How to implement operational excellence in organizations
FUSION BROCHURE_ENG_Final_20160224_kvz(2)
1. DESCRIPTION
Lean Manufacturing eliminates all kinds of waste, provides
continuous improvement, and eliminates non-value added
activities. The principle of individual work assignment is
adding value, simplifying R&D / production / management,
improving product quality, reducing costs, while improving
efficiency.
“Take away my people, but leave my factories, and
soon grass will grow on the factory floors. Take away
my factories, but leave my people, and soon we will
have a new and better factory.”
- Andrew Carnegie
Fusion’s Lean Manufacturing consulting targets improve
not only the whole system in the factory, but more
importantly, the awareness of all employees.
CONSULTING APPROACH
Each Lean Manufacturing consulting stage from Fusion
lasts several months depending on the size of the factory
and the factory’s existing management set-up, with the
whole consulting cycle ranging from 6 months to 2 years.
Consultants either pay weekly visits or reside in the factory.
LEAN CONSULTING INCLUDES
• The effects of Value Stream Mapping
• VSM analysis and improvement identification
• Identifying and eliminating the 8 kinds of waste
• Lean Manufacturing theory and practical
training for the whole organization
• How to set up a Lean organization
• Pull system set-up for production planning
• Production layout analysis and improvement
• Statistics and analysis of KPIs
• Selecting and building a pilot lean production line
• Factory Standard Time system
• Current production status and one
piece flow analysis
• Quick Change Over (SMED)
• Total Quality Management system
• Visual management implementation
EXPECTED OUTCOMES
• Improved profitability
• Increasingly stable workforce
• Improved production planning
• Improved On-time Delivery
• Improved customer satisfaction
• Eliminating all waste from the production process
• Improved competitiveness
• Optimization of production organization
• Reduced inventory
• Reduction in unnecessary costs
• Reduced idle time
• Reduced changeover time
• Shortened production lead time
• Enhanced product quality
LEAN
MANUFACTURING
CONSULTING
Lean
2. Comparison Before After Result
Pressing shoes Punching machine Drum machine
Number of operators 16 8
less employees needed, and
less training
Labor Saving (¥/Year) ¥480,000 ¥240,000 ¥240,000
Purchasing cost/Expected
Life Expectancy (5years)
¥128,000/ 5 years ¥32,000/ 5 years
¥19,200
savings per year
Additional benefits Energy and maintenance reduction
Before After
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
SUCCESSFUL CASES
A shoe factory worked with Fusion on several lean manufacturing projects. Just one of the projects saved a lot of money and
time as the table illustrates.
• Production process reengineering
• Streamline material movement on site
• Inspire worker in the production line
• Changing Punching machine to drum machine
Description
3. BRIEF
Lean manufacturing is a management philosophy derived
from TPS. The numerous practices in many well-known
enterprises have proved it can be applied in various
different industries, even including the service industry.
It has become increasingly popular in China in the last 10
years, but the results in many factories aren’t satisfactory,
why? This training not only elaborates the theory and
methodology, but also shares deep insights using real life
cases in factories to clarify the secrets of success in lean
manufacturing implementations.
TIME
1-3 days
OUTLINE
• Lean manufacturing history and background
• The working mechanism behind lean manufacturing
• Lean manufacturing games and discussion
• Tool boxes of lean manufacturing
• How to execute lean manufacturing in factories
• Sharing of successful cases
• Common seen problems and intelligent solutions
TRAINING OUTCOMES
• Understanding of lean theories and knowledge
• Understanding of lean execution
• Understanding of lean tools and methods
• Application of lean execution strategies in different
factory environments
• Attaining total employee involvement in implementing
lean manufacturing
LEAN
MANUFACTURING
TRAINING
Lean
4. Comparison Before After Result
Operators 6 3 50%
Equipment Utilization 55% 91% 100%
Labor cost/month 12, 000 6, 000 50%
Labor cost/year 144, 000 72, 000 50%
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Before After
SUCCESSFUL CASES
At one plastic factory, originally plastic components were put into plastic bags and then put into cartons, resulting in a big mess
and lots of wasted time.
