1. ideas for life
Electrolytic CapacitorElectrolytic Capacitor

2. Project: Cost Reduction of Fabrication Parts ThroughProject: Cost Reduction of Fabrication Parts Through
Vendor Management Inventory (VMI) ConceptVendor Management Inventory (VMI) Concept
Name : Andy WooName : Andy Woo
Department: Capacitor Business GroupDepartment: Capacitor Business Group
Date : 30th Sep.’09Date : 30th Sep.’09

3. Name : Woo Chuen Ping 1998 Joined SINCOM as Production Technician
Date of Birth : 08 July 1976 - In-charge of Production Operation
Nationality : Malaysian 2001 Transfer to Capacitor Department
Date Joined : 24 February 1998 - In-charge of Purchase machine parts & machine
maintenance
Department : Capacitor
Section : PE 2007 Promoted to Senior Buyer
- In-charge of purchase machine parts, Expenses
Forecast & Depreciation Forecast.
1993 - 1994 Vocational High School 2008 Successfully achieve the Cost Reduction
"O" Level Project to save $72K/year.
1995 - 1997 Linton Institute Of Technology
Diploma in Mechanical Engineering
PERSONAL PARTICULARS
EDUCATION
PEDSG EMPLOYMENT HISTORY
MAJOR ACHIEVEMENTS

4. 1st half year 249,214Kpcs & 2nd half year 230,468Kpcs
Production Qty Apr'09 - Mar'10
0
10,000
20,000
30,000
40,000
50,000
60,000
Apr'09 May'09 Jun'09 Jul'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mar'10
Months
Qty(Kpcs)
Apr'09 May'09 Jun'09 Jul'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mar'10
Production Quantity Graph
Monthly Expenses of Fabrication Parts
(Apr'09 - Sept'09)
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Apr'09 May'09 Jun'09 July'09 Aug'09 Sept'09 Average
Months
Amt(SGD)

5.  Stock inventory inconsistentStock inventory inconsistent
 Longer lead time in deliveryLonger lead time in delivery
 High Cost on purchase fabrication partsHigh Cost on purchase fabrication parts
Issues
 Accumulative volume negotiation with supplierAccumulative volume negotiation with supplier
 Apply VMI concept to supplier for stock keepingApply VMI concept to supplier for stock keeping
Action Plans

6. PEDSG
Reduction of fabrication parts cost through VMI concept
5%
down
Completed
Date:
Sept 09
Expected
Reduction
S$132,183
After
Vendor
Crafts
Precision
Total amt spend / yr
S$132,183
Previous Cost :
Vendor
Crafts
Precision
S$139,140
Before
Total amt spend / yr
S$139,140
Copper Terminal
Copper Strip
Punch & Die
Savings:
S$ 6,957/yr

7. PEDSG
Reduction of fabrication parts cost through VMI concept
5%
down
Completed
Date:
Sept 09Before
Previous Cost :
Vendor
Knight Auto
Total amt spend / yr
S$318,008
S$139,140
Forming Die Forming Punch
Bending Insert
After
Expected
Reduction
Vendor
Knight Auto Total amt spend / yr
S$302,108
S$132,183
Savings:
S$ 15,900/yr

8. Projected SavingProjected Saving
ItemsItems VendorVendor Cost/YearCost/Year Cost after VMICost after VMI Saving/YearSaving/Year
CompletedCompleted
DateDate
Punch & Die,Punch & Die,
CopperCopper
Terminal,Terminal,
Copper StripCopper Strip
CraftsCrafts
PrecisionPrecision
$139,140$139,140 $132,183$132,183 $6,957$6,957 Sept’09Sept’09
M&P & AutoM&P & Auto
BendingBending
Machine PartsMachine Parts
KnightKnight
AutoAuto
$318,008$318,008 $302,108$302,108 $15,900$15,900 Sept'09Sept'09
Manual BendingManual Bending
Machine PartsMachine Parts
AdvancedAdvanced
CarbideCarbide
$220,860$220,860 $209,817$209,817 $11,043$11,043 Oct'09Oct'09
TotalTotal $678,008$678,008 $644,108$644,108 $33,900$33,900

9. After Action PlansAfter Action Plans
 Stock keeping is availableStock keeping is available
through supplier, thusthrough supplier, thus
reduce unnecessaryreduce unnecessary
inventoryinventory
 Reduce parts purchasingReduce parts purchasing
lead timelead time
 Cost reduction is achievedCost reduction is achieved
through maximizethrough maximize
negotiation withnegotiation with
consolidated volumeconsolidated volume
 Stock inventory inconsistentStock inventory inconsistent
 Longer lead time in deliveryLonger lead time in delivery
 High Cost on purchase newHigh Cost on purchase new
fabrication partsfabrication parts
Before Action PlansBefore Action Plans

10. Thank YouThank You