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FUSION BROCHURE_ENG_Final_20160224_kvz(2)

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FUSION BROCHURE_ENG_Final_20160224_kvz(2)

  1. 1. DESCRIPTION Lean Manufacturing eliminates all kinds of waste, provides continuous improvement, and eliminates non-value added activities. The principle of individual work assignment is adding value, simplifying R&D / production / management, improving product quality, reducing costs, while improving efficiency. “Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.” - Andrew Carnegie Fusion’s Lean Manufacturing consulting targets improve not only the whole system in the factory, but more importantly, the awareness of all employees. CONSULTING APPROACH Each Lean Manufacturing consulting stage from Fusion lasts several months depending on the size of the factory and the factory’s existing management set-up, with the whole consulting cycle ranging from 6 months to 2 years. Consultants either pay weekly visits or reside in the factory. LEAN CONSULTING INCLUDES • The effects of Value Stream Mapping • VSM analysis and improvement identification • Identifying and eliminating the 8 kinds of waste • Lean Manufacturing theory and practical training for the whole organization • How to set up a Lean organization • Pull system set-up for production planning • Production layout analysis and improvement • Statistics and analysis of KPIs • Selecting and building a pilot lean production line • Factory Standard Time system • Current production status and one piece flow analysis • Quick Change Over (SMED) • Total Quality Management system • Visual management implementation EXPECTED OUTCOMES • Improved profitability • Increasingly stable workforce • Improved production planning • Improved On-time Delivery • Improved customer satisfaction • Eliminating all waste from the production process • Improved competitiveness • Optimization of production organization • Reduced inventory • Reduction in unnecessary costs • Reduced idle time • Reduced changeover time • Shortened production lead time • Enhanced product quality LEAN MANUFACTURING CONSULTING Lean
  2. 2. Comparison Before After Result Pressing shoes Punching machine Drum machine Number of operators 16 8 less employees needed, and less training Labor Saving (¥/Year) ¥480,000 ¥240,000 ¥240,000 Purchasing cost/Expected Life Expectancy (5years) ¥128,000/ 5 years ¥32,000/ 5 years ¥19,200 savings per year Additional benefits Energy and maintenance reduction Before After SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 SUCCESSFUL CASES A shoe factory worked with Fusion on several lean manufacturing projects. Just one of the projects saved a lot of money and time as the table illustrates. • Production process reengineering • Streamline material movement on site • Inspire worker in the production line • Changing Punching machine to drum machine Description
  3. 3. BRIEF Lean manufacturing is a management philosophy derived from TPS. The numerous practices in many well-known enterprises have proved it can be applied in various different industries, even including the service industry. It has become increasingly popular in China in the last 10 years, but the results in many factories aren’t satisfactory, why? This training not only elaborates the theory and methodology, but also shares deep insights using real life cases in factories to clarify the secrets of success in lean manufacturing implementations. TIME 1-3 days OUTLINE • Lean manufacturing history and background • The working mechanism behind lean manufacturing • Lean manufacturing games and discussion • Tool boxes of lean manufacturing • How to execute lean manufacturing in factories • Sharing of successful cases • Common seen problems and intelligent solutions TRAINING OUTCOMES • Understanding of lean theories and knowledge • Understanding of lean execution • Understanding of lean tools and methods • Application of lean execution strategies in different factory environments • Attaining total employee involvement in implementing lean manufacturing LEAN MANUFACTURING TRAINING Lean
  4. 4. Comparison Before After Result Operators 6 3 50% Equipment Utilization 55% 91% 100% Labor cost/month 12, 000 6, 000 50% Labor cost/year 144, 000 72, 000 50% SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Before After SUCCESSFUL CASES At one plastic factory, originally plastic components were put into plastic bags and then put into cartons, resulting in a big mess and lots of wasted time. Fusion recommended using a re-usable plastic tray. Much neater and much more efficient as shown below. • Lean manufacturing training for the 6 kinds of waste • Different Lean tools to complete lean projects • Project management and flow chart business process re-engineering • Finding key control points to achieve continuous improvements Description
