Overview of management system principles

1. LECTURE NOTE Overview of management system principles

2. WORLD-CLASS MANUFACTURER Mistake-free ● Fast ● Lean ● Flexible ● Environment-friendly PRODUCTS Delight customers PEOPLE Involved, Committed & Creative PROCESSES Capable and Efficient TOTAL QUALITY MANAGEMENT HOUSE OF TQM

3. Autonomous Maintenance & 5S Innovative Creative Circle Continuous Improvement Teams TQM Lean Manufacturing Quality Management System EHS Management System Employee Suggestion Scheme Training & Education TQM CORE INITIATIVES

4. Continuously Steering Towards Excellence HMS HICOM MANUFACTURING SYSTEM TRANSFORMATION 2006

5. AMS – 5 FOCUS TARGET QUALITY COST 1-Improve profit 2- Reduction of: a) Raw material, WIP and FG b) Utilities costs c) Space usage d) Overtime cost e) Maintenance cost f) Labor employed g) Equipment downtime h) New investment 1-Elimination of customers downtime 2-Reduction of in-process ppm 3-Reduction of customer reject ppm 4-Reduction in suppliers in-coming parts ppm 5- Certified to International standards. 6-Reduce cost of quality 5 FOCUS TARGETS MORALE DELIVERY 1-Reduction of through put time 2-Reduce non-value added work 3- Increase stock turn 4-On-time-delivery to customer 5-Reduction of lot size 6- Improvement of OEE. 7- Change-over time 8- Optimization of logistic 1-Improve in Employee Satisfaction Index 2-Increase in number of employees suggestions and implementations. 3-Improve in employee rewards 4-Improve in the training hours per employee 5-Increase in numbers of improvement projects. 6-Reduce employees absenteeism & turnover EHS 1-Zero accident 2-Compliance to DOE & DOSH regulation 3- Certify to OHSAS & EMS 4-Increase S.H.E awareness 5-Good housekeeping & improve 5S index.

6. BEST QUALITY – LOWEST COST– SHORTEST LEADTIME - BEST ENVIRONMENT & SAFETY – HIGH MORALE DETERMINING THE AMS PRINCIPLE brainstorming PRODUCTION LEVELLING STANDARDIZATION WASTE ELIMINATION FLEXIBILITY QUALITY RIGHT 1ST TIME PULL SYSTEM VISUAL MANAGEMENT TOTAL EMPLOYEE INVOLVEMENT & DEVELOPMENT LONG TERM BUSINESS THINKING 5 FOCUS TARGETS VALUES • REFERENCES • TOYOTA Production System • MERCEDES Production System • BOSCH Production System • ISUZU KAIZEN Network System • FORD Production System HOUSE OF HMS

7. BEST QUALITY – LOWEST COST– SHORTEST LEADTIME - BEST ENVIRONMENT & SAFETY – HIGH MORALE WASTE ELIMINATION FLEXIBILITY PRODUCTION LEVELLING STANDARDISATION QUALITY RIGHT 1ST TIME EVERY TIME PULL SYSTEM VISUAL MANAGEMENT TOTAL EMPLOYEE INVOLVEMENT & DEVELOPMENT LONG TERM BUSINESS THINKING HOUSE OF AMS

8. BEST QUALITY – LOWEST COST– SHORTEST LEADTIME - BEST ENVIRONMENT & SAFETY – HIGH MORALE 5 FOCUS TARGET QUALITY RIGHT 1ST TIME EVERY TIME WASTE ELIMINATION FLEXIBILITY PRODUCTION LEVELLING STANDARDISATION PULL SYSTEM KEY PERFORMANCE INDICATORS (KPI) VISUAL MANAGEMENT TOTAL EMPLOYEE INVOLVEMENT & DEVELOPMENT LONG TERM BUSINESS THINKING HMS STRUCTURE 13 INITIATIVES

9. HMS 9 PRINCIPLES (OVERVIEW) P1. Long Term Business Thinking Business decisions are guided by long term thinking and being embraced by every employee. Committed and engaged employees are involved in their task with sense of ownership and responsibility. P2. Total Employee Involvement & Development P3. Visual Management Make visible status, deviations, and install self explaining control systems and procedures. Deliver right quality to the next customers by avoiding non-conformity through preventive actions all the time. P4. Quality Right 1st Time Every Time P5. Pull System Produce based on actual customer demands and avoid over production throughout the processes. P6. Waste Elimination Continuously improve to eliminate all type of wastes. Flexible with regards to human resources, processes, logistics & volume variations. P7. Flexibility Eliminate unevenness in production scheduling and level out workload of manufacturing and service processes. P8. Production Leveling P9. Standardization Standardize for consistency, maintain predictability, regular timing and consistent output of processes.

10. HMS INITIATIVES STRATEGIC MANAGEMENT Strategies that involved business plan, KPI, investment, customer satisfaction, employee satisfaction and product analysis. PROCESS OWNERSHIP THINKING To develop K-Worker, meaning that workers having knowledge in technical, method, application, human and social responsibilities. 5S Activity that make working environmental tidy and systematic . To enable all the status of process or system to be visualized and understand without explanation. i.e. Visual Board, Footprint , Obeya, etc. VISUAL MANAGEMENT

11. HMS INITIATIVES Production process with the method of ‘One piece continuous flow’’ without extra raw material or finish good product (zero inventory). JUST-IN-TIME (JIT) QUALITY MANGEMENT SYSTEM 3 TYPES OF CERTIFICATION : (a) TS16949 (b) ISO14001 (c) ISO 18001 EMPLOYEE SUGGESTION SCHEME To encourage employee to give and idea or suggestion for improvement. SMALL GROUP ACTIVITIES Employee involvement in continuous improvement program for QCDMS.

12. HMS INITIATIVES Activity that encourage machine operator to carry out basic maintenance on his/her machines. Objective of AM are zero defect, zero downtime and zero accident. AUTONOMOUS MAINTENANCE (AM) VALUE STREAM MAPPING A method that use to analyse overall production process starts from supplier, production and customers. One of the method to use for controlling the product quality (quality control process) by using certain methods (engineering). AUTONOMASI (JIDOKA) SINGLE MINUTE EXCHANGE DIE (SMED) Quick changeover method using for model change process from old method to new within the shortest time.

13. HMS INITIATIVES Flexibility Production System is the system that able to accommodate the variable production planning either it was plan or not. There are two category of flexibility system : 1) Resource flexibility – includes the flexibility of the system to produce new product.. 2) Routing flexibility – includes variety of line and system that able to produce high productivity and capicity at any time required.. FLEXIBILITY