Close Mm Saving Improvement

• 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



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

)



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


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


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


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


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



Measure


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)


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


-Monthly report MM Saving• Saving of each group material & others• Value of payment in advance to supplier


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


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


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


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


• 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


AnalyseMM SAVING IMPROVEMENT


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


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


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


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


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


ImproveMM SAVING IMPROVEMENT


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


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


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


Verification X1-1 – Stratification on Main Materials

D M A I C


Verification X2-1 – Fuels increasing

Follow up with Market on the internet and supplier information

D M A I C


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


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


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


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


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



Action X1-1 – on main Materials –PackingLocked price of Packing

D M A I C


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


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



Action X1-1 – on main Materials –Components-Locked price of Components

D M A I C


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


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



Action X2-1 – on main Materials –FuelsLocked price of Fuels

D M A I C


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


Control PhaseMM SAVING IMPROVEMENT


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


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


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


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


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


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


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


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

Close Mm Saving Improvement

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