Close MM Saving Improvement

MM SAVING IMPROVEMENT
17 Oct 2012
Presented by Tran Thanh Nhan
Copyright(c)LIXIL Corporation, All rights reserved.
American Standard Vietnam
Define
2
Copyright 2011 Global Business Company (LIXIL Corporation), All right reserved.
Key Initiative: MM SAVING IMPROVEMENT
AP-VN030
Key Metrics:
Primary metric:
Actual saving 2011: 293.19 K USD saving on MM - Target Archive Saving 343 K USD Saving as AOP_2012
Secondary metric:
- Limited 25 bil VND for payment in advance to supplier in the period of the year
Define: 01/03/2012
Improve: 30/06/2012
Measure: 01/06/2012
Control: 15/07/2012
Business Errors:
No techincal support to testing new source of material
Not enough warehouse to keep material
Low sale & Not enough money to payment to supplier
Barriers:
- Price of Fuels is increasing around 15% Vs end of 2011
- Transportation are increasing
- High inflation
- VND de-valuation
Benefits: (in K USD @ AOP rate)
Direct Saving = 343K USD per year
Cash Flow Improvement = XXXX
Indirect Saving = XXXX
Program Budget:
Analyze: 15/06/2012
Close: 31/12/2012
Actual saving 2011
Va lues Saving (K U SD )
Completion Schedule:
DMAIC
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
-
Groups material
Project Leader: Tran Thanh Nhan

Project Sponsor: Tran Dinh Giang
LBB: Tran Gia Huan
MBB: Somprasert Prapatsaranon
Team Members: Nguyen Thi Hoang Anh, Phung Thi My Dung,
Nguyen Manh Dan, Chau Ngoc Hoai Trang, Nguyen Thi Xuan
Loan, Nguyen Thi Thanh Thuy, Tong Thi Kim Giao
3
Project #
AP-VN030
Project Title
MM Saving
improvement
Project Leader
Tran Thanh Nhan
Project Sponsor
Tran Dinh Giang
MBB / LBB
Tran Gia Huan
Benefit Category (K USD)

DIRECT BENEFIT
Detailed Computation by Category
A. Cost Takeout
B. Incremental Margin
(1) Net Increased Capacity
= 343K USD
(2) New Product Net Sales
=
Total saving = Total buying volume(AOP price Actual price)
C. Increased Cost Expense

=
Microsoft Excel
Worksheet
Total Direct Benefit (A+B-C)

= 343K USD
CASH FLOW BENEFIT
Net Cash = XXXX
INDIRECT BENEFIT
a. Cost Avoidance =
b. Non-Value-Added Reduction =
c. Non Financial Benefit=
M A I C
Trend chart Actual saving 2011 and target 2012
Target 2012 saving
M A I C
Optimization
Loading
Change soure
of Faucet from
Top 10
consumable
MRO rebate
Miscellaneous
ComponentsSeat & Covers
2011 Saving
Packaging
Slip-Silica
RMs
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
Slip-Clay RMs
Values Saving (K USD)
Chart Saving target 2012 & actual 2011
Group Materials
Executive Summary
1. DEFINE:
- Base on AOP 2012 for MM saving, we set the target following
AOP, It say total saving of this project is 343 K USD for full year
- Limited 25 bil VND for payment in advance to supplier in the
period of the year
2. MEASURE:
- We apply some tools of SS to show the status of project
- We defined three Clues:
Clue#1: 95.6% of each group materialS & others impact to MM Saving
Clue#2: we will be focus to these suppliers who have contribute 80% of
spending
Clue#3: we will be focus to these spending
6
Executive Summary
3. Analysis:
05 Why Analysis
Find out the root cause via FMEA and action suggested
4. Improvement
Action taken:
- Locked the price for key materials: KO, DO, S&C No.45, tank
fitting AS19, Components, packing materiak
- Worked with regional to negotiation with material supplier to lock
the price minimize the price increasing
- Change the outlet of tank fitting AS13S to have saving
- Follow up strickly the market price of key material like PP material,
Fuels, Iron, Zinc
7
Executive Summary
5. Control
- Work closely with Lab to change the source of
DeeDee feldspar to Yen Ha Feldspar
- Negotiation with Sanipro to rebate for this year
- Looking new shipping line to reduce the logistic
cost
- Strickly follow up the project to changing KO to
CNG
- Lock price of packing, components
8
Measure
9
Data Collection Plan

