Page 1. Page 2 Contents OYLM COMPANY PROFILE & ORGANISATION CHART FACTORY FACILITIES OYLM PRODUCTIVITY & PROCESS IMPROVEMENT OYLM QUALITY IMPROVEMENT

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  • Page 2 Contents OYLM COMPANY PROFILE & ORGANISATION CHART FACTORY FACILITIES OYLM PRODUCTIVITY & PROCESS IMPROVEMENT OYLM QUALITY IMPROVEMENT HUMAN RESOURCE DEVELOPMENT SAFETY, HEALTH & ENVIRONMENTAL ACTIVITIES
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  • Page 3 OYLM Company Profile Company NameO.Y.L. Manufacturing Company Sdn Bhd FounderTun Omar Ong Yoke Lin (OYL) LocationLot 60334, Persiaran Bukit Rahman Putra 3, Taman Perindustrian Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan. Date Incorporated7 th February 1974 Core BusinessAir Conditioner Manufacturer Paid Up CapitalRM276 Million (2008) ShareholderDaikin Industries Ltd Land Area115,214 m 2 Factory Area91,440 m 2 Production Line11 production lines SalesRM980 Million (2008) Production Quantity1.308 Million units (2008) Total Headcount1,491 person (Apr 2009)
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  • Page 4 Hitoshi Jinno Chief Operating Officer G. Procurement (Asia) Khor Leong Huat Manager Hirokazu Hirao General Manager Global UP S&D Sum Chee Chong Operating Manager Global UP PM Lim Soon Kiong Operating Manager Factory Management Tan Yong Cheem Operating Manager Human Resources Ang Chong Kwoi Manager Finance Raghaven Muniyandi Manager MIS Loh Cheng Hong Manager Corp. Mfg. Planning Yutaka Hoshino Manager Global Procurement Ho Much Jia Manager Prod. Engineering Yim Tuck Wah Manager QAQC Tan Yock Fat Manager Factory 2 Goh Kwee Cheng Manager Factory 1 Liew Kim Mon Manager Material Control Chan Yew Lee Manager OYLM Organization Chart
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  • Page 5 OYLM Headcount *Note : Contract workers (134 males and 15 females) are excluded from above statistic Information shown as at April 2009.
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  • Page 6 Factory Comparison Before Centralized Manufacturing Plant Entrance We Are Here Main Plant (Sec 15, Shah Alam) Main Plant (Sec 15, Shah Alam) Line E (Sec 16, Shah Alam) Line E (Sec 16, Shah Alam) Line CE (Banting) Line CE (Banting) Warehouse (Sungai Buloh) Warehouse (Sungai Buloh) OYLM R&D (Sungai Buloh) OYLM R&D (Sungai Buloh) Main Factory Satellites Present
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  • Page 7 Factory Facilities Product Gallery Mezz Floor Training RoomU-Bend Assembly CE Assembly E2 Assembly E1 Assembly B1 Assembly B2 Offices Material Control Preparation Area Viewing Gallery Rest Area Fan Division Material Control Mock Up Area Preparation Area CK Panel Wiring
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  • Page 8 Factory Facilities Ground Floor Material Control Paint Shop Stamping Line Offices Maintenance IE Workshop Metal Line Piping Shop Piping Shop Insulation Area Coil Line CE Coil Line E2 Coil Line E1 Coil Line B1 Coil Line B2 Assy CE Assy E2 Assy E1 Assy B1 Assy B2 Offices Canteen Offices Lobby Rest Area Coil Line F Coil Line C Coil Line A Coil Line D Coil Line G & H Assembly F Assembly C Assembly A Assembly D Assembly H Assembly G
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  • Page 9 Factory Capacity LineProduct Range Refrigerant Type Design Capacity Design Capacity ( Yr) 2009 Actual Output ( Yr) Loading Residential Assembly B1 Single Split (0.75HP to 3HP)Outdoor UnitR22, R410A339,300 169,650127,994 75.45% Assembly B2 Multi & Single split (2-6 HP)Outdoor UnitR22, R410A156,600 78,30045,191 57.72% Assembly E1 Wall Mounted (0.7 to 3 HP)Indoor UnitN/A287,100 143,55091,606 63.81% Assembly E2 Wall mounted (1 to 3 HP)Indoor UnitN/A261,000 130,50085,901 65.82% Sub Total 1,044,000522,000350,692 67.18% Light Commercial Assembly C Single split (3-6 hp) Water Source (1-6HP) Outdoor UnitR22, R407C, R410A117,450 58,72537,926 64.58% Assembly CE Ceiling Expose (3-6 hp) Ceiling Conceal Indoor UnitN/A78,300 39,15023,932 61.13% Assembly F Ceiling Cassette Ceiling Expose E Indoor UnitN/A99,180 49,59037,007 74.63% Sub Total 294,930147,46598,865 67.04% Commercial Assembly A Outdoor/Indoor 5HP to 12HP Outdoor & Indoor unit R22, R407C20,880 10,4406,803 65.16% Assembly D Outdoor/Indoor 15HP to 35HP Rooftop 5HP to 12HP Outdoor & Indoor unit R22, R407C10,440 5,2202,262 43.33% Assembly H Rooftop 15HP to 47HP Indoor 40HP to 75HP Outdoor & Indoor unit R22, R407C,4,176 2,0881,559 74.66% Sub Total 35,49617,74810,624 59.86% Overall Total 1,374,426687,213460,181 66.96%
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  • Page 10 Line BalancingKanban System Training PDS Basic Process Improvement Activities 1 5S Training Acquired Production Daikin System (PDS) knowledge
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  • Page 11 Before All parts are at the side of the assembly line The quantity of parts for each pallets is different Current All parts are consolidate in one area Picking by set Missing parts can be identified Correct parts are used Process Improvement Activities 2 Kitting & Picking System Assembly Line Material
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  • Page 12 Process Improvement Activities 2 Kitting & Picking System Residential IndoorResidential OutdoorCeiling Exposed IndoorLight Commercial Outdoor Accessories PickingBase Pan PickingBlower KittingBase Pan Picking Ceiling Cassette PanelCeiling CassetteCommercial OutdoorPackage Unit Parts Kitting Metal Parts PickingPiping Picking
