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2012 Kaizen Challenge

2012 Kaizen Challenge. Pyeongtaek , Korea. Plant Profile. Establishment : Aug.2002 Land/Floor space : 28,328 m 2 /6,209 m 2 SOP : Oct. 2004 Products : Theta BSM, R-BSM, Tau FEMA Production plan : 882,000 BSM units in 2012 (Theta/R)

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2012 Kaizen Challenge

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  1. 2012 Kaizen Challenge Pyeongtaek, Korea

  2. Plant Profile Establishment : Aug.2002 Land/Floor space : 28,328 m2/6,209 m2 SOP : Oct. 2004 Products : Theta BSM, R-BSM, Tau FEMA Production plan : 882,000 BSM units in 2012 (Theta/R) Sales Target in 2012 : USD 85 million Employees : 152 Customers: Products: Theta - BSM R - BSM Tau - FEMA

  3. Why was electricity saving selected as a Kaizen theme? KEPCO(Korea Electric Power Corporation) has raised electric rates and plans to raise it continuously. Estimated cost in 2012KRW 755,985,219 ($687,000) Electricity price rise history KRW(million) MKL’s electricity bill

  4. Why was electricity saving selected as a Kaizen theme? Oil Others Maintenance Electricity Meal (Lunch & dinner) Tooling, Fixture Office material 20% of manufacturing cost without purchased components is electricity bill The second biggest manufacturing cost is electricity

  5. Kaizen Team Members

  6. Kaizen organization & meeting KAIZEN Leader Maintenance. E John Lee Maintenance D.M Kim Finance Y.J Hwang HR Shelly Kim M.E Martin Choi Quality Alley Hwang Mfg Bae & Ahn Matl & Logis Jimmy Choi • The KAIZEN team is composed of all of MKL teams for this theme • KAIZEN meeting is held every Friday morning • Brainstorming through the meeting - Share ideas, review performance and make plans for the next step

  7. Electricity consumption analysis Electricity consumption spectrum (by Oct, 2012 )

  8. Electricity consumption analysis Fishbone diagram Production machinery All lights, air condictioners for office and others Unnecessary functions work Computers are always on during break time Uncontrolled lights Fans work during break time Employees indifference Uncontrolled air conditioners Energy saving Compressors work Automatic mode operation during break time All air conditioners are on No monitor filter contamination No air leak inspection Air conditioners for production floor Compressors

  9. What to do for electricity saving Compressor • Turn off fans during break time • Add some buttons and modify • PLC logic to stop unnecessary • functions when machine down • or break time Production machinery • Regular air leak inspection • Turn off unnecessary • compressors during break time • Add a watt-hour meter • for electricity consumption • analysis KAIZEN Activities • Tag proper temperature on the • air conditioner controller • Designate persons who have • responsibility to control lights & • air conditioner • Electricity saving campaign • Turn off unnecessary • air conditioners • Monitor & set temperature • frequently Air conditioner for production floor Light,air conditioner for office and others

  10. KAIZEN activities Production machinery

  11. KAIZEN activities Production machinery

  12. KAIZEN activities Compressors

  13. KAIZEN activities Compressors

  14. KAIZEN activities Compressors

  15. KAIZEN activities Compressors

  16. KAIZEN activities All lights, air conditioners for office & others

  17. KAIZEN activities All lights, air conditioners for office & others

  18. KAIZEN activities All lights, air conditioners for office & others

  19. KAIZEN activities Message When you leave your seat, set power saving mode. When you leave office, turn off your computer. All lights, air conditioners for office & others

  20. KAIZEN activities All lights, air conditioners for office & others

  21. KAIZEN activities All lights, air conditioners for office & others

  22. KAIZEN activities Air conditioners for production floor Main controllers for air conditioners

  23. KAIZEN results Production & Wattage trend Production Wattage Small production because of customer labor union strike Production amount by Oct : 771,566 pieces Wattage amount by Oct: 6,685,440kWh Before KAIZEN (Jan ~ Jul): 4,828,632 kWh / 561,408 pieces = 8.6kWh/piece After KAIZEN (Sep ~ Oct): 1,252,632 kWh / 153,889 pieces = 8.1kWh/piece

  24. KAIZEN results Monthly trend for the wattage of a piece The wattage of a piece increase because of small production After KAIZEN Avg 8.1kWh/piece Before KAIZEN Avg 8.6kWh/piece Unit: kWh

  25. KAIZEN results 8.6kWh 8.1kWh After KAIZEN (Sep - Oct) Before KAIZEN (Jan - Jul) 2012 2013 Improved avg kWh/piece : 0.5kWh Avg cost (Jan~Jul) : 102KRW No.of product (Sep~Oct) : 153,889 0.5 X 102 X 153,889 =7,848,339KRW No. of product : 767,000 0.5 X 102 X 767,000 =39,117,000KRW 7,848,339KRW(US$7,135) If keep 8.1kWh 39,117,000KRW(US$28,400) per a year

  26. KAIZEN challenge in the future 8.6kWh 8.1kWh ? kWh After KAIZEN Sep ~ Before KAIZEN (Jan ~ Jul) 2013 ~ The challenge is how to keep or improve more KAIZEN team will try and find a solution

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