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s 6 Thru RTY Innovation Achieve 10 million per year LG Electronics / Digital Appliance Company LGETA MWO s 6 Vision 10,1 (’ 04 Target) (’ 03, Million) TA() TA() Global MWO Division ( `05 Sales: M$ 385 ; Profit: 8 % ) China Market Top 1 ( `05 China M/S : 45% ) Cost Competition Vision Before 2022 Now As the basement of Profit Turnaround Fast Innovation Fast Growth Global Position MWO Maker Benchmarking Vision Vision 1/19 D M A I C s 6 Big Y Issue `02 `03 CMO Productivity loss↑ Portfolio by Category High Low Price Profit High Quality loss↑ Parts loss↑ Fast Growth New MDL ? Accelerate tool shift ( ~) ? Shorten the development period ? Increasing number of parts M unit / year CMO () CMO (~) OTR CMO () CMO (~) Browner OTR 2/19 D M A I C s 6 Input Output Process Assy Line Press Welding Painting Purchase IQC OQC PCB Supplier Customer ? Logistics system (Material, Product) ? Parts loss control ? Inspection System ? Box quality control ? Round Cavity strength ? PCB ICT FCT control ? Powder quality ? Gap defect . ? Product and Quality Strategy ? IR sensor quality ? Press line system ? Quick response system ? Outgoing Inspection system ? Material storage system Main Issue Big Y Issue ? latch adjustment ? Door ass’y trouble ? Anode abnormal temp. ? UTC cavity Distortion ? P/Cord scratch ? Door dirty Production Process System Assembly Line Painting PCB MFG 6σ ? L/B improvement ? Powder thickness BIG Y Little Y Action ? WG Weld intensity ? Part quality Quality Yield Quality up MFG 6σ ? Line balance MFG 6σ Pressing ? PCB lead improvement ? Logistic Lead Time ? Quick Response Logistics TQ 6σ NWT MFG 6σ RTY Innovation RTY↑ TDR MFG 6σ MFG 6σ Welding TQ 6σ Target 120 50% Target 25% Target 28% PCB Painting Logistics Ass’y Miscellaneous ratio RTYz RTYz Target 21% 60 RTYz 10 million per year Assurance Target 02 M units/year 30% 80 85 90 95 RTYq 60 70 80 90 RTYp A B C D RTYz Portfolio EA/Hour 3/19 D M A I C s 6 Define Measure Analysis Improve Control Supplier IQC Painting PCB Ass’y OQC Customer Better logistics Worst logistics IQC Waiting for ……? Stock Product stock Ass’y line Painting line PCB line Neck Point ? Plan change Everyday ? Stock is not enough ? Elevator is not enough ? Packing Time too long ? Broken Box ? Check time conflict ? Poor loading method Logistics improvement Best practice1 4/19 D M A I C s 6 Vendor and supervisor meeting Improve Focus Invoice Unloading Checking Load tools Stock Communicate Loading tool Load way Stock manage inspect system ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Define Measure Analysis Improve Control Voice Of Customer Plan change Everyday Stock is not enough Can not unload in stock Invoice check is difficult Elevator is not enough Packing Time too long Forklift is not enough irregulars training for loader Broken Box Waiting every procedure Check time conflict Poor loading method Poor loading vehicle Ining check time Poor part quality Stack management ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Logistics improvement Best practice1 Supplier IQC Painting PCB Ass’y OQC Customer 5/19 D M A I C s 6 Best practice1 Define Measure Analysis Improve Control Waiting f