Philips QIC Asian Region Final - Kunming, People's Republic of China 2002

1. PT. PHILIPS INDUSTRIES BATAM - TUNER FACTORY
Presents

2. PT. PHILIPS INDUSTRIES BATAM - TUNER FACTORY
Presents
MISSIONMISSION
POSSIBLEPOSSIBLE

3. Company NameCompany Name : PT. Philips Industries Batam: PT. Philips Industries Batam
AddressAddress : Lot-1 Jl. Beringin: Lot-1 Jl. Beringin
Batamindo Industrial Park,Batamindo Industrial Park,
Mukakuning, Batam IslandMukakuning, Batam Island
Republic of IndonesiaRepublic of Indonesia
DepartmentDepartment : Cross Functional Department: Cross Functional Department
(H/R, I/E, F/T and Production)(H/R, I/E, F/T and Production)
ProductProduct :: Tuner RF / Multimedia ModuleTuner RF / Multimedia Module
Team’s IntroductionTeam’s Introduction
Team NameTeam Name : MISSION POSSIBLE: MISSION POSSIBLE
PT. Philips Industries BatamPT. Philips Industries Batam
Lot-1 Jl. Beringin Batamindo Industrial Park,Lot-1 Jl. Beringin Batamindo Industrial Park,
Mukakuning, Batam Island, Republic of IndonesiaMukakuning, Batam Island, Republic of IndonesiaOur Product : Tuner RF / Multimedia ModuleOur Product : Tuner RF / Multimedia Module

4. Team’s IntroductionTeam’s Introduction
Manager / Facilitator
Teo Kian Cheow : Manufacturing
Leader
Arief M Ridwan : Functional Training
Members
A. Arif Rahman : Knowledge Based Training
Endang SWL : Functional Training
Ida Marlinda : Human Resource
Liza Dewanti : Production
Teh Sion Chew : Industrial Engineering
MISSION POSSIBLEMISSION POSSIBLE

5. Supporting Meetings
Mission Possible Team Meeting
Fortnightly Meetings from January
2002 ~ June 2002
1. Consultative meetings with
management.
2. Internal Supplier & Customer meetings
(Mini Company Meeting)
3. Informal meeting with other external
organizations (Benchmark)
Team MeetingTeam Meeting
Team Meeting (Fortnightly)Mini Company MeetingConsultative meeting with management

6. MEDIC ApproachMEDIC Approach
M
E
D
I
C
easure
ap
xplore
valuate
efine solutions
escribe modified process
mplement
mprove
ontrol
onform
Pre-Medic
Team applied systematic approach :

7. To achieve breakthroughTo achieve breakthrough
improvement of Direct Labourimprovement of Direct Labour
Cross-Training CertificationCross-Training Certification
from single Model Skill to Multifrom single Model Skill to Multi
Model, Multi SkillModel, Multi Skill
Pre-MedicProject SelectionProject Selection
Project ThemeProject Theme ::

8. • Business impact of the project
- Overcome flexibility loss due to full production transfer from
Singapore to Batam
- To realize B.U vision : To be no-1 Contract Manufacturing
Project SelectionProject Selection Pre-Medic
Reason for selecting this projectReason for selecting this project ::
• Breakthrough improvement for customer
satisfaction.
- It will cost 3 times more to replace an existing customer
• Link to business process
- To deliver products and solutions faster
- To be competitive in price and cost saving

9. Project ImpactsProject Impacts Pre-Medic
1. The full production transfer from
Singapore to Batam has following
business impacts :
• Loss of flexibility skill
• The increase of model mix will lead to high demand of
flexibility skill which means loss of sales volume
2. Unable to support business strategy
as Contract Manufacturing
• Key CSF for CM is to have high flexibility
workforce with speed response to customer need
(Survey from Flextronic & Venture Manufacturing)

10. Project ImpactsProject Impacts Pre-Medic
3. Key account customer retention
and attract new customer
(Customer Satisfaction)
• We may lose customers due to dissatisfied
delivery lead time
• Continue to have breakthrough improvement
for existing key account customer
• To be competitive in the market to win
new customers