  5. 5. DESCRIPTION Supply Chain Management (SCM) is a core competency in factory management and it is becoming even more important in the Industry 4.0 concept. This includes Customer Service, Production and Material Planning, Sourcing, Purchasing, Production, Shipping and Logistics Management. Time 3 to 6 days Outline • Job standardization • Swimming Line project management • Supply chain flexibility management • Planning strategy in production and warehouse management • Sourcing & Purchasing Strategy • Reverse Auction and cost containment • Vendor management strategy • Barcode in all related departments • Kanban set up and forecast and order share integrated with vendors and customers • ERP system standardization implementation comply with operation procedure • Leadership & Communication and team management in supply chain Training Purpose • How to do job and procedure standardization to comply with future supply chain competition • How to build up seamless supply chain integration with customers and vendors to achieve win-win solutions • How to build up planning, sourcing, purchasing and warehouse management strategies with different circumstances. • How to do reverse and cost containment to do cost reduction, reduce staff turnover, nspire team spirit, and job efficiency. • How to do barcode with customer, vendor, production line, warehouse etc to integrate with supply chain system • Train ERP leaders in all departments. Train key staff in how to create error-preventing measures so that the ERP system will run more smoothly and efficiently Supply Chain Management Training SCM
  6. 6. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Cycle Count Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 System Value 159.090 163.200 154.760 146.710 132.970 124.190 114.080 108.000 113.260 111.900 108.490 109.480 Cycle Count Value 155.908 161.720 156.000 148.842 131.400 121.955 115.000 108.600 113.238 112.879 108.470 109.464 Various Percentage -2.00% -0.91% 0.80% 1.45% -1.18% -1.80% 0.81% 0.56% -0.02% 0.87% -0.02% -0.01% Cycle Count Various Report SUCCESSFUL CASES One shoe factory client had large variations in its cycle count versus system. Fusion spent great efforts with the factory to achieve zero cycle count various via the following actions. • Total supply chain management concept training • Customer and vendor planning strategy set up • Item master parameter principle set up • ABC classification and BOM routine checking • Warehouse management, products & material in and out control, warehouse safety, cycle count rules. • Material Kanban with vendors and reduce warehouse space etc. Description
  7. 7. DESCRIPTION Through improving both the equipment and the business, TPM (Total Preventive Maintenance) focuses on changing people’s mindset, fosters a sense of ownership amongemployees,enhancesmorale,equipmentstabilityandfactorycompetitiveness. CONSULTING APPROACH Fusion’s TPM consulting stages stretch 3~6 months each, depending on the factory size and the existing management set-up, with the whole TPM consulting cycle ranging from 3 months to 2 years. TPM consulting can be done in either multiple visits per month consulting style, or in the in-residence consulting style. CONSULTING MODULES • Autonomous Maintenance • Planned maintenance implementation • Equipment maintenance system • Maintenance training • Critical equipment maintenance • Safe, clean and green management system • Establishing effective management for indirect departments • Establishing quality maintenance mechanisms EXPECTED OUTCOMES • Reduced equipment breakdown frequency • Lower product defect rates • Decreased safety incident rates • Improved equipment reliability • Reduced wear and tear costs • Enhanced equipment comprehensive efficiency • Reduced unintended downtown Proposal for Execution 2 Customer Concerns & Objectives 1 Consulting Contract 3 Survey & Analysis 4 Project Rollout 5 Result Evaluation 6 Follow Up Service 7 SERVICEPROCESS TOTAL PREVENTIVE MAINTENANCE CONSULTING TPM
  8. 8. HOTLINE: +86-400-800-2046 SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Comparison Before After Remark Downtime (minutes/day) 120 15 87.50% Downtime loss/Day ¥6,000 ¥750 87.50% Downtime loss Year ¥2.1million ¥0.2625million 1.83million Additional Less maintenance and almost no Downtime Before After SUCCESSFUL CASES One chemical fertilizer plant had TPM projects for half a year. Fusion’s proposals reduced downtime more than 87.5% and reduced daily cleaning requirements. The factory’s annual savings are more than 1.83 million RMB. • Establishing Autonomous Maintenance • Establishing equipment maintenance system • Maintenance training for the staff • Establishing effective management for indirect departments Description