Fusion recommended using a re-usable plastic tray. Much neater and much more efficient as shown below.
• Lean manufacturing training for the 6 kinds of waste
• Different Lean tools to complete lean projects
• Project management and flow chart business process re-engineering
• Finding key control points to achieve continuous improvements
Description
5. DESCRIPTION
Supply Chain Management (SCM) is a core competency
in factory management and it is becoming even more
important in the Industry 4.0 concept. This includes
Customer Service, Production and Material
Planning, Sourcing, Purchasing, Production, Shipping and
Logistics Management.
Time
3 to 6 days
Outline
• Job standardization
• Swimming Line project management
• Supply chain flexibility management
• Planning strategy in production and warehouse
management
• Sourcing & Purchasing Strategy
• Reverse Auction and cost containment
• Vendor management strategy
• Barcode in all related departments
• Kanban set up and forecast and order share
integrated with vendors and customers
• ERP system standardization implementation comply
with operation procedure
• Leadership & Communication and team
management in supply chain
Training Purpose
• How to do job and procedure standardization to
comply with future supply chain competition
• How to build up seamless supply chain integration
with customers and vendors to achieve win-win
solutions
• How to build up planning, sourcing, purchasing and
warehouse management strategies with different
circumstances.
• How to do reverse and cost containment to do cost
reduction, reduce staff turnover, nspire team spirit,
and job efficiency.
• How to do barcode with customer, vendor,
production line, warehouse etc to integrate with
supply chain system
• Train ERP leaders in all departments. Train key
staff in how to create error-preventing measures
so that the ERP system will run more smoothly and
efficiently
Supply Chain
Management
Training
SCM
6. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Cycle
Count
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
System
Value
159.090 163.200 154.760 146.710 132.970 124.190 114.080 108.000 113.260 111.900 108.490 109.480
Cycle
Count
Value
155.908 161.720 156.000 148.842 131.400 121.955 115.000 108.600 113.238 112.879 108.470 109.464
Various
Percentage
-2.00% -0.91% 0.80% 1.45% -1.18% -1.80% 0.81% 0.56% -0.02% 0.87% -0.02% -0.01%
Cycle Count Various Report
SUCCESSFUL CASES
One shoe factory client had large variations in its cycle count versus system. Fusion spent great efforts with the factory to
achieve zero cycle count various via the following actions.
• Total supply chain management concept training
• Customer and vendor planning strategy set up
• Item master parameter principle set up
• ABC classification and BOM routine checking
• Warehouse management, products & material in and out control, warehouse safety, cycle count rules.
• Material Kanban with vendors and reduce warehouse space etc.
Description
7. DESCRIPTION
Through improving both the equipment and the business, TPM (Total Preventive
Maintenance) focuses on changing people’s mindset, fosters a sense of ownership
amongemployees,enhancesmorale,equipmentstabilityandfactorycompetitiveness.
CONSULTING APPROACH
Fusion’s TPM consulting stages stretch 3~6 months each, depending on the factory
size and the existing management set-up, with the whole TPM consulting cycle
ranging from 3 months to 2 years. TPM consulting can be done in either multiple visits
per month consulting style, or in the in-residence consulting style.
