Transfer production from Chinese to Thai

SAKAE BOEKI CO.,LTD.

February 2015Vol.2

Contents1.Company Outline 4. Manage with Quality Risk and Change

Point

　 1-1 Company Information 　 4-1 Process change point

　 1-2 Company Structure 4-2 Counter-Plan and indicate Quality Risk

　 1-3 Company address 　 4-3 Material evaluation

　 1-4 Equipment 　 4-4 Each skill

　 4-5 QC process sheet 4-6 Process change application form

2.Purpose and background of Production Transfer

5.Layout

　 2-1 Expected production number3.Transfer merit to SAKAE BOEKI 6. Initial control

7.Production,Examination Equipment

1-1 Company InformationCompany’s name SAKAE BOEKI CO.,LTD.

Address No.111/37 Moo2,Phahonyothin Road,Lamsai,Wangnoi, Ayutthaya,THAILAND 13170

Factory Establishment ( Month, Year )

September 2012 January 2015

Capital 10 Million THB

Representative Kurai Shinji

Employee’s number

9 Persons

Business type Manufacuting and sale rubber product for industry.

1-2 Company OrganizationPlant Manager

Plant Manager

Plant Manager

ISO Supervisor

Quality Assurance Group

Group Leader

Manufacturing Group

Group LeaderGroup Leader Group Leader

Supervisor GroupSale technical Group

Sale Manufacturing Quality

Total 9 Persons

1-3 Company addressSAKAE BOEKI.,LTD. Address

Location FAST FAC Industrial Estate front enclose with Highway of Wongnoi, Ayutthaya province.

Access varies as below : From Suwannabhumi Airport 65 Km.From Donmuang Airport 50 Km.Bangkok city 60 Km.

* Floodwall protection Establish finished

Since our company SAKAE BOEKI

From Takata City 90 Km.

From Thai Sanko 25 Km.

2 Purpose and Background and of production transfer　

3rd Boom period advance into China in 2002, request low price manpower in order to production cost decrease, has been selected to manufacture base in Shanghai. Quickly decision, we established a Shanghai factory by ownership of capital 100% from it is easy prevent the outflow such as manufacturing know-how etc. At that time the automobile production value in China is 300 million units. Production of Shanghai factory, product export to Japan is main.

After that our company across “Bankruptcy of Lehman Brothers” in 2005, ARS in 2003 also proceed adjustment of China sale structure, Order of China domestic delivery had been growing according to trace of firm market.

Your company's China factory like that located on the distance of about 10 minutes by car from our company, was allowed to Start Dealing in 2005.

Domestic sale of Shanghai factory in 2011 is 69% of overall but “Senkaku Problem” have effect on high-valued yen in 2012 until said as “China risk, China + 1”, 38% of Shanghai factory sale in 2014 was sold for ASEAN.

SAKAE BOEKI sell production goods of Shanghai factory and Thailand local 2 companies of product in 2012. Now our company preformed Local House Production System for according to order increase of ASEAN.

Rubber bush ordered on August 2012 [New] is mass production at Shanghai Factory, has been start shipping to Japan since January 2013, to Thailand since May 2013.

November 2014 in the last year increased, so can predict as the quantity increase from the long-term demand forecast. Beside, [2SV] was opened on November 2015 and [2HX] was opened June 2016 schedule, a result that was done the careful examination in the company, can decide the application of domestic production for the following reasons.

①New equipment introduction by facility load of China factory is necessary. ②Supply support at optimal production location. ③Improve customer satisfaction by localization and manufacturing in Thailand where main delivery destination.

2-1 Production schedule part number

Received order from THAI SANKO 　　 November 2014 148,800 December 2014 100,800 January 2015 302,400 February 2015 100,800

announce Mar’ 2015 - May100,800 pcs ／ Month

１１０４４４０− AC ０

Product Mold

Before transfer After transfer Car type Customer

Transfer to Thai1 Time

1 Time2 Time

Shanghai

manufacturing2 Time SANKOJAPAN

THAI SANKO

3. Transfer Merit to SAKAE BOEKI　① Cost Merit

• Transport cost reduction ３５０ THB/Box→ １００ THB/Box　　 Status ： Great reduction cause changed import from china to Thailand domestic. Material price　　 China ：１７５ THB/kg → Thai ：１６０THB/kg　　 To replace drug was developed in Thailand by combine development time. at the time of the formulation.

