Jan.06.2004

Monthly Business Review

Contents

1. Key Initiatives

2. Issues

Appendix :

December, 2003

President CustomerDirectorPrepared by

A.Arenas

Dec. Productivity (Final Lines)

100%

CtrlIdle

12.3%0.9

RW1.6%

Indirect 3.4%

81.8%

Total Input Hrs

Net Direct

Effi.Lose

15.3%

66.6%

RMH

Total Losses

• Match Job required Profile to operator . • Incentive Programs • Out Source Non Critical Operations

CtrlIdle

12.3%

38.2% Purchasing

Effi.Lose3.9%

12.6%Plastics

Issue Solution Purchasing :Continiuosly Late with Material Creating Schedule Changes and Idle Time

Plastics :Delivery and Quality Problems .

• Secure Proper Logistics and Accuracy in ETA’a prediction . • Safety Stock of Critical Parts .

• Plastics has booked 2004 C/A Plan to Counter this Situation – Tracking-

71%

Issue Solution

Absenteeism:High (4.4%)

Turn Over (22)

22%

Pro

duct

ion

(OJT

)A

bsen

teei

sm

3 /4

Production : Skill Up ofOperators is required .

• Screening and Profiling For NDP Line Personal. • PQC Technician

• 2 Days Frozen Schedule

3. Issues

Risk & OpportunityMajor Activities

❍ Productivity Improvement (TE Capability to Detect more defects ) .❍ Re-arrange Operators /supervisor to Improve productivity❍ TDR Team working to Improve NDP Line Productivity by 233%

❍ Low Productivity in Line 6 due to design changes (ECO’s) , Frequent Model Changes , Material Quality , Material Shortages , and Operators Absenteeism and Skills .

❍ Any Rework required to be done before Delivering to Final Line ❍ Material Delivery Tight to meet Schedule❍ NDP Line Packing Area Problems ❍ NDP Line Conveyor Logic Errors

Activities

Good & Bad

❍ Task Team (TDR) to address Process opportunities . ❍ Training for Cross Functional Operators and stronger Relief operators . ❍ Develop Product Experts for NDP Line

Action Plan

Issues

Solutions❍ Allocation of a group to address Rework caused by incoming material . ❍ TPSG to Provide On The Job Training to new Operators . ❍ Material Expeditor ❍ Line Fallout (Skills, Criteria , Equip.❍ Turn Over ❍ Clean Room (To Prevent Contamination)❍ Automatic Hi-Pot Verification ❍ Use Chassis after Functional test only❍ Define CTQ’s and CTP’s ❍ Establish disciplinary Guide Lines

4 / 4

MBR Review

President CustomerDirectorPrepared by

A.Arenas

Contents

• KPI

• Top 3 Contributors for RMH / Quality / PSA

• Attachments

1 of 15

26.2%

6.7%

7.9%

8.4%

12.6%

38.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contributor

24.1%

15.8%

100%

FINAL RMH Analysis for Dec.’03 Action Plan Status

Total DT = 12.3%

7.1%

Final RMH Trend

75.9 78.7674.9

70.9

66.6

50

55

60

65

70

75

80

85

90

95

2002 F

Y

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Purchasing • Reinforce the Inbound Logistics with experience Buyer / Planner .• Review and Update Procedures • Measure Carrier Performance

On Going

53.1%

TE

Purchasing

Plastics

Other

100%

Sub-Assy

Final RMH

3 of 15

IQC

LCD Line Fill

Diode Short in Chassis

Box

Other

Delivery + Quality

Purity / IC5100 Damage EDIT (L6) Equipment

Plastics• Plastic Plant Has Provided their Detailed C/A plan to Improve this category . - Monitoring-

On Going

Test Equipment • Test Equipment has been asked to Provide a detailed Plan on How to Improve this category .

On Going

14.0%

6.0%

6.8%

7.2%

9.8%

56.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contributor

36.1%

28.8%

57.5%

67.4%

Chassis RMH Analysis for Dec’03 Action Plan Status

Total DT = 12.9 %

Chassis RMH Trend

85.9

83.3

90.5

83.4

89.7

91.7

87.9

85.4

82.3

85.2

82.9

83.883.9

76

78808284

86889092

94

2002 F

Y

Feb

Apr

Jun

Aug

Oct

Dec.

23.5%

On Going

Purchasing • Reinforce the Inbound Logistics with experience Buyer / Planner .• Review and Update Procedures • Measure Carrier Performance

Transistor

Purchasing

IC

Diode

13.5%

Other

TE

Empty out Lines for Inventory

Checksum

Chassis RMH

4 of 15

Other

Mech. Maint.

Plastics

32.6% Move to Component Plt.

42.5% Functional + VT equipment

Test Equipment • Test Equipment has been asked to Provide a detailed Plan on How to Improve this category .

