Any interest, please email to: quasei@fpt.vn 1/17 2/15/2011

Viglacera Dapcau sheet glass

joint-stock company

Center for Coaching & Transferring

Management technology (CTMT)

Report on Input material

Cost - saving project

Main achievers:

Vu Van Chinh, Nguyen Manh Chan, Do Thi Thu, Pham Quoc Khanh, Nguyen Van Phuc, Mia Ba

Quang, Chu Duc Tho, Nguyen Huu Luat, Than Trong Dai, Ngo The Hanh, Do Duc Ngoc, Trinh

Khac Lu, Nguyen Hoang Thanh, Pham Van Chuong, Hoang Minh Thuyet, Nguyen Danh Van,

Nguyen Chau Van, Quan Ba Manh, Luu Van Nhiem, Nguyen Quang Trung, Tran Van Tho,

Tran Trung Kien, Nguyen Tien Thuan, Do Hong Son, Nguyen Van Chinh, Nguyen Van Viet,

Hoang Van Viet and

Tran Ngoc Trung, Nguyen Manh Mai, Bui Thi Nhan.

Bacninh, January 2008

Reclaim rate of drawn glass

and Norm

Month, 2007

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Contents

Page

1. Project description 3

2. Objectives 3

3. Starting point of the project 4

4. About Viglacera Dapcau sheet glass joint-stock company 4

5. Implementation process 5

6. Achievements 8

7. Other lessons 9

8. Suggestions for spreading the project results 10

9. Appendixes 10

10. Other references 10

11. Images of implementation process 11

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1. Project description:

Name: Input material cost – saving project

Company: Viglacera Dapcau sheet glass joint-stock company.

Coaching and training unit: Center for Coaching and Training Management Technology (CTMT)

Duration : 6 months, from July.2007 to January.2008

Important landmarks:

- July .2007: CTMT hold a training course for management staff of Viglacera Dapcau sheet glass

joint-stock company, inlcuding: “ Enterprise’s busincess efficiency improving; Teamworking

method, Management, Renovation and Analytical tools for project - implementation groups”

- August .2007: The company’s leaders decided to set up 18 project – implementing groups and

work regulation for them. The groups then planned their detailed acting schedules.

- August .2007 : CTMT further trained 260 staff and workers from departmenrts and workshops to

help them renew their concepts, unify their strengths together and propose solution for saving

input material cost as well as increasing the enterprise’s business efficiency. The participants then

contributed 260 innovative ideas to their company.

- August.2007 - January.2008: The groups collected information, analyzed data, suggested and

implemented measures for strictly controlling and reducing raw material and fuel cost in the

whole business and manufacturing process of the company.

- February.2008: Evaluating the project results and holding conference for reporting them to the

company’s leaders and key management staff.

2. Objectives:

The project aimed at surveying real business and manufacturing status of Viglacera Dapcau sheet glass

joint-stock company in order to:

a) Design and organize “Project management, analytical and renovation tools usage for project –

implementation groups” training course.

b) Assist the company in implementing “Input material cost - saving” project.

“The synchronization of the whole management

staff and workers’s awareness of economization,

the absolute control over the business and

manufacturing process did help the company

maintain safe production while raw material and

fuel storage reduces remarkably compared with the

established norm”

Nguyen Van Phuc, Deputy manager of General

Issue Department

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3. Starting point of the project:

Under the leading of Viaglacera Corporation, according to the official letter number 707/TCT-TCLĐ

August 8th 2006, CTMT collaborated with Viglacera Dapcau sheet glass joint-stock company to survey its

real status, design and hold a trainning course for management staff, which helps them renew their

concepts, unify their strengths, sharpen their creativities to overcome obstacles and increase business

efficiency.

After finishing the course, the company’s management staff proposed 15 projects. 6 of them need

implementing soon.

In June 2007, leaders of the 2 companies agreed to select and co-operate with each other to implement

Input material cost – saving project in Viglacera Dapcau sheet glass joint-stock company.

4. About Viglacera Dapcau sheet glass joint-stock company:

Generally in the period of 1990-2004, the company developed very well. Its revenue, labors and

netprofit increased strongly. Glass was its main product which counts for the biggest contribution to the

development and netprofit of VIGLACERA Corporation.

