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MANUFACTURING CAPACITY EXPANSION

ANNUAL REPORT 2017


CONTENT AAA

01 GEMO Redesign

13 E2E Carolina

23 Shared Support

33 Data Capturing System

41 AX 2012

49 Control Point

57 Planning Template

65


AAA Manufacturing Capacity Expansion : Annual Report 2017 l 01


AAA Overview AAA project had been the top challenge and most anticipated achievement of PANDORA throughout the year 2017. The project team had to overcome many difficult challenges from both technical and corporate sides which required changes, decisions, and directions to be made under very limited time and budget constraints. With extraordinary collaboration and hard work from all departments and team members involved in the project, 140,354 pieces of finished products in total were produced from AAA in the year 2017.

02 l Manufacturing Capacity Expansion : Annual Report 2017


Mission The main design target of the project was to shorten the lead time from the start of Front End process to the end of Finishing process to as short as 3 weeks. This required inventing new processes and technologies which resulted in many new initiatives such as Flowline and Data Capturing System. To achieve a production capacity of up to 1.51 million pieces of finished good when all 46 Flowlines are fully installed based on the complexity ratios and calculation used for the POC Flowline study in August 2016. To improve productivity and quality by real time performance motoring and closed-loop quality feedback systems. To produce at least 110,000 pieces of finished goods in total within the year 2017. To build an energy efficient and environmentally friendly production facility.Therefore LEED Gold Certification has been targeted to achieve for AAA building.

Key Features Flowline: a newly developed Finishing material and work flow system to improve productivity and reduce lead time. The first of its kind in jewelry manufacturing. Energy efficient and environmentally friendly facility with a LEED Gold certification target. 4 production floors. 19,383 Sq. m total gross building area. Capable to accommodate up to 46 Flowlines. 3-week production to lead time within 2020. More than 15 new initiatives to improve the work environment, security, safety, ergonomics, efficiency, productivity, quality, lead time, and also reduce the environmental impact.

Manufacturing Capacity Expansion : Annual Report 2017 l 03


Project Organization MCE Steering Co. (Thomas T., Nils H., Jesper B., Preecha P., Carsten O., Gideon O., Christian K.)

GEMO Redesign Project Sponsor ( Preecha P. )

MCE Program managment ( Jirayut W. )

AAA PMO Team ( Pantakarn T. )

AAA PMO Team ( Ampornphan J. )

Project Leaders

Brian D. Construction

Jakkree Sonpibool Shop floor FE

Anothai C. Utilities system design

Suppashote J. Quality

Jarotsawan L. Planning

Michael S. AX implementation

Rawee .K SHE

Thiti .K Procurement

Sivarin Nilnakala Shop floor FN

Pornpisak Fuangkasem Data Capturing System

Jaruwan W. HR

Chalumporn N. BC

Jesper Kjaerskov Security

Juthatip Jarityat Production

04 l Manufacturing Capacity Expansion : Annual Report 2017

Narumol Limprasert BOI

Kanyakorn Kamhom Risk advisory


Manufacturing Capacity Expansion : Annual Report 2017 l 05

Overall Project Plan NO 1 2 3 4 5 6 7 8 9 10 11 12

Key activities Plilng Building construction Utility construction Building & utility comissioning Machine procurement Machine installation Machine commissioning System commissioning Production handover AX implementation IT Production handover & commercial run

TEST RUN

Replenishment Order


06 l Manufacturing Capacity Expansion : Annual Report 2017

Key Milestones

Q2 : Machine purchasing starts

POC1 Flowline concept

Q4 : Production starts ( Dec,1st 2017 )

Construction starts 1st Charm 2016

2015

st 1 Concept

2017

2018

Project kick off

Q3 : Machine installation starts

Production ramp up

Q1 : Final layout POC2 (Data capturing) 12 more Flowlines


Financial Summary mTHB 2500 Net total addition Potential saving 2000

1500

91

148

Originally planned budget

Potential 2018+2019 spending

400

1,973 Up to date spent

1,629 1000 Planned budget 2,120 MTHB

Originally planned budget Latest approved budget Up to date spent Potential 2018+2019 spending Potential savings 2018