11. MANUFACTURING
Monthly Plan
Weekly Plan
Main
Planning
Mtg
Main Planning
PLANNING
PRODUCTION
Product Team
Product
Team
Meeting
Delivery Reliability
Delivery Flexibility
Customer Assessment
Customer
Service
Review
Cust
.
Serv. Team
LOGISTIC MANAGEMENT
QUALITY MANAGEMENT
Customer
Service
Review
Customer Service Team
Product PPM
Customer PPM
Manufacturing
Manufac
-
turing
Meeting
SALES
Delivery
Reliability
Logistic
Management
Meeting
Logistics Mgmt
DELIVERY / INVOICE
Sales Results
Main
Planning
Meeting
Main Planning Team
SALES PLANNING
CUSTOMER SERVICE
Customer feedback
Assessment feedback
Customer
Service
Review,
Customer Service Team
Mgmt Team
Customer Service Team
FORECAST / ORDERS
Planning
Main
Meeting
Delivery
Flexibility
Main Planning TeamQty Output
Product PPM
Process PPM
Link to Business ProcessLink to Business Process Pre-Medic
Mission
Possible
Project
BUSINESS PROCESSES , MEASUREMENT AND CONTROL
BUSINESS STRATEGY PLANNING
PLANNING DEPLOYMENT IMPLEMENTATION
& REVIEW
Fty Results
KPI
Policy
Deployment
& Review
Management Team
Manage-
ment
Meeting
MARKETING INNOVATION
Concept Study
End Result
Concept
Study
EndMtg
Innovation Team
PRE - DEVELOPMENT
Capability
Quality, Cost
Delivery
Process
Release
Product & Process
PROCESS DEVELOPMENT
Maturity Grid
Maturity
Grid
Review
Project Team
PRODUCT DEVELOPMENT
Project Planning Team
PROJECT MANAGEMENT
PRS DR IR
Schedule
Results
Project
Team
Meeting
Project Team
MPR
Maturity Grid
Cycle Time
Project
Planning
Meeting
Project Planning Team
MANUFACTURING
Monthly Plan
Weekly Plan
Main
Planning
Mtg
Main Planning
PLANNING
Qty Output
Product PPM
Process PPM
PRODUCTION
Product Team
Product
Team
Meeting
Delivery Reliability
Delivery Flexibility
Customer Assessment
Customer
Service
Review
Cust Serv. Team
LOGISTIC MANAGEMENT
QUALITY MANAGEMENT
Customer
Service
Review
Customer Service Team
Product PPM
Customer PPM
SALES
Delivery Reliability
Logistic
Management
Meeting
Logistics Mgmt
DELIVERY / INVOICE
Sales Results
Main
Planning
Meeting
Main Planning Team
SALES PLANNING
CUSTOMER SERVICE
Customer feedback
Assessment feedback
Customer
Service
Review,
Customer Service Team
Mgmt Team
Customer Service Team
FORECAST / ORDERS
Main
Planning
Meeting
Delivery Flexibility
Main Planning Team
F & A
Financial
Results
Manage-
mentTeam
Meeting
Management Team
TQM
Quality
System
Assessment
CWQI
Committee
Meeting
CWQI Committee
BENCHMARKING
Quality
System
Assessment
Benchmarking
steering review
Benchmarking Steering
Committee
H R M
Employee satisfaction
/ involvement, Turnover,
Safety, Absenteeism,
Recruitment & Training
Effectiveness
HRM
Meeting
HR Managers
PROCUREMENT
Delivery
Monthly
Supplier
Meeting
Purchasing
INITIAL PURCHASING
PRICE
Purchasing
meeting
Purchasing
QUALITY
Monthly
Supplier
Meeting
Purchasing
MATERIAL QUALITY
SUPPLIER MANAGEMENT
SUPPORTING PROCESSES
INFORMATION MGMT
Timeliness,
Reliability,
Consistency &
Accessibility
of information
Management Team
IT Steering Committee
Manage-
mentTeam
Meeting
ITSC
Meeting
Manufacturing
Manufac-
turing
Meeting
LEGEND
PROCESS
Control
Point
Control Panel
C
U
S
T
O
M
E
R
S
C
U
S
T
O
M
E
R
S
Market Share
Customer Base
Marketing
meeting
Marketing
Sub
Process
Market
Analysis
Product
Strategy
Sales
Strategy
Measurement
CWQI
Review
Departments
CWQI Committee
QIP
Responsive
Manufacturing

12. Map &
Measure
Explore &
Evaluate
Describe &
Define
Implement
& Improve
Control &
Conform
To Improve Direct Labour Cross-Training Certification in Production from Single ModelTo Improve Direct Labour Cross-Training Certification in Production from Single Model
Skill to Multi Model, Multi SkillSkill to Multi Model, Multi Skill
Pre -
Medic
Pre -
Medic
Map &
Measure
Explore &
Evaluate
Describe &
Define
Implement
& Improve
Project Milestone chartProject Milestone chart
To Improve Direct Labour Cross-Training Certification in Production from Single ModelTo Improve Direct Labour Cross-Training Certification in Production from Single Model
Skill to Multi Model, Multi SkillSkill to Multi Model, Multi Skill
Pre-Medic
Control &
Conform

13. UV1300 Family
e g :
UV1316MK2, UV1316MK3, UV1316T, UV1315MK2,
UV1355MK2, UV1356B, UV1317MK3, UV1316SMK3,
UV1336B, UV1336K, etc
Terrestrial TunersMultimedia TunersMultimedia Tuners
FI/FM/FQ1200 Family
e g :
FI1216MK2, FI1236MK2, FI1256MK2, FI1256MK2,
FI1286 MK2, FI1216MFMK2, FM1236MK3,
FQ1216ME, FM1216ME/IH MK3 etc
M
easure
apProblem AnalysisProblem Analysis
1. Product1. Product ModelModel FlexibilityFlexibility
Terrestrial Tuners
UV1300 Family
Multi-media Tuners
FI/FM/1200 Family
Each family model have :
- different processes
- different characteristic
- different lead time of training

14. Data on Current Model FlexibilityData on Current Model Flexibility M
easure
ap
Direct Labour :
Multi model % workforce
Month UV900 MP
UV900
> 1
Model
FI1200 MP
FI1200
> 1
Model
UV1300 MP
UV1300
>1
Model
CD1500
CD1500
>1
Model
TP900
TP900 >
1 Model
Total MP
Total MP >
1 Model
%
Sept 50 0 54 27 230 0 52 0 188 0 574 27 4.7%
Oct 75 0 54 27 207 0 52 0 169 0 505 27 5.3%
Nov 75 0 27 0 230 0 52 0 170 27 502 27 5.4%
Dec 50 0 162 27 236 0 0 0 170 0 618 27 4.4%
Note : 1. * MP = Manpower
2. Data collected from Actual Direct Manpower Headcount
( Base on Personnel List per batch and cross check to actual Production operator status)
Direct Labour : Multi model % workforce
Data Collected : Sept 2001- Dec 2001

15. M
easure
apGraph on Current Model FlexibilityGraph on Current Model Flexibility
Good
Noofmodel
%ofmultimodel
2 2 2 2
4.4%5.4%5.3%
4.7%
0
1
2
3
4
SEP OCT NOV DEC
0%
25%
50%
75%
100%
No of Model %of Multi Model
Direct labour : Multi-model % workforce
Data collected : Sep 2001 - Dec 2001

16. PackingElectrical
tester
F/FAlignmentStuffingStuffing
Soldering process
M
easure
apProblem AnalysisProblem Analysis
2.2. SkillSkill FlexibilityFlexibility
Touch- up
Repair all reject from
Alignment, Touch up &
other electrical testers
Packing skill
To pack tuner after alignment & testing
Alignment skill
To align components to meet
required customer specification
Touch-Up Skill
To inspect tuner after solder bath &
repair if rejected found
Stuffing skill
To assemble component into PCB
SOLDER
BATH