The company’s activities were always based on the philosophy of “Raising product’s quality and

customer’s values”. That’s also the guideline for all short, medium and long-term activities of the

company.

The company’s management staff was methodically trained which made such a big contribution to senior

management staff of VIGLACERA Corporation or other subcompanies It’s also a good place for them to

get experienced. In 2001, it gained the Great Labour Award in Renovation period from the government. Its quality

management system was built and certified by TUV organization as in accordance with ISO 9001 2000

standard.

In 2003, on the request of Viglacera Corporation’s strategy towards developing competitive capacity to

actively integrate into the world market, the company invested capital in drawn and rolled glass

production line and other equipments to make post-glass product and diversify their product range.

In 2005, under the guideline of the state and the corporation on dramatically renewing, rearranging and

developing enterprise, the company changed into Dapcau Sheet galss joint-stock company.

The company now is now actuating to build up an appropriate distribution channel system to meet

customer’s demand better.

Figures from manufacturing and business activities points out that the company is facing difficulties at

present. Production excecuting results at glass-producing unit, main activity of the company also shows

that: although the company had some renovations, their glass-producing technology and process still need

improving more and more. Their product from drawn glass production line have the same quality with or

have no distinct differences from their competitors while their technology chain has just been invested in

2003.

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Especially, in the recent years, the period of 2006-2007, input material cost has unusually fluctuated and

risen. Therefore, the company comes into realize that they need to do research, analyze and unify all the

brains of staff to save input material cost and raise its business & manufacturing efficiency.

5. Implementation process:

The implementation process of Input material cost – saving project at Viglacera Dapcau sheet glass joint-

stock company can be devided into 3 main steps:

- Raise awareness about, methods and measures for synchronous saving activities among the

whole company: :

Training course for key managers and management staff of the all company’s departments allowed

them to have synchronous awareness about teamworking method, management, analytical and

renovation tools as well as propose important measures for controlling and implementing Input

material cost – saving project in the entire manufacturing & business process of the company.

After the course, participants suggested the company set up 18 groups to implement 18 measures

designed to collect necessary information , apply analytical model learnt to analyze the company’s

condition in detail and propose cost-cutting measures.

“The project helps us to raise our

awareness, develop scientific work

style, observe and manage

manufacturing data safely and

strictly. Electricity consumption

ratio / one ton blend reduced

compared with norm.”

Thân Trọng Đại,

Material prefabrication

plant manager

18 project groups including members of many or one unit implemented and solved concrete

tasks/solutions:

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o The 1st solution : develop the staff’s economical awareness when using material and

fuel through training course about it.

o The 2nd solution : Improve contract works to buy input material with better price,

quality, payment and transportation methods. Recheck all evaluation acativities to

ensure imput material quality.

o The 3rd solution : Reduce material storage to decrease bank interest.

o The 4th solution : Sell off utilities not being used for a long time that are still in stock

to decrease bank interest.

o The 5th solution : Avoid changing production schedule and lengthening the amount

of time to produce one product.

o The 6th solution : Reduce sales amount in the South and the Middle, increase sales

amount in the North. Reduce finished product in stock.

o The 7th solution : Increase Ha Tinh sand used in production to replace Van Hai sand.

o The 8th solution : Reduce diminished rate of soda used.

o The 9th solution : Increase equipment capacity, try to avoid using electric during rush

hour.

o The 10th solution : Develop crushed glass management regulation.

o The 11th solution : Re-examine regulations to ensure sustainable stoking regime.

o The 12th solution: Re-examine regulations on gas supplying technology for each kind

of product and anneal regime. Training workers and applying what they learnt to their

jobs.

o The 13th solution: Hold training course to improve cutting and wrapping workers’s

skills.

o The 14th

solution : Do research to reduce tiem for changing product, machine and

direction.

o The 15th

solution: Entrust each unit/part with their tasks.

o The 16th

solution: Increase product reclaim rate at Glass manufacturing workshop.

o The 17th

solution: Boost making full use of subordinate material (paper, nilon…)

o The 18th

solution: Re-examine regulations on providing and using energy resource to

ensure stable provision and frequent observation.

All the above solutions were well-conveyed to the workers and staff concerned in all

workshops/departments before being implemented.

Picture: Organization chart of 18 groups and Project management board, detailed schedule for each

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project.