Actual spent 2,029 MTHB

1,973 2,120 1,629 400 91

08 l Manufacturing Capacity Expansion : Annual Report 2017

MTHB MTHB MTHB MTHB MTHB


2017 Key Achievements 1. Fully operational building and supporting infrastructure. 2. Fully operational and commissioned production machines with total capacity of up to 44,000 pieces of finished goods per week. 3. Completed 1st phase migration of fully trained production workers into the building for machine and process testing. 4. 140,354 pieces of finished goods produced in total which was well beyond the target of 110,000 pieces.

2018 Targets 1. Increase production capacity to 600,000 pieces of finished goods per week by having in total of 19 Flowlines ready for production by WK9. 2. Acquire and commission machines capable to support new types of products for 2018 such as chains and bracelets. 3. Implement projects to be applied to AAA processes and building systems to support the company KPIs.

Manufacturing Capacity Expansion : Annual Report 2017 l 09


PANDORA Production

celebrates the ďŹ rst piece of jewelry produced from AAA. On 3rd October 2017 at 09.00 am, AAA started its production for the first time to produce PANDORA Jewelry. On 5th October 2017 at 09.00 am, the very first piece of jewelry was produced from AAA Building.

Manufacturing Capacity Expansion : Annual Report 2017 l 11


GEMO Redesign Manufacturing Capacity Expansion : Annual Report 2017 l 13


GEMO Redesign Overview Gemo Redesign Program Management has been established aiming to manage space utilization of PPT1 in Gemopolis as part of MCE program. The program consists ofseveral projects including Innovation Center, Office relocation, IE expansion, Centralized Production, A18, Quad A, and Double B. The original concept and high-level timeline of the project were provided by the top management and the project team further developed project key milestones, prepared the budget, coordinated requirements from all departments, and managed changes in order to align with the corporate requirements and support smooth transitions between departments and buildings while maintaining the operations of all functions as well.

Mission GEMO Redesign is one of the key projects that support Manufacturing Capacity Expansion program (MCE) which relates to both office buildings and production building that support the company growth. The main purposes of the project are the following. The main goal is to improve the work environment and effectiveness by rearranging and consolidating work functions to optimize for space utilization, workflow efficiency, and capacity expansion. The project consists of 6 key subprojects including A12 Innovation Centre, IE Expansion, A18 multifunctional building, A13 centralized building, Quad A office building, and Double B Production building. For 2017, the main goal was to plan to support the ramp up of the production at AAA building To meet its production ramp up plan throughout 2018.

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Key Features A12: Innovation Center (F1: TDR/ MEX workshop, F2: PD/ QA/MEx office, F3: PD sample lines, F4: TDR/ QA/ Top Mgt Office) IE expansion project (COO tag: TJM F2, 100 pc packing and AX AAA: B16 F1) A18 building (F1: Carpark/ welfare shop, F2-F3: Canteen, F4-F5: JSA, Meeting rooms, Training rooms, Townhall) Centralized rubber mold, granulate and spare part (A13) Quad A (A7: Executive office, A15, ALE, A16) Double B (B14: Carolina, B16: Silver) other support production.

Manufacturing Capacity Expansion : Annual Report 2017 l 15


Project Organization MCE Steering Co. (Thomas T., Nils H., Jesper B., Preecha P., Carsten O., Gideon O., Christian K.)

IMAGE GEMO Redesign Project Sponsor ( Preecha P. ) IMAGE MCE Program managment ( Jirayut W. ) GEMO Redesign Project Management ( Torpong I.)

GEMO Redesign Supervisor, Business Maturity Phannita S.