17. M
easure
apData on Current Skill FlexibilityData on Current Skill Flexibility
Direct Labour : No of multi skill

18. M
easure
apBar Chart on Current Skill FlexibilityBar Chart on Current Skill Flexibility
2222
0 . 2 % 0 . 2 % 0 . 2 % 0 . 3 %
0
1
2
3
4
SEP OCT NOV DEC
0%
25%
50%
75%
100%
noof skill % of mult i skill
Noofskill
%ofmultiskill
good good
Direct labour : No of Multi-skill
Data collected : Sept 2001- Dec 2001

19. UV1315UV1315 UV1336UV1336
0
10
20
30
40
50
60
70
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1ST WEEK 2ND WEEK 3RD WEEK 4TH WEEK
TEMPO
Cross-TrainingCross-Training
M
easure
ap
3. Cross-Training3. Cross-Training Lead-TimeLead-Time
Problem AnalysisProblem Analysis

20. FI1216FI1216 FM1236FM1236
0
10
20
30
40
50
60
70
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1ST WEEK 2ND WEEK 3RD WEEK 4TH WEEK
TEMPO
Cross-TrainingCross-Training
M
easure
ap
3. Cross-Training3. Cross-Training Lead-TimeLead-Time
Problem AnalysisProblem Analysis

21. M
easure
apData on Current Cross-Training Lead TimeData on Current Cross-Training Lead Time
LeadTime(Week)
Quantity

22. M
easure
apBar Chart on Current X-Training Lead TimeBar Chart on Current X-Training Lead Time
2 2 2 2
4 4 4 4
1 0 5
1 8 0
1 5 4
1 7 2
0
1
2
3
4
5
SEP OCT NOV DEC
0
4 0
8 0
12 0
16 0
2 0 0
UV M odel FI M odel PPM
Quality
Cross-trainingleadtime(week)
good good
Direct labour : Cross training lead time
Data collected : Sept 2001- Dec 2001

23. Start
Plan Change
Memo
Sufficient
lane to run
Yes
M/P Capable ?
No
No
Overtime
Yes Shift
deployment
Cross-Training
by F/T
Tempo 60
F/T release
the lane to
Production
Production
follow up
Tempo 80
Yes
No
No
Current Process
12 Steps
FI1200 = 4 Weeks
UV1300 = 2 Weeks
Yes
Sufficient
m/p to run
Prod. Send LSF
No
Yes
M
easure
ap
End
End
Problem AnalysisProblem Analysis
Current Cross-Training Process MappingCurrent Cross-Training Process Mapping

24. M
easure
apTarget SettingTarget Setting
BENCHMARK AGAINST :BENCHMARK AGAINST :
Model
Flexibility
of Total
Workforce
Cross Training
Lead Time
Benchmarked ReferencesBenchmarked References
Skill
Flexibility
of Total
Workforce
Other Philips Factory
(DAP Batam)
18 %18 % 5 %5 % 1 Week1 Week
Internal (Best ever before) 5 %5 % 0.3 %0.3 %
2 weeks2 weeks
4 weeks4 weeks
Parent Company
(Singapore Factory)
45 %45 % 25 %25 %
1 week1 week
2 weeks2 weeks

25. July
July
July
3 50%
2 50%
1
2
50%
50%
Target
Setting
Target
date
M
easure
ap
CurrentGoal Indicator
1. Model Flexibility
2. Skill Flexibility
3. Cross-Training
Lead time
2 5%
2 0.3%
2 -
4 -
Tuner
Multimedia
Target SettingTarget Setting

26. Reason of Target SettingReason of Target Setting M
easure
ap
1. Based on a careful study of
model mix vs optimization
2. Benchmark against In-house and intra
Philips company’s best practice.
3. Aimed for breakthrough improvement
to meet customer’s dynamic needs
and satisfaction (e.g. C.M. Customers)

27. M
easure
ap
1. SSpecific - Breakdown into various
respective goals with
benchmarking
3. AAmbitious - Stretched target, to beat competitor
4. RRealistic - Achievable, with teamwork from all
cross-functional departments
5. TTime-Phase - Members commitment
to the milestone time chart
- Quantifiable in numbers,
weeks and percentage
2. MMeasurable
SMART Target SettingSMART Target Setting

28. MACHINEMATERIAL
Insufficient X-
Model & X-Skill
METHOD MAN
Expert in 1
model only
Training 1 model
Running
one
model Limited table capacity
Not been trained Not
Proactive
Able to do one
model only
Not been
trained
No Material
for
Cross-Training
Can’t be upgraded
Don’t want
to buy yet
Not learn other
model yet
Not in the
schedule
Use less
Don’t want
to change
lazy
Not learn other
model yet
Purposely just
train 1 model
No chance
to learn
Reactive X-TRG
Short term
contract
Absence of
drive
attitude
Old technologyPoor skill
& knowledge
No plan
before
INA material
Not enough
material
In effective
Use for other
project
Temporary
opt
Close to EOC
No
schedule
Wait for prod.
deployment
Follow
current
planning
Very
Expensive
Can be delay
No
purposely
order
Not in first priority
Not
making yet
Cause & Effect DiagramCause & Effect Diagram EXplore
valuate

