China Lean Operation Strategy and Talent Plan Introduction

1. China Lean operation strategy plan to Quality Department AOP

2. Case study: Achievements highlight in 2012 ( encourage team)

3. Lean Project case: HOS Silver Progress– Build in Quality( BIQ)

4. Talent plan -- Human Factors

Bill Yan

Nov., 2015

Confidential

Lean/Quality Principle

Lean Operation /Quality

Business Revenue

Link Lean Operation to Quality policy, Company Vision and Mission

QUALITY POLICY STATEMENT

WE ARE COMMITTED TO

MEET CUSTOMER’S NEED AND EXPECTATION THROUGH THE QUALITY ASSURANCE AND THE CONTINUOUS IMPROVEMENT

WE ARE COMMITTED TO CULTIVATE THE QUALITY ASSURANCE AWARENESS AND DRIVE

CONTINOUS IMPROVEMENT THROUGH TRAINING ALL EMPLOYEES WITH THE RIGHT SKILLS, KNOWLEDGE AND BEHAVIOR FOR THE

ENTIRE COMPANY

We desired: • World class Quality

• Benchmark

• Get new awards from customer and social organization

• Excellent Quality Performance

• Best practices

• Best in Class

Lean Operation/Quality Roadmap---Breakdown

Strategy and link Company Lean Strategic Planning to Quality AOP

2012

2013

2014

2015

Monitor COPQ

Build in Quality training Deploy HOS projects

Set up Quality test Lab in factory –on going

Run APQP,PPAP , FMEA,SPC,MSA

Improve MSA( Gage R&R) <20%

Drive design team to Improve DFMEA,QFD,DFM,DFSS

Continuously Improve process FPY and BIQ

Drive Improve Raw materials Quality Set up CSC database( VOC for R&D)—Due date: May 31,2013

Re-define CTQs and 85% CTQ’s Cpk >1.33

Continual deploy 6-sigma projects

Re-analyze Value stream map to define bottleneck

Re-define obstinate issues from 2009 to 2014

Special team to trouble-shooting ( customer service quality)

Visit customer to know real VOC

Tel-conference with customer weekly

On-line SPC and eMIS

Continuous develop Lean Six Sigma and HOS

HOS silver and Benchmark

Get new awards from local government and social organization

World class quality

Perpetually develop Lean Six Sigma

Call monthly Quality Meeting Login NPI PPAP report in database

Pink : on going Blue: completed Black: Did not start because of resource or objective cause.

Align Lean Roadmap to A3 projects by SDP and AOP-- 2015

Breakdown Lean Strategy plan to Quality department A3 projects for continuous Improvement: 1. Improvement the Performance of COPQ continuously by 20%. 2. Improve internal manufacturing quality control system by BIQ 3. Reduce the on-line material quality finding qty by 20% 4. Improve hidden rejection risk assessment process by FMEA 5. Reduce OQA online inspection PPM by 30%. 6. Improve IQC STS by 30%. 7. Improve certification AOP Tools -- DMAIC and Lean

Process Control

BPM(Lean and six sigma)

ISO9001:2008 QMS

NPI Report/PPAP

Design Flow

Value Stream Map

Bottle Neck

FAI/PPAP

SQDIC

DFMEA, DFM/DFSS

QFD CTQ

R&D

CSC Database More Involve to

Verify Design Output Best in Class

ECO Agile system

APQP

PPAP

SPC

MSA

FMEA

Control Plan

Supplier Quality Issue

Design Issues

Purchasing Contract

Supplier Qualify

Supplier Management

(Online SPC Database)

CIP

＋

Had done

Plan to do

Process Approach:

Supplier Internal Operations Customer

In-coming Quality Control:

•Containment

•Containment Procedure √ •Visualize and Communicate

•Visual Board

•Supplier Metrics ■

•Review Process

•Minimum Monthly √

•24hr response time √

•Single Point Accountability √ •Improve & Prevent

•Rapid Problem Solving √ •Audit

•Leadership Standardized Work ■

•Minimum weekly √

Customer Quality Connection:

•VOC

•Design Requirements √

•Performance Issues

•Fast Response – 24h √

•Customer Satisfaction

– Annual Review √

•CAR

•Closed loop communication– 8D √

•Fast Response √

•Zero Defect Mindset– Continuous

Improvement ■

BIQ elements:

•Standardized Work:

•Embed quality ■

•Train operators √

•Audit √

•Process Change Management

•Track changes in 4M’s √

•Minimum, logbook ■

•Visual Management/Observation

•Visual Board √

•Quality Metrics √

•Review Process ■

•Minimum Weekly √

•Escalation Process (Jidoka)

•Require Escalation process √

•Andon (Stop & Notify) √

•3 Don’ts ■

•Continuous Improvement— on going ■

•Prevention of Quality Escapes

•Mistake Proofing √

•5S and TPM √

•QAM √

• Protect the Customer

Define, Isolate, Contain, Escalate and Prevent √

Elimination of Root Cause of Defects √

Complete √

Issues u

Continuous ■

1.Overall IQC Escape rate improved 55.26% by YTD. Improved Receiving cycle time 41.5% by STS.

