LECTURE NOTE

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

TQMTQM ContinuousImprovementTeamsContinuousImprovementTeams InnovativeCreativeCircleInnovativeCreativeCircle AutonomousMaintenance & 5S AutonomousMaintenance Lean Manufacturing Lean Manufacturing EmployeeSuggestionSchemeEmployeeSuggestionScheme Training & Education Education QualityManagementSystemQualityManagementSystem EHSManagementSystemEHSManagementSystem TQM CORE INITIATIVES

TRANSFORMATION Continuously Steering Towards Excellence

AMS – 5 FOCUS TARGET 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 MORALE 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-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. 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-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 QUALITYCOST DELIVERY EHS 5 FOCUS TARGETS

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

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

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

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

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

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

12 VALUE STREAM MAPPING A method that use to analyse overall production process starts from supplier, production and customers. AUTONOMASI (JIDOKA) One of the method to use for controlling the product quality (quality control process) by using certain methods (engineering). SINGLE MINUTE EXCHANGE DIE (SMED) Quick changeover method using for model change process from old method to new within the shortest time. AUTONOMOUS MAINTENANCE (AM) 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. HMS INITIATIVES

FLEXIBILITY 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.. HMS INITIATIVES