BUSINESS LINKAGE CENTRE (TPM) TOTAL ... -...

TRADE AND DEVELOPMENT BOARD COMMISSSION ON ENTERPRISE, BUSINESS FACILITATION AND

DEVELOPMENT

Expert Meeting on

"ENHANCING THE PARTICIPATION OF SMALL AND MEDIUM-SIZED ENTERPRISES IN GLOBAL VALUE CHAINS"

Geneva, 18-19 October 2007

PAPER SUBMITTED TO THE EXPERT MEETING*

BUSINESS LINKAGE CENTRE (TPM)

TOTAL PRODUCTIVE MAINTENANCE

by

Mr. Roberto Castillo UNILEVER, Vietnam

____________________ *The views expressed are those of the author and do not necessarily reflect the views of the UNCTAD

BUSINESS LINKAGE CENTRE

(TPM)TOTAL PRODUCTIVE MAINTENANCE

SMALL AND MEDIUM ENTERPRISES

Expert Meeting on

"ENHANCING THE PARTICIPATION OF SMALL AND MEDIUM-SIZED ENTERPRISES IN GLOBAL VALUE CHAINS"

Geneva, 19 October 2007

by

Roberto CastilloUnilever, Vietnam

“The views expressed are those of the author and do not necessarily reflect the views of the UNCTAD”

UNILEVER VIETNAM June 2007

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Unilever Vietnam has sponsored the Business Linkage Centre to work for the development of Small and Medium Enterprises.

These small and medium enterprises are the local third party manufacturers and suppliers of Unilever Vietnam.

The Business Linkage Centre operates under the auspices of the Royal Melbourne Institute of Technology (RMIT). They will have a link with the United Nations via UNCTAD and IPCN, Ministry of Planning and Investment (Bo KHDT) in order to be able to provide more funding for the development of the SME’s in Vietnam.

THE BUSINESS LINKAGE CENTRE


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HCMC

Can tho

LAOS Hai phong

BUSINESS LINKAGE CENTRE TPM PARTNERS-Manufacturers and Suppliers

HANOI

DngCAMBODIA

Lix Company (North)* - Detergent Powder

Net Company (North)*- Detergent Powder

Haso* - Toilet Soap, Household Care Liq.

Danang Chemical*-Detergent Powder,Fertilizer, Wooven Packaging Bags

* Vinachem Companies

Phu Quoc Island

Lix South*- DetergentPowder, Liquid Care

Net South*- Detergent Powder, Liquid Care

Huong Viet*- Fabric Conditioner Liquid

Danang Chemical* (South)-Det. Powders

Duy Tan Plastic Co-Plastic Bottles

LS Pack Company Ltd.-Laminated Tubes

Phuong Anh Food Processing Co-Tea


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UNILEVER VIETNAM TPM PARTNERS

NORTH Third Party ManufacturersLix Detergent Joint Stock Company (North)Net Detegent Joint Stocks Company (North)Hanoi Soaps Joint Stocks Company

CENTRAL Third Party ManufacturersDanang Chemical Joint Stocks Company

SOUTH Third Party ManufacturersMicrobiological and Chemical Joint Stocks CompanyLix Detergent Joint stocks CompanyNet Detergent Joint Stocks CompanyDanang Chemical Joint Stock Company(South)Phuong Anh Food Processing Co

SuppliersDuytan Plastic CompanyLS Pack Company Limited

Six Third Party Companies & Two Suppliers


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THE LEVER VIETNAM THIRD PARTY

SME’s Volume – Annual Plan 2007

3,70511,96713,36014,680

24,253

56,087

85,79991,024102,058

116,325

156,957

178,800

284,600

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

86% of total production (62% in 2006).

284,600 tons planned production 3rd party.

39,500 tons planned for export(15%).

62 % of Net Proceeds of Sales.


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UNILEVER VIETNAM TPM PARTNERSSME’s Volume Actual 2006; Annual Plan 2007

86%62%% SME’s

100.0331,000289,200Company total

3.912,8009,800Other SME’s

3.913,00012,800Hanoi Soaps Co.

4.615,30017,700Lix Detergent Co.-South

8.227,00031,700Lix Detergent Company - North

10.033,30031,300Net Detergent Co.-South

11.738,60033,200Microbiological and Chemical Co.

14.247,000110,400Thu Duc/Cu Chi (In-House)

14.548,00036,000Net Detergent Company - North

29.096,0003,800Danang Chemical Co.