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  • Page 13 Quality Improvement 1 Acquired Japan Most Advanced Air Cond. Manufacturer Technology Inverter Testing Module (Indoor Unit)Inverter Testing Module (Outdoor Unit) Indoor inverter testing ready Single split inverter testing ready Multi split inverter testing ready *Included data logging
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  • Page 14 Air Tight Testing Pressure No operator is allowed inside the safety fence while air tight test in progress for safety purpose. Quality Improvement 2 Commercial Unit Air Tight Test fulfill PED Standard RefrigerantCoil LineAssembly Line R223.29Mpa1.55Mpa R407c3.29Mpa1.78Mpa R410a4.19Mpa2.51Mpa
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  • Page 15 Quality Improvement 3 Packing Watch Dog Be sure before we ship High Side Label Carton Label Unit Label Residential Indoor Residential Outdoor
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  • Page 16 Supplier request Part measures outside position (14.0) is not clear. Request to unite outside(14.0) tolerance with process capacity 23 14.0 +0.075 -0.100 Revise contents Angle from central line to outside measurement part is added. Hundreds of parts are measured by cooperation with supplier, product evaluation is performed and tolerance is determined Production, QC request Improvement of fan vibration Each size of boss parts is not indicated Request to put in full length tolerance Revise contents Append to detailed drawing & tolerance Hundreds of parts are measured by cooperation with supplier, product evaluation is performed and tolerance is determined. Indoor fan bearing (OYL drawing) Plastic fan (supplier drawing) 15.0 +0.06 -0.0 43.0 200 +0.0 Quality Improvement 4 Drawing Revised Example
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  • Page 17 OYLM Productivity Improvement Increase of local sales Economics Crisis Domestic Sales Recovery
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  • Page 18 Descriptions200720082009 Market Defect Ratio (All Products)1.99%1.30%1.21% Market Defect (Products in 2009) -- 0.27% Market Defect (New Products) -- 0.18% Quality Improvement
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  • Page 19 Descriptions200720082009 Manufacturing Defect Ratio2.52%0.93%1.51% Quality Improvement
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  • Page 20 Descriptions200720082009 Purchased Parts Defect Ratio0.37%0.33%0.23% FTA Analysis-6 times60 times Quality Improvement
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  • Page 21 Market Defect Ratio Target 09 < 1.10%
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  • Page 22 Manufacturing Defect Ratio
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  • Page 23 HR Development (HRD) New Operator Training Program Evaluation Termination To Line 1 st Day Walk Test Run Test Stick Test Cards Test 1 st Day Orientation Company Background Rules & Regulation & Test Safety & Health Awareness & Test 2 nd Day Basic of Air Conditioner & Test Environmental Awareness & Test OYLM Product 5S Housekeeping & Test Motivation 1 st Day Product Quality RoHS Compliance Accident Case Dangerous Materials Basic of Screw Driving & Test 2 nd Day Indoor Split Assembly & Test 3 rd Day Outdoor Split Assembly & Test Pre Orientation Test (1 Day) Orientation Program (2 Days) Skill Shop Training (3 Days) Pass Not Pass Pass
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  • Page 24 HRD New Operator Training Pre Orientation Test (1 Day) Orientation Program (2 Days) Skill Shop Training (3 Days) New Operator Training Program Walk Test Stick Test & Card Test Safety & Health Awareness Orientation Screw Test Outdoor Assembly Test
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  • Page 25 HRD Special Skill Training Special Skill Training Program Brazing Training Forklift Training Wiring Training Required Nomination
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  • Page 26 HRD Safety Training Operator Safety Training Program Importance of E-Stop 24V Electrical Shock Pneumatic Pressure Test Chain Drive Pinching Force Safety Training Table
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  • Page 27 HRD Daikin Skill Pre-Olympic Title : Daikin Asia Oceania Skill Pre-Olympic Competition 2009 Venue : Thailand 4 th Mr. Norhafiz
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  • Page 28 Safety & Health Policy
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  • Page 29 Safety & Health Activities
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  • Page 30 Safety & Health Activities
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  • Page 31 Safety & Health Activities
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  • Page 32 Safety & Health Week PPE WEEK To educate employees on selection, usage and maintenance of PPE FORKLIFT COMPETITION Enhance skills and knowledge in driving forklift. Promote safety driving through healthy competition. HEALTH WEEK Increase health awareness by providing health screenings, activities & exhibitions. SAFETY & HEALTH MONTH
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  • Page 33 3C4R Environmental Policy
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  • Page 34 Environmental Activities Main Station Factory 2 Satellite Station Factory 1
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  • Page 35 Environmental Activities
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  • Page 36 Environmental Activities
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  • Page 37 Environmental Activities
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  • Page 38 Corporate Social Responsibility Activities
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  • Page 39 THANK YOU &WELCOME O.Y.L. Manufacturing