Project Leaders

PD

ES

IT

Production

Lean

Planning

QA

TD&R

( Peter T., Khanittha A ) ( Jakkree, Sivarin )

(Nakarin Th., Werasak P.) ( Anothai C. Anun, Nittaya ) ( Michael S., Arisara, Sarat K.Beau )

AMT

SHE

( Jean Pierre, Sittichoke, Tossaporn )

( Amnart W, Banjongsin, Kidpaiboon, Thanabaworn )

Security

( Supphashote, Daniel, Kitti,Pisak )

BC

Finance Procurement

( Chalumporn )

( Paul, Jesper )

( Warunchapat, Weerasak ) ( Rawee K., Jatupol, Jaruwan, )

16 l Manufacturing Capacity Expansion : Annual Report 2017

( Weaw, Narumol L., Cherry , Suphannee K.)

( Supansa, Patrick K., Wassana, Pawitra )


Overall Project Plan

YEAR BUILDING

Manufacturing Capacity Expansion : Annual Report 2017 l 17

Installation and Commissioning

Installation and commissioning

Installation and commissioning

AAA

P1 : 19 FL+1 Spare part

P1 : 19 FL Spare part

A13 B14

Move Spare part to A13 Centralize building

P3 : XX FL without spare part

Renovate A13

F1 : Plating area

End to End Carolina Go live Jun 2018

Plating BOI3 MC

Move temporary rest area at AAA 4th Floor to A18

Renovate b14 to support BOI4

B16 A18 Quad A

Renovate b16 to support BOI4

Prep

Production still run at some of A15,ALE,A16 for maintaining existing PPT1 volume

A18

Prep

Construction A7 ( Office building )

Free up Temporary canteen area by t emporary rent B24 land

Office people move to A7

Renovate A15 F1,F2

Renovate the rest A15 IE and FQC move to A15

Renovate ALE Renovate A16

BOI3 Ended Benefit


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Key Milestones

IE Expansion ( COO & 100p pack ) Oct 2017

Start Aug 2016

Innovation Center Aug 2017

Carolina Jun 2018

Central Granulation & Rubber Nold Dec 2018

AAA Start Operation Jan 2018

Full PPT1 Operations Under BOI 4 ( BB Transition and Renovate ) Aug 2020

A7 Jun 2019

Full Quad A 2021

A18 End 2018

Full BOI 3

Full BOI 4


Financial Summary CAPEX, excl. contingency GEMO REDESIGN mTHB 327

3,000 2,152

2,500

2,351

2,000 1,500 1,000 500

162 Act litetime

New Estimate

BOD approve

Manufacturing Capacity Expansion : Annual Report 2017 l 19


2017 Key Achievements Gather requirements of all stake holders for sub projects under Gemo Redesign Finalized scope and layout of the innovation center - PD area: Done

Finalize scope, design of A18 & A7, and start pillar of A18: Done Align concept of centralized production process improvement: On going

Completed renovation for PD sample lines and new office at A12: Done

Q1

Q2

Completed new IT office at C5 - C6 IGS: Done

Q4

Q3

Completed area renovation for COO tag & TJM and B16: Done

Align space requirement of IE to support AAA: Done Complete QA office at C5 C6 F3,4 : Done

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Completed the renovation and transition of TDR and MEX workshop: Done


Manufacturing Capacity Expansion : Annual Report 2017 l 21


2018 Targets

Q1 IMAGE

Conduct Lean Assessment to identify gaps and find opportuity for improvement Clear CI & E2E SC projects executation & Implentation A13 New Gen Concept Alignment

Q2 Car on CI & E2E SC projects implementation

IMAGE

A13 New Gen Layout Design and Workflow

Q3 IMAGE

Carry on CI & E2E SC project implementation A13 - Start procurement process and IEAT submission

Q4 Carry on CI & E2E SC projects implementation A13 - Start renovation and process re - layout

22 l Manufacturing Capacity Expansion : Annual Report 2017

IMAGE


Pandora’s multifunctional building support business growth. The building is designed based on Pandora’s standard together with LEED certified which consist of canteen, carpark, office building, guest room, town hall, multifunctional meeting room, welfare shop etc.