%AP 2007- tonAct. 2006- ton


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UNILEVER VIETNAM TPM PARTNERS2006 Workforce / No of Females – 40%

Danang Chemical Co. (Total Co - 204) - 78

Phuong Anh Food Processing Co. - 88

Hanoi Soaps Co - 104

Net Detergent Company – North - 165

LS Pack Company Limited* - 165

Lix Detergent Company – North - 210

Microbiological & Chemical Company* - 231

Net Detergent Company – South* - 360

Lix Detergent Company – South* - 690

Duytan Plastics Company* -1270


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Total Db %Con

Danang Chemical Company 150 2Lix Detergent Company 384 8Net Detergent Company 184 13Hanoi Soaps 395 25Duy Tan Plastic 432 33Huong Viet Company 17 100LS Pack Company Limited 96 100Phuong Anh Food Processing Co. 2 100

UNILEVER VIETNAM TPM PARTNERSSME’s Sales - %Unilever Contribution in 2006


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TOTAL PRODUCTIVE MAINTENANCE

Safety, Health and Environment Management

Quality Management

Focused Improvements (Kaizen)

Autonomous Maintenance

Planned Maintenance

Training and Development

TPM in Supply Chain

Early Equipment Management

8 TPM Pillars


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8 TPM PILLARS

BUSINESS LINKAGE CENTERTPM Training Modules-l

1. 5’S2. Kaizen3. Kaizen Tools4. Autonomous Maintenance l5. Autonomous Maintenance ll6. Autonomous Maintenance lll7. Safety, Environment & Hygiene

BUSINESS LINKAGE CENTRETPM Training Modules-ll

8. Quality Management

9. Presentation and Communication Skills

10. Boiler Operations and Safety

11. Planned Maintenance

12. Factory Visit


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BUSINESS LINKAGE CENTRE5’S

SeiriSeitonSeisoSeiketsuShitsuke

Sàng lọcSắp xếpSạch sẽSăn sócSẵn sàng

Sorting ArrangingCleaningStandardizingSelf Discipline


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BUSINESS LINKAGE CENTREFocused Improvement - Kaizen and Kaizen Tools

Kaizen ToolsFishbone/Ishikawa Diagram Why-Why Analysis 5 Why and 1 How Process Point Flow Chart Failure Mode & Effect Analysis

Pareto ChartsControl ChartsCheck ListMatrixScatter ChartPM Analysis

Kaizen- A process of improving factory operational performance which often results in cost savings


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OPERATOR BASIC MAINTENANCE COURSE

Operator Basic Maintenance Course lBolts and NutsLubrication

Operator Basic Maintenance Course llDrive TransmissionPneumatics

Operator Basic Maintenance Course lllElectricalInstrumentations

Target ParticipantsEngineering Mgr and Asst Eng’g ManagerShift leader/Supervisors and Group Leaders

Autonomous Maintenance – Operator Train the Trainor


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SAFETY TRAINING COURSE

Unilever Third Party Mandatory StandardsUnilever Safety OrganisationFirefigthingFirst AidePersonal Protective EquipmentGeneral safety AwarenessEnvironmental SafetyChemical SafetyCritical Equipment: forklift, boiler. Low and high voltage,

guarding

Risk assesssment: enzyme, confined space and working at heights

Safety Health and Env. - Safety Mgr Train the Trainor


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QUALITY ASSSURANCE COURSE

Quality ControlSampling Acceptable Quality LimitsAnalytical MethodsIn process control Packed product Finished product

Quality AssuranceEstablish and maintain conditions that does not lead to defects

Quality Management4m (man, machine, methods, materials) factors for machine operations

Quality Management - Direct Training


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PRESENTATION & COMMUNICATION SKILLS

CommunicationCommunication ModelForms of CommunicationCommunication ProblemsEffective CommunicationCommunication Styles

PresentationsFormatsVisual Aids, Charts, PictorialPosture, Body LanguageDo and Don’ts

Training and Development - Operator Train the Trainor


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BOILER OPERATOR COURSE

Boiler General and Steam Generation

Types of Boilers

Boiler Safety Equipment

Water Quality

Safety Checklist

Maintenance: Daily, Periodically, Yearly

Trouble shooting

Training and Development - Direct Operator Training


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PLANNED MAINTENANCE COURSE

Machine Classsification

Maintenance Strategy

Cleaning and Lubrication

Daily and Weekly Equipment Inspection

Master Equipment Schedule

Maintenance Procedure

Data Collection, Recording and Analysis

Spare Parts Control and Management

Planned Maintenance - Eng’g Manager Direct Training


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SME PROGRAMME

Mutual need resulting in a win-win situationUnilever grew very fast during its first ten years in Vietnam. It would have been impossible to cope with capacity demands. Had Unilever built capacity fast, the competitors would have lost their business.Hence we worked together with them in order to deliver the market demands.Unilever could have built the capacity required but we decided not to in VietnamAll low technology products are now made by our so-called friendly competitors (Laundry Product, Soaps)Unilever is concetrating in high technolgy products such as Oral care, Hair and Skin liquid products

Success Factors


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SME PROGRAMME

Use of the local languageAll of the SME’s we are dealing with do not have English capability ie the whole company including the General Director. We would have lost at least 50% of the knowledge had we used English during our training.Hence, all the trainings were being done in Vietnamese by Unilever trained Vietnamese people.We source the trainors from the company as required.We train the line managers and supervisors.