  9. 9. DESCRIPTION Product quality is the life of a factory, the foundation of its development and growth. Among the 5 key elements of management it ranks No.1, and so is it in many other different management theories. Quality is integral to a company’s existence, and should be dealt with seriously. Recent industrial scandals in China such as milk powder, food and construction materials have undisputedly demonstrated that the large numbers of factories have a long way to go to improve their quality awareness and capabilities. CONSULTING APPROACH Fusion’s Quality Management consulting stages last 3~6 months each, depending on the factory size and the existing management condition, with the whole consulting cycle ranging from 3 months to 1 year. Consulting can be done in either the multiple visits per month consulting style, or in the in-residence consulting style. QUALITY MANAGEMENT CONSULTING CONSULTING MODULES • Total Quality Control implementation • Quality KPI statistics systems • Quality control process perfection • Quality awareness training for all employees • Quality management organization optimization • Cost control for quality management • Quality Control Costs implementation • Quality incident feedback mechanism EXPECTED OUTCOMES • Improved product quality • Improved production efficiency • Better customer satisfaction • Lower quality control costs • Increased per piece profitability • Improved intra-factory communication Quality
  10. 10. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Quality Control Flow Chart • Establishing & completing QC management system. • Using the QC 7 methods (Checklist, cause analysis diagram, Pareto chart, stratification, scatter diagram, histogram, control chart) and Quality Control Circle, etc, to improve product quality and eliminate problems. Comparison Before After Remark Inspection Pass Rate 96.10% 98.00% 1.98% Air Freight (¥/year) ¥378,000.00 ¥87,000.00 76.98% Temporary Labor(¥/year) ¥380,000.00 ¥250,000.00 34.21% Scrap Amount(¥/year) ¥2,300,000.00 ¥1,350,000.00 41.30% Indirect Materials (¥/year) ¥707,000.00 ¥380,000.00 46.25% Total (¥/year) ¥3,765,000 ¥2,067,000 Annual Savings of ¥ 1,698,000 SUCCESSFUL CASES
  11. 11. DESCRIPTION The past three decades of China’s opening up and reform has greatly helped to improve the management level for numerous factories, but as one of the most important manufacturing principles, 6S, is still far from satisfactory for many of them. To maintain sound 6S principles, they have to truly understand the essence, and without achieving at least a good level of 6S, factories will continue to waste resources, time, money while damaging their long-term future. CONSULTING APPROACH Fusion’s 6S management consulting spans 3~6 months, depending on the factory size and the existing management condition.The whole consulting cycle ranges from 3 months to 1 year. Consultants either pay weekly visits or reside in the factory. CONSULTING MODULES • Establishing/implementing a 6S organization • Management training for 6S • 6S examples campaign area • Factory visual management • Red card campaign • Fixed angle photographing • 6S performance management • Sustainable implementation of 6S EXPECTED OUTCOMES • Improved working environment • Improved product quality • Improved production efficiency • Reduced production costs • Reduced safety accidents • Improved employee’s behavior • Improved customer satisfaction 6S AND PRODUCTION FLOOR MANAGEMENT CONSULTING 6 S
  12. 12. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Before After SUCCESSFUL CASES One machining company implemented 6S production floor management due to regular problems on the production line. Fusion did 6S management training and launched many projects including the following tools management project. Using 6S concepts, by having everything neatly placed in the drawers, all workers could quickly find the correct tools, improving production line efficiency. Description