29. No chance
to learn
CAUSE
Data
Collection
METHOD
Weekly production planning shows
cross-training seldom conducted,
therefore the operator stuck on one
model and one skill only
VERIFICATION RESULT
Significant
Verification on possible causesVerification on possible causes EXplore
valuate
Short term
of contract
CAUSE
Data
collection
METHOD
F/T records skill inventory had
proven, short term contract does
not obstruct flexibility.
VERIFICATION RESULT
Able to learn 2 model within
short term of contract
Significant : > 70% members agree and > 4 incidents in a month
Insignificant : < 70% members agree or < 4 incidents in a month
Insignificant
Direct labor willing to
change if chance is
given
Do not
want to
change
CAUSE
Data
Collection
METHOD
Training record had proven direct
labor prefer to change if opportunity
is given.
VERIFICATION RESULT
Insignificant
Absence
of drive
CAUSE
Survey
METHOD
51.9% respondent did not have
motivation towards cross-training
because lack of recognition
VERIFICATION RESULT
Significant
Old
technology
CAUSE
Data
Collection
METHOD
Equipment in production is
sufficient to adapt technical change
if required. Do not obstruct flexibility
VERIFICATION RESULT
Insignificant
Poor skill
&
knowledge
CAUSE
Data
Collection
METHOD
Sufficient training was provided for
technical person required. Does not
impact to flexibility drive.
VERIFICATION RESULT
Insignificant
Training is conducted
in sudden request
Reactive
Cross
Training
CAUSE
Data
Collection
METHOD
Production raised cross training
based on last minutes requirement.
VERIFICATION RESULT
Significant
Temporary
Operator
CAUSE
Data
Collection
METHOD
Training records shows temporary
operator able to adapt flexibility if
chance is given.
VERIFICATION RESULT
Temporary
operator able to
adapt flexibility
Insignificant
Close to
EOC
( End of
contract )
CAUSE
Data
Collection
METHOD
Number of EOC operator on
average is 8% per month compare
to total direct labor headcount.
Do not disturb flexibility.
VERIFICATION RESULT
Insignificant
Lane used
for other
project
CAUSE
Observation
METHOD
Project have always been
communicated before, so flexibility
drive can be done to other line
which is available.
VERIFICATION RESULT
Insignificant
Material
not
available
CAUSE
Data
Collection
METHOD
Material will be issued as planning
required.
VERIFICATION RESULT
Insignificant
RESULT
Material
was not
plan
before
CAUSE
Data
Collection
METHOD
Material available always match
with planning from Logistic
Management (LM)
VERIFICATION
Insignificant

30. Verification on possible causesVerification on possible causes
Significant : > 70% members agree and > 4 incidents in a month
Insignificant : < 70% members agree or < 4 incidents in a month
EXplore
valuate

31. MACHINEMATERIAL
Insufficient X-
Model & X-Skill
METHOD MAN
Expert in 1
model only
Training 1 model
Running
one
model Limited table capacity
Not been trained Creative
less
Able to do one
model only
Not been
trained
No Material
for
Cross-Training
Can’t be upgraded
Don’t want
to buy yet
Not learn other
model yet
Not in the
schedule
Use less
Don’t want
to change
lazy
Not learn other
model yet
Purposely just
train 1 model
No chanceNo chance
to learnto learn
Reactive X-TRGReactive X-TRG
Short term
contract
Absence of
drive
attitude
Old technologyPoor skill
& knowledge
No plan
before
INA material
Not enough
material
In effective
Use for other
project
Temporary
opt
Close to EOC
No
schedule
Wait for prod.
deployment
Follow
current
planning
Very
Expensive
Can be delay
No
purposely
order
Not in first priority
Not
making yet
Cause & Effect DiagramCause & Effect Diagram EXplore
valuate
AbsenceAbsence
of driveof drive
No chanceNo chance
to learnto learn
ReactiveReactive
X-TRGX-TRG

32. TotalB CA
Conduct training anytime when supervisor /
operator want
Conduct structured rotation model & skill
cross- training program
Cross-training in outside working hours
Cross-training before release to production
Create cross-training schedule before
production request
Cross-training based on operator interest in
problem
Provide certificate/badge & gathering
function for recognition
Simulate visualization of customer
satisfaction on the workforce
Increase salary special for multi skill
operator
Giving
chance
to learn to
other
model
Proactive
change
model
Motivation
Drive
Flexible
&
Multi
Model
Skill
102 24
185 45
113 24
72 13
185 44
82 22
154 34
174 44
72 41
Criteria :
A) Innovative
B) Effectiveness
C) Time frame
1 2 3 4 5
Strong
correlation
> 15 selected
< 15 not selectedWeightage
Scale
No
correlation
D
2
4
2
1
5
2
4
5
2
D) Practicality
Conduct structured rotation model & skill
cross- training program
185 45 4 11
INNOVATIVE
FORCE FIELDFORCE FIELD
ANALYSISANALYSIS
Counter measureCounter measure ::
To overcome no material problem by using reused trainingTo overcome no material problem by using reused training
materialmaterial
(+)(+) DrivingDriving
ForcesForces
Restraining ForcesRestraining Forces (-)(-)
Direct labor will haveDirect labor will have
lots of chance to learnlots of chance to learn
Continuos learning willContinuos learning will
increase speed towardsincrease speed towards
trainingtraining
Rotation systemRotation system
enhance the flexibilityenhance the flexibility
No material for rotation
Solution 1Solution 1 : Conduct structured model & skill: Conduct structured model & skill
cross-training rotation programcross-training rotation program
FORCE FIELDFORCE FIELD
ANALYSISANALYSIS
EFFECTIVENESSTIME FRAMEPRACTICALITY
D
efine
escrib
e
Alternative of SolutionsAlternative of Solutions
Simulate visualization of customer
satisfaction on the workforce
174 44 5 44
Provide certificate/badge & gathering
function for recognition
154 34 4 33
Create cross-training schedule before
production request
185 44 5 22
FORCE FIELDFORCE FIELD
ANALYSISANALYSIS
(+)(+) DrivingDriving
ForcesForces
Restraining ForcesRestraining Forces (-)(-)
Training is moreTraining is more
efficientefficient
Training progress can beTraining progress can be
monitored easilymonitored easily
Direct labor will stayDirect labor will stay
focusfocus
Schedule is interrupted by
by sudden change
Solution 2Solution 2 : Create cross-training schedule: Create cross-training schedule
beforebefore
production requestproduction request
Counter measureCounter measure ::
To switch or re-arrange the schedule accordance toTo switch or re-arrange the schedule accordance to
production planningproduction planning
FORCE FIELDFORCE FIELD
ANALYSISANALYSIS
(+)(+) DrivingDriving
ForcesForces
Restraining ForcesRestraining Forces (-)(-)
Direct labor will beDirect labor will be
motivatedmotivated
Create more challengingCreate more challenging
work environmentwork environment
Direct labor will stayDirect labor will stay
focusfocus
Solution 3Solution 3 : Provide badge/certificate and: Provide badge/certificate and
gathering for recognitiongathering for recognition
N I LN I L
FORCE FIELDFORCE FIELD
ANALYSISANALYSIS
(+)(+) DrivingDriving
ForcesForces
Restraining ForcesRestraining Forces (-)(-)
Customer satisfactionCustomer satisfaction
reflects directlyreflects directly
Create more challengingCreate more challenging
work environmentwork environment
Strong motivation toStrong motivation to
customer orientedcustomer oriented
Demotivation by placing
sad face icon
Solution 4Solution 4 : Simulate visualization of customer: Simulate visualization of customer
satisfaction on the workforcesatisfaction on the workforce
Counter measureCounter measure ::
1. Acceptable in Indonesia cultural norms1. Acceptable in Indonesia cultural norms
2. Sad face will be replaced by smiling face once2. Sad face will be replaced by smiling face once
direct labour have achieved multi model anddirect labour have achieved multi model and
skillskill