To meet the purpose of baseline data diagnosis, we need to plan carefully on the data collection. Therere 6
key elements to take care of:
What to
collect?
(Y/y/Xs)
Operational
Definition
How to ensure the

reliability of data
source?
Related
conditions
(Stratification
factors) to record
Sampling plan /
Responsible person
Data collection
format
MM SAVING
IMPROVEME
NT
Total buying
volume(AOP price
Actual price)
Monhtly report of MM
saving which verified
by FI
Where:
- Monthly report MM
Saving
What
-Group material
-Payment in advance
to supplier
Monthly / Purchasing
team
Excell format
A I C
Microsoft Excel
Worksheet
10
Baseline Analysis Plan for Stratification Analysis
Guideline : Stratify the baseline data (Y/y) against related conditions (factors) to get patterns or clues to focus first.
Y/y
Stratify by What
Stratify by Where
Saving of each group material & others

Value of payment in advance to supplier
-Monthly report MM Saving
A I C
11
Baseline Analysis Stratification Analysis Saving of each group material & others
Category(S av ing of each group material & others)

350
100
300
Count
200
60
150
40
Percent
80
250
100
20
50
0
Ca te go r y
g
er
En
a
Ch
e
ng
so
in
av
yS
e
ur
of
u
Fa
ce
r
tf
om
e
Ov
rs
ea
to
l is
ta
a
Pa
a
ck
n
gi
Re
e
uc
im
r
po
a
tt
x
ip
Sl
Cl
ay
s
RM
Co
e
on
snt
a
Se
t&
er
ov
he
Ot
Co unt
150
72
50
29
15
12
15
Pe r ce nt
Cum %
4 3 .7
4 3 .7
2 1 .0
6 4 .7
1 4 .6
7 9 .3
8 .5
8 7 .8
4 .4
9 2 .1
3 .5
9 5 .6
4 .4
1 0 0 .0
Clue#1: 95.6% of each group material & others impact to MM Saving in 2012
A I C
12
Baseline Analysis Stratification Analysis Value of payment in advance to supplier
P-value<0.05, so that there are

significant between value of payment
Amount in DC(Mil)
Boxplotof AmountinDC(Mil)byText
20000
15000
10000
5000
0
-1
-1 12 C)
-1
-1
-1
-1
-1
C)
(S SC) SC) 20 2(S SC) SC) SC) SC) SC)
9
3
2( 07( am 08 10( 06( 65( 01( 11(
00 01
0
1
0 200 ian 11 200 200 100 200 200
1
2
0
0
g
1
1
2
2
0
0
01 01
01 01 01
iu
HD D2 D2 c g
HD D2 D2 D2 D2 D2
H
H co TT
H
H LH
H
H
TT
n- -TT -TT at
G- -TT -TT T P -TT -TT
ihe
S
n nh
h
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g
h
-D X
C Tua
A lisa
An i So on- oan Bin
E
i
g
M
a
S
H
n
n
t
Ita OLI Tam Th ai
ha
Va Hu
h Vie gT
R
T
u
T
on
Ch
PE
Vu
Text
Clue#2: we will be focus to these supplier
A I C
Jan11 to Mar12
13
Baseline Analysis Stratification Analysis Value of spending
Spending 2012 vs 2011

3,000
2,500
2,000
1,500
1,000
Target spending 2012
A I C
O ther Misc
Supplies
Purc has ed
Services
Recruitment &
Training
Ins urance
Maintenanc e &
Repair Materials
Manufac turing
Supplies
Misc ellaneous
Components-Seat
& Covers
Actual spending 2011
Components Tank Trims
G lazeStains/G laz e RMs
Slip-Silic a RMs
Slip-Clay RMs
Logistic Spending
500
Energy (DO , KO ,
LPG )
Values ( K USD)
3,500
Material Groups
14
Sumary Clues on Measure phase
Clue#1: 95.6% of each group materialS & others impact to MM

Saving in 2012
Clue#2: we will be focus to these supplier who have contribute 80%

of spending
A I C
15
Analyse
16
05 Whys for Clues#1: 95.6% of each group materials & others impact to MM Saving 2012
Clue
Why 1
Why 2
Clue#1:
95.6% of
each group
material &
others
impact to
MM Saving
in 2012
These
groups are
contribute
80% per
total buying
Main
material
The price
of these
material is
not stable
D M
I C
The main
cost of
materials is
contributed
by fuels
Why 3
Why 4
Why 5
Why 6
Potential
cause
X1-1
The trend
of fuels is
on
increasing
The
government
controlled
the price
and now
import tax is
2% vs 15%
as normal
X2-1
17
05 Whys for Clues#2: We will be focus to these suppliers