E2E Carolina Manufacturing Capacity Expansion : Annual Report 2017 l 25


E2E Carolina Overview

Based on the historical data as well as market trend, the demand for plated product has been increasing dramatically every single year and the management team foresees this potential growth with large commercial demand which predictably will reach 25 million pieces per year in 2020. Hence, the project has been initiated since the end of 2016 with the purpose to have the plating production implemented inside our PANDORA in 2018.

26 l Manufacturing Capacity Expansion : Annual Report 2017


Mission To build in-house plating capability in Gemopolis to support future commercial opportunities and increase profitability.

Key Features Capacity: One plating line with capacity at least 100,000 pieces per week with two shifts per operating day in 2018. Features: Automatic plating line with cycle time at 6 minutes per rack built inside clean room to reduce chemical direct contact to human. Capabilities: Plating line are able to plate Gold and Pink gold. First focused plated product is Carolina products with commercial run for 2018 Optimization: Layout of preparation area using LEAN Manufacturing Concept BOI compliance: End to End plating production flow is under BOI 3 for phase 1 in 2018 and BOI4 for phase 2 in 2020. Go Live: 1st commercial run will be on June 18th 2018. CAPEX management: Spending must not be exceeded 311 million THB for CAPEX and 62 million THB for OPEX.

Manufacturing Capacity Expansion : Annual Report 2017 l 27


Project Organization

MCE Steering Co. (Thomas T., Nils H., Jesper B., Preecha P., Carsten O., Gideon O., Christian K.)

Project Sponsor ( Preecha P. )

Project Sponsor ( Nils H. )

Project Sponsor ( Patrick B. )

MCE Program Management Office ( Jirayut W. )

MCE Program Strategic Program Management Management Office ( Supakrit M. ) Office ( Ditthawat S. )

Project Manager ( Amornrat J. )

Project Consultant

Project Consultant

( Jirattapong M. )

( Florent T. )

Project Leaders

Core team member ( Sitthipan K. )

Core team member ( Rutaiwan C. )

Core team Core team member member ( Aungsutorn R. ) ( Thunyakan W. )

Core team member ( Exkawit S. )

Core team member ( Wiyada T. )

Core team member ( Nitkamol K. )

Core team member ( Rawee K. )

Core team member ( Nachapa T. )

Core team member ( Kanyapat W. )

Core team member ( Anothai C. )

Core team member ( Sittichoke Y. )

Core team member ( Ekarat L. )

28 l Manufacturing Capacity Expansion : Annual Report 2017

Core team member ( Rath T. )

Core team member ( Petchrada C. )

Core team member ( Kittapak S. )

Core team member ( Kidpaiboon K. )

Core team member ( Jarotsawan L. )

Core team member ( Natchapol S. )

Core team member ( Rutaiwan C. )


Manufacturing Capacity Expansion : Annual Report 2017 l 29

Overall Project Plan 2017 Aug Construction work (Inside and Outside) Phase l (Construction Activity) Phase ll (Close plating production area)

Area preparation Freeze layout Construction and Utility (Outlet) Table and Cart prototype Quotation PR/PO

Plating line machine inatallation and qualifications FAT SAT (IQ/QP/PQ) Trial Run

Training courses by JSA Training Phase l Training Phase ll

Commercial run (Go live)

Sep

Oct

2018 Nov

Dec

Jan

Feb

Mar

Apr

May

Jun


Key Milestones 2016

2017

2017

2017

2017

Q4

Q1

Q2

Q3

Q4

1. BOD approved CAPEX 311 million THB for the project

1. Official project kick off 2. Machine suppliers tendering starts 3. Plating line location in B14 was locked down and area relocation starts

1. Conceptual design of the machine was released 2. Plating Machine supplier was selected officially

1. Plating machine fabri cation starts 2. Full cross functional team members on board.

1. 100% plating line area renovation completed 2. Factory Acceptance Test (FAT) was completed and machine installation starts

Financial Summary mTHB

mTHB

Simulation design of plating line external area.