33. I mplement
ImproveImplementationImplementation
Product Model
Cross-Training Product Model X-TrainingSkill Cross-Training
p
A 0209 0210 0211 0212 0213 0214 0215 0216 0217 0218 0219 0220 0221
1 FL 1B -1ST P
ORIGINAL : FI1236MK2 A
2 FL 2A- 1ST P
ORIGINAL : FM1216MK2 A
3 FL 2B - 1ST P
ORIGINAL : FQ1216MK2 A
FI1236MK2 FM126MK2 FQ1216MK2
FI/FM/FQ Family Cross training Schedule
APRIL MAYMARCH
NO LANE 0209 0210 0211 0212 0213 0214 0215 0216 0217 0218 0219 0220 0221
1 FL5A - 1ST P
ORIGINAL : UV1316 A
2 FL 6A - 1ST P
ORIGINAL : UV1315 A
3 FL 7B - 1ST P
ORIGINAL : UV1336MK3 A
UV1315 UV1316 UV1336
UV1300 Family Cross training Schedule
NO LANE
MARCH APRIL MAY
Customer’s
Smiling face
Customer’s
Sad face
CUSTOMER
Gathering & Certification
To adopt :
The learning-forgetting process.
Dugan Laird, Approaches to Training and Development
“ RETRAINING THEORY “
(Innovate change from experience base to science base process knowledge)
T1
T5T4T3T2
M
The training session gets smaller, and occur at longer
intervals as the learning overpowers the forgetting.
Communicate and disseminate rotation plan via Mini
Company Meeting
Structured rotation model & skill cross-training program

34. 2 2 2 2
3 3 3 3
50 %
50 .3%
31.4 %24 .9%
2 0 .6 %
4.4 %5.4%5.3 %4 .7%
30%
0
1
2
3
4
SEP OCT NOV DEC FEB MAR APR MAY
0%
25%
50%
75%
100%
No of Model %Multi Target Benchmark
good goodDirect labor : No of Multi-skill
Noofmodel
%ofmultimodel
A. Model FlexibilityA. Model Flexibility
Results EvaluationResults Evaluation Control
onform
Before
Implementation Implementation

35. B. Skill FlexibilityB. Skill Flexibility
D irect Lab o ur: % o f multi s kill
2 2 2 2 2 2 2 2
0 . 2 % 0 . 2 % 0 . 2 % 0 . 3 %
2 5 %
3 5 %
3 9 %
5 1 %
0
1
2
3
4
SEP OCT NOV DEC FEB MAR APR MAY
0%
25%
50%
75%
100%
noof skill %multi skill
good
%ofMultiSkill
NoofSkill
Results EvaluationResults Evaluation Control
onform
Before
Implementation Implementation

36. 0
10
20
30
40
50
60
70
80
Wk-1 Wk-2 Wk-3 Wk-4
Control
onform
Before After
C. Cross-Training Lead TimeC. Cross-Training Lead Time
Results EvaluationResults Evaluation
0
10
20
30
40
50
60
70
80
Wk-1 Wk-2
Reduce fromReduce from
4 Weeks to4 Weeks to
2 Weeks2 Weeks
Reduce fromReduce from
2 Weeks to2 Weeks to
1 Week1 Week
Terrestrial TunerTerrestrial TunerMultimedia TunerMultimedia Tuner

37. C. Cross-Training Lead Time vs Customer PPMC. Cross-Training Lead Time vs Customer PPM
D elivery time V s C ustomer PPM
2 . 0 2 . 0 2 . 0 2 . 0
1. 7
1. 4
1. 1
1. 0
4 . 0 4 . 0 4 . 0 4 . 0
3 . 4
3 . 0
2 . 3
2 . 0
1 8 0
1 5 4
1 7 2
1 8 5
1 7 5
1 5 9
1 3 5
1 0 5
0
1
2
3
4
5
SEP OCT NOV DEC FEB MAR APR MAY
0
50
100
150
200
250
UV Model FI Model PPM
good good
Cross-trainingleadtime(week)
quality
Results EvaluationResults Evaluation Control
onform
Before
Implementation Implementation