Clue
Why 1
Why 2
Why 3
Why 4
Clue#2:
we will be
focus to
these
suppliers
There are
good
price and
stable
quality
Theyre
supplier to
supply
goods
product in
past few
years
Theyre
supplying
keys
materials
for us and
stable
quantity
These
material
impacts to
saving of
project
Their
products
is made
by PP
material
and fuels
The trend
price of
Fuels and
PP are
increasing
D M
I C
Why 5
Why 6
Potential
cause
X3-2
X4-2
Inflation
18
05 Whys for Clues#3: We will be focus to these spending
Clue#3:
we will be
focus to
these
spending
D M
Why 1
Why 2
Why 3
These
spending
are TOPs
spending
Its paid to
buy keys
big volume
materials
for
production
These are
main
materials
for
production
The
changing
of market
is also big
impact to
company
The market
price is
impacting
directly to
the
spending
The
impact is
contribute
60-70%
the cost of
product
I C
Why 4
Why 5
Why 6
Potential
cause
X5-3
The price
increasing
X6-3
19
FMEA Analysis
Process Step
Key Process Input
What is the process step
What is the Key Process Input?
Potential Failure Mode
In what ways does the Key Input go

wrong?
Sai theo kieu gi
Potential Failure Effects
What is the impact on the Key Output

Variables (Customer Requirements) or
internal requirements?
Anh Huong NTN
95.6% of each group

material & others impact to Energy, Plastic, Packing, Slip, Glaze
MM Saving in 2012
Prices are increasing
95.6% of each group

The government is lose for selling fuels
material & others impact to
price
MM Saving in 2012
The world price is higher than

The fuels is increasing
local price
we will be focus to these

suppliers

supplier

spending

spending
D M
Petrolimex, Thai Son, MRD, Deedee, Chien,

They requests to increase the
Chu Van Tuan, Vuong Thai Binh, Hung
price
Anh, Italisa
Petrolimex, Thai Son, MRD, Deedee, Chien,
Market price of PP and fuels
Chu Van Tuan, Vuong Thai Binh, Hung
are not stable
Anh, Italisa
Energy (DO, KO, LPG), ComponentsFittings,Components-Tank Trims,Slip-Clay
These spending will be
RMs,Packaging, Slip-Feldspar
increasing
RMs,Components-Seat & Covers,
Manufacturing Supplies
Energy (DO, KO, LPG), ComponentsFittings,Components-Tank Trims,Slip-Clay
These spending impacts to
RMs,Packaging, Slip-Feldspar
cost of product
RMs,Components-Seat & Covers,
Manufacturing Supplies, Logistic Spending
I C
These groups are contribute 80%

per total buying
S
E
V
How Severe is the
effect to the
customer?
No
Potential Causes
What causes the Key Input to go

wrong?
Tai Sao Sai
X1-1 Main materials
X2-1 The government

controlled the price of Fuels
and now import is 2% vs 15%
as normal
Theyre supplying keys materials for

us and stable quantity
X3-2 These material impacts

to saving of project
The trend price of Fuels and PP are

increasing
X4-2 Inflation
It paid to buy keys big volume

materials for production
X5-3 These are main

materials for production
The impact is contribute 60-70% the

cost of product
X6-3 The price increasing
20
Improve
21
Plan for Cause Verification

Xs (Potential Causes)
Theory of Impact on y
These groups are contribute 80% per
total buying
X1-1 Main materials
X2-1 The government controlled the

price of Fuels and now import tax is
The trend of fuels is increasing
2% vs 15% as normal
X3-2 These materials impacts to
saving of project
How to Verify
Compare with AOP_2012 Price Ms Loan _ FI, Monthly
Follow up with Market on the

Mr Nhan _ Daily
internet and supplier information
Theyre supplying keys material for us

and stable quantity
Follow up with supplier request
Follow up with Market on the
The trend price of Fuels and PP are internet and supplier information
X4-2 Inflation
increasing
and AOP_2012 price
X5-3 These are main materials for It paid to buy keys big volume materials
production
for production
Base on monthly spending
The impact is contribute 60- 70% the
X6-3 The price increasing
cost of product
Base on monthly spending
D M A
Who & When
Purchasing team and FI_ Monthly

22
Verification X1-1 Main Materials

Summary for Cost of AOP 2012
A nderson-Darling N ormality Test
800
1600
A -S quared
P -V alue <
2.99
0.005
M ean
S tD ev
V ariance
S kew ness
Kurtosis
N
400.79
637.46
406351.36
2.9369
10.3323
27
M inimum
1st Q uartile
M edian
3rd Q uartile
M aximum
2400
1.15
18.59
146.25
527.10
2992.39
95% C onfidence Interv al for M ean

148.62
652.96
95% C onfidence Interv al for M edian

36.17
401.72
95% C onfidence Interv al for S tD ev
95% Confidence Intervals
502.01
873.59
Mean
Median
0
100
200
300
400
500
600
P-Value = 0.005 < 0.05. It had different cost of each group materials,
so that well focus on high cost of materials.
D M A
Go to next slide to see

stratification main materials
23
Verification X1-1 Stratification on Main Materials
C ategory (S av ing of each group material & others) will be focus