CONSULTING MODULES
• Autonomous Maintenance
• Planned maintenance implementation
• Equipment maintenance system
• Maintenance training
• Critical equipment maintenance
• Safe, clean and green management system
• Establishing effective management for indirect departments
• Establishing quality maintenance mechanisms
EXPECTED OUTCOMES
• Reduced equipment breakdown frequency
• Lower product defect rates
• Decreased safety incident rates
• Improved equipment reliability
• Reduced wear and tear costs
• Enhanced equipment comprehensive efficiency
• Reduced unintended downtown
Proposal for
Execution
2
Customer
Concerns &
Objectives
1
Consulting
Contract
3
Survey &
Analysis
4
Project
Rollout
5
Result
Evaluation
6
Follow Up
Service
7
SERVICEPROCESS
TOTAL PREVENTIVE
MAINTENANCE
CONSULTING
TPM
8. HOTLINE: +86-400-800-2046
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Comparison Before After Remark
Downtime (minutes/day) 120 15 87.50%
Downtime loss/Day ¥6,000 ¥750 87.50%
Downtime loss Year ¥2.1million ¥0.2625million 1.83million
Additional Less maintenance and almost no Downtime
Before After
SUCCESSFUL CASES
One chemical fertilizer plant had TPM projects for half a year. Fusion’s proposals reduced downtime more than 87.5% and
reduced daily cleaning requirements. The factory’s annual savings are more than 1.83 million RMB.
• Establishing Autonomous Maintenance
• Establishing equipment maintenance system
• Maintenance training for the staff
• Establishing effective management for indirect departments
Description
9. DESCRIPTION
Product quality is the life of a factory, the foundation of
its development and growth. Among the 5 key elements
of management it ranks No.1, and so is it in many other
different management theories. Quality is integral to a
company’s existence, and should be dealt with seriously.
Recent industrial scandals in China such as milk powder,
food and construction materials have undisputedly
demonstrated that the large numbers of factories have
a long way to go to improve their quality awareness and
capabilities.
CONSULTING APPROACH
Fusion’s Quality Management consulting stages last
3~6 months each, depending on the factory size and the
existing management condition, with the whole consulting
cycle ranging from 3 months to 1 year. Consulting can be
done in either the multiple visits per month consulting style,
or in the in-residence consulting style.
QUALITY
MANAGEMENT
CONSULTING
CONSULTING MODULES
• Total Quality Control implementation
• Quality KPI statistics systems
• Quality control process perfection
• Quality awareness training for all employees
• Quality management organization optimization
• Cost control for quality management
• Quality Control Costs implementation
• Quality incident feedback mechanism
EXPECTED OUTCOMES
• Improved product quality
• Improved production efficiency
• Better customer satisfaction
• Lower quality control costs
• Increased per piece profitability
• Improved intra-factory communication
Quality
10. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Quality Control Flow Chart
• Establishing & completing QC management system.
• Using the QC 7 methods (Checklist, cause analysis diagram, Pareto chart, stratification, scatter diagram, histogram,
control chart) and Quality Control Circle, etc, to improve product quality and eliminate problems.
Comparison Before After Remark
Inspection Pass Rate 96.10% 98.00% 1.98%
Air Freight (¥/year) ¥378,000.00 ¥87,000.00 76.98%
Temporary Labor(¥/year) ¥380,000.00 ¥250,000.00 34.21%
Scrap Amount(¥/year) ¥2,300,000.00 ¥1,350,000.00 41.30%
Indirect Materials (¥/year) ¥707,000.00 ¥380,000.00 46.25%
Total (¥/year) ¥3,765,000 ¥2,067,000
Annual Savings of
¥ 1,698,000
SUCCESSFUL CASES
11. DESCRIPTION
The past three decades of China’s opening up and reform
has greatly helped to improve the management level for
numerous factories, but as one of the most important
manufacturing principles, 6S, is still far from satisfactory for
many of them. To maintain sound 6S principles, they have
to truly understand the essence, and without achieving at
least a good level of 6S, factories will continue to waste
resources, time, money while damaging their long-term
future.
CONSULTING APPROACH
Fusion’s 6S management consulting spans 3~6 months,
depending on the factory size and the existing management
condition.The whole consulting cycle ranges from 3 months
to 1 year. Consultants either pay weekly visits or reside in
the factory.
