CEO's Column

Published Jun-2021, [No.265]
Subject Production Management

 

Production is the combination of labor and capital to make goods and services, which is the starting point of the economy, and the subject is the company. It can be divided into primary industries such as mining, fisheries, and agriculture, secondary industries that make products by injecting raw materials, and tertiary industries that provide services such as distribution and finance.

The 'secondary industry' which consists of manufacturing industry, is the central axis of the national economy. Distribution and financial industries which are without manufacturing can be described as 'a fish bun without the red beans'. A country's economic strength depends on manufacturing.

This can be seen from the case of Germany and Japan, which have the highest industrial competitiveness in the world. Recently, Korea's manufacturing industry is in severe crisis due to various regulations, excessive equipment, low productivity, and the loss of young people's desire to work. So people who still manage the manufacturing factory are ridiculed as 'one of the modern stupid fellow'.


Ordinary people can't live a single day without the industrial products in order to live their daily life. Cloth, work cloth, metro, bus, vehicle, computer, office supplier, equipment, and raw material and auxiliary material are all manufactured in the factory.

The factory is like a black box, which is completely different from ordinary life and work, but it can be said that it is a place where people produce the drama that converts materials into a product. The production site can also be compared to the performance of a orchestra. Various machines and equipment can be said to be musical instruments, and the people who drive them can be said to be performers of musical instruments and production management can be said an orchestra conductor.


There is only one orchestra conductor, but in the case of factory, production management, equipment support, and material departments, including factory managers, conducting production symphonies is much more complicated and wide-ranging.

In addition, in order for the transformation process from material input to product completion properly, a computerized management system, such as orchestra music, must be established, emphasized the needs for systematic management and improvement.

In order for company to survive the fierce competition, they must provide the products that consumers and customer want, and the ultimate goal of production management must be to realize customer satisfaction.


The manufacturing leading era was a long ago. Nowadays similar products are abundant in the marketplace. So that Competitive price, good quality, and various consumer needs and complaints need to be met.

Basically, production management must start with Q, C, D (Quality, Price, Delivery). Quality shall comply with the quality prescribed in the planning and design, and zero percentage of poor quality shall be carried out and implemented.

In addition, the more competitive market is, the more difficult the company is to raise the price of the product, so it has to lower the cost to ensure profits. If the performance and quality of the product are reduced due to excessive cost savings, it will be hated and ignored by consumers rather than by profits, so a reasonable cost reduction plan should be established and implemented. Delivery must meet customer commitments, and inventory production must also be carried out to minimize the time required to reduce inventory.


If I list up the key management items of production management is..


First, planned production must be carried out.

To implement of Article 1 of the company's mission to achieve customer satisfaction through quality, price competitiveness and timely supply, production must be carried out according to the monthly and weekly plan in order to meet the deadline. In addition, because of the technological characteristics of cosmetics, quasi-drugs, processing (device) production and product installation production are mixed, and many packaging personnel are put in because of the large variety and small variety production. For OEM and ODM production, most of customers require supply at the beginning of the month to reduce inventory burdens, but a balanced monthly deployment plan should be established to avoid staffing equalization and equipment overload.

To comply with 52 working hours a week, It is difficult to operate on holiday. The sales team must ask for customer's understanding carefully, and if necessary, we should move the ORIOX product's manufacturing plan from mid to late. Considering that the delivery of imported raw materials and subsidiary materials from overseas is 3~5 months, products that require annual planning or three months' advance Forecasting must communicate well with customers in advance.


The weekly production plan, which will be established every Thursday, should be agreed to fully reflect the needs of customers and to supply and demand subsidiary materials in particular organizations and employees in the company should pay attention to the deployment of female employees and outsourcing.

The 'Weekly Production Plan', which is agreed by the sales, production and production support department, is listing up in electronic bulletin boards transparently, and large volumes auxiliary materials such as Boxes and bottles are supplied sequentially. Although the factory manager's persistence and efforts have basically been implemented well, overtime after lunch and daily work is inevitable because the production plan for the day must be produced despite problems such as equipment control and lack of quality and quantity.

Only when the planned production is completed day by day can the planned production be carried out the next day, the delivery date with the customer can be met, and above all, the distrust between organizations can be eliminated and the foundation of trust can be maintained. This is the basis of production management, which can reduce indirect labor costs (general management costs), and is the basis of System management to ensure price competitiveness.

In order to comply with the delivery date with domestic customers, the reservation and arrangement of transport vehicles should be implemented. The warehousing and loading of container will proceed according to the export plan, and trust with buyers in Japan and the U.S. will be maintained.

In addition, it is necessary to eliminate the shortage of equipment and auxiliary materials that interfere with planned production through the PDCA cycle of monthly analysis and countermeasures.


Secondly, we must make a lot of efforts to automation on production facility and eliminate the labor.

