0. Lean Journey in Chonan Factory
Kim, SongHawk June 20, 2002

1. Chonan Factory Snapshot
Factory Relocated to Chonan in 1995
Introduce Lean Program in 1995
COE : CCTV Camera, AoB, Industrial Switch(Global Launch)
Certification : ISO9000, ISO14000,QS9000
Awarded I.E Grand Prize in 1998
Awarded Best Labor-Management in 2000 by Government
Global R&D Center in 2001

2. Products (ACS multi-functional operation)
Revenue - ‘Manufacturing + OEM Product

3. Selective Concentration
Road Map for Chonan Lean Activity
‘01~’02
Selective Concentration
under Six Sigma Plus
‘99~’00
- World Best Products - Digitization - Six Sigma - Lean - NWT ‘01: USD 2,995K (YDT-Dec) ‘02 Target : USD 1,500K
Restructuring
under IMF crisis
- Flexible Work force - Outsourcing & Phase out - Sub Vendor Relocation
‘95 ~ ‘98
Lean Preparation
under LG group
- TPS benchmarking - Line Integration - Supply Chain Improve - 5S + Morale

4. Productivity Visual Management U- Line Autonomation
NWT (Natural Working Team)
Supply Innovation
CP Goal 8% CP
‘02 YTD-May
Productivity = ( A-B ) / A’
A’ : Factory conversion cost in last year A : Factory conversion cost in last year, adjusted by volume factor B : Factory conversion cost in current year, adjusted by inflation factor if ( A-B) > 0, The Productivity is favorable ( Increasing productivity)
Sales / Person
Unit : USD K/ Person

5. Morale

6. Visual Management - Andon

7. U-Line - CCD Camera

8. Autonomation - AoB Line

9. NWT

10. Inventory - Supply chain
Inventory Turns
Kanban
Supplier Relocation
Consignment Stock
Shuttle Truck
Sub - Vendor council Meeting
OTTP / OTTS
CP Production Manufacturing + OEM Product ( OTTS : Production Manufacturing only )

11. Kanban - BD Center
On Lamp → Shop Order

12. Flexible Manufacturing System - Lean / Outsourcing / Multi-player
Summary
Flexible Manufacturing System
- Lean / Outsourcing / Multi-player
Certified Quality System
Low Cost Investment
Advanced logistics
Full Process Capabilities in Biz System
R&D
Supply
Manufacturing
Engineering
Sales
Installation
(Project Mgmt.)
C / S