3 Transfer Merit to SAKAE BOEKI　② Delivery Merit

• Delivery lead time shortage. 　　 50 Days→25 DaysStatus ： Marine transport and IMP-EXP Custom Clearance since factory shipping from THAI SANKO 16 Days.

• Delivery frequency improvement Since factory to THAI SANKO 25 km.Status ： 2 Times/MonthImprove ： 1 Time/Week （ Negotiable ： THAI SANKO ）

3 Transfer Merit to SAKAE BOEKI ③Quality Merit

• Eliminate Marine transportation damage. 　　Shipping box damage due to sea transport, there is no possibility of packing box was opened by customs inspection so re-inspection as the result of transport trouble will be unnecessary.

• Eliminate product deformation by Long-term storage.

　　 Delivery L / T shortening, Product storage time will be shortened. Don’t have product deformation cause storage time shortage.

4-1 Process change point

To keep the change point a minimum by transfer control standard, jig, mold, molding M/C from china so can stable production and start up times shortening.Technical staff from china was dispatched and receive training

Method

Condition

Method

Jig

Mold

Material changeMaterial

Change worker Have

HaveNo have

Reason(4M) Change item

Active(Oversea Factory)

Transfer(Sakae Beki)

Change point

Yes & No

No have

No have

No have

No have

Local skill certified person Local skill certified personMan

Machine

Molding M/C Same maker Same M/C type

Action according to working control standard of each operation process

Translate English to Thai, preparation complete and action according to working control standard.

Action according to working control standard of each operation process

Have

No have basis change but try time setting condition.

Transfer special jig it using at china.

Manufacturing, transfer mold No.1

Basis mixing same with china material

Manufacturing 2 side of No.1, No.2

Using order made in china

Cambridge 20 injection molding M/C

Thai supplied some chemical.]

Cambridge 20 injection molding M/C

4-2 Counter-Plan and indicate Quality Risk

Factor (4M)

Change item Present( Shanghai factory )

Transfer( SAKAE BOEKI )

change point have or not

( SAKAE BOEKI )

Mat’ Mat’ change

Standard Mixing same with China Mat’

Q’ty Risk

Factor (4M)

Change itemPresent

( Shanghai factory )Transfer

( SAKAE BOEKI )change point have or not

( SAKAE BOEKI )

Q’ty control person

Q’ty control person

Q’ty control person

Q’ty control person

Q’ty control person

Q’ty control person

Q’ty Risk Counter-plan

Counter-plan Check result method

Check result method Confirm person

Confirm person

Local skill confirm personLocal skill confirm personWorker changeMan

Have

Have

Storage method

Climate change

Don’t understand incoming standard

Don’t understand working standard

Don’t understand worker skill

Don’t understand worker ability

Work standard [Chinese ver.] complete.

Worker training plan and practice.

Control by skill acknowledgment.

Incoming standard [Thai Ver.] complete.

Training & renew detailIncoming standard [Chinese ver.] complete.

Working standard [Thai ver.] complete.

Training & renew detail.

Worker training plan and practice.

Control by skill acknowledgment.

Control humidity temp. at Mat’ storage RM. Confirm as within control range.

Storage in specify place and avoid direct sunlight.Storage in specify place and avoid direct sunlight.

Replace the one part chemicals Thailand procurement equivalent device

4-3 Material Evaluation

＊ Tolerance of measure value is Lot Variability, Don’t have very tolerance from replace in measure error limit.

Mat' inspection item

Drawing standard request

China : Present Mat'

Thai : After

transferGeneral physical      

Hs (JIS-A) 33±3 34 35TB (Mpa) 14±4 13.3 15.6EB (%) 600±200 802 906

TR (Kg/cm)      Ageing test 7 70H )  

   

AC (Hs) (Indian) 0 Within +10

0 2

AC (TB) % Within -20 -2 -1AC (EB) (%) Within -40 -3 -3Compression

set test 1X 22H

More than 60 25 41

Ozone 20% Extension, 05 pphm, 200h, 4C

N.C (Don't

write drawing)

N.C. N.C.

Thai

Sale GProduction G

Q’ty control Production

Customer

New order

Order

Approve

Japan

Sakae Rubber

Sale Dep.