In order for exports to exceed 40% of sales and reach 50-70% of sales, price competitiveness must be ensured in order to realize the Vision of 'one hundred year company through export'.

We must also win in competition with Japan and Germany, and we must shake off the pursuit of developing countries such as China. To increase productivity in order to increase price competitiveness, we need to replace high-speed machines, automate labor-intensive processes, improve logistics flow and analyze behavior to save labor. The expansion of the Fifth plant gargle factory has brought us a lot of enlightenment and ideas.


The New facilities(Automated filling, Automated supply of subsidiary material) for Therabreath oral rinse and Propolinse mouthwash, It gives us feeling a little more confident about the competition in the advanced economies, to maintain international competitiveness, and won in tells us it's possible for growth with export company.

In addition, the manufacturing capacity by increasing the number of twice as much a product storage and charge proved that our technology. The automation facility such as auto stick POP, Box erection, Case packer and the palletize machine will secure the competitive of price and give us infinite possibility. Many ideas have been derived, including Handwash's refill charger and the automation of Lip & Eye Remover, and it is believed that the capping automation of Lipcare will be possible.


As the manufacturing quantity increases, Bargaining Power, such as direct overseas purchase of raw materials, will become stronger, and the unit price of raw materials will be lower. PET bottle, which are subsidiary materials, can also be reduced by 30-40% if they are applied with 2-3 times the capacity of injection Blower, and bottle cap unit price can be reduced by increasing mold cavity. Price competitiveness will be ensured when automation and labor saving are carried out simultaneously with the purchase of best-quality raw materials and subsidiary materials. And we can receive orders at a lower price than our competitors in Korea, and overseas buyers will be able to become partners with us by securing profitability.


Third, the quality control of formulation, filling, and packaging processes must be rooted in the company culture.

Based on the 'Clean Day' 'Clean Floor' activities that have been going on since its founding, we must keep in mind that clean and tidy on-site management is the first step in quality maintenance. By managing 'cleaning toolboxes' everywhere in the recently improved site, it creates an atmosphere where cleaning becomes a daily routine anytime, anywhere. Early Tuesday morning, clean up the factory area, and weed out the flowerbeds of female employees during lunch break, which will help establish a self-inspection window for poor screening.


It is hoped that the weekly formulation plan based on the daytime production plan will also be established more specifically by time zone, transparent and public. The quality control of the metering and mixing process is thoroughly centered on MES-POP computer. To prevent microorganisms and cross-contamination, the mixer and storage tanks are seperately specialized, and careful improvement efforts are required to prevent semi-finished products and washing water from remaining in facilities and pipes. Parts that require continuous management, such as gauge inspection and flow-meter check, shall be continuously inspected according to the Internal Quality Audit.

Charging and packaging quality control requires thorough coding of Lot No and Expiration Date, and Lot tracking of raw materials and auxiliary materials, including semi-finished products.

The OEM&ODM Product of Global customer company or large customer company in domestic must follow the customer's lot coding system. Exports must be lot coding according to the laws of the importing country.

When new orders or exports begin, the sales and QA teams need the wisdom to coordinate in advance and choose the code grant method that meets the customer's needs and their regulations.

Since the independent inspection of female employees by process plays a decisive role in minimizing or zeroing consumer complaints, education necessary for screening defective materials and processes should continue. The QA department process inspectors conduct frequent inspections, and notify quality accidents and claims during the operation of defective subsidiary materials exhibition stands and ordinance training to ensure the production of perfect quality products.

We need to keep size parts, spare parts, tools, etc. in a dedicated rack and put a lot of effort into 'arrangement' so that anyone can easily use them.

Fourth, we need to nurture talented people who adapt well to LCC company culture. Since it is not easy for employees settle down in rural areas, we are making efforts to improve the welfare to realize their happiness and dream such as dormitory when they single and housing after marriage. However, young employees are determined to change jobs at the slightest rebuke from their work mistakes or trouble, and they may be dissatisfied and dissatisfied with the company culture that they have never experienced in their growth, we should embrace them with warm heart.

Leaders in the production department, with large production sites and large numbers of people, should standardize their missions and methods of work rather than in an atmosphere of supervision and control so that they can engage in production activities on their own. we should distribute and delegate responsibilities as much as possible so that they feel a sense of accomplishment in their work and receive rewards to create an atmosphere of praise and encouragement.


As a manufacturing-centered company rather than sales and services, our LCC has a mission to provide the best quality and competitive products to domestic and foreign customers in a timely manner. Therefore, the production department must be at the center of the company, and production leaders must strive to develop themselves responsibly. Above all, it is important to fully understand the principles and operation of mechanical and electrical piping and instruct employees.

We also need to know the characteristics of each product's raw materials. Please visit our subsidiary materials partners regularly to improve the quality of subsidiary materials. We must also make great efforts to foster leadership that can lead diverse employees with integrity and leadership.






CEO BAIK, SUNGCHUN

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