350
100
300
Count
200
60
150
40
Percent
80
250
100
20
50
0
Cate g or y
e
En
e
ng
ha
n
vi
Sa
y
rg
re
ou
of
c
au
et
fr
om
er
Ov
ea
to
l is
ta
a
Pa
a
ck
ng
gi
Re
du
ce
im
r
po
a
tt
x
ip
Sl
-C
la
s
RM
Co
e
on
snt
a
Se
t&
er
ov
he
Ot
Co unt
150
72
50
29
15
12
15
Pe r cent
Cum %
43 .7
43 .7
2 1 .0
6 4 .7
1 4 .6
7 9 .3
8.5
8 7.8
4 .4
92 .1
3.5
9 5.6
4 .4
1 00 .0
95.6% of each group material & others impact to MM Saving in 2012
D M A
24
Verification X2-1 Fuels increasing
Follow up with Market on the internet and supplier information
D M A
25
Quick action Plan

No Potentials Cause
1
X1-1
Supplier Name
Thai Son
X1-1
2
X1-1
Chien
X1-1
Material
Description
Locked the price for AOP demand of Feb, Mar, Apri
Locked for July_2012
Tank Fitting AS19S
Locked the price for AOP demand of Feb
Locked from Feb to end of April
Top & Tail Carton packing
Locked the price for AOP demand until end of Q2_2012
Locked from Feb to end of June
Wooden Crate
Locked from Feb to end of June
X3-2
Chu Van Tuan
Hanger for Lava
X3-2
Tam Anh
Overflowring
X3-2
Hung Anh
Tank fitting HA13
X3-2
Vuong Thai Binh
SS connecting bolt for tank fitting
X4-1
Sanipro
Tank Fitting AS13S
Change the outlet of tank fitting
X2-1
Petrolimex
KO
X2-1
Remark
S&C No.45
Locked the price for AOP demand until end of Q2_2012

Make good relationship with supplier, they will have advising
to them when they have information from gorvment to
increase the price
Make good relationship with supplier, they will have advising
to them when they have information from gorvment to
increase the price
We're working with supplier locking the price to End of June
2012
2012
2012
We're working with supplier locking the price to End of
Sep_2012
Deadline
DO
Locked price to end of June ( AOP volume)
Locked price to end of June ( AOP volume)

05-Mar-12 Locked price to end of June ( AOP volume)
Apr-12 Done
X6-3
WDI
S&C
Rebate from WDI
Jun-12 Done
10
X5-3
WG
Recli A55
Change source of Recli A55
Apr-12 Done
12
X3-2
Italisa
Local Faucet
Locked price of Faucvet
Jan-12 Done
13
X3-2
Sibelco
Kaoling Ranon g
Combine volume of all country to keep the price
Mar-12 Done
14
X3-2
Smarlink
Shipping line
Change source from RCL to Smarklink
Apr-12 Done
D M A
26
Stratification for Y2 - Limited 25 bil VND for payment in advance

to supplier in the period of the year
RESULT ACTUAL JAN-AUG-2012 DEPOSIT TO SUPPLIER
Unit: Mil VND
Jan_2012 Feb_2012 Mar_2012 April_2012 May_2012 June_2012 July_2012 Aug_2012
Text
Pmnt date
PETROLIMEX SG-TT HD 20110082(SC) 15/02/12
Thai Son-TT PLHD 20110065(SC)-1
20/01/12
Tam Anh-TT HD 20120010(SC)-1
12/03/12
Vuong Thai Binh-TT HD 20120011(SC)-1 12/03/12
Chu Van Tuan-TT HD 20120012(SC)-1 12/03/12
Thai Son-TT HD 20120006(SC)-1
22/03/12
Hung Anh-TT HD 20120007(SC)-1
12/03/12
Italisa-Dat coc giu gia nam 2012
01/11/11
Chien-TT HD 20110039(SC)
01/12/11
21/12/11
Viet Hoang-TT HD 20120001(SC)-1
13/04/12
Total
D M A
Total Payment
in advance Deposit Deposit Deposit Deposit Deposit Deposit Deposit Deposit
20,258
20,258 15,929
11,525
7,706
3,642
138
2,000
2,000
2,000
2,000
1,300
600
138
138
138
138
138
138
138
266
266
266
266
266
266
266
500
500
500
500
500
500
500
478
478
478
478
478
478
3,600
3,600
3,600
3,600
3,600
2,348
1,139
580
580
580
580
580
580
580
5,009
5,009
5,009
5,009
5,009
5,009
5,009
5,009
5,009
500
420
340
260
180
80
100
350
290
230
170
110
60
50
500
500
34,179
7,719 27,837 28,452
24,185 19,026
14,213
9,607
8,109
27
Action X1-1 on main Materials Slip