- Focus on strictly controlling important expenses:

To conduct the above tasks, the management staff in each group once again did their research on the

whole manufacturing and business process – the value chain of the company and defined main

operations and expenses to set detailed indexes so as to observe economical productions. For

example:

o Observe main utilities’s value and productivity of the company every month.

o The amount of main utilities storage every month.

o Times of production schedule changes each month.

o Sales amount / month / area.

o The amount of 2 kinds of sands used each month.

o Soda diminished rate per month.

o Time using machine per month.

o Electricity comsumption per month.

o Electricity consumption norm / one ton blend

o Input, output and storage of crashed glass per month.

o The amount of FO oil, gas or electricity consumption at plant per hour …

The above ratios and detailed norms are required to observe, compare with the ratios and norms over

the same period last year/month and analyze their genereal progressive tendency to find out abnormal

fluctuations. Therefore each unit will propose appropriate measures for approaching established

objectives.

- Observe and update the company’s data, control the whole manufacturing and business process

by visualization method.

The entire objectives, norms and real figures were updated and observed by visualization method

every month. They were shown on charts put at easy-to-see places such as: General issue Department

or right at plant.

The above information helped the management staff and officials be aware of where they were, how

things were actually going and what they should do to achieve their goals successfully.

Executive board of the projects held meeting regularly to examine the entire implementation process

and propose timely measures to adjust and drive the groups to fulfil the company’s general goals.

To implement the saving project, the company also reorganized “5S Program” to keep work

environment tidy, scientific and clean.

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Picture: Important consumptions were analyzed and observed strictly at each workshop.

6. Achievements:

After 6 months implementing the Input material cost saving Project, the company obtained the following

results:

6.1. The project made a move to develop the labour’s awareness of saving input material and keep

their work place safe and clean. It was warmly responded by the entire company.

The synchronization of the whole labour’s consciousness and their support to the total chain value of

manufacturing and business process greatly contributed to the company’s following results:

o Input material’s quality was frequently checked to meet production’s need. (Appendix 8).

o Reclaim rate of rolled glass and white glass remained stable and always above the norms. In

parrticular: (Appendix 2):

With rolled glass:

From August – December 2007: reclaim rate was from 85.94 – 88.17 %,

From January – December .2006 reclaim rate was from 76.77 – 90.23 %. Norm was 84%.

With white glass:

From August – November 2007 reclaim rate was from 81.54 – 83.98. In December 2007,

time of overdone glass was long so the rate was just 78.28 %.

From January – December reclaim rate was from 66.09 – 77.06 %. Norm was 79 %.

o The amount of main input material comsumption reduced compared with the norm.

(Appendix 3). In particular: in August – December .2007 :

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Electricity consumption/ one ton of blend fluctuated from 6.1 – 8.32 KWh/ton, norm was

10.8 KWh/ton;

Amount of resistance, paint, solvent and glass-line paper consumed were always under

control and below established norm, while glass reclaim rate was from 98.3 – 98.7 % with

VFG rough draft, (norm was 98.3 %) and 96.0 - 96.6 % with Dapcau glass rough draft.

Consumption norm of electricity, gasoline and FO oil for body-tinted glass manufacturing

gradually became stable.

o The manufacturing process still continued safely while the real amount of material and fuel in

stock reduced compared with the demand for maintaining production. (minimum storage - 20

days) (Appendix 4 )

6.2. New, scientific and visual management methods were introduced:

Key Performance Indicator (KPI) during the whole manufacturing and business process were

established and observed. (Appendix 5)

All spreadsheets and charts were in agreement and regularly updated, which showed the company’s

management staff an overview of their company’s business condition. Therefore, they can pointed out

abnormal factors, the data tendency and suggest appropriate measures. (Appendix 6).

The method of strictly observing the entire manufacturing and business process is also a base for

setting up consumption norm for that process.

6.3. Approaching methods of synchronously and democratically managing and using the entire

staff’s brains to conduct the company’s general objectives.

So as to conduct the projects synchronously, the company must follow these steps:

- Define clear objectives.

- Set up groups whose members come from 1 or some units?

- Encourage to collect ideas of everyone and choose one which is widely agreed.

- Create ratios showing the projects’s success.

- Develop detailed plan to implement them.

- Manage, support and encourage the groups to work scientifically and effectively.

