EIP INNOVATION ACTIVITY

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? Copy right of these document by DPECO ?
To Jump to the World Best Company
EIP INNOVATION ACTIVITY
( Enterprise Innovation for Profit )
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Contents

• 1. The outline of EIP
• 2. The implementation target of EIP
• 3. The implementation procedure of EIP
  
• 4. The implementation contents of EIP
• 5. Major Diagnosis of EIP and Innovation Theme (
  each division)
• 6. Utilizing method of EIP
• 7. The implementation method of EIP consulting

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The outline of EIP
EIP Enterprise Innovation for Profit
Productivity
This is a pursuing program of successive growth
as a high profit-creating and speedy company with
the securing of target profit and with the
attempt of company levels work innovation
through the thorough target cost management of
products and innovation of quality production
based on the company level consciousness
innovation.
MENTAL INNOV.
QUALITY INNOV.
PROCESS INNOV.
EIP
PRODUCT INNOV.
MANUFAC -TURING INNOV.
COST MANAGEMENT INNOVATION
5 S Immediate action and suggestion
activity QFD FMEA FTA VE VRP QC
IE TPM BPI MBO
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The implementation target of EIP
Jump to the Excellent Company
Realization of high profit-making company and
Maximization of profit rate
50 Quality improvement 100 Enhancement of
profit rate 50 Shortening of lead time
Innovation of Products cost
Innovation of quality
Innovation of production
Innovation of job
Innovation of business target

• - Innovation of design
• Innovation of
• manufacturing
• Innovation of
• purchasing

• Improvement of
• major defects
• Improvement of
• field claims

- JIT production system - Innovation of
productivity - Reduction of total stock

• Arrangement of
• job process
• Elimination of
• loss factors

• - Strategy for long-term
• business operation
• - Fixing overall target
• Index management of
• achievement

Policy managing activity
Immediate action activity
Implementation of 5S Suggestion
activity Environment improvement
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The implementation procedure of EIP
Innovation of on the-spot
Innovation of business
Innovation of management
Implementation Phase
Construction of infrastructure for process
management
Settlement of managerial system
Overall profit management
WLM ( Working Loss Minimizing )
VPM ( Visual Process Managing )
FPM ( Flexible Production Managing )
TCR ( Total Cost Reduction )
TMO 1 ( Total Management of Objectives 1 )
TMO 2 ( Total Management of Objectives 2 )
Implementation Procedure
Elimination of loss factors in the process
Visual process management
Flexible production management
Total cost reduction
Total management of objectives 1
Total management of objectives 2

• Immediate action activity
• (Defects Loss)
• Improvement activity
• on the spot
• 5S (Arrangement, Cleaning)
• Implementation of Tollgate
• (Results sharing meeting)

• 5S (Settlement of 3R)
• Design of process
• management index
• Operation of VM Sys.
• ( Bulletin board which
• shows management
• situation )
• Enhancement of managerial
• ability of on the-spot
• supervisors

• Arrangement of flexible
• production management
• system
• - Construction of JIT
• production system
• - Construction of the meeting
• organization for production
• and marketing
• - Managerial system for the
• Receipt and disbursements
• ( Stock management)

• Set of target profit and
• managerial system
• Arrangement of cost standard
• Processing rate of each
• cost center
• Table of time value
• Set of material standard
• Sharing meeting of monthly
• results

• Set of BSC
• Establishment of Annual
• Business Plan
• Deployment of target
• ( Overall target and
• Individual target)
• Plan vs Accomplishment
• ( Evaluation and
• compensation system)

• Vision set of business
• operation
• (SWOT,GAP analysis)
• Set of long and mid-term
• business operation target
• Establishment of business
• operation strategy
• Business promise review of
• new investment

