1. energy efficiency and reliability INTELLECTUAL CAPITAL AND LEARNING IN ACTION. AH BEE GOH 3 OCT. 2010.

2. energy efficiency and reliability Presentation titleDD.MM.YYYY2 INTELLECTUAL CAPITAL MODEL

3. energy efficiency and reliability Presentation titleDD.MM.YYYY3 MISSION STATEMENT TO DELIVER PRODUCTS DEFECTS FREE, ON – TIME AND AT THE MOST COMPETITIVE COSTS. Explanations;  Defects – free – achieving products at six-sigma level or better.  On-time- deliver on promise to customers at 100% fulfillment.  Competitive cost- at a cost which bests all major competitors.  Finally, customers will be delighted with our performance on the above.

4. energy efficiency and reliability Presentation titleDD.MM.YYYY4 THE STRATEGY  Thailand factory will double its revenue from 1 billion baht this year to 2 billion baht in 5 years time ( average growth of 20% per year)  Profitability will be as follows;  Yr 1 = 5 %  Yr 2= 7%  Yr 3= 9 %  Yr 4= 10%  Yr 5= 11%.

5. energy efficiency and reliability Presentation titleDD.MM.YYYY5 Stakeholder analysis  Corporate support in terms of budget and investments.  Customers ;  EMC filters; solar, machine tools, elevators and wind segments etc.  Automotive ; keyless entry ( low frequency antennae), Immobiliser, filters for electric and hybrid cars.  Employees; technical and operational staff.  Suppliers ; single source and strategic suppliers, low cost Asian suppliers, special material suppliers like capacitors which can withstand high temperature.  Environmentalists- ROHs and hazardous substances control.  R&D support from the corporate.  Technological partners.  Local government incentives e.g tax breaks. 1 st yr priority 2 nd yr priority 3 rd yr priority 2 nd yr priority

6. energy efficiency and reliability Presentation titleDD.MM.YYYY6 KEY SUCCESS FACTORS  KSF 1=Implementation of lean manufacturing concepts ( based on Toyota Production Systems).  KSF -2 =On – time delivery to customers based on first confirmation.  KSF-3=External quality of our products at 500 parts per million or less.  KSF-4=Average cost reduction of products must be at least 3 % or more.  KSF-5=Internalize ROFO throughout the whole company.  KSF-6=The right technical knowledge especially filters for hybrid and electric cars are new.

7. energy efficiency and reliability Presentation titleDD.MM.YYYY7 KSFIndicators strategy Compoments of IC # lean cells/ mth OTD = 99.9% OQC= 100PPM Cog= 4% / yr. review /qtr %of workers trained / mth Financial focus # of knowledge staff / yr 1 2 3 4 5 6 Human focus Customer focus Renewal and development focus Process focus Fig.1.0 The IC process model.

8. energy efficiency and reliability Presentation titleDD.MM.YYYY8 LEARNING IN ACTION  MUST DO LISTS  Double the revenue and profit.  Customer quality at 500ppm ( parts per million) or less.  Company wide training of lean cells concepts.  Implement Statistical Process Control (SPC) throughout the company ( SPC training).  Company wide training on ROFO.  Cost reduction of at least 3% or more per year despite yearly wages increase of 5% per year.  Effective supplier management.  Implement twice daily production meetings to deliver to customers; at 9am and at 5pm.  Convert all traditional conveyor lines into lean cells.  Automate key peocesses.  Train, develop and recruit staff with right technical knowledge.

9. energy efficiency and reliability Presentation titleDD.MM.YYYY9 INTELLIGENCE LEARNING  Study competitors products.Tear down competitors’ products and analyze why they can produce cheaply.  Analyze competitors’ designs.  Analyze competitors list prices.  How do competitors buy their parts and materials, China or Eastern Europe etc?  Which materials are being developed with the state of the art technology. E.g Franhoheur Institute of Germany is developing a car filter without PCB in it.  Study the solar and car market trends.

10. energy efficiency and reliability Presentation titleDD.MM.YYYY10 EXPERENTIAL LEARNING  REFLECT AND REVIEW.  Why do the competitors chose this kind of materials?  Why can’t we decrease more workers after lean cell implementation?  We must be role models of ROFO.  What must we do in order to have effective supplier management?.  SPC implementation; cp and cpk values?  What can we learn from our mistakes?

11. energy efficiency and reliability Presentation titleDD.MM.YYYY11 LEADING AND COACHING  Monthly operational meetings on KPIs  5 WHY analysis on KPI which is not fulfilled.  Off- site meeting every quarter.  Daily production meetings – coach on on- time deliveries to customers.  ROFO model coachings.  Measure Learning per hours on every employee and encourage every staff to learn and submit learning hours.  Build a library of knowledge books and hold evening discussions with food and transport provided.

12. energy efficiency and reliability Presentation titleDD.MM.YYYY12 Thank you very much for your attention. Any questions?