Locked price of Slip
Boxplot of Slip before action, Slip after action
P-value = 0.014<0.05.
There are significant before vs after action
35
30
25
One-way ANOVA: Slip before action, Slip after action
Source
DF
SS
MS
Factor
535.1
535.1
7.47
0.014
Error
18
1288.7
71.6
Total
19
1823.9
Data
20
15
10
5
0
S = 8.461
R-Sq = 29.34%
R-Sq(adj) = 25.42%
Slip before action
Individual 95% CIs For Mean Based on
Slip after action
Before from Jan11 to Mar12

After from Apr12 to Aug12
Pooled StDev
Level
Mean
StDev
+---------+---------+---------+---------
Slip before acti
15
4.498
8.317
(-----*------)
Slip after actio
16.444
8.948
(----------*-----------)
+---------+---------+---------+--------0.0
7.0
14.0
21.0
Pooled StDev = 8.461
D M A
28
Action X1-1 on main Materials Slip

Locked price of Slip
The trend of Slip saving Before Vs After action
I -M R C h a r t o f R e s u l t_ 1 b y B e f o r e V s A f te r _ 1
60
S lip B e f o re a ct io n
S lip a f te r a c tio n
Individual Value
U C L= 5 2 . 5 1
40
_
X= 16 .44
20
0
-2 0
LC L= -1 9 . 6 3
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O c t-1 1
D e c -1 1
M o n t h ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
S lip a f te r a c tio n
U C L= 4 4 . 3 1
M oving Range
40
30
1
20
__
M R = 13 .56
10
0
LC L= 0
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O c t-1 1
D e c -1 1
M o n t h ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
The Slip there are difference result before versus after action.
Mean before = 4.5, Mean after = 16.44.
D M A
29
Action X1-1 on main Materials Packing

Locked price of Packing
Boxplot of Packing before action, Packing after action
P-value = 0.000<0.05.
4.5
4.0
One-way ANOVA: Packing before action, Packing after action

3.5
DF
SS
MS
Factor
16.067
16.067
20.33
0.000
Error
17
13.436
0.790
Total
18
29.503
S = 0.8890
3.0
Data
Source
2.5
2.0
1.5
R-Sq = 54.46%
1.0
R-Sq(adj) = 51.78%
0.5
Packing before action
Packing after action
Individual 95% CIs For Mean Based on

Pooled StDev
Level
Mean
StDev
Packing before a
14
1.3357
0.9765
Packing after ac
3.4240
0.5096
--+---------+---------+---------+-------

(----*----)
(-------*--------)
--+---------+---------+---------+------1.0
2.0
3.0
4.0
Pooled StDev = 0.8890
D M A
30
Action X1-1 on main Materials Packing

Locked price of Packing
The trend of Packing saving Before Vs After action
I -M R C h a r t o f R e s u l t b y B e f o r e V s A f te r
P a ck in g B e f o re a ctio n
4.5
Individual Value
P a c k in g a f te r a ctio n
U C L= 4 .9 1 3
_
X= 3.424
3.0
LC L= 1 . 9 3 5
1.5
0.0
F e b -1 1
Moving Range
A p r-1 1
J u n -1 1
A u g -1 1
O ct-1 1
D e c -1 1
M o n t h ly
F e b -1 2
P a ck in g B e f o re a ctio n
A p r-1 2
J u n -1 2
A u g -1 2
P a c k in g a f te r a ctio n
1
1
3
2
U C L= 1 .8 3 0
__
M R = 0.56
LC L= 0
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O ct-1 1
D e c -1 1
M o n t h ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
The Packing there are difference result before versus after action.
D M A
31
Action X1-1 on main Materials ComponentsLocked price of Components

Two-Sample T-Test and CI: Components Before action, Components After action
Two-sample T for Components Before action vs Components After action
Mean
StDev
SE Mean
Components Befor
15
4.86
3.46
0.89
Components After
16.44
5.00
2.2
P-value = 0.005<0.05.
Difference = mu (Components Before action) - mu (Components After action)

Estimate for difference:
95% CI for difference:
-11.5826
(-17.7710, -5.3942)
T-Test of difference = 0 (vs not =): T-Value = -4.81
P-Value = 0.005
DF = 5
Boxplot of Components Before action, Components After action

25
Boxplot of Components Before action, Components After action

20

Data
15
10
0
Components Before action
D M A
Components After action
32
Action X1-1 on main Materials Components