Manufacturing Capacity Expansion : Annual Report 2017 l 31


2017 Key Achievements

Q1

IMAGE

1. Plating line location in B14 was locked down and area relocation starts

Q2

1. Plating Machine supplier was selected officially

Q3

1. 71% plating line area renovation completed 2. Plating machine fabrication starts 3. Full cross functional team members on board.

Q4

IMAGE

1. 100% plating line area renovation completed 2. Factory Acceptance Test (FAT) was completed and machine installation starts 3. ERP for Plating operation was confirmed to be run by PP temporarily

32 l Manufacturing Capacity Expansion : Annual Report 2017


2018 Targets

Q1 1. Machine installation is fully completed 2. Plating machine commissioning is completed

Q2 1. Production Qualification is completed 2. Commercial run starts

Q3 1. 3 months Hypercare 2. Project closure

Q4 Project closure

Manufacturing Capacity Expansion : Annual Report 2017 l 33


Shared Support Manufacturing Capacity Expansion : Annual Report 2017 l 35


Shared Support Overview PPT has continuously expanded its production capacity to cope with high market demand. New plant in Lamphun started ramp up operation in October 2017, while PPT1 Triple A will start in late 2017. In order to effectively operate, standardize support operation process and avoid redundancy among production sites, PPT management find that a proper Shared Support for PPT needs to be established; the Share Support Center is an important initiative under Manufacturing Capacity Expansion program.

Mission To design and document the to-be process flows to improve the operation effectiveness, ensure effective hands-on/hands off points among sites, standardize support operation process and avoid redundancy among sites. The processes flows include : o o o o o o o o

Purchased Material Planning Procure-to-Pay Inventory Management (including Central Warehouse) Fixed Asset Management Order-to-Cash Production Cost Management Close, Consolidate and Report Master Data Management

Key Features Project Progress Report To-Be Process Flows Phase 1 = Process Flows for AX12 SS Go-Live (excluding Central Warehouse) Phase 2 = Process Flows for Central Warehouse with AX12 SS Go-Live To-Be Process Flows Training and Knowledge Transfer

36 l Manufacturing Capacity Expansion : Annual Report 2017


Project Organization

SSC Finance Accounting and MDM

K. Preedaporn J. K. Thanatphorn P. K. Surasit N. K. Sivaporn P. K. Danainut N.

PMO K. Nalin L.

Manufacturing Capacity Expansion : Annual Report 2017 l 37

OCP MANU AX PMO

K. Natthavadee A.

Project Steering Co.

Project Management

K.Christian.k,K.Jesper.R

K.Wilai C., K.Phawinee A., K.Pawitra K., K.Marisa A., K. Vuthichai C.

SSC Procurement and Receiving

K. Phisak P. K. Piyamas S. K. Thiti K. K. Arnon J. K. Komsan L. K. Wilairat S. K. Wassana K. BOI and Compliance

K. Narumol L. K. Suphannee K. K. Suttinee P. K. Kanyakorn K.

Service Recipient Representatives

K. Nathawut A. K. Jumnong N. K. Sarawut P. K. Lapatrada C. K. Sukanya K.

Process and System Alignment

K. Kanokporn P. K. Emir S. K. Sirapun J.


2017 Key Achievements All of the following process flows have been aligned with AX12 as well as av accepted by related function representatives:

Material Requirement Planning (MRP) Sourcing and Procurement Receiving and Return to Vendor Accounts Receivable (AR) Inventory Transfer Issue and Receive Production & AX-PP OEM/ODM, Outsourcing, and Refinery/Reform Handling Obsolete Items Fixed Assets Management (FA) Inventory Accounting Prepare Close and Consolidate Reporting

These workflows were developed to improve the operation effectiveness, ensure effective hands-on/hands off points among sites, clearly defined required supporting document, frequency and timing of the activities, standardize support operation process and avoid redundancy among related parties. Training and knowledge transfer sessions were conducted to both key-users and end users alongside AX12 training program.