- Sum up the teamworks and objectives’s results. Rewards.

This method will improve the company staff’s activeness. They will engage in contributing

ideas, managing their works and other activities, finding methods to build up their company’s

competent capacity and business effectiveness, instead of just sit still waiting for their

manager’s leading.

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7. Other lessons:

Some other lessons resulted from this project:

- Fact has shown that: besides many technological and managerial solutions having been

applied during the whle company’s active process, there were still many other opportunities to

seize and measures to apply so as to enhance the company’s competent capacity and business

effectiveness.

As a result, the company must frequently update and accept to change – especially their

thoughts to be able to make progress.

Information data after being collected should be summed up and analyzed regularly and

systematically. In additon, it should be shown visually to easily understand then watcher can find

abnormal problems and suggest appropriate solutions to them.

8. Suggestions for spreading the project results:

+ To maintain the project’s results, the company has the project and its results filed into

standardds, procedures and educated for the whole staff concerned to apply.

+ Research the new method – BPR to continue improving the company’s competitiveness.

9. Appendixes:

Appendix 1: Member list of 18 project-implementing teams, including 125 participants.

Appendix 2: Reclaim rate of rolled glass and white glass in 2006, 2007.

Appendix 3: Some important input material consumptions being strictly controlled and

reducing below the norm.

Appendix 4: Amount of input material in stock required for safe production reduces

below the norm.

Appendix 5: Some imprtant ratios of business & manufacturing process need observing.

Appendix 6: Charts showing important ratios.

Appendix 7: Detailed implementation schedule of the project.

Appendix 8: Evaluation statement of project group number 1, 2, 3, 4, 5, 8 and 18.

Appendix 9: Management staff – training statement of the company: “Renew thought,

unify strength, create to overcome obstacles, improve business & manufacturing process

at Viglacera Dapcau Sheetglass joint-stock company” October 2006.

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Appendix 10: Training report: “Improving business effectiveness of a company, tools of

management, analyzation and innovation” July 2007.

10. Other references:

None.

11. Images of the implementation process

“Make the whole

management staff and

workers thoroughly

understand about and be

aware of saving work as

the basement for the

success of the project”

“Develop detailed action

plan, observe evaluation

raios and propose

appropriate measures in

order to carry out the

project”

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The company’s image has changed considerably into more clean, tidy and magnificent.

Appendix 1

Member list of project – implementing teams (125 participants)

