Annual e-Report
LIVE & BREATHE LFG 2014
01 03
i. LFG CORE VALUES ii. MESSAGE FROM CEO iii. THE YEAR IN REVIEW A. GREAter china
06
a. NPZ
12
b. Asia Industries
18
c. NPHK B. MALAYSIA GROUP
20
a. Malaysia
30
b. Pakistan
32
c. NP Deco C. THailand
46
a. NPT IU
60
b. NPAR D. SINGAPORE GROUP
78
a. NPS
86
b. NPV
88
c. NPVH
94
d. NPLK
98 108
E. NPP F. K Group
LFG Core values BE LEAN COLLABORATIVE RESPONSIVE AMBITIOUS NIMBLE RELENTLESS
LEAN FOR GROWTH Living and BREathing LFG
01
The Future Has A Beautiful Colour
02
As we reviewed the LFG initiatives and activities contributed by each NPX, I am happy to see that every one of you have put in efforts to contribute to the growing success of LFG. By putting together the LFG stories from each NPX, I hope that this report will serve as a source of inspiration and motivation for you. We must press forward in LFG and stay true to our core values. In doing so, we create more value not just for customers but in our way of life as well. LFG is our long-term perspective to doing what we do best and our most effective approach to achieving our goals in more creative, innovative and efficient ways. In the days drawing up to 2015, I want each of you to take stock of your year in 2014; assess what you did well and the areas that require improvement. Interact with each other and your leaders to consolidate and to steamline efforts with a focus to do better in 2015. Dear Colleagues, Remember, everyone of you is a stakeholder in the As 2014 draws to a close, it is a timely opportunity to
success of LFG. Let us continue to do better, to
reflect on the past year, consider our own efforts and
develop and be wholeheartedly committed to our
that of others, celebrate our achievements and
growth – creating better ideas, finding better
assess how to do things better in the new year
processes and producing better innovations. The sky
ahead.
is the limit and we are our greatest enemy. We must better ourselves.
Earlier in the year, I had urged each and every one of
In March last year, this was our message – Be
you to be fully engaged in the Lean For Growth (LFG)
Insatiable, don’t be complacent. Come 2015, I
initiatives, to build and sustain the LFG culture within
implore you to be relentless, be resilient in our
NIPSEA Group. That which would make LFG a
unending quest to be lean for growth. Together, we
success in NIPSEA Group does not come from the
will make living and breathing LFG a reality.
leaders alone, but from every effort contributed by each of you because LFG is not a top down approach, but one that is built from a bottoms up
Wee Siew Kim Group CEO
movement. So in 2014, we launched the LFG Hall of Fame to recognise those of you who made exceptional contributions to the growth of LFG, and to encourage others with your LFG stories.
03
MONTHLY PERFORMANCE CHART MONTHLY PERFORMANCE CHART 2013 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
YTD
CGp TUH+HT CGp IU CGp Powder M GpSB NPT Deco NPT AR NPT IU NP India Deco NP India AR NP India IU K Group Asia Industries
NIPSEA GROUP’S
NPP
CONSOLIDATED PERFORMANCE
NPS NPV NPVH NPLK
Achieve less than 85% of NIPSEA LFG target
04
Achieve 85% and above of NIPSEA LFG target
Exceed or equal to NIPSEA LFG target
USD470 MILLION - NIPSEA GROUP TARGET FOR 2014 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
YTD
2014
CGp TUH+HT
Two Tier LFG Incentives
CGp IU CGp Powder
$ 470M
M GpSB
$
NPT Deco
PBT TARGET
+ US100
+
NPT AR
$
NPT IU
OPERATING UNIT TARGET
+ US300
NP India Deco NP India AR NP India IU K Group Asia Industries
NIPSEA GROUP’S
NPP
CONSOLIDATED PERFORMANCE
NPS NPV NPVH NPLK
Achieve less than 85% of NIPSEA LFG target
Achieve 85% and above of NIPSEA LFG target
Exceed or equal to NIPSEA LFG target
05
NPZ 2014 LFG ACTIVITIES REPORT
06
NPZ 2014
A Strong LFG Team at NP China Supported by the PR Center to promote employee communications and LFG events, the LFG team at NP China comprises of LFG Champions and LFG Ambassadors from each of the TU, IU, RHQ and Powder departments.
With this formidable team in place, the LFG Team at NP China gave their full commitment to roll out and follow through on several LFG activities and implementations throughout the year of 2014.
NP CHINA TU Sam Chan
CHAMPIONS
Ambassadors (Mini Champion)
Functional
Factory
IU Nancy Nan Division
RHQ Raymond Hsu
Division / Site
RHQ Raymond Hsu
Powder WangYuan
Functional
Functional
PR Center
Ambassadors TU (25) IU (23)
RHQ (7)
POWDER (9)
07
NPZ 2014
LFG INTERNAL COMMUNICATIONS Employees
at
NP
China
were
updated regularly on LFG activities and purposes through emails sent throughout the group and letters from CEO, Wee Siew Kim. LFG related articles were also circulated through the Group Magazine where LFG news and “LFG & Me” stories were shared to encourage LFG across NP China.
To further strengthen the spirit of LFG across the departments, LFG mugs were placed for use at all meeting rooms,
and
employees
were
encouraged to use the LFG Email icons
and
Powerpoint
provided by the LFG Team. LFG MUGS
LFG EMAIL ICON AND PPT
08
templates
NPZ 2014
HALL OF FAME Seen as an important staff engagement initiative, each quarter, each ofďŹ ce and factory would identify and shortlist 6 employees at the department level to recognize their contributions and efforts to LFG.
HALL OF FAME - Q1
HALL OF FAME Q2 - Q3
The ďŹ rst season saw 18 teams and individuals selected for the HOF recognition.
Over 200 groups and teams nominated through online registration TU/IU 18 groups ; 9 groups will be selected
To encourage employees at NP China to participate, the team at NP China is also suggesting to add on extra rewards such as an exchange learning experience in Singapore, employee promotion and even cash rewards!
09
NPZ 2014
LFG MOMENTS & WeChat LFG Moments was implemented on NP China’s
Both LFG Team and employees could login to the
internal website to promote interaction between the
website to share their daily LFG working life in the
LFG Team and employees.
form of photographs, articles and status updates.
Along with a LFG WeChat channel, the LFG Team also used this platform to announce Hall of Fame selection process, as well as allowing employees to contribute their opinions on the selections.
10
NPZ 2014
11
ASIA INDUSTRIES 2014 LFG ACTIVITIES REPORT
12
ASIA INDUSTRIES 2014
Praise & Recognition for Contributing Ideas
MONTHLY Over at NP Asia, every employee is encouraged and praised for brainstorming and contributing ideas for improvement. Known as the - LFG Improvement Proposal - and run on a monthly basis, NP Asia provides a suggested topic each month for employees to contribute their ideas and suggested
solutions.
The
contributions
are
evaluated by NP Asia’s LFG Committee and winners are
selected
improvement grades.
each
quarter
effectiveness,
based
on
performance
the and
“On the overall, employees find this exercise fulfilling and are often excited at the announcement of the winners. We will continue to run this activity in 2015.”
13
ASIA INDUSTRIES 2014
ANNUAL Excited to be selected for GQC in 2014, NP Asia
NP Asia actively engages and encourages the
integrates LFG activities with the annual GQC
employees to be involved in the company's LFG
activity. Employees form teams to choose their topic
improvement processes. It helps to boost the
and identify issues that they to observed during
morale of employees, giving them a sense of
LFG activities, process efficiency, product quality,
ownership and builds strong teamwork across the
as well as after sales service and suggest solutions.
cross-function teams which in turn promotes the
During the second quarter of the year, the teams are
company's good.
required to present their topics and a champion team is selected by the Group.
Praise & Recognition for Contributing Ideas LFG Improvement Proposal - Q1 & Q2 Winners
2014 Q1 Winners
14
Lee, Mao-Dong Mfg Div.
Lee, Xin-Yi QC Div.
Topic: saving cleanser consumption to improve quality and color matching
Topic: to run e-notification sheet for efficiency communication
ASIA INDUSTRIES 2014 Praise & Recognition for Contributing Ideas
2014 Q2 Winners Wang, Yao- Hua Mfg Div.
Hu, Ming-Zhang Mfg affairs Div.
Xu, Guo-Yong Mfg Div.
Topic: improving oil pressure valve ďŹ tness for preventing ďŹ re accident
Topic: replacing diaphragm air pump by electric pump for preventing leaking
Topic: forbidding stirring bar during machine operation for preventing accidents
2014 LFG GQC Champion: Rolling Stone Team Topic: Reduce SILKY defective return rate
Leader: Chen Zhen Hu GIU Div.