CONSULTING MODULES
• Establishing/implementing a 6S organization
• Management training for 6S
• 6S examples campaign area
• Factory visual management
• Red card campaign
• Fixed angle photographing
• 6S performance management
• Sustainable implementation of 6S
EXPECTED OUTCOMES
• Improved working environment
• Improved product quality
• Improved production efficiency
• Reduced production costs
• Reduced safety accidents
• Improved employee’s behavior
• Improved customer satisfaction
6S AND
PRODUCTION
FLOOR
MANAGEMENT
CONSULTING
6 S
12. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Before After
SUCCESSFUL CASES
One machining company implemented 6S production floor management due to regular
problems on the production line. Fusion did 6S management training and launched many
projects including the following tools management project. Using 6S concepts, by having
everything neatly placed in the drawers, all workers could quickly find the correct tools,
improving production line efficiency.
Description
13. DESCRIPTION
Cost management is the most serious challenge for
Chinese factories. Chinese currency appreciation, labor
cost increases, extreme amounts of employee turnover,
and drastic fluctuations of raw material prices are direct
reasons which impact factory competitiveness. The global
financial crisis has also worsened the external operating
environment. Factories must understand cost management
as a system and then improve their internal management
capabilities and processes in order to rebuild their cost
advantages.
CONSULTING APPROACH
Each stage of Fusion’s cost management consulting lasts
3~6 months, depending on the factory size and the existing
management condition, with the whole consulting cycle
ranging from 3 months to 1 year. Consultants either pay
weekly visits or reside in the factory.
COST
MANAGEMENT
CONSULTING
CONSULTING MODULES
• Identify waste in each process
• Labor cost analysis and improvements
• Material cost analysis & improvements
• Manufacturing cost analysis and improvements
• Operation cost analysis and improvements
• Quality cost analysis and improvements
• Sales cost analysis and improvements
• Purchasing Processes & Improvements
EXPECTED OUTCOMES
• Lower management costs
• Detailed cost accounting
• Optimized cost structure
• Better cost analysis capabilities
• Better cost control capabilities
Cost
14. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Before After
Comparison Before After Result
Tools Plastic case Moveable racks
Quantities 3,000 300
Space (m2) 1,440 m2 432 m2 1,008 m2
Purchasing cost/
Expected Life Expectancy
¥240,000 / 2 years ¥180,000 / 6 years
¥540,000
savings over 6 years
Additional (Efficiency) 50% time Saving & more convenient counting and inspecting
Cost Management Via Rack
SUCCESSFUL CASES
Fusion performed cost management consulting at a slipper plant. Before Fusion began the project, slippers were thrown into
plastic baskets. Fusion recommended using racks for many reasons. Easy to manage, no accidental mixing of products, more
convenient for inspecting & counting. Using the racks saved more than 50% of the original time.
Description
15. BRIEF
Although 6S has been used in China for decades, today
many factories are still far away from getting satisfactory
results. In another words, implementing 6S is not as easy
as it looks . This training targets how to correctly roll out
6S in factories step by step citing large numbers of real
life case studies, to allow the trainees to develop a deep
understanding of the essence of 6S and visual management.
whilst inspiring them to challenge the status quo and avoid
formality and ritualism.
TIME
1-3 days
OUTLINE
• Key components and functions of 6S
• Exercise and practise on the floor
• How to execute 6S in factories
• Successful case analysis
• Common problems and intelligent solutions
• Implementation strategies
TRAINING OUTCOMES
• Understanding of 6S
• Understanding and tackling of
implementation bottlenecks
• Understanding of visual management tactics
and implementation
• Understanding of how to get factory wide involvement
in continuous improvement
EXCELLENT PRODUCTION
FLOOR (6S) TRAINING
6 S
16. Before After
Comparison Before After Remark
Glue saved(Kg/day) 0 1.5
Money saved(¥/day) 0 33 ¥22/Kg
Money saved(¥/Year) 0 ¥11,500
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
SUCCESSFUL CASES
Fusion has done hundreds of 6S trainings. Below is a one day project we did in order to save glue costs and for a cleaner
environment in the factory. The changes allowed the glue process in production to save more than 11,500 RMB saving per
year.
• Seiri, Seiton, Seiso, Seiketsu, Shitsuke, Safety training
• 6S Tools to achieve 6S projects.
