1. Transfer production from Chinese to Thai
SAKAE BOEKI CO.,LTD.
February 2015
Vol.2

2. Contents 1.Company Outline
4. Manage with Quality Risk and Change Point
　1-1 Company Information
　4-1 Process change point
　1-2 Company Structure
4-2 Counter-Plan and indicate Quality Risk
　1-3 Company address
　4-3 Material evaluation
　1-4 Equipment
　4-4 Each skill
　4-5 QC process sheet
4-6 Process change application form
2.Purpose and background of Production Transfer
5.Layout
　2-1 Expected production number
3.Transfer merit to SAKAE BOEKI
6. Initial control
7.Production,Examination Equipment

3. 1-1 Company Information SAKAE BOEKI CO.,LTD. Company’s name Address
No.111/37 Moo2,Phahonyothin Road,Lamsai,Wangnoi, Ayutthaya,THAILAND 13170
Factory Establishment ( Month, Year )
September 2012
January 2015
Capital
10 Million THB
Representative
Kurai Shinji
Employee’s number
9 Persons
Business type
Manufacuting and sale rubber product for industry.

4. 1-2 Company Organization
Plant Manager
Plant Manager
Plant Manager
ISO Supervisor
Sale technical Group
Manufacturing Group
Quality Assurance Group
Supervisor Group
Group Leader
Group Leader
Group Leader
Group Leader
Sale
Manufacturing
Quality
Total
9 Persons

5. Since our company SAKAE BOEKI
1-3 Company address
Since our company SAKAE BOEKI
From Takata City 90 Km.
From Thai Sanko 25 Km.
SAKAE BOEKI.,LTD. Address
Location FAST FAC Industrial Estate
front enclose with Highway of
Wongnoi, Ayutthaya province.
Access varies as below :
From Suwannabhumi Airport 65 Km.
From Donmuang Airport Km.
Bangkok city Km.
* Floodwall protection Establish finished

6. 2 Purpose and Background and of production transfer
3rd Boom period advance into China in 2002, request low price manpower in order to production cost decrease, has been selected to manufacture base in Shanghai. Quickly decision, we established a Shanghai factory by ownership of capital 100% from it is easy prevent the outflow such as manufacturing know-how etc. At that time the automobile production value in China is 300 million units. Production
of Shanghai factory, product export to Japan is main.
After that our company across “Bankruptcy of Lehman Brothers” in 2005, ARS in 2003 also proceed adjustment of China sale structure, Order of China domestic delivery had been growing according to trace of firm market.
Your company's China factory like that located on the distance of about 10 minutes by car from our company, was allowed to Start Dealing in 2005.
Domestic sale of Shanghai factory in 2011 is 69% of overall but “Senkaku Problem” have effect on high-valued yen in 2012 until said as “China risk, China + 1”, 38% of Shanghai factory sale in 2014 was sold for ASEAN.
SAKAE BOEKI sell production goods of Shanghai factory and Thailand local companies of product in Now our company preformed Local House Production System for according to order increase of ASEAN.

7. Rubber bush ordered on August 2012 [New] is mass production at Shanghai Factory, has been start shipping to Japan since January 2013, to Thailand since May 2013.
November 2014 in the last year increased, so can predict as the quantity increase from the long-term demand forecast. Beside, [2SV] was opened on November 2015 and [2HX] was opened June 2016 schedule, a result that was done the careful examination in the company, can decide the application of domestic production for the following reasons.
①New equipment introduction by  facility load of China factory is necessary.
②Supply support at optimal production location.
③Improve customer satisfaction by localization and manufacturing in Thailand where main delivery destination.

8. 2-1 Production schedule part number
１１０４４４０−AC０
Product
Mold
Car type
Customer
Before transfer
After transfer
Transfer to Thai
1 Time
1 Time
2 Time
Shanghai
THAI SANKO
manufacturing
2 Time
JAPAN
SANKO
Received order from THAI SANKO 　　
November ,800
December ,800
January ,400
February ,800
announce Mar’ May
100,800 pcs／Month

9. 3. Transfer Merit to SAKAE BOEKI ①Cost Merit
Transport cost reduction
３５０THB/Box→１００THB/Box
　　 Status：Great reduction cause changed import from china to Thailand domestic.
Material price
　　China：１７５THB/kg → Thai：１６０THB/kg
　　 To replace drug was developed in Thailand by combine development time. at the time of the formulation.