  13. 13. DESCRIPTION Cost management is the most serious challenge for Chinese factories. Chinese currency appreciation, labor cost increases, extreme amounts of employee turnover, and drastic fluctuations of raw material prices are direct reasons which impact factory competitiveness. The global financial crisis has also worsened the external operating environment. Factories must understand cost management as a system and then improve their internal management capabilities and processes in order to rebuild their cost advantages. CONSULTING APPROACH Each stage of Fusion’s cost management consulting lasts 3~6 months, depending on the factory size and the existing management condition, with the whole consulting cycle ranging from 3 months to 1 year. Consultants either pay weekly visits or reside in the factory. COST MANAGEMENT CONSULTING CONSULTING MODULES • Identify waste in each process • Labor cost analysis and improvements • Material cost analysis & improvements • Manufacturing cost analysis and improvements • Operation cost analysis and improvements • Quality cost analysis and improvements • Sales cost analysis and improvements • Purchasing Processes & Improvements EXPECTED OUTCOMES • Lower management costs • Detailed cost accounting • Optimized cost structure • Better cost analysis capabilities • Better cost control capabilities Cost
  14. 14. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Before After Comparison Before After Result Tools Plastic case Moveable racks Quantities 3,000 300 Space (m2) 1,440 m2 432 m2 1,008 m2 Purchasing cost/ Expected Life Expectancy ¥240,000 / 2 years ¥180,000 / 6 years ¥540,000 savings over 6 years Additional (Efficiency) 50% time Saving & more convenient counting and inspecting Cost Management Via Rack SUCCESSFUL CASES Fusion performed cost management consulting at a slipper plant. Before Fusion began the project, slippers were thrown into plastic baskets. Fusion recommended using racks for many reasons. Easy to manage, no accidental mixing of products, more convenient for inspecting & counting. Using the racks saved more than 50% of the original time. Description
  15. 15. BRIEF Although 6S has been used in China for decades, today many factories are still far away from getting satisfactory results. In another words, implementing 6S is not as easy as it looks . This training targets how to correctly roll out 6S in factories step by step citing large numbers of real life case studies, to allow the trainees to develop a deep understanding of the essence of 6S and visual management. whilst inspiring them to challenge the status quo and avoid formality and ritualism. TIME 1-3 days OUTLINE • Key components and functions of 6S • Exercise and practise on the floor • How to execute 6S in factories • Successful case analysis • Common problems and intelligent solutions • Implementation strategies TRAINING OUTCOMES • Understanding of 6S • Understanding and tackling of implementation bottlenecks • Understanding of visual management tactics and implementation • Understanding of how to get factory wide involvement in continuous improvement EXCELLENT PRODUCTION FLOOR (6S) TRAINING 6 S
  16. 16. Before After Comparison Before After Remark Glue saved(Kg/day) 0 1.5 Money saved(¥/day) 0 33 ¥22/Kg Money saved(¥/Year) 0 ¥11,500 SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 SUCCESSFUL CASES Fusion has done hundreds of 6S trainings. Below is a one day project we did in order to save glue costs and for a cleaner environment in the factory. The changes allowed the glue process in production to save more than 11,500 RMB saving per year. • Seiri, Seiton, Seiso, Seiketsu, Shitsuke, Safety training • 6S Tools to achieve 6S projects. Description
  17. 17. BRIEF The front line management production leader is a key position in all factories. They spend most of their time with the production forces, influencing the behaviors of workers, and ultimately impacting product quality and customer satisfaction. This training is designed to improve those leaders’ comprehensive capabilities with consideration to the local culture, communication, and using of the newest management approaches. TIME 1 day OUTLINE • The role of shop floor management • Role play • Production employee relationship management • Case studies • Communication and motivation • Coaching and problem solving • Improving shop floor management TRAINING OUTCOMES • Understanding of roles and responsibilities • Increased problem awareness • Analyzing and solving of problems • Enhanced issue handling capability • Enhanced communication between superiors and subordinates, as well as with other departments EXCELLENT PRODUCTION LEADER TRAINING Excellent Production Leader Training
  18. 18. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 After providing a four-month training course divided into different stages for production leaders in a Dongguan garment factory, the management skills of these production leaders have improved and work enthusiasm has been strengthened. A trainee’s change in mentality: I don’t understand!→Let me try it!→Let me share it!→I can lead my team! SUCCESSFUL CASES • I don’t understand!→Let me try it!→Let me share it!→I can lead my team! • Communication skill training • Problem-solving skills • Continuous improvement. • Monitoring Description