Key Point
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The implementation contents of EIP (Innovation of
on the-spot)
? 1 STEP WLM (Working Loss Minimization
Elimination of loss factors in the process)
WLM Working Loss Minimizing
? Immediate action activity - Working
method, L/Out improvement - Improvement of
preparation and replacement - Improvement of
logistics in factory - Facility improvement
and automatization ? Quality improvement
activity of on the-spot (RQM) Securing the
strong enforcing power of on the spot through
the Improvement activity with the use of basic
quality tools - Analysis of first priority
themes (Q-Matrix) - Clarification of the
responsibility and role for improvement -
Results sharing meeting of each phase (Tollgate)
- Standardization of work for the settlement
of managerial system ? Arrangement of 5S and
Cleaning - Pre-implementation of arrangement
and cleaning - Use of red tag and Utilization
of managerial chart for checking
Multi- kinds of products
Quality improvement
SEIRI
SEITON
Improvement of operation rate
Attitude of mind
Cost reduction
SEIKETSU
SEISO
Improvement of safety
Keeping delivey date
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The implementation contents of EIP (Innovation of
on the-spot)
? 2 STEP VPM ( Visual process managing)
VPM Visual Process managing
Analysis of major index for process management
in each zone
? 5S ( Settlement of 3 R ) - Process
location set and Painting work - Making out
of Kanban ( Classification of line
process) - Right position, Right products,
Right quantity ? Design of index for process
management - Extraction of KPI at the view
point of PQCDSEM - Setting KPI for factory
management and Design of KPI calculation standard
- Composing the matrix for the target
deployment of each division - Concretization
of each divisions KPI ? Operation of Visual
Management System - Management of Plan vs
Results (Division and Person ) - Evaluation
of weekly, monthly and quarterly results ?
Enhancement of on thespot supervisors ability
- Clarification of the managerial points and
the responsibility of on the-spot
supervisors - Evaluation of each teams
accomplishment and Construction of system for
the ability- cultivation
Definition of process management index
(Calculation formula/Managing method)
Visual Management System
General control room (A)
Team unit
General control room (B)
Division unit
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The implementation contents of EIP (Innovation of
management)
? 3 STEP FPM ( Flexible Production Managing)
FPM Flexible Production Managing
? Construction of JIT production system -
Status analysis of Receiving orders / Shipments
and Equalization - Standardization of
container and making out of Kanban -
Application of small lot production method
- Conformity between the information of
production plan and the flow of actual
things ? Construction of the meeting operation
system for production and marketing
- Making block of the each divisions managing
scope - Analysis of manufacturing production
capability - Construction of meeting
organization for the adjustment of
Production and Marketing - Clarification of
Responsibility and Authority ? Managerial
system for the receipt and disbursement
(Stock management) - Turn-over of
inventories / Analysis of quantity fluctuation
- Construction of ordering system for Fixed
time/ Fixed quantity ( Decision of ordering
time) - Set of safety quantity in stock
(Lead Time) - Set of stock inventory and its
managerial system
Production plan
Lead time
Production
Fund recovery
Logistics
Selling
Preceding process
WIP (Work In Process) managing board
?(Best quality products)
? Address
Following process
WIP Kanban
Assembly line side
Received KANBAN
? First in, first out
? Store for completed products
? Transportation (Fixed quantity, Not fixed time)
? Kanban post

• Planned production through the meeting org. for
  production and marketing
• System construction for the ordering and
  production simultaneously
• Reduction of stock loss cost with the
  construction of managerial system
• for the receipt and disbursement