Lee Mau Dong, Mfg Div. Task implementation
Chen Bing Cheng, GIU Div. Data analyzing
Zhou Xi Yi, QC Div. Data collection
Zhang Yao Qin, GIU Div. Task implementation
Wang Yao Hua, Mfg Div. Task implementation
Huang Xian Wen, Mfg Div. Task implementation
Ding Zhu Wei, Mfg Div. Data collection
Zhang Mei Fang, Mfg Div. Report preparing
Fang Man Yi, Fiv Div. Report preparing
Peng Qun Shu, Mfg Div. Data analyzing
Su Yu Hong, Mfg Div. Task implementation
Liu De Ji, Mfg. Div Task implementation
Wang Bi Ling, GIU Div. Report preparing
15
ASIA INDUSTRIES 2014 2014 LFG GQC Champion: Rolling Stone Team Topic: Reduce SILKY defective return rate
Result Confirmation Before / After
Before improving return volume/return rate
After improving return volume/return rate
11,787kg/ 10.8%
327kg/ 0.77%
Pattern variation
6,380kg/ 5.8%
0kg/ 0%
Gloss variation
4,253kg/ 3.9%
0kg/ 0%
1,037kg/ 1%
220kg/ 0.51%
109,087kg/ 23,457kg
42,733kg/ 547kg
21.50%
1.28%
Abnormal Return Batch color difference
Others Shipment/return volume Return rate
16
ASIA INDUSTRIES 2014
12% 10%
RETURN RATE %
Strategy implementation leads to remarkable Improving on return rate
10.80%
8% 6% 4%
Batch color difference Pattern Gloss Others
5.80% 3.90%
2% 0%
1%
Before Improving
0.77%
0%
0%
0.51%
After Improving
17
NPHK 2014 LFG ACTIVITIES REPORT
18
NPHK 2014
Collaborating on Brainstorm Day 2014 Organized by the Sales and Marketing Department, Brainstorm Day was held on 13th September 2014 for employees to collaborate and develop new ideas whilst promoting team spirit. It was encouraging to see employees give up a part of their Saturday to join in the event to express their ideas and contributions towards sales growth. The result of the meeting saw members fully understanding the sales growth for 2014-2015, the strategies required and competitor statuses.
19
NPM 2014 LFG ACTIVITIES REPORT
20
NPM 2014
LFG Activities at NPM In 2014, NPM organized and conducted a holistic series of LFG activities to live out the LFG culture.
Alignment
Employee Engagement
Internal Communication
Induction Program
Town hall
Newsletter: Spectrum
Synchronization of induction introduction slides
T-shirt design competition Union dialogue
LFG Target Progress Diagram
Employee Engagement
Rewards & Recognition
Memos & Email Blast
Aligning LFG principles & core values into NPM business plan
ALIGNMENT To ensure that every employee is aligned with the Group’s LFG Initiatives, NPM seeks to inculcate LFG thinking and behaviour into new recruits. Conducted by Mr. Jason Ho, a session introducing LFG has been included in the new employees’ induction program.
21
NPM 2014
A session about LFG has also been incorporated into the on-boarding program for Management Associates (MAs) which is also known as “Knowing me, Knowing You (KMKY). To demonstrate that alignment to LFG begins with the leaders, all HODs use a standard LFG presentation slide template to explain how they contribute to LFG as well.
At NPM, everyone understands that LFG is about cost consciousness to eliminate waste, driving with innovation and technology and building up on brand equity.
Lean For Growth (LFG) COST CONSCIOUSNESS, ELIMINATE WASTE
DRIVING INNOVATION & TECHNOLOGY
BUILDINGON BRAND EQUITY
With this understanding in place, LFG is integrated into NPM’s Business plans, and synchronized with their efforts to optimize processes, systems and approaches, in the best and most effective ways to achieve the business objectives - Growth and Profitability.
Optimization efforts are aligned with our Kaizen activities: - Kaizen Suggestion Schemes (KSS) - Quality Control Circles (QCC) - 5S - Management Systems: - ISO 9001, ISO 14001, OHSAS 18001 & ISO/TS 16949 - SAP - Departmental SOP (DSOP) - Strong Manufacturing Practices (SMP)
22
NPM 2014 Alignment : 2 Strategic Approaches Cost consciousness, waste elimination
LFG
Driving innovation & technology Building on brand equity
Leadership Engagement - Clear direction - Townhall meetings - Union dialogues - On-boarding - Internal communication - Employer branding - Training & Development - Rewards & Recognition
Kaizen Initiatives - 5S - Quality Control Circles - Kaizen Suggestion System - Management Systems QMS, EMS & OSHMS - Strong Manufacturing Practices
Kaizen Initiatives Relationship to LFG Principles Kaizen Components
5S
Cost consciousness, Waste elimination, Productivity improvement - Creating a safe & efficient workplace - Waste elimination
Drive innovation & technology - Promotes employees’ creativity at their workplace
QCC
- Team effort focusing on improvement projects related to safety, productivity, efficiency, cost savings and waste elimination.
KSS
- Empowers employees to give suggestions on workplace improvement
MS (QMS, EMS, OSHMS)
SMP
Building on brand equity - Recognition by National Certification Body and within the industry. - Participation in NP Global QC Conference
- Empowers employees to give suggestions on product innovation & branding.
- Focus on compliance to international practices in managing quality, environment and safety - Ensure DSOP are in place and consistently review for efficiency and relevance
- Association with internationally recognized management standards - Adds credibility to our brand.
- Focus on the key deliverables of Kaizen initiatives - Review the effectiveness and optimization of systems and processes
- Review customer complaints & ensuring customer satisfaction is achieved
Leadership Engagement - Setting clear direction - MD’s annual message to drive LFG – memo & townhall - 2013 & 2014 message > consistently focusing on…
“optimization” > making the best or most effective use of our processes, systems, approaches and resources to achieve our business goals. It is as straightforward as constantly asking ourselves whether the actions or decisions taken are the best, well thought out, balanced and aligned to the Company's goals.
23
NPM 2014
Engagement A town hall meeting was held for all employees in Shah Alam where the CEO video message was presented. Additionally, Mr. Yaw gave a speech which set the LFG target and business direction for the year. A Q&A Session was held with the employees that helped to give clarifications on the eligibility criteria for LFG payouts.
January 2014
Mr Yaw’s speech
NPMSA & PMC attendees
Mr Wee’s video presentation
Engagement – LFG Challenge Launch NPM rolled out a series of LFG Challenge Launches across the various M Group entities.
24
Q&A Session
NPM 2014 LG Challenge Launch in PMC Ipoh on 6 Feb 2014
LFG Challenge Launch in NPM Johor Bahru Branch on 29 January 2014
LFG Challnge Launch in NP Sabah on 28 Jan 2014
25
NPM 2014
LFG Challenge Launch
Union dialogues held to get LFG buy-ins and members’ contributions on tardiness and productivity
T-shirt design competition The winning entry
26
NPM 2014
Internal communications To keep the employees updated and informed on LFG news and activities, NPM leveraged on internal communications platforms to disseminate the information.
LFG Column in NPM’s employee newsletter - Spectrum
Monthly Performance Indicator for each participating entity within the M Group. The charts are displayed on noticeboards and emailed to all employees.
Memos and Email Blasts are used to disseminate information to employees. During the launch of the LFG Mugs, NPM translated the LFG core values and behavious to the local language to make sure everyone was included in the news update.
27
NPM 2014
Rewards and recognition The Kaizen activities at NPM have always been synonymous with Lean, aligning themselves with the Group’s LFG initiative. In order to reward employees for their efforts, appreciation lunches are held for the winners of 5S, QCC and KSS activities, as well as for Green Month celebrations when NPM achieves zero accidents for 3 consecutive months in a row. During these lunches, Mr. Yaw or Gladys present certiďŹ cates, trophies and cash rewards to the winners.
28
NPM 2014
NPM’s 2015 LFG Plan Staying one step ahead of the competition, NPM showcases their 2015 LFG Plan
2015 LFG Plan Employee Passion
Customer Devotion
Leadership Engagement Employee Engagement Key initiatives:
On-boarding program Workshop on change management LFG Handbook Townhall (half-yearly) Enhance internal communication: LFG Moments LFG Bulletin Board LFG Posters & Banners HOF/Recognition
Employer Branding Building Brand Ambassadors Key initiatives:
Create Product/Company Information Enhance intranet content Internal communications: communication: Newsletter E-mail blast Intranet Posters, Buntings, etc
Organisation Vitality Rebrand Kaizen Tools as “Lean” or “LFG Tools”. To drive “Employee Empowerment” Key initiatives:
Rejuvenate QCC & 5S Restructure Suggestion System Promote training on Lean Tools QCC & 5S 7 QC Tools Lean principles
2015 - LFG Recognition Day
MPH Hall as the venue.
In 2015, NPM will launch the LFG Recognition Day to recognise the Hall of Fame (HOF) winners and winners for 5S, QCC and KSS activities. All winners are selected based on a set of critieria. The LFG Recognition Day will be held at NPM on a half-yearly basis.
29
NPPK 2014 LFG ACTIVITIES REPORT
30
NPPK 2014
Launching the LFG Challenge in NP PK The LFG Challenge PBT Target of USD 304,000 (PKR 32 million) was launched in NP Pakistan on the 27th of February 2014. Employees at NP Pakistan were briefed on the purpose of the target. Remembering the LFG Core Values – Be Collaborative and Teamwork, employees were also encouraged to band together and put in every effort to make the target a NP Pakistan success!
As a part its LFG initiatives to inculcate the LFG culture into the organization, NPPK has embarked on implementing an Integrated Management System (IMS) (ISO 9001, 14001, 18001) certiďŹ cation as well as the 5S Kaizen Activity structure.
