in g b e fo re a c t io n E n e rg y s a v in g a f te r a c t io n
111
1
I-M R C h a r t o f E n e r g y s a v in g b y B e f o r e V s A f te r
The energy there are difference result before versus after action. Mean before = 1.6232, Mean after = 23.72.
The trend of energy saving Before Vs After action
Action X2-1 – on main Materials –FuelsLocked price of Fuels
D M A I C
36Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
Control PhaseMM SAVING IMPROVEMENT
37Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
FMEA UPDATED
RPN
Actions Recommended Resp. Actions TakenSEV
OCC
DET
RPN
What are the actions for reducing the occurrance of the Cause, or improving detection? Should have
actions only on high RPN's or easy fixes.Huong de nghi
Whose Responsible for the recommended
action?
What are the completed actions taken with the recalculated RPN? Be sure to include
completion month/year
729Locked price of Fuels, packing, rawmaterials, tank fitting, components Purchasing team
- Locked price of Fuels, Packing, Rawmaterial, components 4 7 5 140
648 Locked price of Fuels Purchasing team Locked price of Fuels with supplier 5 6 8 240
5121. Locked price of these supplier2. Combine the volumes of all regional to lock the price of material of Italisa
Purchasing team/Regional
- Fixed price w Italisa - Combined all volume with regional to fixed the price w supplier
3 7 8 168
448 Locked price of Thai Son & Petrolimex Purchasing team Locked price w Thai Son 5 4 8 160
448
1. Optimial the specification of tank fitting AS13S2. Change source of Recli A55
Purchasing team/Regional
1. Changed the outlet of AS13S tank fitting2. Apply new supplier for Recli A55
3 8 8 192
3921. Rebate from WDI, Thuyen, Nhat Long supplier, No.92. Locked price
Purchasing team/Regional
1. Got rebate from WDI, Thuyen, Nhat Long, No92. Locked price Energy (DO, KO, LPG), Components-Fittings,Components-Tank Trims,Slip-Clay RMs,Packaging, Slip-Feldspar RMs,Components-Seat & Covers
6 4 8 192
0
D M A I C
38Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
CONTROL PLAN
D M A I C
NoPotentials
Cause Item Description Start End PIC % SavingTarget saving Q3& Q4-2012
Target saving per year Remark
1 X6-3Continous following up with Thuyen & Nhat Long to rebate 4% 01-Aug-12 31-Dec-12 Trang 4% 2,297
Spending of two supplier 300 mil per month
2 X6-3
Negotiation with supplier to get the rebate saving from Jan 2012: Chu Van Tuan, Hung Anh, Tam Anh, Viet Hoang 10-Sep-12 31-Dec-12 Trang 2% 1,435
Total spending around 500 VND per month and rebate 2%
3 X5-3Change material from Deedee to Yen Ha (local) 08-Aug-12 01-Feb-13 Nhan/Tram 20% 34,449.8
The current price of DD is around 3100 VND/kgs, Yenha offer the price is around 2300 VND/kgs, We will use 6% Yenha per 22% of DeeDee
4 X3-2Negotiation with Sanipro to reduce the price of Tank fitting & S&C 01-Aug-12 15-Aug-12 Nhan/Hoang Anh 2% 3,000
Spending from Sanipro is around 50K USD per month, target to rebate 2%
5 X2-1Following the market price of Fuel and lock the price 01-Aug-12 31-Dec-12 Nhan/Dan 69,218
AOP price of Fuel Q3: 24943, Q4: 26136 VND/kgs..
6 X1-1
Following the market price of PP Plastic and lock the price of S&C No.45 01-Aug-12 31-Dec-12 Nhan/Trang 34,424
AOP price of S&C No.45 Q3&Q4: 109991 VND/set., Actual: 98000 VND/sets
7 X3-2Continous following up the OEM project 01-Jul-12 30-Aug-12 Hoang Anh 8,000
8 X6-3Negotiation with Shipping line to reduce the Freight cost 01-Aug-12 15-Aug-12 Hoang Anh 1,200
Saving 10USD per container, Total volume is 40 container per month
9 X1-1
Work with custom to change the way to declare with custom for export product to return the import tax 01-Aug-12 31-Dec-12 Hoang Anh 3,000
Instead of import material and components to sale in domestic, Now we change import material and components to sale in oversea
10 X2-1
Follow up and work out with CNG/Thang Long/TCK to finish the project changing KO to CNG end of this year 01-Aug-12 31-Dec-12 Nhan/Dan 0 -
11Verify three vendors of each for Building & Frarication 01-Aug-12 31-Dec-12 Nhan/Dan 0 -
Due to lacking goods supplier, We don't have a change to negotiation with supplier on the proce
12End sure all contract of Logistic is on valid and following regional standard 20-Jul-12 31-Dec-12 Nhan/Dan 0
