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s 6 Thru RTY Innovation Achieve 10 million per year LG Electronics / Digital Appliance Company LGETA MWO Vision 12.5 11.8 10,1 10.0 9.8 (’04 Target) (’03, Million) TA(10.0) TA(11.1) Global No.1 MWO Division ( `05 Sales: M$ 385 ；Profit: 8 % ) China Market Top 1 ( `05 China M/S : 45% ) Cost Competition Vision Before 2005 Now As the basement of Profit Turnaround Fast Innovation Fast Growth Global Position MWO Maker Benchmarking Vision Vision 1/19 D M A I C Big Y Issue 7.1 10.0 `02 `03 CMO Productivity loss↑ Portfolio by Category High Low Price Profit High Quality loss↑ Parts loss↑ Fast Growth New MDL Accelerate tool shift ( 0.7 ~1.8) Shorten the development period Increasing number of parts M unit / year 30% CMO (0.7cu.ft) CMO (0.8~1.1) OTR CMO (0.7cu.ft) CMO (0.8~1.8) Browner OTR 2/19 D M A I C Input Output Process Assy Line Press Welding Painting Purchase IQC OQC PCB Supplier Customer Logistics system (Material, Product) Parts loss control Inspection System Box quality control Round Cavity strength PCB ICT FCT control Powder quality Gap defect . Product and Quality Strategy IR sensor quality Press line system Quick response system Outgoing Inspection system Material storage system Main Issue Big Y Issue 0.7Cu.ft latch adjustment Door ass’y trouble Anode abnormal temp. 0.7 UTC cavity Distortion P/Cord scratch Door dirty Production Process System Assembly Line Painting PCB MFG 6σ L/B improvement Powder thickness BIG Y Little Y Action WG Weld intensity Part quality Quality Yield Quality up MFG 6σ Line balance MFG 6σ Pressing PCB lead improvement Logistic Lead Time Quick Response Logistics TQ 6σ NWT MFG 6σ RTY Innovation RTY↑ TDR MFG 6σ MFG 6σ Welding TQ 6σ 02.12 Target 120 50% 02.12 Target 3.5 2.78 25% 02.12 Target 3.5 2.56 28% PCB Painting Logistics Ass’y Miscellaneous ratio RTYz RTYz 02.12 Target 3.5 2.75 21% 60 RTYz 10 million per year Assurance Target 02 7.0 10.0 M un