Description
17. BRIEF
The front line management production leader is a key
position in all factories. They spend most of their time with
the production forces, influencing the behaviors of workers,
and ultimately impacting product quality and customer
satisfaction. This training is designed to improve those
leaders’ comprehensive capabilities with consideration to
the local culture, communication, and using of the newest
management approaches.
TIME
1 day
OUTLINE
• The role of shop floor management
• Role play
• Production employee relationship management
• Case studies
• Communication and motivation
• Coaching and problem solving
• Improving shop floor management
TRAINING OUTCOMES
• Understanding of roles and responsibilities
• Increased problem awareness
• Analyzing and solving of problems
• Enhanced issue handling capability
• Enhanced communication between superiors and
subordinates, as well as with other departments
EXCELLENT
PRODUCTION
LEADER
TRAINING
Excellent Production
Leader Training
18. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
After providing a four-month training course divided into different stages for production leaders in a Dongguan garment
factory, the management skills of these production leaders have improved and work enthusiasm has been strengthened.
A trainee’s change in mentality: I don’t understand!→Let me try it!→Let me share it!→I can lead my team!
SUCCESSFUL CASES
• I don’t understand!→Let me try it!→Let me share it!→I can lead my team!
• Communication skill training
• Problem-solving skills
• Continuous improvement.
• Monitoring
Description
19. BRIEF
Statistics indicate 70% of management’s time is spent on communication. Meeting, negotiation, conversation, reporting are
the most common ways of communication. 70% of all issues are caused by poor communication. Whether it is poor work
efficiency, or weak leadership - it all comes back to communication. That makes communication a very important skill for all
levels of management.This training will enhance communication skills, and improve the effectiveness of communication across
the whole organization.
TIME
1 day
TRAINING OUTCOMES
• Understanding of the importance of
communication at work
• Understanding of how to communicate with superiors
and subordinates
• Understanding of how to communicate with
other departments
• Improved ability to communicate with people
of different personalities
OUTLINE
• The concept of communication management
• The 6 steps of effective communication
• Games and sharing
• The 5 key elements of communication
• Communication case study
• How to communicate with poorly
performing employees
• Different communication styles and personalities
COMMUNICATION
TRAINING
20. SUCCESSFUL CASE:
LEAD TIME AND
WIP REDUCTION
SUCCESSFUL CASE:
LINE BALANCING IMPROVEMENT
After 6 months improvement, the average output per person was improved 25.7% (from 0.78 pair/hr to 1.05 pair/hr, LT
was shortened by 44.8% (from 256.4 hr to 141.5 hr), WIP was reduced 72.7% (from 33.9 days to 9.25 days)days).
REDUCED 2 WORKING POSTS, LINE BALANCING WAS ENHANCED FROM 78% TO 84%
Operating with its traditional approach this company in Zhejiang suffers long lead times, excessive inventory,
low efficiency and bad on time delivery. Within months Fusion helped the factory reform these processes.