Locked price of Components
The trend of Packing saving Before Vs After action
I-M R C ha r t o f R e s ult_ 2 by B e fo r e V s A f te r _ 2
C o m p o n e n ts B e fo re a ctio n
C o m p o n e n ts A fte r a ctio n
Individual Value
U C L= 3 3 . 2 2
30
20
_
X= 1 6 .4 4
10
0
LC L= -0 .3 4
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O ct-1 1
D e c-1 1
M o n t h ly
F e b -1 2
C o m p o n e n ts B e fo re a ctio n
A p r-1 2
J u n -1 2
A u g -1 2
C o m p o n e n ts A fte r a ctio n
U C L= 2 0 . 6 2
M oving Range
20
15
10
__
M R = 6 .3 1
5
0
LC L= 0
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O ct-1 1
D e c-1 1
M o n t h ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
The Components there are difference result before versus after action.
D M A
33
Action X2-1 on main Materials Fuels

Locked price of Fuels
Boxplot of Energy saving before action, Energy saving after action
30
25
Data
20
15
10

Two-Sample T-Test and CI: Energy saving be, Energy saving af
0
Energy saving before action
Energy saving after action
Two-sample T for Energy saving before action vs Energy saving after action
Mean
StDev
SE Mean
Energy saving be
15
1.62
2.77
0.72
Energy saving af
23.72
2.93
1.3
P-value = 0.000<0.05.
Difference = mu (Energy saving before action) - mu (Energy saving after action)

Estimate for difference:
95% CI for difference:
-22.0985
(-25.7479, -18.4492)
T-Test of difference = 0 (vs not =): T-Value = -14.82
D M A
P-Value = 0.000
DF = 6
34
Action X2-1 on main Materials Fuels

The trend of energy saving Before Vs After action
I -M R C h a r t o f E n e r g y s a v i n g b y B e f o r e V s A f t e r
E n e rg y s a v in g b e f o re a c t io n
E n e rg y s a v in g a f t e r a c t io n
U C L= 3 1 . 4 1
Indiv idual V alue
30
_
X= 2 3 .72
20
LC L= 1 6 . 0 3
10
0
F e b -1 1
M oving Range
10 .0
A p r-1 1
J u n -1 1
A u g -1 1
O c t -1 1
D e c-1 1
M o n th ly
F e b -1 2
E n e rg y s a v in g b e f o re a c t io n
A p r-1 2
J u n -1 2
A u g -1 2
E n e rg y s a v in g a f t e r a c t io n
U C L= 9 . 4 5
7 .5
1
5 .0
2 .5
__
M R = 2 .89
0 .0
LC L= 0
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O c t -1 1
D e c-1 1
M o n th ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
The energy there are difference result before versus after action. Mean before =
1.6232, Mean after = 23.72.
D M A
35
Control Phase
36
FMEA UPDATED
R
P
N
Actions Recommended
Resp.
Actions Taken
What are the actions for reducing the occurrance of

the Cause, or improving detection? Should have
actions only on high RPN's or easy fixes.
Huong de nghi
Whose Responsible
for the recommended
action?
What are the completed actions taken with the

recalculated RPN? Be sure to include
completion month/year
S
E
V
O
C
C
D
E
T
R
P
N
729
Locked price of Fuels, packing,

rawmaterials, tank fitting, components
Purchasing team
- Locked price of Fuels, Packing,

Rawmaterial, components
140
648
Purchasing team
Locked price of Fuels with supplier
240
512
1. Locked price of these supplier

2. Combine the volumes of all regional to
lock the price of material of Italisa
Purchasing
team/Regional
- Fixed price w Italisa

- Combined all volume with regional to
fixed the price w supplier
168
448
Locked price of Thai Son & Petrolimex
Purchasing team
Locked price w Thai Son
160
1. Optimial the specification of tank fitting

AS13S
2. Change source of Recli A55
Purchasing
team/Regional
1. Changed the outlet of AS13S tank

fitting
2. Apply new supplier for Recli A55
192
Purchasing
team/Regional
1. Got rebate from WDI, Thuyen, Nhat

Long, No9
2. Locked price Energy (DO, KO, LPG),
Components-Fittings,Components-Tank
Trims,Slip-Clay RMs,Packaging, SlipFeldspar RMs,Components-Seat &
Covers
192
448
392
1. Rebate from WDI, Thuyen, Nhat Long

supplier, No.9
2. Locked price
D M A I
37
CONTROL PLAN
No
Potentials
Cause
1 X6-3
2 X6-3
3 X5-3
4 X3-2
5 X2-1
6 X1-1
7 X3-2
8 X6-3
Item Description
Continous following up with Thuyen &
Nhat Long to rebate 4%
Negotiation with supplier to get the
rebate saving from Jan 2012: Chu
Van Tuan, Hung Anh, Tam Anh, Viet
Hoang
Change material from Deedee to Yen

