Kwanglim Trading Co., Ltd Kohl’s/Li & Fung Lean Conference Singapore October 14th, 2014 Journey to LEAN MANUFACTURING Kwanglim Trading Co., Ltd

OCT. 2012 SINGAPORE LEAN CONFERENCE DEC.2012 1 LEAN PILOT LINE Journey to Lean Manufacturing OCT. 2012 SINGAPORE LEAN CONFERENCE Kwanglim Trading Co., Ltd Phase 0 DEC.2012 1 LEAN PILOT LINE INDONESIA SEP. 2013 NO MORE LEAN LINE 2014 LEAN CONFERENCE 2

Lack of Lean Specialists Journey to Lean Manufacturing Kwanglim Trading Co., Ltd Phase 0: ANALYSIS OF THE STATE Lack of Lean Specialists Superficial Bench Marking Lack of detailed plan & jumping to action Little understanding & embracing by the members Only change made: Sewing line layout 2014 LEAN CONFERENCE 3

Rolling out 5S & QCO in 2014 APPOINTED INTERNAL LEAN PROJECT LEADER Journey to Lean Manufacturing APPOINTED INTERNAL LEAN PROJECT LEADER Kwanglim Trading Co., Ltd Phase 1 Rolling out 5S & QCO in 2014 SORT STORE SHINE STANDARDIZE SUSTAIN RECRUITED OUTSIDE LEAN EXPERT TOOK LEAN TRAINING (TaF.tc in Singapore) . 2014 LEAN CONFERENCE 4

Lean Schedule for 2014 - Indonesia Journey to Lean Manufacturing Kwanglim Trading Co., Ltd Lean Schedule for 2014 - Indonesia TASKS LEAN TRAINING FOR EMPLOYEES VALUE STREAM MAPING(VSM) 5S IMPLEMENTATION Fabric Warehouse Cutting Room Accessories Warehouse Sewing Mechanic End Line QC Ironing Packing Accessories Warehouse Packing QA Inspection Room C-TPAT Area Office Area MAY JUN JUL AUG SEP OCT NOV DEC TGT DATE TO START TGT DATE TO FINISH Target Date to Start Target Date to Finish 2014 LEAN CONFERENCE 5

Lean Schedule for 2014 - Indonesia Journey to Lean Manufacturing Kwanglim Trading Co., Ltd Lean Schedule for 2014 - Indonesia TASKS QUICK CHANGE OVER (QCO) LINE BALANCE PLAN LAYOUT ONE-PIECE/CONTINUOUS FLOW Pilot Line – line 18 CELLULAR MANUFACTURING LAYOUT & FLOW IMPROVEMENT DEVELOP STANDARDIZED OPERATIONS QCO LINE BALANCE FLOW LAYOUT KAIZEN MAY JUN JUL AUG SEP OCT NOV DEC TGT DATE TO START TGT DATE TO FINISH Target Date to Start Target Date to Finish 2014 LEAN CONFERENCE 6

Lean Manufacturing – Challenges Journey to Lean Manufacturing Kwanglim Trading Co., Ltd Lean Manufacturing – Challenges Scarcity of lean experts within Korean textile/garment industry Very few organization providing lean training for garment manufacturing Language barrier (among lean trainers, management, and local employees) Financial burden and communication issue to invite outside consultant Difficulty of scheduling internal training at the production sites Difficulty of changing the mindset of floor managers who are used to running the production line with their own method over long periods of time 2014 LEAN CONFERENCE 7

Lean Manufacturing - Recommendations Journey to Lean Manufacturing Kwanglim Trading Co., Ltd Lean Manufacturing - Recommendations Consider to adopt lean production system based on your long term management philosophy. Do not get onto the Lean wagon pushed by your client without top management’s understanding on entire lean system and power behind true Toyota Production System(TPS) Spend enough time and efforts to getting the floor managers and leaders to understand the Lean system and get their buy-in before actual rolling out . Do not rush to achieve a great result in short time. Develop & customize your own Lean System. 2014 LEAN CONFERENCE 8

2% Senior Management Toolkits vs Philosophy Journey to Lean Manufacturing Kwanglim Trading Co., Ltd 2% Senior Management Toolkits vs Philosophy 2014 LEAN CONFERENCE 9

Thank you! Kwanglim Trading Co., Ltd