38. Control
onformProcess ChangeProcess Change
BEFORE
Start
Plan Change
Memo
Sufficient
lane to run
Yes
M/P Capable ?
No
No
Overtime
Yes Shift
deployment
Cross-Training
by F/T
Tempo 60
F/T release
the lane to
Production
Production
follow up
Tempo 80
Yes
No
No
Yes
Sufficient
m/p to run
Prod. Send LSF
No
Yes
End
End
F/T release
the lane to
Production
Production
follow up
Tempo 80
Yes
No
End
Cross-Training
by F/T
Tempo 60
No
M/P Capable ?
Yes Shift
deployment
Prod. Send LSF
No
Yes
Start
Plan Change
Memo
Sufficient
lane to run
Yes
No
No
Overtime
Yes
Sufficient
m/p to run
End
BEFORE
New Process
FI1200 = 2 Weeks
UV1300 = 1 Week
Old Process
FI1200 = 4 Weeks
UV1300 = 2 Weeks
Start
Plan Change
Memo
Sufficient
lane to run
Yes
No
No
Overtime
Yes
Sufficient
m/p to run
End
Production
follow up
Tempo 80
Yes
No
End
AFTER
Reduce from 12 Steps to 6 Steps
No x-training required for
multi model/skill workforce

39.  Good enthusiasm of Direct Labors
(achieved through the motivation
drive activities)
 Good cooperation with production
during implementation stage
 Good commitment from cross
functional team members.
 Good support from Management
Control
onformReason of Achieving ResultsReason of Achieving Results

40. Control
onformTangible ResultsTangible Results
TOTAL = Rp 19,531,782,800 + Rp 3,262,616,100
= Rp 22,794,398,900
= EUR 2,690,557
Multimedia TunerMultimedia Tuner
0
10
20
30
40
50
60
70
80
Wk-1 Wk-2 Wk-3 Wk-4
Before
After
A. Generated Sales RevenueA. Generated Sales Revenue
(Contributed by improvement from 1 to 3 models with shorter x-trg time)
MULTIMEDIA = GSV 1 x-Trg x no. x-trg /year
(Annual) 10,897 pcs x 40
435,880 pcs
Generated
Sales Volume
10,897 pcs
MULTIMEDIA = Generated Annual Sales Volume x Average Factory Selling Price
(Annual) 435,880 x Rp. 44,810
Rp. 19,531,782,800
SALES REVENUE
Terrestrial TunerTerrestrial Tuner
0
10
20
30
40
50
60
70
80
Wk-1 Wk-2
TERRESTRIAL = GSV 1 x-Trg x no. x-trg /year
(Annual) 4,045 pcs x 36
145,620 pcs
Generated
Sales Volume
4,045 pcs
TERRESTRIAL = Generated Annual Sales Volume x Average Factory Selling Price
(Annual) 145,620 x Rp. 22,405
Rp. 3,262,616,100

41. Control
onform
B. Improved Time to DeliveryB. Improved Time to Delivery
(Contributed by Cross Training Lead Time Reduction)
1. Multimedia Tuner (FI/FM/FQ1200)1. Multimedia Tuner (FI/FM/FQ1200)
4 Weeks
Tempo-80
2. Terrestrial Tuner (UV1300)2. Terrestrial Tuner (UV1300)
2 Weeks
Tempo-80
1 Week
Tempo-80
2 Weeks
Tempo-80
Tangible ResultsTangible Results

42. Control
onform
C. Indirect Labour Cost SavingC. Indirect Labour Cost Saving
(Contributed by improvement of model & skill flexibility)
• 1 lane cross-training required 1 F/T Instructress
• 76 cross-training lanes per year / 12 = 6.3 lanes per month
Saving of Manpower = Σ X-Training/month x Σ req’d Instructress
= 6,3 x 1
= 6.3
= 7 Instructress
Saving of Manpower = Gross Instructress Cost x Σ Saved Instructress
= Rp. 1,200,000 x 7 x 12
= Rp. 108,000,000 / 8,472
= EUR 12,747
Tangible ResultsTangible Results

43. Control
onformTangible ResultsTangible Results
D. Direct Labour Cost SavingD. Direct Labour Cost Saving
(Contributed by improvement of model & skill flexibility)
Saving of Direct Labour = Σ direct labours x gross labour cost
= 31 x Rp. 1,200,000
= Rp. 37,200,000 x 12
= Rp. 446,400,000 / 8,472
= EUR 52,691
• 1 lane = 31 direct labour
• Quantity Saved per year = 435,880 + 145,620 = 581,500
• 1 lane output per year per shift = 513,000 pcs
• Lane Crew Saved per year = 581,500 / 513,000 = 1.1 Lane crew

44. Control
onform
E. Cost During ImplementationE. Cost During Implementation
Total Implementation Cost = EUR 2,120 + EUR 180 + EUR 1,445
= EUR 3,745
Advance production O/T Cost
People’s Hourly O/T rate x Σ O/T Hours
Rp. 119,750 x 37.5
Rp. 4,490,625 x 4
Rp 17,962,500 / 8,472
EUR 2,120
QIC Meeting O/T Cost
Σ Team O/T Rp x Σ O/T Hours
Rp 33,700 x 45.5
Rp 1,533,350 / 8,472
EUR 180
Motivation Cost
Certificate + Badge + Smiling Face + Gathering
Rp 250,000 + Rp. 5,000,000 + Rp 750,000 + Rp 6,250,000
Rp 12,250,000 / 8,472
EUR 1,445
Tangible ResultsTangible Results

45. Control
onformTangible ResultsTangible Results
TOTAL TANGIBLE BENEFITTOTAL TANGIBLE BENEFIT
AA. Generated Sales Revenue. Generated Sales Revenue
EUR 2,690,557 per year
BB. Cost Saving. Cost Saving
A = Direct labour cost saving
B = Indirect labour cost saving
C = Cost during Implementation
Total Cost Saving per year = (A + B) - C
= (52,691 + 12,747) - 3,745
= 65,438 - 3,745
= 61,693
Total cost saving per year = EUR 61,693 per year
CC. Improve Time to Delivery. Improve Time to Delivery
Faster Time to Market
From 4 weeks to 2 weeks (Multimedia)
From 2 weeks to 1 week (Terrestrial)

46. Control
onformIntangible ResultsIntangible Results
INTANGIBLE BENEFITINTANGIBLE BENEFIT
 Easier identification and trace-ability of Direct
Labor’s Skill Inventory via “HR Direct Labour
On-Line Data Bank”
 More committed and motivated direct labour
 Simplified cross-training process flow
 Less waste on training material

47. StandardisationStandardisation Control
onform
1. To create quarterly structured cross-training
schedule.

48. StandardisationStandardisation
2. HR Direct Labour On-Line Data Bank
Control
onform
Multi Model
Multi Skill

49. StandardisationStandardisation Control
onform
3. To provide Certificate for the Flexible Direct Labours
upon completion of training.