38 l Manufacturing Capacity Expansion : Annual Report 2017


Key Milestones

Overall Project Plan

Other Projects’ Major Milestones

Major SSC Milestones

AX Early ProcurementSeq.1

AX Early ProcurementSeq.1

Year End Closing Rehearsal

PPT2 Q1/2017 Data Preparation Completed

Project Kick off Conducted

AX Early Procurement Seq.2.5

Central Warehouse Approach Concluded

Central Warehouse Interim solution

SS Workshop Completed & New working concepts approval

AX Shared Services End User Training Commencement

AX Shared Services GO Live

SSC To Be Process Flow Training started

Manufacturing Capacity Expansion : Annual Report 2017 l 39


Overall Summary With Shared Support establishment, PPT is now operating multiple manufacturing sites with more efficient support operation, standardized processes with AX2012 functionalities, clear shared and site responsibilities as well as enhanced internal control. However, this success is just a starting point. It’s important for all related parties to still continuously learn and improve their processes and strengthen the collaboration among functions to create an excellent and sustainable Share Support operations.

40 l Manufacturing Capacity Expansion : Annual Report 2017


Data Capturing System

Manufacturing Capacity Expansion : Annual Report 2017 l 43


Data Capturing System Overview Data capturing is a sub-project of Data Transparency project which belongs to the production template in the Manufacturing Capacity Expansion (MCE) program. The tool has been developed by Implement Consulting Group (ICG) and will be used to execute flowline in both PPT1 – AAA and PPT2 Flowline (only focus on finishing area) Data capturing system was initiated to ensure that the objective of flowline concept (Production Execution Template) is achieved and to collect all necessary data for controlling points in costing, supporting for production management, reporting line performance and defined KPIs, analyzing actual production time compared with standard time, as well as feedback the status of production for planning. The project was divided into 5 phases as per below: Phase 1: Data Capturing v1.0 for flowline prove of concept (POC) phase1 (delivered in 2015)

Phase 2: Data Capturing v2.0 for flowline prove of concept (POC) phase2 (delivered in 2016)

Phase 3: Data Capturing v2.1 for flowline in A13 (delivered in Jan’2017)

Phase 4: Data Capturing v2.8 for flowline in PPT2 (delivered in Apr’2017)

Phase 5: Data Capturing v3.0 for flowline in AAA (delivered in Nov’2017)

44 l Manufacturing Capacity Expansion : Annual Report 2017


Mission To manage material flow in the flowline To register the data e.g. weight and pcs at every hand-overs between each process To keep takt on the flow line by displaying expected process time for each worker To display status of flow lines production execution and showing real time performance dashboard to be immediate feedback to engineer and can be identified of issues to solve To capture actual process time for monitor and analyse weak process to be improving for decrease lead time and get high utilization To create rework routes on the fly with registration of issues and provide quality dashboard to fast identify potential quality issues and immediate quality feedback To generate management information, KPI report, worker performance

Key Features To implement tooling which support production execution with data exactness and friendliness for worker operation. Enable to integrate with AX2012 smoothly. To comply with Pandora’s IT policy. To implement self-inspection function for quality awareness.

Manufacturing Capacity Expansion : Annual Report 2017 l 45


Project Oroganition MEX PPT1

MEX PPT2

Pornpisak Fuangkasem

Dejphol Roongnapaporn

IT APP MANU Beau,Rutaiwan Chotrattanapitak

Consultant ICG Jens Erik Hansen ,Christian Agerback

Project Manager Pornpisak Fuangkasem

IT Infrastructure

IT Hardware

Sarat Chatirung

Soren Bonde Andersen

Production Juthatip Jariyat

Planning Excellence Khanittha Arayapan

Quality Ornshisa Atawong

AX PPT1 ( BL-MANU )

AX PPT2 ( BL-MANU )