10. 3 Transfer Merit to SAKAE BOEKI ②Delivery Merit
Delivery lead time shortage. 　　
50 Days→25 Days
Status：Marine transport and IMP-EXP Custom Clearance since factory shipping from THAI SANKO 16 Days.
Delivery frequency improvement
Since factory to THAI SANKO 25 km.
Status：2 Times/Month
Improve：1 Time/Week（ Negotiable ：THAI SANKO）

11. 3 Transfer Merit to SAKAE BOEKI ③Quality Merit
Eliminate Marine transportation damage. 　　Shipping box damage due to sea transport, there is no possibility of packing box was opened by customs inspection so re-inspection as the result of transport trouble will be unnecessary.
Eliminate product deformation by Long-term storage.
　　 Delivery L / T shortening, Product storage time will be shortened. Don’t have product deformation cause storage time shortage.

12. Local skill certified person Local skill certified person
4-1 Process change point
Change point
Yes & No
Change
item
Active
(Oversea Factory)
Transfer
(Sakae Beki)
Reason(4M)
Man
Change worker
Have
Local skill certified person
Local skill certified person
Basis mixing same with china material
Material
Material change
Thai supplied some chemical. ]
Have
 Cambridge 20 injection molding M/C
 Cambridge 20 injection molding M/C
Molding M/C
Same maker Same M/C type
Have
No have
Machine
Mold
Manufacturing 2 side of No.1, No.2
Manufacturing, transfer mold No.1
No have
Jig
Using order made in china
Transfer special jig it using at china.
No have
Condition
Action according to working control standard of each operation process
No have basis change but try time setting condition.
No have
Method
Method
Action according to working control standard of each operation process
Translate English to Thai, preparation complete and action according to working control standard.
No have
To keep the change point a minimum by transfer control standard, jig, mold, molding M/C from china so can stable production and start up times shortening.
Technical staff from china was dispatched and receive training

13. 4-2 Counter-Plan and indicate Quality Risk
Present
( Shanghai factory )
Transfer
( SAKAE BOEKI )
change point
have or not
( SAKAE BOEKI )
Factor (4M)
Change item
Standard Mixing same with China Mat’
Mat’ change
Mat’
Have
Replace the one part chemicals Thailand procurement equivalent device
Q’ty Risk
Counter-plan
Check result method
Confirm person
Incoming standard [Thai Ver.] complete.
Training & renew detail
Don’t understand incoming standard
Incoming standard [Chinese ver.] complete.
Q’ty control person
Storage method
Storage in specify place and avoid direct sunlight.
Storage in specify place and avoid direct sunlight.
Q’ty control person
Climate change
Control humidity temp. at Mat’ storage RM.
Confirm as within control range.
Q’ty control person
Present
( Shanghai factory )
Transfer
( SAKAE BOEKI )
change point
have or not
( SAKAE BOEKI )
Factor (4M)
Change item
Man
Worker change
Local skill confirm person
Local skill confirm person
Have
Q’ty Risk
Counter-plan
Check result method
Confirm person
Working standard [Thai ver.] complete.
Training & renew detail.
Don’t understand working standard
Work standard [Chinese ver.] complete.
Q’ty control person
Don’t understand worker skill
Worker training plan and practice.
Worker training plan and practice.
Q’ty control person
Don’t understand worker ability
Control by skill acknowledgment.
Control by skill acknowledgment.
Q’ty control person

14. 4-3 Material Evaluation Mat' inspection item Drawing standard request
China : Present Mat'
Thai : After transfer
General physical
Hs (JIS-A)
33±3 34 35
TB (Mpa)
14±4
13.3
15.6
EB (%)
600±200
802
906
TR (Kg/cm)
Ageing test H )
AC (Hs) (Indian) 0
Within +10 2
AC (TB) %
Within -20 -2 -1
AC (EB) (%)
Within -40 -3
Compression set test 1X 22H
More than 60 25 41
Ozone % Extension, 05 pphm, h, 4C
N.C (Don't write drawing)
N.C.
＊Tolerance of measure value is Lot Variability, Don’t have very tolerance from replace in measure
error limit.