  19. 19. BRIEF Statistics indicate 70% of management’s time is spent on communication. Meeting, negotiation, conversation, reporting are the most common ways of communication. 70% of all issues are caused by poor communication. Whether it is poor work efficiency, or weak leadership - it all comes back to communication. That makes communication a very important skill for all levels of management.This training will enhance communication skills, and improve the effectiveness of communication across the whole organization. TIME 1 day TRAINING OUTCOMES • Understanding of the importance of communication at work • Understanding of how to communicate with superiors and subordinates • Understanding of how to communicate with other departments • Improved ability to communicate with people of different personalities OUTLINE • The concept of communication management • The 6 steps of effective communication • Games and sharing • The 5 key elements of communication • Communication case study • How to communicate with poorly performing employees • Different communication styles and personalities COMMUNICATION TRAINING
  20. 20. SUCCESSFUL CASE: LEAD TIME AND WIP REDUCTION SUCCESSFUL CASE: LINE BALANCING IMPROVEMENT After 6 months improvement, the average output per person was improved 25.7% (from 0.78 pair/hr to 1.05 pair/hr, LT was shortened by 44.8% (from 256.4 hr to 141.5 hr), WIP was reduced 72.7% (from 33.9 days to 9.25 days)days). REDUCED 2 WORKING POSTS, LINE BALANCING WAS ENHANCED FROM 78% TO 84% Operating with its traditional approach this company in Zhejiang suffers long lead times, excessive inventory, low efficiency and bad on time delivery. Within months Fusion helped the factory reform these processes. MONTHLY WIP (WORK IN PROCESS) Jul Aug Sep Oct Nov Dec Before (day) 33.9 33.9 33.9 33.9 33.9 33.9 After (day) 33.9 18.4 11.5 9.99 14.14 9.25 Jul Aug Sep Oct Nov Dec Before (hr) 256.4 256.4 256.4 256.4 256.4 256.4 After (hr) 245 182 125.25 108.8 132.2 141.5 MONTHLY LEAD TIME 改善案例 江浙某集团公司生产周期与在制品改善 东莞某厂生产线平衡改善案例 惠州某五金厂包装车间生产达成率改善 该公司以传统的生产方式作业,存在生产周期长、库存多、效率低下、准交率低等问题。工厂希望 在交货及时率、原材料存货及成本方面进一步改善。 仅通过半年时间改善,人均产能从0.78双*人/时提高到1.05双*人/时,上升25.7% ;生产周期从平均 256.4小时天缩短至平均141.5小时,缩短44.8%;在制品从33.9天减少至9.25天,减少72.7% 该五金厂长期交货期不 准,物料控制及生产排程是 最大的问题,其中体现在包 装车间的问题尤为严重。联 合国际从2011年9月介入, 开始对生产包装车间进行改 善,至2012年3月,包 装 车 间生产达成率由57.88%上升 至92.36% 由于工序多、流程 长,在节拍时间不 变情况下,减少工 作 岗 位2个,生 产 线平衡率从78%上 升至84% 向管理要利润之生产力改善 Target: Actual: SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
  21. 21. OUTLINE • TPM basic concepts • TPM execution steps • Autonomous maintenance (AM) • Planned maintenance (PM) • Successful cases sharing • OEE management • Factory-wide involvement in TPM TRAINING OUTCOMES • Understanding the theory of TPM • Understanding of how to deal with equipment breakdowns and preventive mechanism • Key points and bottlenecks • How to attain total involvement BRIEF Quality is the bedrock for a factory’s long term growth, it applies to every factory without exception. Without understanding the importance of quality, employees are likely to compromise quality standards and lack the motivationtomaintainqualitysystems.Insuchacompetitive world, factories must continuously train employees in order to ensure they understand the importance and applications of quality control. This training module is designed for all levels of employees within the factory with the goal of increasing quality awareness, improving quality control skills and thus improve product quality. TIME 1 day OUTLINE • Quality control concepts • Quality control tools • Prevention and process control • Case studies and practice • Steps and methods of effective quality problem solving TRAINING OUTCOMES • Understanding of quality theories • Enhanced ability to control quality using the proper tools • Enhanced ability to deal with quality abnormalities • Understanding of QCC methodologies QUALITY TRAINING TOTAL PREVENTIVE MAINTENANCE TRAINING BRIEF An efficient equipment management system is an effective vehicle for factories to reduce cost and increase profit. The purpose of TPM is to mobilize all employees by working in small groups, to establish a good management mechanism, improve utilization, reduce defects, improve product quality and safety condition. This training is designed for production equipment owners and facility engineers who will be leading and carrying out TPM activities. TIME 1-3 days