MONTHLY WIP (WORK IN PROCESS)
Jul Aug Sep Oct Nov Dec
Before
(day)
33.9 33.9 33.9 33.9 33.9 33.9
After
(day)
33.9 18.4 11.5 9.99 14.14 9.25
Jul Aug Sep Oct Nov Dec
Before
(hr)
256.4 256.4 256.4 256.4 256.4 256.4
After
(hr)
245 182 125.25 108.8 132.2 141.5
MONTHLY LEAD TIME
改善案例
江浙某集团公司生产周期与在制品改善
东莞某厂生产线平衡改善案例
惠州某五金厂包装车间生产达成率改善
该公司以传统的生产方式作业,存在生产周期长、库存多、效率低下、准交率低等问题。工厂希望
在交货及时率、原材料存货及成本方面进一步改善。
仅通过半年时间改善,人均产能从0.78双*人/时提高到1.05双*人/时,上升25.7% ;生产周期从平均
256.4小时天缩短至平均141.5小时,缩短44.8%;在制品从33.9天减少至9.25天,减少72.7%
该五金厂长期交货期不
准,物料控制及生产排程是
最大的问题,其中体现在包
装车间的问题尤为严重。联
合国际从2011年9月介入,
开始对生产包装车间进行改
善,至2012年3月,包 装 车
间生产达成率由57.88%上升
至92.36%
由于工序多、流程
长,在节拍时间不
变情况下,减少工
作 岗 位2个,生 产
线平衡率从78%上
升至84%
向管理要利润之生产力改善
Target: Actual:
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31
Tianshou Rd., Tianhe District,
Guangzhou, China. 510610
21. OUTLINE
• TPM basic concepts
• TPM execution steps
• Autonomous maintenance (AM)
• Planned maintenance (PM)
• Successful cases sharing
• OEE management
• Factory-wide involvement in TPM
TRAINING OUTCOMES
• Understanding the theory of TPM
• Understanding of how to deal with equipment
breakdowns and preventive mechanism
• Key points and bottlenecks
• How to attain total involvement
BRIEF
Quality is the bedrock for a factory’s long term growth,
it applies to every factory without exception. Without
understanding the importance of quality, employees
are likely to compromise quality standards and lack the
motivationtomaintainqualitysystems.Insuchacompetitive
world, factories must continuously train employees in order
to ensure they understand the importance and applications
of quality control. This training module is designed for
all levels of employees within the factory with the goal of
increasing quality awareness, improving quality control
skills and thus improve product quality.
TIME
1 day
OUTLINE
• Quality control concepts
• Quality control tools
• Prevention and process control
• Case studies and practice
• Steps and methods of effective
quality problem solving
TRAINING OUTCOMES
• Understanding of quality theories
• Enhanced ability to control quality
using the proper tools
• Enhanced ability to deal with quality abnormalities
• Understanding of QCC methodologies
QUALITY
TRAINING
TOTAL PREVENTIVE
MAINTENANCE
TRAINING
BRIEF
An efficient equipment management system is an effective
vehicle for factories to reduce cost and increase profit. The
purpose of TPM is to mobilize all employees by working in
small groups, to establish a good management mechanism,
improve utilization, reduce defects, improve product
quality and safety condition. This training is designed for
production equipment owners and facility engineers who
will be leading and carrying out TPM activities.
TIME
1-3 days
22. TOTAL PREVENTIVE
MAINTENANCE TRAINING
Before After
Multiple bolt types required that multiple tools be used. Now a simple monkey wrench can be used for all bolts.
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
SUCCESSFUL CASES
Fusion did total preventive maintenance trainings at one factory and then launched many
TPM projects at the factory. The following project had the factory reduce the variety of
bolts used, to reduce the tool-change-over time. See the following pictures.
Description
23. PRODUCTION
PLANNING
&MATERIAL
CONTROL
TRAINING
DESCRIPTION
Production Material Control (PMC) is the core function
of manufacturing operations. Company information from
logistics, production, HR and sales all get processed in
the production planning department; in doing so it acts
like a centre commander for the whole company. The
effectiveness of PMC directly dictates the company’s total
efficiency, impacting delivery and customer satisfaction.
The purposeof the training is to improve PMC personnel’s
planning,arranging,monitoringandfollowupcapabilitiesso
that companies can improve their time delivery, inventory
turnover, and production lead time.
