Our LCC’s Future Vision is ‘One hundred year company through export’. To realize this, Articles 1 and 2 of the company's constitution, emphasizes that quality competitiveness will lead to customer satisfaction and grow into a global company through ‘Enterprise Quality Management'.

It began exporting $1 million in 2013, and we overcame the difficulties of $3million~$5million export records. Finally we achieved a $10million export records and gonna achieve a $20million export records in 2021. Now We are aiming to the $50 million export records in 2027.

Quality claims, large and small, have plagued us at every critical moment of export, and we have gone through years of endurance to solve this problem. Dispenser defects from the U.S, Dispenser mouthwash quality from Europe, Chinese cosmetics, and Propolinse mouthwash quality claims from Japan rigorously trained our company, and we overcame difficulties and provided flawless products and then open an era of $20 million.

After all, I felt that 'The quality of products is not made by employees, but by CEOs,' and I became convinced that management should directly check the product prescription, purchase of raw and sub-materials, and employee quality education. In other words, CEOs should be very interested in product quality and actively engaged in improvement activities.

LCC, which exports more than 40% of its sales, must overcome the false notion that Quality is in charge from Quality department and consumer claims are a field employee problem, and establish a ‘Total Quality Management System’ in which all employees, including CEO, department managers, customers, and partner-company, participate.

Therefore, I will hold the ‘Quality Management Meeting’ per month and plan to supplement and check detail of Quality Innovation tactics is well applied on the field.

First of all, I will make a dual responsibility system of Defective Claims from Consumer and Customer Company, meaning that Filling and Packaging claim should managed by QA, prescription claim should managed by R&D. So, each department should check the content and packaging weekly.

'A change with the passage of time' has to check how many months or years the quality of half-finished products or products will change, improve the prescription/compounding conditions of half-finished products, and check the quality change of packaging.

In addition, we will strengthen the role of sales department that they should strongly demand improvement measures to production and production support department on behalf of client companies and consumers.

The production support department will hold a quality sharing meeting with partner companies every Thursday to encourage partner companies to voluntarily resolve defects and improve quality.

The production department should prevent microorganisms and cross-contamination from occurring through facility improvements. Also, they should strengthen their self-inspection to prevent the reoccurred quality claim from consumer clients. They should maintain Quality education and work standard as well.

Dr. J.M Juran, a global quality master, predicted that "if the 20th century was an era of productivity, the 21st century would be an era of quality." It is no exaggeration to say that Success or failure or growth of Company depends on how quickly and completely the Quality Management System is established and implemented in detail.

Quality improvement efforts seem to increase business losses and costs in the short term, but in the long term, they will generate enough profits to offset this, and will create more value by improving product brand value and company image. Furthermore, as a company exporting to Japan, the U.S. and Europe, it can be said that the part that needs to be jumped over is the implement of TQM.

First of all, we will fulfill customer satisfaction management that gives the trust that 'the LCC is a reliable company that does not recurrence Quality Issue' by promptly handling complaints about the quality of claims and handling of claims.

Once the customer claims are received to Sales Department, they will register directly on the electronic bulletin board and connect to QA and R&D Department. And then, they check the claim history and report to CEO directly. It will deliver to responsible department, and they should conduct a cause investigation and establish a measures. Received claim's countermeasure should be delivered to customer until 72-hours. Like this, I will proceed actively the 'handling the claim rapidly'

Processing process and claim history management are transparently managed through an 'Electronic Bulletin Board'. I will command Sales Department should report the each customer's claim per quarter in behalf of customer.

Since quality control is the Source of control, we hold a weekly Quality sharing meeting for imports and domestic subsidiary materials partner company to make them realize that we cannot business together as a partner with companies that cannot overcome and solve quality problems.

We will set the quality standard of each subsidiary material and partner company. We will share the defective history to partner company. If the defect occurred repeatedly, we will not hesitate to impose strong penalty as well as change the partner company. For example, if fundamental measures such as improvement of the working environment are not taken regarding contamination of foreign substances such as insects, we plan to replace the partner companies and take the mold back.

The new production line of 5th mouthwash factory should be perfect quality because it is difficult to sort out defective parts due to high speed charging line. The Lip Care of the 16 charging and packaging lines has similar sub-material. Warehouse 5S activities of subsidiary materials and charging products must be thoroughly carried out to prevent quality accidents such as mixing of subsidiary parts.

Regarding the quality problem of half-finished products, the R&D team, which determines the product development and prescription, establishes the cause and countermeasures, and takes improvement measures with the production department.

In order to prevent cross-microbial contamination, we will maintain the operation of the storage tank as a dedicated tank for each product, and we will also change the pipe to total discharge type to supplement the actual CIP.

Lotion mixers should use separately for each customer with Homo, Beco Mixers, and cross-contamination can be minimized by using dedicated mixers such as shampoo, body wash, hand wash, oil, and skin mixers.

Propolinse Mouthwash and TheraBreath Oral Rinse, centrically manufacture at 5 factory and the other mouthwash product will be manufactured in 4 factory. In 4 factory, the mixer is separated by each product category such as mouthwash and hand sanitizer. We compound the Lip Care in the mixer which is separated in color lip care or colorless lip care.