ENVIRONMENT
FE SA
ITY
AL
QU
TY
IMS
31
NPT-DECO 2014 LFG ACTIVITIES REPORT
32
NPT - DECO 2014
NP-DECO 2014 LFG Activities Report Timeline 2014 In 2013, NP Deco invested time and effort to communicate LFG through several internal platforms - Town Hall meetings, HR visits and internal newsletters. While it was initially challenging to roll out, by 2014, these communications structures were stabilized and ran consistently throughout the course of the year. Through perseverance, the LFG committee at NP Deco learned to overcome the initial challenges such as event management and crowd control in town hall meetings. The results of their efforts saw NP Deco growing in alignment with the Group’s LFG initiatives. Come 2015, they hope to bring employee engagement to a new level where every staff lives, breathes and executes the LFG culture.
33
NPT - DECO 2014
Forward Strategy FOCUS AREAS LFG
INNOVATION
BRANDING
Driven Approach - Strengthen LFG mindset @ DECO Competency. - Best practices & success stories sharing. Raise awareness.
- Provide an enriching & fast track career for Technical folks. - Retention for stability. Stability to breed creativity.
- Branding begins @ Home.
Driven Initiatives - Internal Communication. - Best practices project
- Refresh Technical Dual Career Ladder.
- Staff Activities. - CSR
NP-DECO 2014 LFG Activities Report Timeline 2014 Jan 2014
Town Hall meeting - Group CEO video address to all staff - Update LFG performance - Announcement of LFG Challenge target & Incentive - On - Boarding
Feb
Mar
May
Town Hall Meeting - Update LFG Performance
- LFG Ambassador - LFG Hall of Fame - Motivate Product Consultant (PC Girls)
- LFG incentive pay-out - Promote branding with Valentine ‘s Activities - CSR program
34
Apr
Jun
Jul
- LFG Newsletter - LFG Hall of Fame - LFG Ambassador Activities
- Internal Communication - LFG Ambassador Workshop
Aug
Sept
Oct
Nov
- LFG Newsletter - Hall of Frame - LFG Ambassador Activities
Town Hall Meeting : LFG Activities
Town Hall Meeting - Update LFG Performance - LFG Newsletter
- LFG Newsletter - Hall of Frame - LFG Ambassador Activities
NPT - DECO 2014
Town Hall #1 2014 on 3 Jan 2014 The
ďŹ rst
LFG
communication
meeting for the year where the Group CEO video address was aired to all staff. Employees were updated on the LFG performance and the LFG Challenge targets and incentives for the year.
35
NPT - DECO 2014
LFG Rewards : Feb 17,2014
Town Hall #2/201
2nd communication – all staffs : Update LFG performance/ Announcement of 1Q-LFG Hall of Fame & LFG Ambassador
36
14 on 30 Apr 2014
NPT - DECO 2014
Town Hall #3/2014 on 28 Jun 2014
3nd communication – all staffs : Update LFG performance/ Announcement of 2Q-LFG Hall of Fame / Promote Momento product
37
NPT - DECO 2014
LFG Mugs : 28-Jul-2014
38
Internal Communi
ication by HR Visit
NPT - DECO 2014
Town Hall #2/2014 on 30 Apr 2014
39
NPT - DECO 2014 LFG Branding by CSR @ Wat Arwutwisitharam The Anti-Fungus Happiness with Colors: Doing good for society with Nippon Background: We would like to emphases a key feature: 3X Anti-Fungus of HybridShield relaunch. We found that Wat Arwut which located near Chaopraya River have been impacted from big ood since 2010. Fungus occurs many areas: park and walls. Then, The temple has been offered for paint to renovate and reslove the problems.
CSR event @ Wat Chang Rueng
40
NPT - DECO 2014
HR Activities : Mother ‘s Day
41
NPT - DECO 2014
Hall of Fame We launched HOF in May 2014. Since then, we have celebrated 10 employees on our LFG Hall of Fame. The HOF Ambassadors were selected based on their performance and recommendation by their department heads. The HOF posters were uploaded to the Group LFG Intranet - lfg.nipponpaint.com. This is aligned with the Group's LFG initiative. We hope to recognize every staff for their contributions and efforts to the company and celebrate even more employees in 2015.
Best Practice Project We launched the LFG Best Practices project in May 2013 with the intention to promote the LFG culture by building employee involvement through Best Practices projects. For example, increasing productivity, reduce cost and reduction processes. We expect to achieve a minimum of 5 projects in year 2015.
42
NPT - DECO 2014 Staff Suggestion Scheme
Best Practices Project Kick off project : 20-May-2013 Participants : All Staff Reward : 1,500 Baht per person
Best Practices Project Announcement : 20-May-2013
Project : Paperless Kick off project : 20-May-2013 Participants : All Staff Reward : 1,500 Baht per person
43
NPT - DECO 2014 Reuse Sticker
Obsolete sticker size 2.5 x 7.5 : 129,063 piece
Reuse to substitute Sticker size 3 x 9.
Batch No. for Semi Product
Size 3 x 9
Size 2.5 x 7.5
Size 2.5 x 7.5
Value added of Best Practice Project Improve EfďŹ ciency Less Human error LFG Awareness
On processing Project 1. 2. 3. 4.
44
Increase Percentage of rework Reuse D8 Material Gas losing reduce Wastewater of Compressor
NPT - DECO 2014
Sticker size 2.5 X 7.5
129,063 piece : 6,453.15 Baht
Saving Sticker size 3 X 9 129,063 piece : 2,581.13 Baht Total : 9,034.28 Baht
Bar Code Sticker Size 2.5 x 7.5
45
NPT IU 2014 LFG ACTIVITIES REPORT
46
NPT IU 2014
2014 LFG Activities Plan We focus on…
Ongoing promoting LFG messages & PR Training & development people Company-wide improvement via initiatives & best practices Cultivating LFG spirit & behavior in action
Q1
Jan
Feb
Q2
Mar
• LFG Internal training • LFG Challenge & Rewarding • Group message & CEO Broadcasting • Policy Announcement
Apr
• External LEAN trainer program
May
Q3
Jun
• LFG internal Training (100%) • LFG perception survey (pre) • PR LFG project
Jul
Aug
• LFG 1 st HOF • LFG PR project
Q4
Sep
• LEAN Award company site visit
Oct
Nov
• LFG Day – Recognition & exhibition show • LFG 2 ndHOF
Dec • LFG Achievement evaluation & summary • LFG perception survey (post)
LFG Newsletter (monthly) LFG Best practice LFG for new comers LFG thru other activities Group LFG messages & PR delivering
LFG Elements Chart COMMUNICATION
ACTIVITIES & EVENTS
LFG Policy announcement
Annual policy announcement
LFG Broadcasting
TEAM SYNERGY # 1/2014 TRAINING ACTIVITIES && DEVELOPMENT EVENTS
OTHERS
LFG for New comers
LFG Perception survey (pre/post)
LFG Challenge award
Internal & external training program
LFG Achievement & summary
LFG Newsletter
LFG Best Practice
LEAN Award company site visit
LFG thru other activities
LFG Peripheral
LFG Ambassador
Group LFG messages & PR
LFG Hall of Fame (HOF)
Performance Appraisal
LFG Days - Recognition & exhibition show
47
NPT IU 2014
2014 LFG Summary & Progress Report Annual Policy Announcement in January In the annual policy announcement, the annual LFG policy was announced by the LFG project owner (GM). The Group CEO LFG Video was broadcasted to set the tone for the year and motivate all employees.
2013 Challenge Reward Certificates The LFG Reward CertiďŹ cates were displayed and employees were given their LFG performance rewards!
48
NPT IU 2014
Wire Broadcasting Eng./Thai language
Translate Group CEO VDO clip into Thai language and PR through company-wide LFG channels
TV BROADCASTING Broadcast via TV at canteen during lunch time along the 1st quarter
LFG Newsletter Monthly newsletter release through e-mail, web-portal and LFG information board LFG News update LFG Knowledge sharing LFG Best practice
LFG Newsletter Refresh training of Basic LFG concept plus real case study for representatives of each department. (Jan 29th & Feb 25th 2014)
49
NPT IU 2014
In-house Training by external expert Enhance deeper knowledge in LEAN concept by external Lean expert on April 9th, 2014 Target group is each LFG working team representatives
LFG Best Practice To motivate team members by rewarding and promoting their LFG improved projects through “LFG Sticker� at their work place. LFG activity held by Operation Department, NPT in February 2014 (Staffs with LFG improved project were rewarded by their team leaders)
50
NPT IU 2014
LFG Best Practice sharing among NPX
LFG HOF : Hall of Fame The 1st LFG HOF : Those 6 employees were selected based on their outstanding and valuedperformance delivered to the company in align to LFG purpose and under LFG/HOF criterions. This is quite tangible and visible by our employees for their effort and contribution.
51
NPT IU 2014
LFG through other activities Group message
Linkage & communicating LFG concept through on-going activities relevance as part of everyday “LFG”.
SAFETY
Brand 5S
Knowledge
QCC
LFG
Award & Recognition ENERGY SAVING
Attitude
SUGGESTION
List of QCC : Activity groups who passed to the final round and their topics in 2014 (Participated the 1st round presentation contest 27 groups and passed to the final round 7 groups)
No.