On Going

Other • Time required to prepare for Year –End Inventory (empty out Lines) .

• Time Required for ACI / Chassis Move to Component Plant .

Closed

38.2%

17.1%

8.4%

9.7%

12.6%

14.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contributor

36.1%

13.8%

39.8%

Final Quality Analysis for Dec’03 Action Plan Status

Total Defects = 1394

Final Quality Trend

12112

10976

1390112294

997012942

11501

14129

11393

1431518367

13182

14679

0

5000

10000

15000

20000

2002

FY

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Other

Electrical Parts • Main Contributor this Month were Defective Module for NDP Line . • TDR team to Improve Quality has been active and is schedule to finish in Dec. • New TDR to Improve Productivity started in Dec’03

7.4%6.8

Plastics

Chassis

Part Elect.

Module

9.2%

63.2%

Distorted Video

Defective Digital Bd.

On Going

Final Quality

5 of 15

LCD Related Defects :Programming / No Turn On /No Video / Solder Shorts

6.2%5.8% No Audio

49.8% Other

Scratches

13.8% NicksBubbling

Other

B&W Tracking (Video Output)No Audio (JkPAck)

46.0% Other

Module

Plastics• Plastic Plant Has Provided their Detailed C/A plan to Improve this category . - Monitoring-

On Going

• Detectability in Module/Chassis Area needs to Improve . A TDR Team will be Charged with this activity .

On Going

43.6%

8.5%3.1%3.1%

14.7%

27.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contributor

85.2%

14.8%

68.8%

16.7%

58.7%

Chassis Quality Analysis for Dec’03 Action Plan

Axial

Status

Total Defects = 511

Soldering

Radials

Chassis Quality Trend

9685

61786107617654465761 6178

49674759

6608

5994

73498193

0

5000

10000

15000

2002

FY

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Sep O

ctN

ovD

ec

20.0%

Others

• Constructing a detailed Data Base with Root Cause On Going Analysis for each Opportunity. • Follow – up to conclusion each of the opportunities On Going• Increased APC testing by Prioritizing High Runners On Going

• Constructing a detailed Data Base with Root Cause On Going Analysis for each Opportunity . • Follow – up to conclusion each of the opportunities On Going Increased APC testing by Prioritizing High Runners On Going

8.0%

Axial

Soldering

Radial

W/Line

Solder Short

Missing

Wrong

Missing

Wrong

High Runners Prioritization =============>

Chassis Quality

6 of 15

No Solder

14.5% Other

Other

• Soldering Peaked out of Goal due to Flux from Doo Sung contains High Level of Solids = 12% . Our Normal Flux from Alpha Metals contains 8% . Alpha metal Flux in House and now being used .

Closed

13.9%

7.1%

15.8%

17.7%

20.9%

24.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

90.6%

Rework Analysis for Dec’03 Action Plan

Test Equipment• Problem in Test equipment has been corrected check list implemented to control

Status

Total Rework cost = $ 5,051.79

100%

Design

Rework Trend

3.3

0.7

21.6 1.7

0.7 0.9 1.1 1.4

4.2

1.41.6

2.9

0

10

2002

FY

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Test Equip.

47.7%

Closed

• All problems were ID and Fixed . • PAT Full Approval Check List is Required

ClosedOpen

Mgmt. Decision

26%

Management decision • In order to Prevent greater losses it was decided to Rework Domex Yoke Cable in LGERS . Approx.16K were reworked

Closed

Rework

7 of 15

Due to Bad AGC Set-up In Chassis Area .

9.4% CSA Label Not Implemented

Design

Change Yoke Cable on Domex 20” CRT

Video Mute Problem

Add Capacitor for RGBPIP23% Distorted Menu .

Change Internal registerProduction

Other

34.4%

7.7%

7.9%

8.5%

19.8%

21.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

66.6%

Scrap Analysis for Dec’03 Action Plan

Total Scrap = $ 26,601.00

41.0%

88.6%

Scrap

3141-Chassis by Mech. Devices

687-PCB Damage By Machine

8.1

16.3

6.410.5

20.1

26.6

15.2

38.1

5.55.4

4.86.0

8.35.810.1

3.7

4.44.9

48.4

8.810.7

7.8 7.811.18.36.4

05

101520253035404550

FY 2002 Jan'03 Feb'03 Mar'03 Apr'03 May'03 June July Aug Sep Oct Nov Dec

Details • Fine Tuning of Conveyor system and Mechanical Devices During ACI and Chassis Move to Component Plant

Actions • Expedite Analysis • Quickly ID Scrap Owner • Immediately Process Scrap Report

Chassis

Final

ACI

Other

Material

8 of 15

Module

14.0%

19.4% 3141-Chassis By Machine

60.4% Other

6401-Speaker (Obsolete)11.4% Other (Obsolete)

687-Module Machine Damage

13.0%

89.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

Over Time Analysis for Dec’03 Action Plan

Total Over Time = $ 144,273.20

Over Time

Scheduling

Volume required

• Volume required 89 % of all OT expense

18.4

96.1 144.376.4

220.2

71.7

020406080

100120140160180200220240

FY2002

Jan'03 Feb'03 Mar'03 1st.Qrt'03Avg.