15. New order mass production first lot delivery step
Production preparation activity step
Thai < -- > China Sale Skill
Thai
Japan
China
Sakae Rubber
Customer
Outsourcing factory
Production G
Sale Dep.
Q’ty assurance dep.
Production Dep.
Sale G
Model maker
Q’ty control
Production
Sale technical Dep.
Q’ty control dep.
Technical Dep.
New order
Order
Finishing standard inspection
Receive info.
Model standard plan, adjustment
Make model drawing
Model standard plan, adjustment
Approve
Confirm
Approve
Manufacturing model
GO !
Manufacturing model
Approve
Approve
Confirm accuracy
No pass
Specific repair
Repair model
Receive adjustment
Receive adjustment
Pass
Sent mold
New order mass production first lot delivery step
Pass adjustment
First product submit
Confirm accuracy
Confirm accuracy
Adjustment information contract
No Pass
Receive adjustment
Receive adjustment
Specific repair
Repair
Receive adjustment
Pass
Adjustment meeting after production preparation ( Progress)
 QCD Safety announcement
Receiving
Shipping
Inspection !00%
Mass production
SAKAE RUBBER GROUP

16. Mass production control
Production preparation activity step
Thai < -- > China Sale Skill
Thai
Japan
China
Sakae Rubber
Outsourcing factory
Customer
Production G
Sale Dep.
Q’ty assurance dep.
Production Dep.
Sale G
Q’ty control
Production
Sale technical Dep.
Q’ty control dep.
Technical Dep.
Model maker
Mass production order
Receive order
Employee defect measures meeting
Production planning
Q’ty confirm
Application
Effect confirm
Mass production molding action
Mass production control
Finishing
Inspection 100%
Stroge
weight packing
Receiving
Shipping
SAKAE RUBBER GROUP
SAKAE RUBBER GROUP
SAKAE RUBBER GROUP

17. Defect, Measure control
Production preparation activity step
Thai < -- > China Sale Skill
Thai
Japan
China
Sakae Rubber
Customer
Outsourcing factory
Sale G
Production G
Sale Dep.
Q’ty assurance dep.
Production Dep.
Q’ty control
Production
Sale technical Dep.
Q’ty control dep.
Model maker
Technical Dep.
Defect info.
Receive info.
Receive info.
Receive info.
Receive info.
Customer store
Stock product inspection 100%
Defect measures meeting (Reason clearly, Measures progress)
Approve
Report
Next report
Report
Report
Defect, Measure control
Approve
Report
Permeant measures
Report
Report
Preventive measures Process verification
Preventive measures activity
 preventive measure ( Safety annoucement)
SAKAE RUBBER GROUP

18. Ribbon Mat’ Incoming inspection
Thai Factory
B Mixing material
Ribbon Mat’ Incoming inspection
B Mixing material inspection
Design
Middle Inspection
Finishing
Inspection
Packing
Shipping

21. 5 Layout ＊Goods flow is aimed “Simple” for don’t happen complication.
Control temp’ &  Humidity
Setting finished M/C on 2Feb’ 2015
Molding M/C : Area
Test RM.
Move : Mat’
Mat test RM.
Mat’
FIFO
Goods flow
Storage Area
Exit
Entrance
Finishing
Inspection
Picking
＊Goods flow is aimed “Simple” for don’t happen complication.

22. 6 Initial control
First inspection
item
Enforcement item
General Control
Initial Control
Process Transfer time
Inspection item of initial inspection
Size
Follow as inspection standard ( 1 Shot/Year, Repair mold time )
1 Shot/Month
1 Shot
Appearance
Follow as inspection working control standard
Material Qualification
Check at Material inspection sheet
Measure Top Batch Curelasto only
Measure All Batch
of Curelasto
To preform Initial control similar with china factory in the present, early prevent trouble when transfer process.

23. 7. Manufacturing & Test facility
Title
Maker name
M/C Type’s name
Number
200t Injection Moulding  M/C
Huatai
XZL-1000×2000-ⅡB ２
Mold Cleaning M/C
KEPLER INTERNATIONAL
SD1010/70TB(M) １
Curelastometer
EMVIRONMENTAL SYSTEM INTEGRATOR
MOVING DIE RHEOMETER
Durometer
HYDRAULIC BASE OF HARDNESS TESTER
Hydrometer
ELECTRONIC DENSIMETER
Image Measurement
OPTICA
SK-DSC150

24. Thank you for your cooperation and consented to production transfer
Final summary
Current：To preform control quality similar with china manufacturing product, purpose “Cost reduction”, transfer to Thailand Factory.
Thank you for your cooperation and consented to production transfer