TIME
1-3 days
OUTLINE
• PMC Content
• How to plan/what to refer to
• Handling abnormalities
• PMC case studies
• KPI’s and performance evaluation
• Material management and tools
• ABC management approaches
• Material control case study
• Inventory control in factories
TRAINING OUTCOMES
• Understanding of PMC and material control theory
• Understanding of how to plan/arrange production
• Understanding of how to calculate related KPI’s
• Understanding of material control skills
• Understanding of how to monitor and tackle issues
Production planning
& material control
24. SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31 Tianshou Rd., Tianhe District, Guangzhou, China. 510610
Inventory Turns Report
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Raw
Material
115.07 112.22 107.08 101.86 88.59 85.33 77.23 71.42 73.98 73.49 71.29 72.66
Work In
Process
26.80 29.81 26.53 25.19 21.50 17.86 17.74 16.48 19.28 18.91 15.00 15.70
Finished
Good
17.22 21.17 21.15 19.66 22.88 21.00 19.11 20.10 20.00 19.50 22.20 21.12
Inventory 159.09 163.20 154.76 146.71 132.97 124.19 114.08 108.00 113.26 111.90 108.49 109.48
Cost of
Goods Sold
63.54 69.17 61.02 70.63 72.63 64.74 60.00 57.38 74.35 72.85 74.00 78.00
Target 5.00 5.00 5.00 5.00 6.00 6.00 7.00 7.00 8.00 8.00 9.00 9.00
Inventory
Turns
4.79 5.09 5.01 5.48 6.15 6.70 6.92 6.75 6.77 7.31 8.16 8.22
One Hong Kong electrical appliance factory had almost 159 million RMB of stock on hand. Fusion helped them to achieve
increased inventory turns, from 4.79 times to 8.22 times. Which was more than 50 million RMB savings in stock by the
following actions:
• Setting up Forecast strategy reducing bullwhip effect
• ABC inventory management
• Reduce WIP and strengthen vendor Kanban management
• Purchasing strategy based on value and importance
• Material Kanban set up
SUCCESSFUL CASES
Description
25. CONSULTING APPROACH
Fusion’s CSR consulting stretches 3~6 months, depending
on the factory size and the existing management situation,
the whole consulting cycle ranges from 3 months to 2 years.
Consultants either pay weekly visits or reside in the factory.
WAGE/WORKING HOUR
MANAGEMENT
• Labor cost analysis
• Improve wage structures
• Establish wage/benefit systems
• Improve wage/incentive systems
• Risk control on social insurancev
• Current status analysis on working hours
• Improve working hours management
PERSONNEL MANAGEMENT
• Improve recruiting and org-structure
• Improve labor contract and HR filing management
• Improve attendance management system
• Improve resignation management
• Improve At Risk employee management
• Improve CSR management
CSR CONSULTING
PROJECT SERIES
HSE MANAGEMENT
• Improve HSE committee operation
• Improve PPE management
• Improve fire-fighting management
• Improve chemicals management
• Improve equipment safety management
• Improve dormitory, canteen and warehouse
management
• Improve waste water/discharge management
• Improve occupational disease management
C-TPAT MANAGEMENT
• C-TPAT assessment
• Improve C-TPAP management
26. April May June July August September
Number of workers 156 136 125 146 253 229
KPI Value 99% 95% 95% 99% 100% 100%
The lowest hourly rate wage
of the factory
5.06 5.63 5.31 5.27 6.32 6.32
Unpaid Wages (non-OT) 227 363 454 51 0 0
WORKERS MEETING MINIMUM WAGE REQUIREMENT
April May June July August September
Number of workers 123 91 97 126 253 229
KPI Value 78% 64% 73% 86% 100% 100%
OT Wages Wage Gap 8,757 11,403 7,028 3,399 0 0
WORKERS RECEIVING ACCURATE OVERTIME WAGES
April May June July August September
Actual Wages Paid 395,982 409,724 338,654 376,409 527,783 515,149
Wages Due 404,966 421,491 346,136 379,858 527,783 515,149
Total Wage Gap 8,984 11,767 7,482 3,449 0 0
KPI Value 98% 97% 98% 99% 100% 100%
TOTAL WAGE GAP
CASE:
WAGE MANAGEMENT
IMPROVEMENT
SALES: +86-20-8333-9156
FAX: +86-20-8333-9159
E-MAIL: sales@fusionlimited.com
www.fusionlimited.com
1206 Jianghe Building, 31
Tianshou Rd., Tianhe District,
Guangzhou, China. 510610
27. SUCCESSFUL CASE:
WORKING HOUR REDUCTION
WAGE/WORKING
HOUR MANAGEMENT
• Wage/working hour standards