Ha (local)
Negotiation with Sanipro to reduce the
price of Tank fitting & S&C
Following the market price of Fuel and
lock the price
Following the market price of PP
Plastic and lock the price of S&C
No.45
Continous following up the OEM
project
Negotiation with Shipping line to
reduce the Freight cost
10 X2-1
Work with custom to change the way

to declare with custom for export
product to return the import tax
Follow up and work out with
CNG/Thang Long/TCK to finish the
project changing KO to CNG end of
this year
11
Verify three vendors of each for

Building & Frarication
9 X1-1
12
13
14
15
16 X3-2
End sure all contract of Logistic is on

valid and following regional standard
Review all contract to be in valid for
2013
Ensure packing and material on time
delivery
Finish the New FGs Warehouse to
using
Lock price of Chien Supplier
Start
End
PIC
Target saving
per year
01-Aug-12 31-Dec-12 Trang
4%
2,297
10-Sep-12 31-Dec-12 Trang
2%
1,435
Total spending around 500 VND per

month and rebate 2%
01-Aug-12 15-Aug-12 Nhan/Hoang Anh
The current price of DD is around

3100 VND/kgs, Yenha offer the price
is around 2300 VND/kgs, We will use
34,449.8 6% Yenha per 22% of DeeDee
20%
2%
69,218
01-Aug-12 31-Dec-12 Nhan/Trang
34,424
01-Jul-12 30-Aug-12 Hoang Anh
8,000
01-Aug-12 15-Aug-12 Hoang Anh
1,200
01-Aug-12 31-Dec-12 Hoang Anh
3,000
01-Aug-12 31-Dec-12 Nhan/Dan
Spending from Sanipro is around 50K

USD per month, target to rebate 2%
AOP price of Fuel Q3: 24943, Q4:
26136 VND/kgs..
AOP price of S&C No.45 Q3&Q4:
109991 VND/set., Actual: 98000
VND/sets
3,000
20-Jul-12 31-Dec-12 Nhan/Dan
Saving 10USD per container, Total

volume is 40 container per month
Instead of import material and
components to sale in domestic, Now
we change import material and
components to sale in oversea
Due to lacking goods supplier, We

don't have a change to negotiation
with supplier on the proce
15-Oct-12 15-Dec-12 Team

01-Aug-12 31-Dec-12 Team
01-Aug-12
30-Oct-12 Dan
15-Aug-12 31-Dec-12 Trang
Total Saving for Q3&Q4-2012
D M A I
Target saving
Q3& Q4-2012
Remark
Spending of two supplier 300 mil per
month
08-Aug-12 01-Feb-13 Nhan/Tram
% Saving
11%
Due to strange price of material

increasing, Fuels increasing, to
prevent price increasing
7200
129,774
34,450
38
ACTUAL PAYMENT IN ADVANCE TO SUPPLIER
Unit: Mil VND
Jan_2012 Feb_2012 Mar_2012 April_2012 May_2012 June_2012 July_2012 Aug_2012
Text
Pmnt date
PETROLIMEX SG-TT HD 20110082(SC) 15/02/12
Thai Son-TT PLHD 20110065(SC)-1
20/01/12
Tam Anh-TT HD 20120010(SC)-1
12/03/12
Vuong Thai Binh-TT HD 20120011(SC)-1 12/03/12
Thai Son-TT HD 20120006(SC)-1
22/03/12
Hung Anh-TT HD 20120007(SC)-1
12/03/12
Italisa-Dat coc giu gia nam 2012
01/11/11
01/12/11
21/12/11
Viet Hoang-TT HD 20120001(SC)-1
13/04/12
Total
D M A I
Total Payment
in advance Deposit Deposit Deposit Deposit Deposit Deposit Deposit Deposit
20,258
20,258 15,929
11,525
7,706
3,642
138
2,000
2,000
2,000
2,000
1,300
600
138
138
138
138
138
138
138
266
266
266
266
266
266
266
500
500
500
500
500
500
500
478
478
478
478
478
478
3,600
3,600
3,600
3,600
3,600
2,348
1,139
580
580
580
580
580
580
580
5,009
5,009
5,009
5,009
5,009
5,009
5,009
5,009
5,009
500
420
340
260
180
80
100
350
290
230
170
110
60
50
500
500
34,179
7,719 27,837 28,452
24,185 19,026
14,213
9,607
8,109
39
RESULT SAVING 2012 VS 2011

ACTUAL SAVING 2012 VS 2011
80.00
K U SD
60.00
2011 Saving
40.00
2012 Saving
20.00
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Months
Description
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Total
Actual 2011 Saving
13.00
13.00
12.00
15.00
7.00
23.00
8.00
15.00
12.41
118.41
Actual 2012 Saving
23.05
57.23
30.64
67.92
52.72
60.63
64.83
64.82
49.50
471.33
D M A I
40
USING SOME SIX SIGMA TOOLS FOR CONTROLLING