Sale technical Dep. Q’ty control dep.

Q’ty assurance dep.

Outsourcing factory

Production Dep.

Technical Dep.Model maker

Receive info.

Make model drawing

Manufacturing modelManufacturing model

GO !

ApproveConfirm

Finishing standard inspection

Model standard plan, adjustment

Model standard plan, adjustment

Confirm accuracy

Receive adjustment

Repair modelSpecific repair

Sent mold

No pass

Confirm accuracy

Pass

Pass adjustment

Approve Approve

Receive adjustment

Pass

No Pass

Receiving

Receive adjustmentRepairSpecific repair

Receive adjustmentAdjustment information contract

First product submit

Confirm accuracy

Shipping Inspection !00% Mass production

Receive adjustment

Adjustment meeting after production preparation ( Progress) QCD Safety announcement

SAKAE RUBBER GROUP

New

order mass production first lot

delivery step

Production preparation activity step Thai < -- > China Sale Skill

China

Thai

Sale GProduction G

Q’ty control Production

Customer

Japan

Sakae Rubber

Sale Dep.

Sale technical Dep. Q’ty control dep.

Q’ty assurance dep.

Outsourcing factory

Production Dep.

Technical Dep.Model maker

China

Production preparation activity step

Thai < -- > China Sale Skill

Mass production order

Q’ty confirm

Receive order

Application

Mass production control

Stroge

Shipping

SAKAE RUBBER GROUPSAKAE RUBBER GROUP

SAKAE RUBBER GROUP

Receiving

Finishing

Effect confirm

Inspection 100%

weight packing

Production planning

Mass production molding action

Employee defect measures meeting

Thai

Sale GProduction G

Q’ty control Production

Customer

Japan

Sakae Rubber

Sale Dep.

Sale technical Dep. Q’ty control dep.

Q’ty assurance dep.

Outsourcing factory

Production Dep.

Technical Dep.Model maker

China

Production preparation activity step Thai < -- > China Sale Skill

SAKAE RUBBER GROUP

Receive info.

Report

Report

Report

ReportPermeant measures

preventive measure ( Safety annoucement)

Report

ReportApprove

Approve

Next report

Customer store

Defect info.

Receive info.

Receive info.Receive info.

Defect, M

easure control

Stock product inspection 100%

Defect measures meeting (Reason clearly, Measures progress)

Preventive measures Process verification Preventive measures

activity

Finishing

Middle Inspection

Design

B Mixing material inspection

Ribbon Mat’ Incoming inspection

Inspection

Packing

Shipping

Thai Factory

B Mixing material

5 Layout

＊ Goods flow is aimed “Simple” for don’t happen complication.

Finishing Inspection Picking Storage Area

ExitEntrance

Test RM.Move : Mat’ Mat test RM.

Mat

’

Molding M/C : Area

Goods flow

FIFO

Control temp’ & HumiditySetting finished

2 M/C on 2Feb’ 2015

6 Initial control

To preform Initial control similar with china factory in the present, early prevent trouble when transfer process.

Size

Appearance

Material Qualification

1 Shot/Month1 Shot

Initial ControlGeneral Control

Follow as inspection standard ( 1 Shot/Year, Repair mold

time )

Process Transfer timeInspection item of

initial inspection

Follow as inspection working control standard

Check at Material inspection sheet

Measure Top Batch Curelasto only

Measure All Batch of Curelasto

Enforcement itemFirst inspection item

7. Manufacturing & Test facilityTitle Maker name M/C Type’s name Numbe

r

200t Injection Moulding M/C

Huatai XZL-1000×2000- BⅡ ２

Mold Cleaning M/C KEPLER INTERNATIONAL SD1010/70TB(M) １

Curelastometer EMVIRONMENTAL SYSTEM INTEGRATOR

MOVING DIE RHEOMETER１

Durometer EMVIRONMENTAL SYSTEM INTEGRATOR

HYDRAULIC BASE OF HARDNESS TESTER １

Hydrometer EMVIRONMENTAL SYSTEM INTEGRATOR

ELECTRONIC DENSIMETER１

Image Measurement

OPTICA SK-DSC150１

Final summary

Current：To preform control quality similar with china manufacturing product, purpose “Cost reduction”, transfer to Thailand Factory.　

Thank you for your cooperation and consented to production transfer