Phimchai Ninnet

Prawit Taworn

Key Milestones

2016 Q1

Phase1: implementation of data capturing version1.0 in POC phase 1

Q2

Phase1: implementation of data capturing version2.0 in POC phase 2

Q3

Training phase for A13 flowline

Q4

Phase3: implementation of data capturing version2.1 in A13 owline

2017 Q1

AX integration: SIT/UAT testing phase, and training phase for PPT2

Q2

Phase4: implementation of data capturing version2.8 in PPT2 flowline

Q3

AX integration: SIT/UAT testing phase, and training phase for AAA

Q4

Phase5: implementation of data capturing version3.0 in AAA flowline

46 l Manufacturing Capacity Expansion : Annual Report 2017


Overall Project Plan Key develiverables & Timeline A13 & PPT2 flowline impronement

Upgrade to version 2.2.0

Mobile device readiness

Upgrade to version 2.7.2

Under investigation by Global IT team (EA)

Decision making on device selection and start PR process

Design

1st Wave ( Manual ) 2nd wave ( June code drop )

Development

Functional Design

Install at flowline

Hypercare

Training

UAT

Functional Test

Development

UAT

SIT Training Development

Training Functional Test

4th Wave (Oct code drop)

UAT

Design

Admin Module / Staging Environment

Client upgrade Robustness

Report / Dashboard

Testing Monitoring / Disaster Recovery

Super User Training Hypercare / IT rollout team / AX team Training

Training

Install at AAA

Configure / set up all devices

Design

Integration Design

Continue Improvement from Gap Analysis

Upgrade to Upgrade to version 3.1.0 version 3.1.2

Receive devices for AAA

Configuration

Analysis

3rd Wave (Aug code drop)

Version 3.1 readiness

Upgrade to version 3.0.0

Upgrade to version 2.9.9

PR/PO Process

Configure / set up all devices

Project i nitiation

Upgrade to version 2.9.0

Issue PO

Installation/Configuration AX integration readiness

Upgrade to version 2.8.1

Start Production

UAT Development

Functional Test

Integration load test Documentation

V3.1.2 Testing

Super User &End User Training

End User Training

Trial run

2nd line (GPSO) start

Start Up production in PPT2, 1st line(GPS) Start

Super User &End User Training

3rd line (GPSE) start

UAT

Deployment at A13 & PPT2

PROD Development

Dashboard & Report training with training (Fallen man)

Trial run

Start Up production in AAA 7 lines + 1 line

Financial Summary mTHB

1,155 Extension Budget 190

Pending invoices 64

Extension Budget 230

1,091 Initial Budget 735

Manufacturing Capacity Expansion : Annual Report 2017 l 47


48 l Manufacturing Capacity Expansion : Annual Report 2017


2017 Key Achievements Data Capturing system “Go Live” for PPT2 flowline in Apr’2017 Data Capturing system can be integrated and synchronized with AX2012. SIT and UAT Testing have been conducted and got pass result for all test cases Training session for super users and end users have been conducted Data Capturing “Go Live” for AAA flowline in Nov’2017 Current version is 3.1.2 which has been used in the flowline in A13, AAA, and PPT2. This version can meet all requirement from related stakeholder and is complied with Non-functional requirement (NFR) global IT policy

2018 Targets Manage and maintain existing DCS version that has been deployed in production Convert the platform of the system from JAVA code to .Net platform Find the gaps and improve the system as per request

Overall Summary Data Capturing project has completed all deliverable per scope within the timeline and has been aligned to related stakeholders. Then, the data capturing project can consider to be handed-over to Pandora IT team.

Manufacturing Capacity Expansion : Annual Report 2017 l 49


AX 2012 Manufacturing Capacity Expansion : Annual Report 2017 l 51


Overview OCP MANU under One Common Platform program aims to implement AX2012, an ERP system, to be used over all functions in Manufacturing, Sales, Distribution and Retail as a common solution around the globe.

Analysis phase was first conducted in 2015 to gather the requirements from the business toward processes for both PPT1 and PPT2. Then, the proof of concept had been demonstrated to illustrate standard functionalities of the system, where gaps those were identified to be critical has been considered for modification.