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The implementation contents of EIP (Innovation of
management)
? 4 STEP TCR ( Total cost reduction )
TCR Total Cost Reduction
? Target profit set and Managerial system -
Target set for sale and cost reduction after set
of target profit - Application and
implementation of target to the whole company
level - Application and implementation of
both sale target and cost reduction
target simultaneously - Extraction of theme
for cost reduction and improvement, Plan set
? Adjustment of cost standard - Set of
material standard ( Unit price of each
spec., Necessary price of material, Recovery
rate, Cavity) - Set of processing rate for
each cost center ( Set of condition for
Model factory and calculation of all
necessary percentage) - Table set for time
value ( Extraction of factors that
fluctuate time and Set of coefficient
of time value ) ? Sharing meeting for monthly
results - Management of Plan vs
Accomplishment (Division and Person ) -
Achievement management and Budget management
Composition of profit
Sales
Cost of sales
Gross profit
Sales and Administrative costs
Operating profit
Profit and Loss excluding sales
Ordinary profit
Loss
Net profit for the term
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The implementation contents of EIP (Innovation of
Business operation)
? 5,6 STEP TMO
TMO Total Management by Objectives
? Set of Overall Target - Environment
analysis and Set of mid term target -
Analysis of ultimate challenging target -
Adjustment of managerial index at the view point
of BSC ? Deploying activity of target -
Fixation of target deployment image -
Deployment of sub-target ? Countermeasure
selection activity - Make out of policy
library - Theme extraction and verification of
contribution grade - Set of Implementation
plan ? Implementation of countermeasure -
Process management and application of individual
method - Operation of Visual Management
Board ? Management of achievement -
Evaluation of achievement - Analysis of
co-relationship between Achievement and Cost -
Corrective Action
Target for achievement innovation
Individual target for achievement innovation
Innovation target for company constitution
Individual target for companys constitution
innovation
Theme for companys innovation constitution
Theme for achievement innovation
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Major Diagnosis of EIP and Innovation Theme (
each division)
? General / Managing department
1) Analysis of factors that affect the management
environment - Status of internal management
innovation activity, History and achieved
contents - Analysis of external factors that
affect the management environment 2) Cost
management system - System analysis with the
connection of cost down activity - Procedure for
cost calculation system and Suitability of
information - System for analysis of
achievement 3) Business plan operation system
- Deploying system of management target -
Implementing system of business plan - Process
managing system 4) Analysis and measurement of
overall productivity - Managerial system of
labor productivity - Managerial system of
facility productivity - Managerial system of
material productivity
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Major Diagnosis of EIP and Innovation Theme (
each division)
? Quality Division
1) Quality responsible Div. of the High Raking
Managers and Managers - Diagnosis and Analysis
of quality paradigm 2) Quality planning Div.
- Development and verifying method of Products
and Process design - Suitability evaluation
method of Products and Process - Method of
Problem Feed-Back and Counter-action 3) Quality
improvement activity by the statistics method -
Method of yield rate analysis and CTQ (Critical
To Quality) selection - Management of process
variable factors and utilizing analysis of
statistics method about the CTQ -
Process-ability analysis status of CTQ and
Analysis of managerial index - Existence or
non-existence of program for continuous
improvement of quality and productivity and
Diagnosis of strategy 4) General management for
Quality Assurance (QA) - Status analysis of
inspection system and management for
achievement - Analysis of Measurement System -
System for customers complaints correspondence
and Analysis status of claim data 5) Diagnosis
of quality achievement evaluation - Diagnosis
of status for quality data management of the
Manufacturing quality division
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Major Diagnosis of EIP and Innovation Theme (
each division)
? Production and Production managing department
1) Production management side - Set of
efficient production plan according to the demand
change in market and its operation method - How
to set the Load plan and Extra power plan -
Visual management of production progress
status - Computerized status of standard time
management and process management 2) Production
area - Status of production areas lay-out and
logistics - Elimination method of loss factors
in the production process and minimization method
of man-power 3) Facility management side -
Management status of facility efficiency -
Preparation activity for the SINGLE change and
Improvement method
- Management of other facility troubles and
improvement status 4) Material and Purchasing
management side - Efficient management and
operation method for stock and warehouse
location - Managerial method of suppliers
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Utilizing method of EIP
Comparison Table of Products perfor -mance / Cost
Prepared Docu. (Information)
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Products planning dept.
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Drawing . The actual thing
Table for basic function
Compo -sition chart of function
Design condition / Spec. table
System chart according to function
Cost Compa -rison table of purchased parts
Compa -rison chart of Manufac -turng process and
Cost
Analyzed table of operation rate
Analyzed table of yield rate
Analyzed table of defects rate
Manu -facturing spot
Development/ Design phase
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Production phase
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Developing phase
F M E A
Improv. Of purchasing
Q F D
F T A
T P M
O P C
V E
V R
D R
I E
Q C
Opportunity Loss Index
Applied scheme



Loss by request item setting



Loss by functional composition setting
Loss by functional condition setting



Design
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Loss by method selection


Loss by part lat-out setting




Loss by part structure setting





Loss by detail spec. setting



Loss by process design setting
Loss by processing method setting




Manufac -turing
Loss by manufacturing condition setting




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Loss by sub-material supply rule setting







Loss by material loss setting



Decline of operation rate



Purcha -sing
Procurement plan
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Purchasing plan
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The implementation method of EIP consulting
? Implementation method and Period of each theme
T H E M E
Implementation method and Period
? Scope, Period and Target will be decided after
diagnosis ? Expected period 4 6 months
Working Loss Management (WLM)
? Scope, Period and Target will be decided after
diagnosis ? Expected period 4 6 months
Visual Process Management (VPM)
? Scope, Period and Target will be decided after
diagnosis ? Expected period 6 8 months
Flexible Production Managing (FPM)
? Scope, Period and Target will be decided after
diagnosis ? Expected period 6 8 months
Total Cost Reduction (TCR)
? Scope, Period and Target will be decided after
diagnosis ? Expected period 6 8 months
Total Management Objectives1 (TMO1)
? Scope, Period and Target will be decided after
diagnosis ? Expected period 6 8 months
Total Management Objectives2 (TMO2)