Department
1 Production (Enamel) 2 Quality Control (Waterbase, Waterborne) 3 Quality Control (Enamel) 4 Production (Enamel) 5 Technic Automotive 6 Administration 7 Production (Enamel)
52
Group name (
)
Topic Reduce pre-mixing time of SUPERLAC N-82 WHITE Reduce crater checking time for washing water of production equipments. Reduce expense of L-Lacquer Thinner for cleaning
4
4
Increase % Yield of Semi Product : OP-4-6 (T) WHITE SEMI Reduce expense of L-Lacquer Thinner Reduce electricity expense of office building
Mooikai 2014
Reduce waiting time of R/M shelf life extension
NPT IU 2014
2014 LFG Peripherals
53
NPT IU 2014
2014 LFG Survey LFG Perception Survey Pre-Survey on 21-25 July. To measure how well employees understanding about LFG concept and activities concerned and engagement of IU staff. Overall results good perception and realization in LFG to work. *Post-survey in Dec. 2014
Result of LFG Pre-Survey Total survey 568 and reply 448 samples, 80% respondents. 95% acknowledged "Wolf" represents LFG. 90% of respondents displayed the correct understanding of LEAN. 95% apply LFG in their daily working more or less. LFG Activity engagement is scored 2.2 (medium) LFG Activities conducted through energy saving, internal process improvement, expense reduction/saving and QCC respectively. Result of LFG implementation is scored 3.5 (high) Motivation and morale is scored 3.6 (high) LFG acknowledgement (assess PR & Communication) is scored 2.4 (medium) via various sources/channels such as LFG board, Superior, E-mail, NPT Web portal and their peers/colleagues.
54
NPT IU 2014 LFG Premium & Gifts Monthly newsletter release through e-mail, web-portal and LFG information board LFG News update LFG Knowledge sharing LFG Best practice
LFG Next Activities Plan Q.4 2014 2014 LFG Activities & Events LFG Recognition & Exhibition Day (~Nov’14)
Replace bullet points with text here: Held in November 2014, the LFG Recognition and Exhibition Day was launched by the top management and LFG Champions over a 2 day event at NPT. The event was a showcase of all completed activities and best practices that took place throughout the year. It was also a platform for the reward and recognition for the winners of each of the LFG activities in 2014 - Hall of Fame. An Education Zone was set up for knowledge sharing. NPT also received the Thailand Lean Award from the Technology Promotion Association (Thailand-Japan).
55
NPT IU 2014
2014 LFG Training & Development Company Site Visit To enhance more ideas How successfully LEAN by visiting role model companies who have won Thailand Lean Award
56
NPT IU 2014
2014 LFG Survey LFG Perception Survey To enhance more ideas – How successfully LEAN by visiting role model companies who have won Thailand Lean Award Post-survey in Dec’2014
2015 LFG Activities Plan (Draft) 2015 LFG Activities Plan We focus on…
Ongoing promoting LFG messages & PR Training & development people Company-wide improvement via initiatives & best practices Cultivating LFG spirit & behavior in action
Q1
Jan
Feb
Q2
Mar
Apr
May
• NMC/LFG - LFG Core Values cascading! • Policy announcement – Grass roots • LFG Internal & external training • LFG Challenge & Rewarding • LFG HOF • LFG Booklet!
Q3
Jun
Jul
Aug
Q4
Sep
Oct
Nov
Dec
• NMC/LFG Core Values cascading (cont’) • LFG HOF +Plus Best of the best • LEAN Award company site visit (cont’) • LFG Trainer program • LFG Day – Recognition & exhibition show • LFG Achievement evaluation & summary
• LFG Newsletter (monthly) • LFG Best practice cycling • LFG for new comers • LFG thru other activities • Group LFG messages & PR delivering!
57
NPT IU 2014
LFG Slogan (Thai version)
“Cut, add values, co-developed by all parties, everybody collaboration … in the path of LFG”
58
NPT IU 2014
59
NPT AR 2014 LFG ACTIVITIES REPORT
60
NPT AR 2014
In 2013, NPT AR launched the LFG initiative by focusing on communicating LFG and promoting the understanding of LFG to all employees through a variety of media. On receiving the CEO Message in early 2014, NPT AR caught the importance of maintaining and sustaining the LFG efforts by focusing on employee engagement for LFG Initiatives. It was on this note that the LFG Theme for NPT AR 2014 was born.
2014 Focus on employee involvement 2013 Focus on LFG Communications (Variety of media & Frequency) and Employee Understanding
61
NPT AR 2014
Together For More -Do More, Achieve MoreThe “Together For More - Do More, Achieve More” theme forms the basis for a holistic range of LFG activities conducted in NPT AR. Cross-Functional Activities – Conducted by the HR Department, these activities are team-based activities held on a quarterly basis and work towards achieving tangible results. Department Activities – Organized by the Department Leaders and the QCC Team, these activities are organized from March through to August. Aligned with QCC and Department LFG Plans, these activities work towards the LFG Achievement Targets. Individual Activities – The Department Leaders and LFG Committee prepare activities which encourage individuals to plan and contribute suggestions towards LFG. Employee contributions are recognized on the LFG Hall of Fame and Employee of the Year.
Dept. Leaders, LFG Committee
By HR
Cross-Functional
Team-based Activities Quarterly
Department
Through QCC, and Dept. LFG Plan Mar.-August
Individual
Dept. Leaders, QCC Team
62
Individual Plan/ Suggestion Routine Work
Tangible Results
LFG Target Achievement
HOF LFG rewarding Employee of the year
NPT AR 2014
CROSS FUNCTIONAL ACTIVITIES
63
NPT AR 2014
CROSS FUNCTIONAL IN 2014 “TEAM SYNERGY ACTIVITIES” Championed by the LFG Task Force and the HR Department, Team Synergy Activities were setup in NPT AR with the objective to inculcate and improve teamwork amongst employees and departments. All AR employees were divided to form 12 teams. An activity would be set each quarter for teams to take part in and achieve rewards. The team with the highest winning score will receive a prize at the end of the year, the score 1 point for the “Employee of the Year” awards.
TEAM SYNERGY # 1/2014 The day started with a morning session where each ambassador would brief the groups on the characteristics of the LFG core values. The groups were then tasked to merge the 6 characteristics of each wolf to form a new slogan. The LFG committee then judged each group for a winning slogan
On Saturday, 1st March 2014, Team Synergy Day was a day of activities organized for employees to get a deeper understanding of the 6 Core Values of LFG. Prior to the event, employees were encouraged to participate in the activity as they would benefit from the learning points which could be applied to their daily work life. Each of the LFG Champions and Committee members took on the roles of a Core Value Wolf Ambassador, representing each of the core values and wolf characters from the LFG posters.
64
Facilitated by the Core Value Wolf Ambassadors, the employees spent the afternoon participating in teambuilding games. The concept of each game was developed around the Core Values, thus ensuring that the employees had a chance to apply the characteristics of the Core Values to their activity. The Team Synergy Day received positive feedback and it was encouraging to note that employees took part in the activities even without overtime pay.
NPT AR 2014 PR POSTER FOR TEAM SYNERGY DAY
BEFORE ACTIVITY
AFTER ACTIVITY
TEAM SYNERGY DAY
65
NPT AR 2014 Post Event Questionnaire % YTD Achievement
AR LFG MOTTO COMPETITION On April 10th, a LFG Motto Competition was organized for employees to develop a new motto for LFG within NPT AR. Employees were tasked to put together their understanding of the 6 core values into 1 overall motto that would represent LFG. THE WINNING MOTTO
66
NPT AR 2014
LFG MOTTO GAME held on 8th August 2014.
AR LFG GAME IN AR INTRANET : IN Q4 NPT AR introduced their new AR Intranet in Q4 2014. NPT AR now uses the Intranet as a platform to promote LFG and encourage employee engagement. A LFG question is posted in the intranet. Team members are encouraged to participate and answer the questions to be selected as a winner.
67
NPT AR 2014 GM TALKS (TOWN HALL) : GM Talks are held every quarter at the Town Hall meetings.
LFG REWARD PAYMENT EVENT
68
NPT AR 2014
DEPARTMENT ACTIVITIES QCC COMPETITION DAY
QCC WINNER RECOGNITION : IN GM TALKS (AR TOWN HALL) EVENT
69
NPT AR 2014 LIVE AND BREATHE LFG! Drink up to the LFG Experience!
70
NPT AR 2014
HALL OF FAME In 2014, NPT AR adopted the LFG Hall of Fame that was introduced by NMC. The Hall of Fame would be run every 6 months to recognize 4 employees for their contributions. AR HOF will be run every 6 months 4 Persons/time Way to give the recognition : - Advertise the poster in AR PR board and Group Intranet - Have the interview during the GM Talks (AR Town Hall)
HALL OF FAME RECOGNITION : PR POSTER
Thai for internal communication
English for external communication
71
NPT AR 2014 HALL OF FAME RECOGNITION : Winners of the HALL OF FAME are interviewed at the GM Talks event to share their contributions. (AR TOWN HALL)
RECORDING IN DRIVE G
72
NPT AR 2014
COMMUNICATION “AR INTRANET”
LFG AR Performance is shared with all employees each month on the AR PR Board.