50. Control
onformStandardisationStandardisation
Bring in the hundred miles away customers
right in front of our flexible workforce
A small innovative idea to :
4. To put in front of direct labor’s’ workplace
during Cross-Training
Customer Smiling face Customer Sad face

51. Control
onformStandardisationStandardisation
5. To award the multi skill badge for the flexible
Direct Labours
FI1200 UV1300
W
O
R
K
F OR CE F
I
L E X I B
L IT
Y
TUNER MULTI-SKILLS

52. Follow-up ActionFollow-up Action
ACTIONS DURING FOLLOW-UPACTIONS DURING FOLLOW-UP
1. To continue all improvement actions
2. To implement the proactive cross-training
through-out all production lanes.
Control
onform

53. Follow-up ResultFollow-up Result Control
onform
Direct labour : Multi model % workforce
30%
5 . 4 % 4 . 4 %
2 0 . 6 %
2 4 . 9 %
3 1. 4 %
5 0 . 3 % 5 2 . 7 % 5 4 . 4 %
50%
0
1
2
3
4
NOV DEC FEB M AR APR M AY JUN JUL AUG
noofmodel
0%
25%
50%
75%
100%
No of M odel %M ulti Target Benchmark
Time to mar ket, Customer PPM
1 . 01 . 01 . 01 . 1
1 . 4
1 . 72 . 02 . 0 2 . 02 . 02 . 0
2 . 3
3 . 0
3 . 4
4 . 04 . 0
15 1
19 1
13 5
15 9
17 518 5
17 2
15 4
0
1
2
3
4
5
NOV DEC FEB MAR APR MAY JUN JUL AUG
0
50
100
150
200
250
UV Model FI Model PPM
Direct Labour:%of multi skill
1 1
2 2 2 2 2 2
0.2% 0.3%
54%54%51%
39%35%
25%
0
1
2
3
4
NOV DEC FEB MAR APR MAY JUN JUL AUG
0%
25%
50%
75%
100%
no of skill %multi skill
Noofskill
good
Before
Implementation
Before
Implemen-
tation
Before
Implemen-
tation
Implementation
Implementation Implementation
After
Implementation
After
Implementation
After
Implementation
%ofmultimodelQuality
good
good
Cross-trainingleadtime(week)
good

54. LEARNING
We learned :
 The application of Retraining Theory from the
academic teaching to industrial environment.
 Recognize that one of the critical success factors for
world-class contract manufacturing is agility.
 Build-up competent resources to keep abreast in
meeting the evolving needs of our customers.
 Motivating people through fun and innovative way.
 Using internet to obtain customer’s information.
Control
onformProject Learning and SharingProject Learning and Sharing

55. Control
onform
SHARING
Project Learning and SharingProject Learning and Sharing
Internal sharing :
- MEDIC Approach Application
- Structured x-trg rotation
- Retraining Theory
 Cross Department Sharing
1. Finance & Admin Dept.
2. Engineering Department
3. Logistics Department
Subject of Sharing
 Internal Customer-Supplier :
1. HR Department
2. Production Department
- Lead time reduction
- Retraining Theory
- Problem Analysis

56. Control
onform
SHARING
Project Learning and SharingProject Learning and Sharing
Through this sharing of best practices our team hopes to contribute
to the corporate drive of “Transforming into One Philips (TOP) “
External sharing :
- Re-training Theory
- Structured x-trg rotation
 Within PD (Product Division)
1. Suzhou (China).
Subject of Sharing
 Cross PD (Product Division)
1. PCMS (Poland)
2. DAP Factory
- Project Presentation
- Retraining Theory
- Reward Scheme (Badge/Cert.)
- Motivation drive (Smiling Face)

57. ACHIEVEMENT THROUGH TEAM WORK
Attributes for the success :
1. Cross functional skills contributed to
effective team work
2. Improve communication
3. Reduce cross-functional barriers
4. Team members respect each other’s ideas
5. Decision making based on consensus and
member’s commitment
Control
onformWorking as a teamWorking as a team

58. Operational & Functional Skill Application
have been embarked to the project :
Approach to Cross Training : Theory & Practical
Shop Floor Management
Manufacturing Flow & Planning
Direct Labor Cross-Training & Monitoring
Problem Solving Analysis & Tools
Project Report & Presentation
Direct Labor Enforcement & Recognition Scheme
Observation & Time Study
Team Formed : December 2001
Meeting Schedule : Every Wednesday
Duration : 2 hours
Attendance : 96%
Duration of Project : 6 months
Arief M Ridwan
Functional Training
Liza Dewanti
Production
A. Arif Rahman,
Knowledge Based Training
TEAM PROCEEDING, SKILLS AND ROLES
Endang SWL
Functional Training
Teh Sion Chew
Industrial Engineering
Ida Marlinda
Human Resource
Working as a teamWorking as a team Control
onform
96 %
Attendance

59. SOCIAL ACTIVITIES
Control
onformWORKING AS A TEAM
Blessing water
for prosperity
Refreshing after QIC
convention in Singapore
Brainstorming for Costume
Sunday Gardening
“Kenduri “ a traditional ceremony
for team leader’s new born baby