Project executive board

Vũ Văn Chinh - Leader

Đỗ Thị Thu

Phạm Quốc Khánh

Nguyễn Văn Phúc

Mai Bá Quang

Chu Đức Thọ

Nguyễn Hữu Luật

Thân Trọng Đại

5S Project executive board

Nguyễn Mạnh Chấn – Leader

Ngô Thế Hanh

Đỗ Thị Thu

Đỗ Đức Ngọc

Nguyễn Hoàng Thanh

Phạm Văn Chương

Hoàng Minh Thuyết

Team 1

Nguyễn Danh Vạn – Leader

Ngô Thế Hanh

5S Project executive board

Team 2

Nguyễn Văn Phúc – Leader

Phạm Quốc Khánh

Trần Văn Quyết

Team 3

Nguyễn Văn Phúc – Leader

Phạm Thị Thuỷ

Đỗ Quang Hoà

Bùi Thị Thanh Hương

Team 4

Nguyễn Văn Phúc – Leader

Phạm Quốc Khánh

Nguyễn Thu Hường

Bùi Thị Thanh Hương

Nguyễn Thị Kim Chung

Team 5 and 6

Trịnh Khắc Lự - Leader

Nguyễn Châu Văn

Vũ Đình Quyến

Nguyễn Mạnh Hùng

Lê Văn Tạo

Team 7

Nguyễn Hoàng Thanh - Leader

Nguyễn Kim Chi

Nông Trung Lý

Ngô Văn Lạng

Nguyễn Văn Duy

Lê Đình Sơn

Nguyễn Hoa Văn

Nguyễn Thành Trung

Nguyễn Xuân Cương

Team 8

Quản Bá Mạnh – Leader

Nguyễn Thị Yến

Đặng Thái Ngọc

Nguyễn Anh Tuấn

Hoàng Văn Hải

Lê Ngọc Mạnh

Nguyễn Văn Dương

Trần Phong

Huỳnh Đức Long

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Team 9

Lưu Văn Nhiệm – Leader

Nguyễn Kim Ngọc

Vũ Thị Đếm

Hoàng Thị Nhật

Vũ Thị Diệp

Và 16 người khác hỗ trợ

Team 10

Nguyễn Quang Trung – Leader

Đỗ Quang Hoà

Tổ KCS Cty và

Tổ Kho Cty

Team 11

Trần Văn Thọ - Leader

Nguyễn Chí Thanh

Nguyễn Văn Tấn

Nguyễn Bá Thuyến

Nguyễn Bá Hoạt

Phan Thanh Tuấn

Mạc Thanh Tùng

Hoàng Công Xuyên

Team 12 and 14

Trần Trung Kiên – Leader

Lê Văn Quang

Trần Ngọc Tuyến

Nguyễn Hữu Song

Trần Văn Nghinh

Chu Văn Ngọc

Lê Văn Huy

Nguyễn Trung Thành

Nguyễn Như Hoa

Đỗ Xuân Hà

Nguyễn Hồng Long

Nguyễn Văn Trung

Team 13

Nguyễn Tiến Thuận – Leader

Trần Ngọc Tuyến

Nguyễn Văn Thế

Nguyễn Văn Cương

Nguyễn Khắc Thuyết

Lê Văn Tường

Nguyễn Văn Nghệ

Nguyễn Thành Luận

Đào Minh Nam

Team 15 và 16

Đỗ Hồng Sơn – Leader

Nguyễn Văn Chinh –

T.nhóm

Trần Đình Bắc

Phan Xuân Anh

Vũ Đức Chính

Nguyễn Khắc Long

Nguyễn Văn Khanh

Trần Tuấn Luận

Team 17

Nguyễn Văn Việt – Leader

Trần Bình Bắc

Nguyễn Khắc Long

Phan Xuân Anh

Vũ Đức Chính

Nguyễn Văn Khanh

Phan Trọng Bằng

Nguyễn Đức Hạnh

Team 18

Hoàng Văn Việt – Leader

Lê Tuấn Cường

Lê Tiến Cường

Nguyễn Văn Lăng

Nguyễn Văn Tá

Hoàng Thanh Dương

Ngô Thế Anh

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Appendix 2: Rolled glass and white glass reclaim rate in 2006 and 2007

T ? l ? thu h ? i kính cán và kính tr ? ng

50

70

90

1.06 3 5 7 9 11 1.07 4 6 8 10 12

Tháng, 2006 - 2007

T ? l ? (%)

Rolled glass White glass

?

Average: 85.91

73.29

86.95

81.81

Rolled and white glass

reclaim rate

R

at

e

(

%

)

Rate

(%

)

Month, 2006-2007

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Appendix 3: Some main material consumptions are strictly obsersed and reduce compared with established norm

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Appendix 4: Amount of material in stock for safety production reduces compared with established norm.

Năm 2007: Reserve demand for main material/month: 7.858.414.914 VND

Real reserve of main material on average: 1.894.880.413 VND (account for 24 %)

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Appendix 5: Some imprtant ratios of business & manufacturing process need observing

1. Main material buying and storage status (white sand, dolomit, permatit, soda, sunfat, FO oil, glass-line paper, May so, mirror paint,

solvent and limestone) compared with minimum storage norm every month – 20 days ( General issue Department)

2. Main material export and using status (General issue Department)

3. Sales amount in the North, Central and South per month. Sales amount in each area per month/total per month. Revenue and product in

stock. (Business Department)

4. Amount of the 2 sand used every month. Amount of soda diminished after producing. Blend productitvity, electricity consumption/ one

ton blend compared with established norm. (Material prefabrication plant)

5. Observing manufacturing condition of rolled glass and white glass (Productivity and Reclaimation rate, Productivity and rate of A-level

product, Productivity and FO oil, gas, electricity and diesel consumption) compared with norm (Glass plant)

6. Observing crashed glass arising and storage, Times and time to change product or stop machine (Glass plant)

7. Productivity and consumption of paint, solvent, resistance, aluminium compared with norm. Glass reclaim rate (Post-glass product

plant)

The above indexes were observed and analyzed generally, systematically and monthly

in order to give a full picture of the company’s manufacturing & business status.