  22. 22. TOTAL PREVENTIVE MAINTENANCE TRAINING Before After Multiple bolt types required that multiple tools be used. Now a simple monkey wrench can be used for all bolts. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 SUCCESSFUL CASES Fusion did total preventive maintenance trainings at one factory and then launched many TPM projects at the factory. The following project had the factory reduce the variety of bolts used, to reduce the tool-change-over time. See the following pictures. Description
  23. 23. PRODUCTION PLANNING &MATERIAL CONTROL TRAINING DESCRIPTION Production Material Control (PMC) is the core function of manufacturing operations. Company information from logistics, production, HR and sales all get processed in the production planning department; in doing so it acts like a centre commander for the whole company. The effectiveness of PMC directly dictates the company’s total efficiency, impacting delivery and customer satisfaction. The purposeof the training is to improve PMC personnel’s planning,arranging,monitoringandfollowupcapabilitiesso that companies can improve their time delivery, inventory turnover, and production lead time. TIME 1-3 days OUTLINE • PMC Content • How to plan/what to refer to • Handling abnormalities • PMC case studies • KPI’s and performance evaluation • Material management and tools • ABC management approaches • Material control case study • Inventory control in factories TRAINING OUTCOMES • Understanding of PMC and material control theory • Understanding of how to plan/arrange production • Understanding of how to calculate related KPI’s • Understanding of material control skills • Understanding of how to monitor and tackle issues Production planning & material control
  24. 24. SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610 Inventory Turns Report Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Raw Material 115.07 112.22 107.08 101.86 88.59 85.33 77.23 71.42 73.98 73.49 71.29 72.66 Work In Process 26.80 29.81 26.53 25.19 21.50 17.86 17.74 16.48 19.28 18.91 15.00 15.70 Finished Good 17.22 21.17 21.15 19.66 22.88 21.00 19.11 20.10 20.00 19.50 22.20 21.12 Inventory 159.09 163.20 154.76 146.71 132.97 124.19 114.08 108.00 113.26 111.90 108.49 109.48 Cost of Goods Sold 63.54 69.17 61.02 70.63 72.63 64.74 60.00 57.38 74.35 72.85 74.00 78.00 Target 5.00 5.00 5.00 5.00 6.00 6.00 7.00 7.00 8.00 8.00 9.00 9.00 Inventory Turns 4.79 5.09 5.01 5.48 6.15 6.70 6.92 6.75 6.77 7.31 8.16 8.22 One Hong Kong electrical appliance factory had almost 159 million RMB of stock on hand. Fusion helped them to achieve increased inventory turns, from 4.79 times to 8.22 times. Which was more than 50 million RMB savings in stock by the following actions: • Setting up Forecast strategy reducing bullwhip effect • ABC inventory management • Reduce WIP and strengthen vendor Kanban management • Purchasing strategy based on value and importance • Material Kanban set up SUCCESSFUL CASES Description
  25. 25. CONSULTING APPROACH Fusion’s CSR consulting stretches 3~6 months, depending on the factory size and the existing management situation, the whole consulting cycle ranges from 3 months to 2 years. Consultants either pay weekly visits or reside in the factory. WAGE/WORKING HOUR MANAGEMENT • Labor cost analysis • Improve wage structures • Establish wage/benefit systems • Improve wage/incentive systems • Risk control on social insurancev • Current status analysis on working hours • Improve working hours management PERSONNEL MANAGEMENT • Improve recruiting and org-structure • Improve labor contract and HR filing management • Improve attendance management system • Improve resignation management • Improve At Risk employee management • Improve CSR management CSR CONSULTING PROJECT SERIES HSE MANAGEMENT • Improve HSE committee operation • Improve PPE management • Improve fire-fighting management • Improve chemicals management • Improve equipment safety management • Improve dormitory, canteen and warehouse management • Improve waste water/discharge management • Improve occupational disease management C-TPAT MANAGEMENT • C-TPAT assessment • Improve C-TPAP management
  26. 26. April May June July August September Number of workers 156 136 125 146 253 229 KPI Value 99% 95% 95% 99% 100% 100% The lowest hourly rate wage of the factory 5.06 5.63 5.31 5.27 6.32 6.32 Unpaid Wages (non-OT) 227 363 454 51 0 0 WORKERS MEETING MINIMUM WAGE REQUIREMENT April May June July August September Number of workers 123 91 97 126 253 229 KPI Value 78% 64% 73% 86% 100% 100% OT Wages Wage Gap 8,757 11,403 7,028 3,399 0 0 WORKERS RECEIVING ACCURATE OVERTIME WAGES April May June July August September Actual Wages Paid 395,982 409,724 338,654 376,409 527,783 515,149 Wages Due 404,966 421,491 346,136 379,858 527,783 515,149 Total Wage Gap 8,984 11,767 7,482 3,449 0 0 KPI Value 98% 97% 98% 99% 100% 100% TOTAL WAGE GAP CASE: WAGE MANAGEMENT IMPROVEMENT SALES: +86-20-8333-9156 FAX: +86-20-8333-9159 E-MAIL: sales@fusionlimited.com www.fusionlimited.com 1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