Success Factors


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SME PROGRAMME

Top level support from both partiesThe Unilever chairman fully suppports the training of the third party without any hesitation.The local companies, realising that importance of the training, and accepts all the training that Unilever delivers. They have actually no choice as they must deliver the quality that Unilever requires.There were serious doubts in our intentions in the beginning but all of these vanished after several years

Success Factors


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SME PROGRAMME

Persistence and subsistence in trainingWe did not train on the same subject once or twice. But we train on the subject deliberately as often as required. Sometimes we want to give-up but we realise that we have no alternative but to work with them.Sometimes they themselves ask for the training even we have already trained them before.

Success Factors


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SME PROGRAMME

Regular Audits and review in order to measure the progress

The companies are visited regularly, once every two monthsThey are rated on the progress of what they have learnedSometimes we encounter roadblocks ie no progress at all were seen. We implied that we would stop till a change will happen. But eventually they would deliver and we would start from there again.

Success Factors


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Success Factors

Visit to companies doing TPM

It is a standard practice for companies doing TPM to visit factories that have been doing TPM. This is to convince management of TPM’s beneficial effects.

Unilever Vietnam Cu Chi factoryIn Saigon, visits has been done to the Unilever VN Cu Chi Factory by LS Pack Company, Duy Tan Plastic Company, Lix Detergent Company and Huong Viet Company.

Hanoi Soaps FactoryNo visit has been scheduled in Hanoi yet but the HasoToilet Soaps Factory will be an ideal place to visit.

SME PROGRAMME


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Proactive ManagementPrivate & heavily equitised companies are a lot more interested in learning from the BLC. They are driven by the owners, and managing directors and even by the managers themselves In this case, the management are pro-active and hence they learn very fast.

e.g. Duy Tan; LSPack; and Cico

SME PROGRAMMEGeneral Issues


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SME PROGRAMME

Good DeputiesSome state companies show genuine interest because they are aware that the programme is good but does not seem to or do not know how to give it a high priority and delegates the job to the a deputy director whose success is dependent on the inclination of the deputy

e.g. Lix Co - South; Huong Viet, Lix North (Good Deputies)

General Issues


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SME PROGRAMME

Weak DeputiesSome state companies verbally pronounce that they are interested in the programme but:- It is clear from their behavior that they are not interested at all, or,- They refuse to understand the programme

They also leave it to their deputy who is also not interested. e.g. Net Co - South, Hanoi Soaps (Weak Deputy)

General Issues


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Testimonies of some of the SME’S

SME PROGRAMMESME Testimonies


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BUSINESS LINKAGE CENTRESmall and Medium Enterprises

End


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BUSINESS LINKAGE CENTREAutonomous Maintenance-By Operators

Autonomous Maintenance lIdentification of all kinds of defects and doing a Fugai chart

Autonomous Maintenance llRestoration of the machine to its original condition

Autonomous Maintenance lllPreliminary standardization of machine operating conditions


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OPERATOR BASIC MAINTENANCE COURSE l

Bolt & NutType and specificationMeasurement toolsMeasurement PracticeBolt and Nut ApplicationPractical Application

LubricationTypes of Lubricants

Lubrication Methods

Lubrication Tools

Lubrication Practice

Lubrication defects and inspection

Autonomous Maintenance l - Training Contents


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OPERATOR BASIC MAINTENANCE COURSE II

Drive TransmissionDrive transmission OverviewKey MechanismPin mechanismGear MechanismChain MechanismBelt Mechanism

PneumaticPneumatic Control SystemPneumatic ComponentsPneumatic CircuitsChecking and Inspection

Autonomous Maintenance ll - Training Contents

Coupling MechanismSlide MechanismBall BearingDrive Transmission DrawingInspection and Defect finding


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OPERATOR BASIC MAINTENANCE COURSE III

Electrical and Instrumentations

Theory and Basic CalculationsElectrical Distribution SystemHigh Voltage ElectricityTransformerLow Voltage ElectricityElectrical SafetyElectrical EquipmentsMotor - Inspection and MaintenanceControl InstrumentationsWiring - Checking and Maintenance

Autonomous Maintenance lll - Training Contents


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PLANNED MAINTENANCE

Sustainment (Prevent and fix failures)

Preventive MaintenanceRoutine MaintenanceTime based MaintenancePredictive Maintenance

Breakdown Maintenance

Maintenance Strategy

Improvement (Extend machine life, Reduce maintenance time,Design out maintenance)

Corrective Maintenance (Improved reliability)

Maintenance Prevention (Maintenance free design)


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TPM Familiarisation Training- 2 days.Training done separately by Company. Company Directors, vice directors and key managers (5-15 people). Venue at their site.

TPM Instructor’s Training- 5days.Training on key vice directors and managers who will lead TPM.8-10 people per company.

BUSINESS LINKAGE CENTRETPM Training

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