60. CONCLUSION Control
onform
WHERE WE WERE
A. Model Flexibility
B. Skill Flexibility
C. Time to Delivery
- 5 % of total workforce
- 2 Skills
- 0.3 % of total workforce
- M/M = 4 Weeks
- Tuner = 2 Weeks
Unable to support
Business Strategy C.M.
3. Losing grid to retain
some Key Account
Customer
1. Loss of Flexibility
WHERE WE WILL BE
A. Multi Model,
B. Multi Skill and
C. Supersonic
Time to Delivery
1. Growth enabling skills
2. No 1 - Contract
Manufacturing
3. Attract and Enlarge
Customers Base
SHOJINKA FOR
CONTRACT
MANUFACTURING
PRODUCTS
Next Project :
WHERE WE ARE
A. Model Flexibility
B. Skill Flexibility
C. Time to Delivery
- 50.3 % of total workforce
- 2 Skills
- 51.3 % of total workforce
- M/M = 2 Weeks
- Tuner = 1 Weeks
1. Flexible workforce
2. Ready for
Contract Manufacturing
3. Retain Key Account
Customers and
win new customers
(new order fr. Medion)
On par with market leader
Matsushita (50% vs 50%)
Beat competitor in BIP
Thomson (50% vs 30%)

61. THANK YOUTHANK YOU
Control
onform
Mr. Teo Kian Cheow - Facilitator / Manager
Mr. Ong Shu Geng - T Q M
Mr. David Tham - Operations Manager
All Production Supervisors
All Philips Tuner Batam Direct Labors
All Parties supporting this project
Mission Possible team thanks to :
Ms. Chong Aye Wah - QIC Champion
All rights reserved by Mission Possible Team

62. Control
onform

63. Control
onform

64. Control
onform

65. Control
onform

66. TotalB CA
Conduct training anytime when supervisor /
operator want
Conduct structured rotation model & skill
cross- training program
Cross-training in outside working hours
Cross-training before release to production
Create cross-training schedule before
production request
Cross-training based on operator interest in
problem
Provide certificate/badge & gathering
function for recognition
Simulate visualization of customer
satisfaction on the workforce
Increase salary special for multi skill
operator
Giving
chance
to learn to
other
model
Proactive
change
model
Motivation
Drive
Flexible
&
Multi
Model
Skill
102 24
185 45
113 24
72 13
185 44
82 22
154 34
174 44
72 41
Criteria :
A) Innovative
B) Effectiveness
C) Time frame
1 2 3 4 5
Strong
correlation
> 15 selected
< 15 not selectedWeightage
Scale
No
correlation
D
2
4
2
1
5
2
4
5
2
D) Practicality
INNOVATIVEEFFECTIVENESSTIME FRAMEPRACTICALITY
D
efine
escrib
e
Alternative of SolutionsAlternative of Solutions
Conduct structured rotation model & skill
cross- training program
185 45 4 11
Simulate visualization of customer
satisfaction on the workforce
174 44 5 44
Provide certificate/badge & gathering
function for recognition
154 34 4 33
Create cross-training schedule before
production request
185 44 5 22

67. No chance
to learn
CAUSE
Data
Collection
METHOD
Weekly production planning shows
cross-training seldom conducted,
therefore the operator stuck on one
model and one skill only
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Significant

68. Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Short term
of contract
CAUSE
Data
collection
METHOD
F/T records skill inventory had
proven, short term contract does
not obstruct flexibility.
VERIFICATION RESULT
Able to learn 2
model within short
term of contract
Insignificant

69. Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Direct labor willing
to learn & change
if chance is given
Do not
want to
change
CAUSE
Data
Collection
METHOD
Training record had proven direct
labor prefer to change if opportunity
is given.
VERIFICATION RESULT
Insignificant

70. Absence
of drive
CAUSE
Survey
METHOD
51.9% respondent did not have
motivation towards cross-training
because lack of recognition
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Significant

71. Old
technology
CAUSE
Data
Collection
METHOD
Equipment in production is
sufficient to adapt technical change
if required. Do not obstruct flexibility
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

72. Poor skill
&
knowledge
CAUSE
Data
Collection
METHOD
Sufficient training was provided for
technical person required. Does not
impact to flexibility drive.
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

73. Training is conducted
in sudden request
Reactive
Cross
Training
CAUSE
Data
Collection
METHOD
Production raised cross training
based on last minutes requirement.
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Significant

74. Temporary
Operator
CAUSE
Data
Collection
METHOD
Training records shows temporary
operator able to adapt flexibility if
chance is given.
VERIFICATION RESULT
Temporary
operator able to
adapt flexibility
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

75. Close to
EOC
( End of
contract )
CAUSE
Data
Collection
METHOD
Number of EOC operator on
average is 8% per month compare
to total direct labor headcount.
Do not disturb flexibility.
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

76. Lane used
for other
project
CAUSE
Observation
METHOD
Project have always been
communicated before, so flexibility
drive can be done to other line
which is available.
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

77. Material
not
available
CAUSE
Data
Collection
METHOD
Material will be issued as planning
required.
VERIFICATION RESULT
Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
Insignificant

78. Verification on possible causesVerification on possible causes EXplore
valuate
Significant : > 70% members agree and > 4 incidents in a month)
Insignificant : < 70% members agree and < 4 incidents in a month
RESULT
Material
was not
plan
before
CAUSE
Data
Collection
METHOD
Material available always match
with planning from Logistic
Management (LM)
VERIFICATION
Insignificant

79. M
easure
apTarget SettingTarget Setting
BENCHMARK AGAINST :BENCHMARK AGAINST :
Model
Flexibility
of Total
Workforce
Cross Training
Lead Time
Benchmarked ReferencesBenchmarked References
Skill
Flexibility
of Total
Workforce
Best in Class Company
(Alps)
X %X % X %X % X weeksX weeks
Other Philips Factory
(DAP Batam) 18 %18 % 5 %5 % 3 days3 days
Other company with similar
product in Batamindo
Industrial Park
(PT. Thomson Batam)
30 %30 % 5 %5 % 4 weeks4 weeks
Internal (Best ever before) 5 %5 % 0.3 %0.3 %
2 weeks2 weeks
4 weeks4 weeks