“LFG PERFORMANCE”
EXISTING : DRIVE G
NEW : AR INTRANET
Migrating NPT AR’s data sharing platform from the existing Drive G to the all new AR Intranet. The AR Intranet which will be launched in Q4 2014 will be used as a communication platform for LFG as well.
CSR: “SET THE AR TRAINING ROOM IN GOVERNMENT TRAINING AREA”
Previous
Current
The area of TOA
NPT area
73
NPT AR 2014 CSR : DONATION : SCHOOL IN SAKAEW PROVINCE
Venue : sakaew province Company Expense : 7,100 Baht Employee Donation : 30,000 Baht (Money + others) Activities with the students
74
NPT AR 2014 Show cases of LFG Activities “Sales & Marketing”
75
NPT AR 2014
NPT AR’s LFG Activity Showcase LFG Activity Showcase “Inventory QCC”
Warehouse space utilization and efficiency improvement To utilize the space in warehouse and improve efficiency of goods movement To improved safety and reduce cost of fuel, maintenance and labor
Year 2012 Year 2014
Setting cross-docking practice in the logistics for loading finished goods directly into outbound pickups, trucks or no storage in warehouse racking between. Cross Docking Area
X
Customer
Warehouse Racking
Summary; - Identify the cross-docking area and process to communicate process from front office to warehouse
76
NPT AR 2014 Overall Cost Reduction >Improving the function / finding and reduce unnecessary cost >Finding unnecessary cost in process of purchasing and maker production >Increasing value by improving the function .
After commencement in May, production found the process of charging unsafe. Improvments were made and was ready to start again in September.
2014 plan: Acetone and BA will be moved to IBC tote to enjoy cost savings of estimated 120,000 Bht/Mth
Parallel study with Production on how to use IBC tote with resin .
Need discussion with Inventory and Production when full buying in IBC, how to handle and keep empty tote.v
Return
77
NPS 2014 LFG ACTIVITIES REPORT
78
NPS 2014
LFG HALL OF FAME In the first half of 2014, NPS launched the LFG Hall Of Fame to celebrate the LFG ideas contributed by employees. LFG Ambassadors would nominate individuals or small groups on a monthly basis to be recognized on the hall of fame.
79
NPS 2014
Core Initiatives at NPS In May 2014, presentation slides were developed and sent out to all
employees at NPS to explain the values and purposes of LFG. 4 Core Initiatives which formed the base of LFG at NPS were identiďŹ ed:
ESS In a new committee formed and led by Kel Low in June 2014, the ESS initiative went through a revamp to encourage employees to think of ways to turn the company and their work environments into a better place.
Department ESS Gathering
Monthly
ESS
Champions
were
nominated to promote the different ESS Themes.
80
NPS 2014
EFFECTIVE SUGGESTION SCHEME (ESS)
F&A
S&M
LOG
PRO
TEC
TOTAL
Average Monthly Head Count
14
41
19
48
26
148
YTD No. of ESS Recieved
25
0
5
23
41
94
25
0
5
23
41
94
72%
0%
0%
78%
85%
76%
18
0
0
18
35
71
YTD Suggestions per employee (No. of ESS / Staff Strength on a monthly basis)
YTD Suggestion Implementation Rate (No. of ESS Implemented / No. of suggestion) *
CHUA BEE PING, GILLIAN
Fumehood Height Indicator
NG SIEW HEU, MARY
No miss of medical leave application
CHUA BEE PING, GILLIAN
Improvement to XBOX RM Testing
SEE KIM TEE @ LIM GEK CHOO
Set Weight limit for QA Trolley
CHUA BEE PING, GILLIAN
Cover for QA Viscometer
SU ZHENSHUN
Easy IdentiямБcation of 300 cc container cover
CHUA BEE PING, GILLIAN
Adaptor for XBOX Weighing balance TAN YI LIANG
(two designs) Provide WI / SOP of Relevant Instruments
TAN YI LIANG
List of Panel types in the Panel Storage area
TONG LI PIN, JANICE
Signage to keep solvent properly
CHUA BEE PING, GILLIAN
No entry to forklift signage at QA Retention
CHUA BEE PING, GILLIAN
rack area Improvement to the usage of colour
CHUA BEE PING, GILLIAN
i5 Machine Improvement in the XBOX Retention rack
YUN SOON WENG, EDWIN
Install new weighing balance at pilot lab
GOH WEN LI, WENDY
Monthly Checklist for Ladder
GOH HUI MENG
(3 decimal place accuracy) REDUCING THE HANDLING OF BAL.STOCK
LEE JIA HUI, CALISTA
Signage to remind all that no solvent /
(RESIN/SOLVENT) TRANSFER GOODS FROM PN TO PPW-XBOX
HARBAIAH BTE IBRAHIM
solvent based paint is allowed in the Aux Lab New employee safety handbook
ZHANG ZHEN TIAN YANG JUHE
TIME &DIESEL SAVING -RECEIPT OF RAW
LIM TOI CHENG, AUDREY
To use Rag instead of Toilet Roll
SUHAIMI BIN SAMSURI
MATERIALS INDICATION MARKING FOR REACH TRUCK
MARVIN ZAPANTA PILONGO
Key Cabinet
SOH TECK SOON
Different packing size for CC powder
MARVIN ZAPANTA PILONGO
Cover for Electrical Outlet
YIN DONGFENG
Double pumping colourants
NG SIEW HEU, MARY
Water pipe valve for eyewash at the cosmos
CHEN JUN
Update drum truck
room
81
NPS 2014
IQC Overseen by new chairman, Gillian Chua, 7 Innovative & Quality Circles were formed under the IQC core initiative. IQC teams were put together to solve work-related problems using systematic approach. IQC Week ran from the 22nd to 26th of September 2014 to raise IQC and LFG awareness for all staff.
5S & SAFETY
SEIRI (sorting)
As part of the LFG Activities, 5S and Safety was implemented in NPS with the objectives to - Promote clean work environments to improve quality, productivity and prevent accidents in the workplace.
SHITSUKE (sustainable discipline)
- Keep everyone safe, protecting assets and properties from danger or worry.
5S
SEIKETSU (sanitizing)
In order to encourage employees, 5S Competitions were introduced in each zone. The results are to be announced in
SEITON (setting in order)
SEISO (systematic cleanup)
2015.
Clean Work Environment Activities Included: REGULAR ACTIVITY Time
What
1st Friday
02:00pm ~
5S Patrol (Patrolers: WSH Officer, Management Rep + Two of Zone I/C (rotational basis))
- Stand-by in the workplace during patrol
3rd/4th Friday
02:00pm ~
5S Meeting (Share & review observations)
- Gathering
4th/5th Friday or Last Week of the month
04:30pm ~ or 04:00pm ~ (depending which day of the week is chosen)
By the end of the month
82
Responsibility of 5S Zone I/C & BI/C
Day
the
5S
Patrol
5S Friday (House-Keeping Day) (To do half-hour housekeeping duties)
- Let all the members stop work at half-hour before knock off. - To do half-hour housekeeping duties. - Initiate house keeping job and let members devote themselves for it
5S Action Report (To report on the 5S work efforts done in their zone)
- Submit 5S Action Report via supervisor vet and signature
NPS 2014 In order to monitor and control noise levels at the production area, NPS evaluated the costs of purchasing a sound barrier at $12,000.00 versus fabricating one in-house. The decision was made to fabricate one in-house bringing about cost savings and noise reduction from 82.3dBA to 80.2 dBA.
LEAN ME-FIT Not new to NPS, the Lean Me-Fit program was first introduced in 2004 and is now in its 11th year running. The objective is to lower medical costs by getting employees to stay Fit and Healthy through keep fit activities such as Zumba, Kick-boxing and Brisk-walking. NPS also subsidizes staff participation in external fitness programs. Through this program, NPS has seen an overall reduction in Medical (Outpatient) Costs.
83
NPS 2014
LFG MASTER CHALLENGE A 4-month challenge running from September to December 2014 was introduced to departments to encourage staff to share LFG initiatives implemented within departments. The Top 3 departments nominated for the Best LFG Achievements stand a chance to win up to S$1,000.00!
LFG Master Champion’s 4 months’ challenge 84
NPS 2014
WHAT IS LFG MASTER CHAMPION’S CHALLENGE?
HOW DO WE PARTICIPATE?
85
NPV 2014 LFG ACTIVITIES REPORT
86
NPV 2014
Recognizing staff contribution through LFG Hall of Fame In their efforts to recognize every staff for their contributions and efforts to the company, NPV launched the LFG Hall of Fame awards in May 2014. NPV celebrated 3 groups that were awarded the LFG Hall of Fame. These employees were selected based on their performance and recommendations by their department heads, Ms. Tran thi Bach Loan and Ms. Ho Thi Cam Van. As NPV moves into 2015, they hope to target 25 employees and encourage more participation in the year ahead.