  27. 27. SUCCESSFUL CASE: WORKING HOUR REDUCTION WAGE/WORKING HOUR MANAGEMENT • Wage/working hour standards • Wage/working hour assessments • Wage/working hour improvements • Total involvement • Incentive mechanism recommendation • Reviewing Case studies PERSONNEL MANAGEMENT • Standard requirements for HR management • Current HR management assessment • HR management improvement • Sharing best practices HSE MANAGEMENT • Standard requirement for HSE • Common HSE problems clarification • HSE improvement approach • Site discussion / case sharing • Total involvement to improve HSE C-TPAT MANAGEMENT • C-TPAT background and introduction • C-TPAT standard requirements • Common problems and fixes • Sharing best practices • Site discussion / case sharing SUCCESSFUL CASE: WORKING HOUR REDUCTION CSR TRAINING SERIES PREVIOUS 6 WEEKS (MAY-JUNE) Week 5/4 - 5/10 5/11 - 5/17 5/18 - 5/24 5/25 - 5/30 6/1 - 6/7 6/8 - 6/14 <60 199 156 71 576 89 120 61-72 344 443 384 187 457 423 73-80 173 128 266 1 166 171 >81 55 40 47 0 3 0 Total HC 771 767 768 764 715 724 Total 51011 50652 53665 41312 47810 48111 LAST 6 WEEKS (AUG-OCT) Week 8/30 - 9/5 9/6 - 9/12 9/13 - 9/19 9/20 - 9/26 9/27 - 10/3 10/4 - 10/10 <60 179 183 175 651 652 654 61-72 477 471 477 1 0 0 73-80 0 0 0 0 0 0 >81 0 0 0 0 0 0 Total HC 656 654 652 652 652 654 Total 40671 40472 40471 32617 32600 32700 TRAINING APPROACH Classroom training and on-site practice. TIME 1-3 days
  28. 28. Based on the support from the Guangdong Labor and Social Security Department and local governments we provide this service to help factories better handle their labor relationship related issues, employing a three-stage management methodology. We help free up the factory management to focus on their business, and Fusion uses its strong relationships to establish a stronger communication channel with the local government so that incidents can be resolved as harmoniously as possible. CONSULTING/TRAINING APPROACH Fusion provides 2 types of service, yearly contract consulting and project consulting. The yearly contract consulting covers multiple professional services on labor relationship management, while project consulting specifically covers the agreed services and topics, and can be flexible on time frame. Training approach is assembled classroom training for either multiple clients or a single client, 1-3 days are required for each module. Regularly scheduled consulting • Assist the company to correctly hire / terminate employees, provide full solutions on disciplining, negotiation, and incentives /bonuses • Provide regular labor relationship management consulting Contract review and revision • Help company to refine the agreements related to Admission Form, Labor Contract, Confidentiality Agreement etc • Legal risk prevention Company regulation review and revision • Assist to refine Company regulations, employee manuals, job description, review/improve factory notification process & solve related issues • Make sure all regulations and handling processes are complied within the Legal requirements Labor dispute solution • Provide advice for case disposal • Utilizing our advantageous resources to predict dispute results and gain advantage • Avoid reoccurrence, minimize or clean negative impact YEARLYCONTRACTCONSULTING Company transformation and employee reassignment/ release • Professional consultants work together with factory management to provide guidance to meet legal requirements • Provide multiple alternatives for employee reassignment / release so that clients can choose to implement • Provide follow up service Performance wage for working posts • Make Job Description, Salary System, Performance Evaluation schemes according to client requirements • Establish scientific, rational system and process • Actively support, follow up on implementation with clients Substitution for social insurance and labor dispatch • Assist company making scientific and reasonable substitution plan for social insurance to reduce operation cost • Help to make factory labor dispatch plan and Labor Dispatch Service Contract • Support client’s labor dispatch implementation PROJECTCONSULTING LABOR RELATIONSHIP CONSULTING AND TRAINING PROJECT SERIES

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