Apr'03 May'03 June'03 July'03 Aug Sep Oct Nov Dec

9 of 15

26.8%

6.2%

9.3%

12.4%

20.2%

25.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

Absenteeism Analysis for Dec’03 Action Plan

Total Absenteeism = 4.4%

Absenteeism

Other

Sickness

Dead / Sick Relative

No Reason Given

Resign

Wake Up Late

3.2

4.4

2.7

5.54.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

FY2002

Jan'03 Feb'03 Mar'03 1st.Qtr'03

Apr'03 May'03 June'03 July'03 Aug Sep Oct Nov Dec

• HR has been requested to Activate a Program that will revert this situation .

Some Ideas are :

• Superintendent and Supervisor Training in Human Resources Management

• Incentive Programs revised to make the return of personal more attractive.

• Reward program for perfect attendance (accumulative / and penalties Included) to pay at end of year .

• Review days Payments are made and revised if so required ,.

10 of 15

2003 LGERS PERFORMANCE INDEXES

Pack Set Audit (PPM)

0

1000

2000

3000

4000

5000

6000

7000

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Goal '03Actual '03

Scrap (K$ /Mo)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Rework (%)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Final Returned Man Hours (%)

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12

Month

Chassis Returned Man Hours (%)

60.0

64.0

68.0

72.0

76.0

80.0

84.0

88.0

92.0

96.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12

Month

BEST Goal '03

Year '02

Actual '03

Chassis Returned Man Hours (%)

60.0

64.0

68.0

72.0

76.0

80.0

84.0

88.0

92.0

96.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12

Month

BEST

Goal '03

Actual '03

Year '02

ACI Efficiency (%)

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Units/MHR (sets)

1.00

1.50

2.00

2.50

3.00

3.50

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Final In Process Quality (%)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1 2 3 4 5 6 7 8 9 10 11 12

Year '02

Chassis In Process Quality (%)

0

2000

4000

6000

8000

10000

12000

14000

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Chassis In Process Quality (PPM)

0

2000

4000

6000

8000

10000

12000

14000

1 2 3 4 5 6 7 8 9 10 11 12

BEST

11 of 15

2003 LGERS PERFORMANCE INDEXES cont...

WIP (%)

88

90

92

94

96

98

100

102

1 2 3 4 5 6 7 8 9 10 11 12

Overtime (K$/wk)

0.0

50.0

100.0

150.0

200.0

250.0

1 2 3 4 5 6 7 8 9 10 11 12

BEST

Goal '03

Actual '03

Scrap (K$ /Mo)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

1 2 3 4 5 6 7 8 9 10 11 12

Rework (%)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

1 2 3 4 5 6 7 8 9 10 11 12

Rework (%)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

1 2 3 4 5 6 7 8 9 10 11 12

archivo de presentacion en power point !!

Overtime (K$/wk)

0.0

50.0

100.0

150.0

200.0

250.0

1 2 3 4 5 6 7 8 9 10 11 12

BEST

12 of 15

New 2nd Half Manufacturing 6 Sigma Teams

ThemeGreen BeltBlack BeltSuper " A"

YR'2003 Actual

YR'2003 Goal

61031

9911

6 Sigma Status

Budget Status

400% 376%

94%

• Manufacturing Area has Reached their KPI Goal in # of 6 Sigma Themes for 2003

• We missed reaching our Green Belt Goal by 1 for this year .

• No Black belt Certification will be Conducted this year. Max Opportunity for BB =2 of which 1 got certified .

Dropped (Resigned)

15 of 15

Budget Status

6 SIGMA THEMES

Define Measure Analize Improve Control Bud. Adv.

Optimize Balance

Delay Time (LOB) in Chassis

July to

Oct

100% 96%

Improve In Process

Quality in Final Lines

July to

Oct

100% 80%

Optimize Balance

Delay Time (LOB) in

Final Lines

July to

Oct

100% 100%

Optimize WIP in

Chassis area

July to

Oct

0% 0%

Nov DecJuly Aug Sep Oct

Leader

Stage of ProjectTeam

MembersTiming

Remarks

Define Measure Analize Improve Control Bud. Adv.

Optimize model change ACI

May to

Oct100% 100%

May Jun July AugProject Leader

Sep Oct