87
NPVH 2014 LFG ACTIVITIES REPORT
88
NPVH 2014
The LFG Committee at NPVH Over at NPVH, a LFG committee is put together with the participation from all departments, comprising of 1 HOD and 1 main PIC in each section. SUPER CHAMPION Mr. Kondo Masao
SUPER CHAMPION ASSISTANT Ms. Nguyen Thuy Ha
S&M PIC
TECHNICAL PIC
QA PIC
PURCHASING PIC
Mr. Do T. Thu Ha
Mr. Ng Duc Thai
Mr. Tr. Than Tam
Mr. Tran Thu Thuy
Mr. Chu H Cuong
Ms. D.T.B Dao
Ms. Vu T P Thao
Ms. L. T. Cuc Anh
PRODUCTION PIC
LOGISTICS PIC
ACCOUNTING PIC
Mr. Tr Canh Duong
Mr. Le Thi Thi
Mr. Trinh Thi To Hoan
Ms. Vuong T. Thuy
Mr. Ly V. Hoa
Mr. Do T. Anh
HR&GA PIC Mr. Kato Yoshihito
Ms. H. Thu Huyen
Ms. T. T. Hoa
The LFG committee comes together every month to collaborate and discuss their “Lean” projects that take place in their individual sections.
89
NPVH 2014
NPVH LFG Hall of Fame
In 2014, NP Vietnam and NP Vietnam-Hanoi recognized selected employees for the LFG Hall of Fame. Their LFG stories helped inspire and encourage fellow colleagues throughout NPV and NPVH.
90
NPVH 2014
Lfg projects at npvh 2014 LFG Activities Progress to-date As of September 2014, there have been a total of 44 projects that involved all departments. Project themes are diversiďŹ ed across cost reduction, increasing productivity, reducing delivery time and improving working skills. On the overall, we have seen savings of more than VND34 billion. Our project results are described in the following pages.
LFG PROJECT RESULT Section
LFG THEME
2014 1st half
Jul
1
Adjust viscosity in paint to increase productivity
330,874,689
57,969,587
29,798,992
27,607,773
446,251,041
2
Reduce using hard copy (a4-a3 paper)
893,000
152,000
166,000
208,500
1,419,500
3
Recycle AZS MATERIAL (at bottom of drum)
150,147,950
0
0
Recycle resin material (remains in drum after using)
37,583,819
17,580,284
13,987,337
3,910,032,215
1,316,747,250
New (start from 2014)
Prod
4
Tech
ACC ADM
Sep
0
338,257
150,147,950
69,489,697
1
Cost reduction
1
Reduce checking time of paint in urgent case
5,776,032
0
5,259,408
9,084,432
20,119,872
2
Use localized phosphated panel to reduce testing cost
143,457,200
14,840,400
14,840,400
19,787,200
192,925,200
1
Saving cost by recycling wooden pallet
33,764,000
5,850,000
1,872,000
3,848,000
45,334,000
1
Saving when paying by foreign exchange
206,003,132
15,755,049
27,559,586
27,743,344
277,061,111
1
Saving when employee going on business
64,995,000
5,284,000
14,005,000
16,591,000
100,875,000
4,883,527,037
1,434,178,570
QA
LOG
Aug
Oct Nov Dec Accumulation 2014
No
(1) Total new project - 10
1,217,061,300 1,146,707,250
1,324,550,023 1,251,915,756
7,590,548,015
8,894,171,386
91
NPVH 2014 LFG PROJECT RESULT Section
No
2014 1st half
Jul
Mixing Co - Reduce production cost by improve production process
211,007,481
31,856,862
46,296,108
53,342,316
342,502,767
Reduce production cost by saving washing thinner (improve cleaning method)
152,539,153
49,853,800
23,535,700
37,172,609
263,101,262
3
Reduce cost by recycle steel panel
6,880,000
680,000
920,000
400,000
8,880,000
196,444,414
27,349,210
23,923,976
43,374,821
291,092,421
4
Co-grind : Reduce production cost & improve color matching method (CLM by pigment)
223,957,999
44,047,166
46,283,833
53,011,167
367,300,165
5
Reduce production cost by recycle solvent of solvent distil system (saving washing thinner)
1
Localized phosphated panel
116,942,352
17,313,800
33,979,600
47,983,960
216,219,712
2
Cost reduction
ADM
1
Saving expense by booking flight
48,024,000
1,050,000
24,791,637
3,510,330
77,375,967
QA
1
Packing saving
6,604,665
0
0
0
6,604,665
LOG
1
Saving cost by recycling carton box
14,974,850
3,520,000
3,520,000
1,454,750
23,469,600
1
CR
2,549,339,645
971,826,250
925,458,160
1,284,808,920
5,731,432,975
2
Storage fee saving
14,850,000
8,814,800
9,000,000
0
32,664,800
3
Packing saving
41,316,000
4,284,000
19,278,000
0
64,878,000
4
Stationaries
2,776,000
495,000
330,000
330,000
3,931,000
24,872,000
15,772,000
15,772,000
0
56,416,000
1
Reduce frequency of delivery to Yamaha Soc son and VPIC
1
2
New (start from 2014)
Prod
Tech
PUR
S&M
(2) Total overflow project - 15
92
11,081,979,898 1,955,460,000
14,692,508,458 3,132,322,888
Aug
Oct Nov Dec Accumulation 2014
LFG THEME
Sep
2,215,408,650 2,212,645,500
3,388,497,664 3,738,034,373
17,465,494,048
24,951,363,383
NPVH 2014
New (start from 2014)
LFG PROJECT RESULT Aug
Oct Nov Dec Accumulation 2014
Section
No
LFG THEME
2014 1st half
Jul
Sep
Adm
2013
Saving expense for recruitment
211,007,481
31,856,862
46,296,108
53,342,316
342,502,767
QA, Tech, Prod
2014
Recheck, extend shelf-life and use RM expired ( Expired more than 2 time)
152,539,153
49,853,800
23,535,700
37,172,609
263,101,262
6,880,000
680,000
920,000
400,000
8,880,000
2014
Saving cost for catridge
196,444,414
27,349,210
23,923,976
43,374,821
291,092,421
2014
Increase profit from customer (VS Vietnam) by put extra fee in selling price
S&M
Cost saving from changing packing size for Yamaha
223,957,999
44,047,166
46,283,833
53,011,167
367,300,165
2014
S&M
2014
Teaching supplier kaizen for cost reduction
116,942,352
17,313,800
33,979,600
47,983,960
216,219,712
Adm, Pur
Pur Prod
2014
Recycle phosphated & plastic panel
2014
Saving transport expenses to Bank
48,024,000
1,050,000
24,791,637
3,510,330
77,375,967
2014
Saving panel's Import License fee
6,604,665
0
0
0
6,604,665
11,081,979,898 1,955,460,000
2,215,408,650 2,212,645,500
17,465,494,048
(3) Total overflow project - 9
14,692,508,458 3,132,322,888
3,388,497,664 3,738,034,373
24,951,363,383
TOTAL (1)+(2)+(3)
19,945,201,568 4,641,722,420
4,779,635,817 5,058,849,850
34,425,409,655
Brief description of 2015 Key LFG Initiatives - We hope to have more new initiatives in all company not only about “cost reduction” but also about enhance management, human resource. - We try to celebrate even more employees in 2015. Objective minimum 10 employees.
93
NPLK 2014 LFG ACTIVITIES REPORT
94
NPLK 2014
LFG COMMUNICATIONS AT NPLK The purposes, foundations and Core Values of LFG being introduced and reiterated through staff meetings and the Annual Cricket Tournament at NPLK.
95
NPLK 2014 Looking to enhance productivity at NPLK, several new machinery and equipment were introduced and installed in 2014.
# China SOWER Machine is now in operation
# A new pellet introduced to aide the transferring of paint buckets
# Scissor Lift for Finish Goods stores
# Wall Putty Filling Machine
# Modification of Wood Stain Filling Machine
Several enhancements were made to raise safety standards in NPLK
# NC dissolving machine installation
96
# Introduce Small Barrel Mover
# Arrange more respirators & cartridges by following European standards
# Safety Shoes finalized according to the British Standards
NPLK 2014
97
NPP 2014 LFG ACTIVITIES REPORT
98
NPP 2014
Current NPP Lean For Growth Key Projects Categories of NPP LFG Initiatives
LFG Initiatives
Launch Date
Project Owners
Stock Management
Improvement of Order Handling System
Carry over of 2013 Project
M. Guevarra
2
Revenue & PBT Growth
AR Market Expansion
Jan. 2014
J. Castillo
3
Revenue & PBT Growth
IU Market Expansion
Jan. 2014
G. Sebastian
4
CR Project
VA Project on Price, Technical & Purchasing
Continuation of 2011 NMC initiative
M. Merete/L. Noma
5
Resources Optimization
Energy Resource Management
Sept. 2013
D. Lim
SN
1
PROGRAM No. 1 Stock Management GOALS
LEADER ASSIGNMENTS ACTIVITY
1. Improvement of Sales forecasting system 2. Improvement of FG safety stock replenishment timing 3. Improvement of SFG safety stock policy 4. Improvement of Material Planning Marlon A. Guevarra Production Planning and Control WORK DONE
Improvement of Sales Forecasting
Designed a program that will provide immediate analysis for Sales on variances vs. actual delivery. Created an Alarm system for FG approaching critical level for immediate reaction from all sections and encouraged more open communication line between Sales/ SOIC and Manufacturing for a more pro-active ow of information.
Improvement of FG Buffer stock replenishment
Enhanced Production scheduling process to achieve excellent timing of replenishment of buffer for both FG/ SFG and RM. Production created and used a program w/c provides information to Sales/ SOIC and Planning of the Production schedule for the whole month.