13Review all contract to be in valid for 2013 15-Oct-12 15-Dec-12 Team
14Ensure packing and material on time delivery 01-Aug-12 31-Dec-12 Team
15Finish the New FGs Warehouse to using 01-Aug-12 30-Oct-12 Dan
16 X3-2 Lock price of Chien Supplier 15-Aug-12 31-Dec-12 Trang 11% 7200
Due to strange price of material increasing, Fuels increasing, to prevent price increasing
Total Saving for Q3&Q4-2012 129,774 34,450
39Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
ACTUAL PAYMENT IN ADVANCE TO SUPPLIER
Unit: Mil VND Jan_2012 Feb_2012 Mar_2012 April_2012 May_2012 June_2012 July_2012 Aug_2012
Text Pmnt date Total Payment
in advance Deposit Deposit Deposit Deposit Deposit Deposit Deposit DepositPETROLIMEX SG-TT HD 20110082(SC) 15/02/12 20,258 - 20,258 15,929 11,525 7,706 3,642 138 - Thai Son-TT PLHD 20110065(SC)-1 20/01/12 2,000 2,000 2,000 2,000 1,300 600 - - - Tam Anh-TT HD 20120010(SC)-1 12/03/12 138 - - 138 138 138 138 138 138 Vuong Thai Binh-TT HD 20120011(SC)-1 12/03/12 266 - - 266 266 266 266 266 266 Chu Van Tuan-TT HD 20120012(SC)-1 12/03/12 500 - - 500 500 500 500 500 500 Chu Van Tuan-TT HD 20120012(SC)-1 09/04/12 478 - - - 478 478 478 478 478 Thai Son-TT HD 20120006(SC)-1 22/03/12 3,600 - - 3,600 3,600 3,600 3,600 2,348 1,139 Hung Anh-TT HD 20120007(SC)-1 12/03/12 580 - - 580 580 580 580 580 580 Italisa-Dat coc giu gia nam 2012 01/11/11 5,009 5,009 5,009 5,009 5,009 5,009 5,009 5,009 5,009 Chien-TT HD 20110039(SC) 01/12/11 500 420 340 260 180 80 - 100 - Chien-TT HD 20110039(SC) 21/12/11 350 290 230 170 110 60 - 50 - Viet Hoang-TT HD 20120001(SC)-1 13/04/12 500 - - - 500 - - - - Total 34,179 7,719 27,837 28,452 24,185 19,026 14,213 9,607 8,109
D M A I C
40Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
RESULT SAVING 2012 VS 2011
D M A I C
ACTUAL SAVING 2012 VS 2011
-
20.00
40.00
60.00
80.00
JAN FEB MAR APR MAY JUN JUL AUG SEP
Months
K U
SD 2011 Saving
2012 Saving
471.33 49.50 64.82 64.83 60.63 52.72 67.92 30.64 57.23 23.05 Actual 2012 Saving
118.41 12.41 15.00 8.00 23.00 7.00 15.00 12.00 13.00 13.00 Actual 2011 Saving
TotalSEPAUGJULJUNMAYAPRMARFEBJANDescription
41Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
USING SOME SIX SIGMA TOOLS FOR CONTROLLING
M o n t h ly
Ind
ivid
ual
Va
lue
A u g -1 2Ju n -12A pr-1 2F e b-1 2D e c-11O ct-1 1A u g-1 1J u n -11A p r-1 1F eb -1 1
60
40
20
0
-20
_X= 1 6 .44
U C L= 52 .5 1
LC L= -19 .6 3
S lip B e fo re a ct io n S lip a f te r a c t io n
M o n t h ly
Mo
vin
g R
an
ge
A u g -1 2Ju n -12A pr-1 2F e b-1 2D e c-11O ct-1 1A u g-1 1J u n -11A p r-1 1F eb -1 1
40
30
20
10
0
_ _M R = 13 .5 6
U C L= 44 .3 1
LC L= 0
S lip B e fo re a ct io n S lip a f te r a c t io n
1
11
I-M R C ha r t o f R e s ul t_ 1 by B e fo r e V s A f te r _ 1
Dat
a
Packing after actionPacking before action
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
Boxplot of Packing before action, Packing after action
Coun
t
Perc
ent
Category
Count
43.7 21.0 14.6 8.5 4.4 3.5 4.4Cum % 43.7 64.7
150
79.3 87.8 92.1 95.6 100.0
72 50 29 15 12 15
Per cent
O ther
Compo
nents
-Sea
t & Co
vers
Slip -C
l ay R
Ms
Redu ce
i mpo
r t ta x
P ackag
in g
Chang
e so
ure o
f Fau
cet fr
om O
verse
a to It
al isa
E nerg
y Sa vi n
g
350
300
250
200
150
100
50
0
100
80
60
40
20
0
Category(Saving of each group material & others)
D M A I C
42Copyright © 2011 Global Business Company (LIXIL Corporation), All right reserved.
LEARNING FORM THIS PROJECT
1. We should combine from small volume of each country to regional for some key materials to have power to negotiation with supplier
2. Using SS tool for controlling: I-MR chart, Pareto, Box-plot
3. Using the logic of Six Sigma to indentify the main factors (Clues) and action base on these factor
4. Working together with multi function department to archive the company goals
5. Strictly following the market price of some keys material like: KO, DO, Plastic to make action right time to reduce the impact
6. If the market is not stable, Locked price via payment in advance to supplier to buy material is the best choise to keep the price
7. Moving fast for any changing of market
8. We should open to looking new source which can replace for the current one, that quality is stable and following our standard
D M A I C