2.Though we count pilot components, PPM AOP/400 Vs Actual /290, Improved 138%.

3.Reduced recordable customer compliant case by 39.24% in 2012 Vs 2011.

4.Improved CSC efficiency by 32% in 2012 Vs 2011, and Got Q4 bravo award.

5. Scrap cost reduced by 14.79% in 2012 Vs 2011, And scrap cost reduced by 26.9% in 2012 Vs 2011.

6. 2012 Q1 China-India Excellence Award Lanyang Tang, HSG, Shenzhen Quality

2012 Q4 China-India Excellence Award to be team member Thomas Qian , Quality

7.Implement FAI in SMT workshop by layer audit to improve process quality.

8.Changed QE concept to project quality to more focus on process quality

9. Got ISO9001:2008 new Certification from DQS_UL ,Optimized ISO system to more effective and

useful, saved RMB32,000 every three years . and set up COP SharePoint for easy use.

http://teams.honeywell.com/sites/ISO-Documents/SitePages/Home.aspx

10. CAR Database link for easy track quality issues for continuous Improvement.

http://ch83w0002:8080/QCData/

11. Work with APAC Marketing to set up certification AOP

12. 2012 Corporate GMA Audit for OTTR & PPM, Green and Green !

Case study: Achievements highlight in 2012

Lean Project case: HOS Silver Progress– Build in Quality( BIQ)

Silver Criteria

Next Steps

Overall IQC Escape rate improved 55.26% by YTD.

Though we count pilot components, PPM AOP/400 Vs Actual /290, Improved 138%.

Reduced recordable customer compliant case by 39.24% in 2012 Vs 2011, and improved 45.89% in 2011 Vs 2010.

Improved CSC efficiency by 32% in 2012 Vs 2011

Scrap cost reduced by 14.79% in 2012 Vs 2011

2012 Q1 China-India Excellence Award Lanyang Tang, HSG, Shenzhen

2012 Q4 China-India Excellence Award to be team member Thomas Qian

Challenge & Need to Improved

Functional Excellent for HOS Silver

7.Use BIQ tools to supplier quality in Q2 , 2013 8. BIQ Training to new employees in May 2013. 9. QA Lead 7 Six sigma projects for CI in 2013. 10. Improve customer quality to APAC by VOC analyze.

3. Improve tooling health management

1. Improve NPI Quality by BIQ tools

2. Reduce IQC cycle time and Escape rate , Increase STS parts and Improve Supplier Quality .

3. Continuously Improve process quality by BIQ to meet HOS silver requirements.

4. Reduce PPM to Improve Customer satisfaction 5. Improve QMS and Compliance

6. Change Management and Mistake proof or POKEYOKE Three Don’t Culture

1. Implement FAI in SMT workshop by layer audit

2. Change QE concept to project quality to more focus on process quality

3. Improve ROHS / REACH management

4. Optimize QA team for more high efficiency and high productivity

5.Add some test equipments to improve IQC (ROHS/REACH) and Manufacturing Process quality(Pot solder LF and Non LF version)

1.Improve Design maturity for APAC PPM by VPD --- Kano quality Diagram --- SWOT and QFD --- Competition Analysis

2. Supplier Contract with teams and conditions and Quality assurance provision of PO. HOS tools extend to suppliers Pre-production review report for new parts, and we use PPAP to re-qualify bottom parts to drive improvements.

DEDeliverableDE

7. flow diagram of people, machines, and materials exist in the area.

Bottlenecks are identified and will update process CTQ.

CONFIDENTIAL

Talent plan Our Opportunity

Employees Balanced Score Card and SWOT

Customer (SWOT)

Financial (SWOT)

Innovation and Learning (SWOT)

Internal Business Processes (SWOT)

START HPD

Human Factors— Delivery Personal Quality Job , Beat AOP Everyday

HONEYWELL - CONFIDENTIAL

Talent plan → Your opportunity

1. SMART Goal 2. TARGET Working Culture • T—Truth • A—Accountable • R—Respect • G—Growth • E— Empower • T—Trust 3. Abundance training and tools http://www.pmi.org/ www.ASQ.org www.ipc.org http://www.apics.org/ www.aiag.org Thanks