Improvement of SFG safety stock and rationalization
A safety stock coding has been established for all SFG based on its usage (ie. Tinting color/ reducer/ clear solution etc). This code limits/ and dictates the amount of SFG to be produced in preparation for next month production. Consolidated usage of some SFGs to reduce actual number of SFGs being produced. (ie: Reducers, Os-20 and OP2 with OS-30 TTCs, Bodelac with Sanfutal TTCs)
Improvement of Material Planning
Redesigned Planning System to include SFG forecasting for timely RM ordering and arrival. Created an information system for Just-in-time RMs (local) w/c triggers each process to do necessary action upon arrival to WH to ensure availability prior to production schedule.
99
NPP 2014 RESULTS – MATERIAL TURN OVER DAYS &!"
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DIFFICULTY TO HURDLE IMPROVE FG FORECAST ACCURACY
'"# &"# %"# $"# !"# *+,#-./# 0+1#231#0+4#*5,# *56#257#8.3# 9:;# <=>#?.:#
PROGRAM No. 2 AR MARKET EXPANSION GOALS
LEADER ASSIGNMENTS
ACTIVITY Expansion of market coverage and channel network Increase presence in Car Dealers (CD) & Commercial Vehicle (CV) customers
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1. Formulate action plans, strategies & initiatives to improve sales & profitability. 2. Expand market coverage to strengthen product positioning. 3. Introduce more innovative products that would cater into customers' needs & requirements improving productivity & save costs. Jonnel Castillo AR Sales Group AR Technical Group SOIC WORK DONE Visited areas with market potential and explore for possible Dealers/distributors Strengthen sales force – staff transfer & hiring
Aggressively entered & negotiated with CD nationwide introducing better & value-for-money products & painting system Penetrated other customers in CV segment and introduced Nippon Ultima to better addressed customer requirements
NPP 2014 PROGRAM No. 2 AR MARKET EXPANSION GOALS
LEADER ASSIGNMENTS
ACTIVITY Introduce new products Cost down in packaging
1. Formulate action plans, strategies & initiatives to improve sales & profitability. 2. Expand market coverage to strengthen product positioning. 3. Introduce more innovative products that would cater into customers' needs & requirements improving productivity & save costs. Jonnel Castillo AR Sales Group AR Technical Group SOIC WORK DONE An array of new & exciting products were launched this year to provide customers with various alternatives to select for their painting needs Used of common packaging for high volume items (primer, clear & thinners )
RESULTS DEALERSHIP
2013
2014
% vs. 2013 YTD
Paint Dealers
12
23
192%
Car Dealers
92
112
123%
Paint Dealers
5
16
320t%
Total
108
151
140%
% vs. 2013 YTD
New Products Revenue
135%
Sales
115%
PBT
113%
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NPP 2014 PROGRAM No. 3 IU MARKET EXPANSION GOALS LEADER ASSIGNMENTS
ACTIVITY Color Development
Establish good relationship with customer
Formulate action plans geared towards increasing motorcycle revenue (inclusive of its subcons) by 35% in 2014 Gerry Sebastian IU Sales Group Technical Service & Color Dev. (CD) Groups SOIC Group WORK DONE Close collaboration & coordination with NPT & local CD group to be able to offer competitive cost & good quality products to customer Increase visibility of local staff (Sales & TS) in customer line by establishing regular customer visits & on call 24/7 Reorg. NPP Japanese customer assignment “Personal Touch” approach – attending invitations to birthdays, outings, sports activities, night out, etc.
Review pricing scheme
Establish pricing scheme based on volume
Capture competitor’s market share
Offer better quality product at competitive price
RESULTS DEALERSHIP
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% MARKET SHARE 2013
2014
Kawasaki
22
52
Yamaha
26
36
Sales
100%
150%
Honda
24
25
PBT
850%
1000%
Suzuki
24
0
Total
22
29
2014 vs. Annual 2013 YTD - Aug.
Annual Projection
NPP 2014 PROGRAM No. 4 VA PROJECT ON PRICE, TECHNICAL & PURCHASING ANNUAL TARGET
YTD TARGET AUG.
ACTUAL YTD AUG.
% YTD Achievement vs. YTD Target
(USD X 1000)
vs. Annual Target
Technical 2014 New CR
182.5
121.6
94.9
77.9%
51.9%
Purchasing 2014 New CR
182.5
121.7
56.5
46.4%
30.9%
Technical 2013 Flowover CR
114.0
76.0
97.4
128.1%
85.44%
Purchasing 2013 Flowover CR
114.0
76.0
416.7
548.2%
365.5%
Technical 2012 Flowover CR
114.0
76.0
95.4
125.6%
83.7%
Purchasing 2012 Flowover CR
114.0
76.0
33.4
64.5%
29.3%
TOTAL CR
821.0
547.3
794.3
145.1%
96.7%
PROGRAM No. 5 Energy Resource Management GOALS LEADER ASSIGNMENTS ACTIVITY Conversion of efficient energy utilization
Efficient utilization of wash thinner
1. Efficient utilization of energy resources 2. Shifting to alternative greener alternatives on energy usage after comprehensive study of both cost and environment Duanie Lim Energy Resource Management WORK DONE
RESULT
Started the utilization of the LED lamp to street lights from 175 to 35 watts.
To date, program was started and initially installed 5 LEDs
Installed solar-powered parking lights
Provided two (2) solar powered parking lights (3 watts)
Reformulated cheaper wash thinner for factory & lab. use.
Generated an estimated savings of Php 148.5K as of August 2014
Inclusion of the project through QCC regarding the wash thinner usage consumption reduction
Increased awareness of users
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NPP 2014 PROGRAM No. 5 Energy Resource Management GOALS LEADER ASSIGNMENTS ACTIVITY
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1. Efficient utilization of energy resources 2. Shifting to alternative greener alternatives on energy usage after comprehensive study of both cost and environment Duanie Lim Energy Resource Management WORK DONE
RESULT
Waste Water Treatment Optimization
Optimize the operations of WWTF (waste water treatment facility) by processing the ED and PTC expired chemicals from sending to outside treater.
With the activity, it generated savings of Php 48K as of August 2014.
Optimize utilization of motor vehicles under carpool
Replace >10-yr. old vehicles with <10km/liter fuel consumption
OLD CARS Model
Year
Sentra
1997
Corolla
2003
Fuel Rating (km/li)
REPLACEMENT Model
Date Purchase
7.6
Mirage
6/18/13
8.4
Avanza
7/30/14
NPP 2014
2015 GOALS 2015 GOALS
NEW INITIATIVES Rationalize the utilization of energy consumption
Establish good relationship with customer
1. Efficient utilization of energy resources 2. Shifting to alternative greener alternatives on energy usage after comprehensive study of both cost and environment ACTION PLANS Close collaboration & coordination with NPT & local CD group to be able to offer competitive cost & good quality products to customer
1.1 Assessment on the feasibility of converting the current 3 MVA PT to 1MVA rating 1.2 Application of soft start (variable speed) to motors direct line and Y-Delta connection 1.3 Assessment of possibility of energy consumption reduction through capacitor bank usage rationalization 1.4 Study the per group/area metering for determination of consumption 1.5 Study and assess solar powered energy in selected areas 1.6 Address water related concerns
Rationalize the utilization of energy consumption
Close collaboration & coordination with NPT & local CD group to be able to offer competitive cost & good quality products to customer
Sustain conversion of efficiency energy resources
2.1 Sustain the actions on the wash thinner consumption reduction 2.2 High Bay conversion to LED 2.3 Conversion of street lights to more efďŹ cient LED lamp
Optimize motor vehicle utilization
3.1 Formulate policy on motor vehicle to prevent high maintenance cost by; 3.1.1 establishing disposal condition considering number of years, fuel efďŹ ciency & road worthiness 3.1.2 regulation & control of utilization
Alternative use of original energy resources
4.1 Study and assess the use of designed alternative ladder reducing fuel/battery consumption up to 2nd/3rd row.
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NPP 2014
HALL OF FAME 2014 AWARDEES 1st Qtr. 2014
PROGRAM N0. 6 CREDIT & COLLECTION MANAGEMENT Project Description
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1. Plans, evaluates, implements and continuously improves all aspects of credit and collection functions and processes 2. Coordinates with staff completing accounts receivable and payment 3. activities 3. Ensures staff are fully versed in established procedures
Improvement of Sales Forecasting
1. Tight ďŹ nancial conditions 2. Maximize sales opportunities wherever possible while minimizing risks 3. Opportunities to expand additional cash generating assets (i.e. additional investment)
Goals
Reduce cash conversion cycle and transform rating to conform to LFG indicator
Leader
Robinson Jove
Members
Credit & Collection Group
NPP 2014
2015 LFG NEW ACTIVITIES LFG in Employee Uniform
Current Working T-Shirt
2015 Working T-Shirt Proposal
2013 - 2014 Polo Shirt Uniform
LFG CORNER
A LFG Corner was set up to provide spaces in key areas for employees to connect and chat with each other during break times.
SPORTS ACTIVITIES - LEAN BODY FOR GROWTH
NPP will implement sports activities that are centered around the 6 LFG attributes of Tenacity, Insatiable Appetite, Vigilance, Agility, Teamwork and Stamina. Through this, NPP hopes to improve employee participation and further inculcate the LFG core values in their lives.