I -M R C h a r t o f R e s u l t _ 1 b y B e f o r e V s A f t e r _ 1
60
S lip a f t e r a c t io n
Individual Value
U C L= 5 2 . 5 1
40
_
X= 1 6 .44
20
0
-2 0
LC L= -1 9 . 6 3
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
O c t -1 1
D e c -1 1
M o n th ly
F e b -1 2
A p r-1 2
J u n -1 2
A u g -1 2
S lip a f t e r a c t io n
U C L= 4 4 . 3 1
Moving Range
40
30
1
20
__
M R = 13 .5 6
10
0
LC L= 0
F e b -1 1
A p r-1 1
J u n -1 1
A u g -1 1
Category(S av ing of each gr oup ma terial & other s)

350
60
150
40
3.0
0
er
En
Ch
ge
an
so
gy
e
ur
n
vi
Sa
a
fF
uc
et
fr o
e
Ov
e
rs
to
It
is
al
a
Pa
ag
ck
g
in
d
Re
e
uc
im
rt
po
ta
Sl
ip
-C
la
s
RM
Co
po
ne
n ts
a
Se
t&
Co
r
ve
he
Ot
Data
20
Ca te g o ry
A u g -1 2
3.5
100
J u n -1 2
4.0
Percent
Count
200
50
A p r-1 2
4.5
80
250
F e b -1 2
Boxplot of Packing before action, Packing after action

100
300
O c t -1 1
D e c -1 1
M o n th ly
2.5
2.0
1.5
1.0
0.5
Co unt
1 50
72
50
29
15
12
15
P e r ce nt
Cum %
4 3.7
4 3.7
2 1 .0
6 4 .7
1 4.6
7 9.3
8 .5
8 7 .8
4.4
9 2.1
3.5
9 5.6
4 .4
1 0 0 .0
D M A I
Packing before action
Packing after action
41
LEARNING FORM THIS PROJECT

1. We should combine from small volume of each country to regional for
some key materials to have power to negotiation with supplier
2. Using SS tool for controlling: I-MR chart, Pareto, Box-plot
3. Using the logic of Six Sigma to indentify the main factors (Clues) and action
base on these factor
4. Working together with multi function department to archive the company
goals
5. Strictly following the market price of some keys material like: KO, DO,
Plastic to make action right time to reduce the impact
6. If the market is not stable, Locked price via payment in advance to supplier
to buy material is the best choise to keep the price
7. Moving fast for any changing of market
8. We should open to looking new source which can replace for the current
one, that quality is stable and following our standard
D M A I
42

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MM SAVING IMPROVEMENT

Copyright(c)LIXIL Corporation, All rights reserved.

American Standard Vietnam

Project Leader: Tran Thanh Nhan

Benefit Category (K USD)

Detailed Computation by Category

Total saving = Total buying volume(AOP price Actual price)

C. Increased Cost Expense

Total Direct Benefit (A+B-C)

Trend chart Actual saving 2011 and target 2012

Target 2012 saving

ComponentsSeat & Covers

Values Saving (K USD)

Chart Saving target 2012 & actual 2011

Data Collection Plan

How to ensure the

Baseline Analysis Plan for Stratification Analysis

Saving of each group material & others

-Monthly report MM Saving

Category(S av ing of each group material & others)

Baseline Analysis Stratification Analysis Value of payment in advance to supplier

P-value<0.05, so that there are

Clue#2: we will be focus to these supplier

Baseline Analysis Stratification Analysis Value of spending

Spending 2012 vs 2011

Target spending 2012

Actual spending 2011

Components Tank Trims

G lazeStains/G laz e RMs

Sumary Clues on Measure phase

Clue#1: 95.6% of each group materialS & others impact to MM

Clue#2: we will be focus to these supplier who have contribute 80%

Clue#3: we will be focus to these spending

05 Whys for Clues#2: We will be focus to these suppliers

05 Whys for Clues#3: We will be focus to these spending

Key Process Input

What is the process step

What is the Key Process Input?

Potential Failure Mode

In what ways does the Key Input go

Potential Failure Effects

What is the impact on the Key Output

95.6% of each group

Prices are increasing

95.6% of each group

The world price is higher than

we will be focus to these

we will be focus to these

we will be focus to these

we will be focus to these

Petrolimex, Thai Son, MRD, Deedee, Chien,

These groups are contribute 80%

What causes the Key Input to go

X1-1 Main materials

X2-1 The government

Theyre supplying keys materials for

X3-2 These material impacts

The trend price of Fuels and PP are

It paid to buy keys big volume

X5-3 These are main

The impact is contribute 60-70% the

X6-3 The price increasing

Plan for Cause Verification