To supply good quality of purified water and storage this, We will sterilize the R-O Facility and pipe and storage tank regularly to prevent from being generated of microorganism contamination.

Assigned employee of QA department which is in charge of half-finished products should inspect thoroughly the weighing and input of raw-material and check the work standards is complied well. The 'half -finished product check' shall be conducted weekly by R&D team researchers to check safety. Regarding 'A change with the passage of time of half-finished product' stability test should be checked weekly by R&D department.

Regarding the quality issues during Charging and packaging, it is necessary to strengthen the role of the process inspection from the QA team, and to create an environment where female production workers can easily conduct self-inspection.

We will also expand the replacement of aging facilities and the installation of automatic facilities so that human quality accidents do not occur again.

We will boldly invest in necessary facilities such as installing a bottle washer to eradicate contamination inside containers, expanding washing machine of Lip Care Mechanic to remove foreign substances, installing automatic charging and packaging equipment, and replacing automatic POP labeling machines.

Process inspectors will strengthen the on-site patrol during the production of new products and new spec, and thoroughly check if the work based on the "Charging and Packaging Standard" will proceed.

In addition, defects in subsidiary materials found during the process are collected and create defect data for each partner company. The production support department will send the defective subsidiary materials to the partner company so that they can be corrected.

We will promptly announce the quality issues and claims of the previous day, and hold regular quality and claim discussions with the production group leader every month to ensure that self-inspection of female employees is practically carried out.

We should kindly take the audit from Client Company on a regular and irregular, and will thoroughly follow up the action that have been decided to be improved.

In addition, the CEO should conduct an internal quality audit, check if various working conditions are well observed in the compounding room, charge and packaging, and communicate with the production support team's partner companies to improve the quality of subsidiary materials.

We must increase our sense of crisis by calculating the monthly cost of Quality failure, and through the management of Claim History and displaying the failure examples in Claim Museum we must firmly establish our company's quality will that claim will never recur.

In order to achieve 'Customer satisfaction management' with respect to quality, quality management strategies for each department of the company must be carefully established and implemented.

The QA team needs to display standard samples of product, subsidiary material, and raw material, periodically replace them, and record them to increase reliability. We should supplement of standard and guide to determine quickly during inspection of process and half-finished product. Various records such as their experiments and inspections should be approved on-site.

The 'Product and half-finished product Samples storage' of each factory must comply with relevant laws and can easily check the finished goods and half-finished product condition. The storage management should be perfect to respond promptly on customer's inquiry or dealing with Quality Issue.

Quality management, in which all employees participate, couldn't avoid the artificial accident even if employees with a strong sense of quality. Eventually it could be solved by computerized Quality Management. Meaning that We should transform into Smart Factory.

Fortunately, our LCC has been introduced accounting-linked ERP that helps to deal the 'management performance until the end of the month.' The MES-POP system for quality control was introduced in 2006. It has been in operation for more than 15 years.

The amount of computing environment investment is well over 4.4 million dollars, and we have made great efforts to develop additional programs and upgrade existing programs.

Synergy between departments seems to be expanding as the electronic bulletin board, which had been operating since the founding, allows transparent management of progress details and history.

Since its founding, large and small quality Claim have occurred constantly, especially miscalculation of raw materials, miscalculation of weighing have been extremely difficult to control the quality of cosmetics. Furthermore, the half-finished product's quality issue caused by non-compliance with working conditions such as temperature and mixing time has affected the existence of the company, and I have come to realize that some special measures are needed.

So I asked to various places, I heard that the company named 'Amore Pacific', which is number one in the cosmetic industry, all compounding, charging, and packaging work is carried out without paper, and that various data are counted by computer. I decided to visit the company in person. A passing label is attached to the import inspection when raw materials are delivered, the compounding process is controlled by the bar code given at that time, and if the raw materials are not quantified as genuine products in the weighing and compounding process, all processes will be interrupted.

Bar code is also applied to the half-finished products, which can be monitored the stock any time. Also It helps the accurate input of subsidiary material and First In and First Out system are automatically carried out as well.

In response to claims and quality issue, it is now possible to reverse track the Batch number and collect and sort out the defect products.

ERP also manages the validation (expiration date) of raw materials and First in First out system carried out as well. The post-management of whether or not the raw materials are being supplied accurately can now be checked as raw material yield management.

Our LCC has been pursuing development as a long-lived company through personal growth and export based on the 'The Seven Habits of highly effective People' for 24 years since its establishment, and has achieved some success. This is the result of the establishment of a 'correct company culture' such as Clean Day, LCC Magazine publication, Monthly meeting, transparent and honest management, fulfillment of social responsibilities.

A Quality Management couldn't be achieved with formality, comprehensive, proclaiming method only. Through the 'Total Quality Management Meeting' monthly which be hold by CEO, We should check 'LCC Quality Management System' internally. Also We should plan and do the details of each category.

When the Quality Management took the root in company culture with participation of whole employee, We can be reformed to 'Quality LCC' which trust by client company and consumer.

CEO BAIK, SUNGCHUN