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K Group 2014 LFG ACTIVITIES REPORT
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NCK 2014
P.Tanks introduced to cut transportation costs AT NCK In order to reduce transportation costs spent on exporting product, NCK explored methods to change the existing packing method into one that would provide increased efficiency and cost reductions. NCK’s products were previously contained in 200-liter containers which were then packed into wooden boxes. However, with the introduction of using P. Tanks that can contain 1,000 liters of product, the cost of packaging and transportation saw a reduction from 134KRW/kg to 97KRW/kg. Further efforts to remove the wood box packaging reduced costs further down to 40KRW/kg. The overall cost reduction effect for the year was estimated to be KRW20 million. Before
Change Step 1
In case exporting 10,000kgs ( 50ea of 200kgs per drum) Packaged into wooden box
Change Step 2
In case exporting 10,000kgs (10ea of 1,000kgs per P.TANK) Packaged into wooden box
COST REDUCTION
In case exporting 10,000kgs (10ea of 1,000kgs per P.TANK) Without packing into wooden box
COST REDUCTION “We will keep focusing ways to reduce costs and through cost reduction activities.”
Changing Supply Pipes to Prevent Accidents In May 2014, NCK discovered that the existing supply pipes at customer locations could cause confusion and potentially cause someone to pump chemicals into the wrong production tanks. Additionally, the shape of the supply pipes caused accidents to happen. To overcome these issues, NCK moved quickly to change the supply pipes. Colours and signages were implemented to help personnel distinguish the different supply pipes.
BEFORE
CURRENT
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NCK 2014
Quality Day at K Group’s NCk Initiated and executed by the team at NCK, “Quality Day” was introduced to help drive the LFG spirit within the company to encourage employee engagement and participation in LFG activities. A quality conference that all employees must attend, safety education, CR activity reports and other LFG activities are conducted during the event. Employees at NCK can now present their contributions on LFG activities and ideas on how to improve overall product and service quality at NCK’s quarterly-held “Quality Day”.
ACTIVITY PHOTOS
a. 2014 LFG Activities
Improved cash conversion cycle through negotiation with suppliers.
B. 2014 LFG Activities Progress to-date
Some of suppliers used to be paid in cash, but through we change the method for payment to promissory note that delay 60 days of the payment. We could save 15mil KRW/year.
C. Background and purpose of each Activity
We have kept trying to change the payment method to improve the cash flow. Because we found that receivable account’s cash conversion is longer than payable account
D. Challenges to implement Activity
We had to negotiate with suppliers that is quite difficult, Because in the side of suppliers, this method doesn’t give them a benefit.
C. Brief description of 2015 Key LFG Initiatives
We will continuously proceed to change the payment method for suppliers having a trade credit over 10mil
110
Before Trade payable paid in cash About 200mil KRW/month 10 suppliers
Current Changed the payment method to the promissory note. (Effect of the delay for two months) Save 15mil/year
NCK 2014
NPSC Actively Develops New Markets The aluminum foil and can market is a huge sector in China that has been largely dominated by PPG and Henkel. Despite that, NPSC has spent 2014 making its entry into the industry by actively developing new customers. The results of their efforts saw NPSC succeeding in entry into the Cans Market, winning four can lines, and successful R&D to launch low-end hydrophilic coating line trials that received orders from customers. Whilst some customers were unwilling to give NPSC a chance due to its early development, NPSC has continued to forge forward and has to date achieved an average of 300K monthly revenue in the Can and Low-end Hydrophilic Coating segments! Come 2015, NPSC will continue to expand sales in the cans and hydrophilic markets, as well as improve the AFP product sales and increase overall market share.
Replacing Imported Materials with Local Ones AFP products and raw materials in NPSC are mostly imported from overseas. The high prices caused by imports are one of the reasons why NPSC’s AFP products are not as competitive in the local industry where low-end hydrophilic coating product demands are great. As a result, NPSC recognized the urgency to realize localization and reduce RMCC.
The Solution: 1. Collaborative efforts by the technical and purchasing teams at NPSC were made to search for suppliers who could offer lower prices. Imported raw materials were replaced with domestic supplies The Result: Costs were reduced to RMB2.6 million 2. Several AFP-Coating formula transfers from NCK in EG, GI and GL for products localization were completed. The Result: AFP products RMCC were drastically reduced from 80% to 50%
In the process of developing these solutions, the company saw the need for more time to improve the AFP-coating formulas as 3 existing formulas have not been able to transfer. However on the overall, the company has succeeded in developing low-end hydrophilic coating independently, launching line tests and beging supply to customers. “We will continue to replace the imported raw materials with local raw materials, reduce the products’ RMCC and provide competitive products to customers.”
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NCK 2014
REDUCING EXPENDITURE AT NPSC
IMPROVING CASH CONVERSION CYCLE BY CHANGING SUPPLIER PAYMENT TERMS
The relocation of NPSC's factory the year before saw little change in the number of employees. However, the decentralization of office in each floor caused an unseen waste of resources. In addition to that, NPSC never invited open tenders in logistics as they felt it would result in unreasonable charges. The new industry park regulations also saw waste water treatment fees rising to three times the regular amount.
It was observed that the receivables account's cash conversion cycle at NPSC and NPCQ took a longer time that the payable account. As such, the NPXs sought to strengthen the recovery of account receivables, while extending payments to suppliers in order to improve the overall cash flow.
NPSC's factory floorspace had increased eight times in size which resulted in overheads increase. The depreciation cost and land taxes had also increased to 2,008K. In light of these issues, NPSC was determined to re-evaluate measures to control and reduce expenditures effectively. In 2014, NPSC put in place measures to cut four vehicles and reduce water and energy charges by centralizing offices. This brought about a decrease in estimated 600K. Additionally, through implementing a bidding process, NPSC was able to reduce logistics fees by 8% VS LY. NPSC also purchased and set up its own waste water treatment system to reduce outsourcing and decrease waste water treatment fees.
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Both NPXs re-signed the purchasing contacts and changed the terms of payment from 30 or 60 days terms, to 60 or 90 days. One of the challenges that arised was the fact that some raw materials were from specific single sources, which meant that the change in payment terms would indirectly affect price negotiations. Despite that, the Technical and Purchasing departments at NPSC and NPCQ will continue to reduce the single sources so as to improve the overall procurement method.
NCK 2014 a. 2014 LFG Activities
BEFORE
Quality improvement -- Change of new pneumatic pump.
B. 2014 LFG Activities Progress to-date
We changed the cast tank for pump category in August, 2014.
C. Background and purpose of each Activity
The electric pump of acid and alkali resistance is not good, easy corrosion leakage, is harmful to the employees' personal safety, at the same time electricity is easy to cause the electric shock accident, can not adjust the speed affects quality.
The use of electric pump or artificial feeding Prone to mechanical failure delay time CURRENT
D. Challenges to implement Activity
The scene to compressed air, To have a fixed position.
E. Brief description of 2015 Key LFG Initiatives
Continue to promote the pneumatic pump feeding working mode; Details of the perfect feeding mode split, to avoid the abnormal problem.
BEFORE
The selection of the new start of diaphragm pump Feed saving, less failure, cost saving
a. 2014 LFG Activities
To improve the workshop efficiency .
B. 2014 LFG Activities Progress to-date
We changed the cast tank for pump category in We have purchased dedicated workshop mop cart and mount a small cart under electronic scales . No wheels and need two worker to carry CURRENT
C. Background and purpose of each Activity
We found that workers need to move electronic scales so difficulty. And it will cost too much time and damage the electronic scales when portage so as to reduce equipment failure rate. At the same time, dedicated workshop mop cart can save workshop cleaning time.
D. Challenges to implement Activity
To strengthen workers training in safety and efficiency . One worker can easily to carry the electronic scales to package area by mounting a small cart; Mop cart can clean large workshop of garbage.
E. Brief description of 2015 Key LFG Initiatives
In 2015, We will continue to enhance the efficiency of staff and reduce energy consumption.
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NCK 2014
REGULATING EXPENSE INVOICES AT NPSC & NPCQ
In 2013, many discrepancies were found in the invoices and documents that were submitted to NPSC and NPCQ. For example, documentation submitted were abstract in content and inconsistent with the invoices. Certain payment unit labels were shown to be of personal expenditures. As a result, these invoices were not applicable for pre-tax deductions, all of which amounted to 250K RMB. To overcome these issues, both NPXs reclassified each department's expenses and stipulated a new filing method. All employees were required to get legal invoices, without which, reimbusement claims would be refused. NPSC and NPCQ hopes to continue to strengthen the normative document management and strictly control the expenses reimbursements process.
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BEFORE
Invoice payerďź&#x161;personal. It can not be pre-tax deduction. CURRENT
Invoice payerďź&#x161;company. It could be pre-tax deduction. To supervise improper behavior possibility.
NCK 2014
Leadership Skills External Training for Principal of Departments. With the re-establishment of functional departments and many new department leaders appointed, the company recognized the need for the leadership skills to be improved. Through the external training sessions conducted, the department heads were able to pick up effective management skills and methods to improve work efďŹ ciency. This was especially beneďŹ cial for the newly promoted department heads as they were new to the roles and responsibilities. K Group has found that the beneďŹ ts outweigh the investment costs and will continue to provide more training opportunities for employees.
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