• Wage/working hour assessments
• Wage/working hour improvements
• Total involvement
• Incentive mechanism recommendation
• Reviewing Case studies
PERSONNEL MANAGEMENT
• Standard requirements for HR management
• Current HR management assessment
• HR management improvement
• Sharing best practices
HSE MANAGEMENT
• Standard requirement for HSE
• Common HSE problems clarification
• HSE improvement approach
• Site discussion / case sharing
• Total involvement to improve HSE
C-TPAT MANAGEMENT
• C-TPAT background and introduction
• C-TPAT standard requirements
• Common problems and fixes
• Sharing best practices
• Site discussion / case sharing
SUCCESSFUL CASE:
WORKING HOUR
REDUCTION
CSR
TRAINING
SERIES
PREVIOUS 6 WEEKS (MAY-JUNE)
Week
5/4 -
5/10
5/11 -
5/17
5/18 -
5/24
5/25 -
5/30
6/1 -
6/7
6/8 -
6/14
<60 199 156 71 576 89 120
61-72 344 443 384 187 457 423
73-80 173 128 266 1 166 171
>81 55 40 47 0 3 0
Total
HC
771 767 768 764 715 724
Total 51011 50652 53665 41312 47810 48111
LAST 6 WEEKS (AUG-OCT)
Week
8/30 -
9/5
9/6 -
9/12
9/13 -
9/19
9/20 -
9/26
9/27 -
10/3
10/4 -
10/10
<60 179 183 175 651 652 654
61-72 477 471 477 1 0 0
73-80 0 0 0 0 0 0
>81 0 0 0 0 0 0
Total
HC
656 654 652 652 652 654
Total 40671 40472 40471 32617 32600 32700
TRAINING APPROACH
Classroom training and on-site practice.
TIME
1-3 days
28. Based on the support from the Guangdong Labor and Social Security Department and local governments we provide this service
to help factories better handle their labor relationship related issues, employing a three-stage management methodology.
We help free up the factory management to focus on their business, and Fusion uses its strong relationships to establish a
stronger communication channel with the local government so that incidents can be resolved as harmoniously as possible.
CONSULTING/TRAINING APPROACH
Fusion provides 2 types of service, yearly contract consulting and project consulting. The yearly contract consulting covers
multiple professional services on labor relationship management, while project consulting specifically covers the agreed
services and topics, and can be flexible on time frame. Training approach is assembled classroom training for either multiple
clients or a single client, 1-3 days are required for each module.
Regularly
scheduled
consulting
• Assist the company to correctly hire / terminate employees, provide full solutions on disciplining, negotiation, and
incentives /bonuses
• Provide regular labor relationship management consulting
Contract review
and revision
• Help company to refine the agreements related to Admission Form, Labor Contract, Confidentiality Agreement etc
• Legal risk prevention
Company
regulation review
and revision
• Assist to refine Company regulations, employee manuals, job description, review/improve factory notification
process & solve related issues
• Make sure all regulations and handling processes are complied within the Legal requirements
Labor
dispute
solution
• Provide advice for case disposal
• Utilizing our advantageous resources to predict dispute results and gain advantage
• Avoid reoccurrence, minimize or clean negative impact
YEARLYCONTRACTCONSULTING
Company
transformation
and employee
reassignment/
release
• Professional consultants work together with factory management to provide guidance to meet legal requirements
• Provide multiple alternatives for employee reassignment / release so that clients can choose to implement
• Provide follow up service
Performance
wage for
working posts
• Make Job Description, Salary System, Performance Evaluation schemes according to client requirements
• Establish scientific, rational system and process
• Actively support, follow up on implementation with clients
Substitution
for social
insurance and
labor dispatch
• Assist company making scientific and reasonable substitution plan for social insurance to reduce operation cost
• Help to make factory labor dispatch plan and Labor Dispatch Service Contract
• Support client’s labor dispatch implementation
PROJECTCONSULTING
LABOR RELATIONSHIP
CONSULTING AND
TRAINING PROJECT
SERIES