The program has been decided to go-live in projects per below: •

PPT2 – cover all work streams for PPT2 production site, except for Finance and Costing, and Procurement

PPT Shared Services – scope of project includes non-production work streams to be ready for both sites

AAA – focus on implementing AX 2012 to the new production site

52 l Manufacturing Capacity Expansion : Annual Report 2017


Mission The program targets to implement AX2012 as an ERP system to Pandora Manufacturing sites in Thailand.

Key Features PPT Shared Services go-live AX AAA go-live

Manufacturing Capacity Expansion : Annual Report 2017 l 53


Project Organization Legend : Deliitte External Internal

OCP director Soren Blaahoj

IT Applications reference group Janne Scott Niels Wive Hanne Majken Andersen Michael Savage

Enterprise Architect Winston Teperson Program Manager Lise Oline Larsen PMO : Natthavadee A.

Manufacturing OCP Architect Ramalingam Kothandam Steven Koppens

Project Manager ( AX AAA ) Ekarat laokulruch PMO : Theeranuj P.

Project manager (PPT SS) Morten Weisdal PMO : Vuthichai C.

Project Manager (Master data integration Liselott Besser)

Overall Project Plan Jun Release

MILESTONES OVERALL PPT2 ROLL - OUT Design Development Test Deployment PPT2 Stabilization OVERALL PPT SS ROLL OUT Design & Development UAT Cutover OVERALL AAA ROLL OUT Requirement Gathering & POC

Kick off

Design and Development UAT Cut over

54 l Manufacturing Capacity Expansion : Annual Report 2017

Aug Release

Shared Services Go live Sep 4’17

Shared Services Nov 11’17 AX AAA Go live Nov 20’17


Key Milestones

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

PPT2 Go-live

PPT Shared Services kick-off

1. AX AAA kick-off 2. Procurement early go-live

1. PPT2 ow line go-live 2. AX AAA BPV

1. PPT2 Stabilization handover 2. PPT Shared Services go-live

AX AAA go-live

Financial Summary mTHB 177,3

12,6

197,8

6,4

191,4 1,5

1,1

5,3

PPT2 PPTSS

114,1

115,5

19,4

21,9

113,5 AAA Carolina Plating SA Review Travel & expenses Change

31,2

45,8

44,2 22,2 10,4 BoD revised budget

10,7 Change *

Carolina Plating (PID approved)

1,5

F3

1,5

11,8 AAA Delay (New PID)

1,5

1,5

EAC **

* the change consist mainly of extra costs for AAA including the cost of hypercare was not included in BoD revised budget together with the cost of the SA review. ** EAC = Estimate at completion

Manufacturing Capacity Expansion : Annual Report 2017 l 55


2017 Key Achievements PPT2 Stabilization was conducted and handover to business. PPT2 flow line go-live support on May 2017. PPT Shared Services has been lived since September 4th 2017, while the hypercare period will be ended in November 2017 AX AAA has been lived on November 20th 2017, to support new production facility in Bangkok, currently the team is monitoring the operations closely during hypercare period, which will be ended in February 2018.

2018 Targets Focus for 2018 will be on next project to support Carolina plating line. Above from this, there is no other project identified as OCP MANU scope yet, while PP retirement will be managed by local IT Application team.

Overall Summary OCP MANU has achieved all the planned milestone in 2017 successfully, any pending issue were tracked and will be followed up before project closure. Transition to business will be planned and executed before project ended in 2018.

56 l Manufacturing Capacity Expansion : Annual Report 2017


Manufacturing Capacity Expansion : Annual Report 2017 l 57


Control Point Manufacturing Capacity Expansion : Annual Report 2017 l 59


Control Point Overview Control point project is under Data Transparency track of MCE Program, where aimed for identifying both managerial and operational control points on scoped processes, those were : Production execution Production planning Physical inventory handling The approach was to identify the control points per control objectives those had been defined and aligned with each function stakeholders. Then, the control points requirements were sent to IT team to validate whether there is any system capturing those control points, while interim solution would be provided in case control points are not available on AX2012 or other systems (e.g. HRMS, e-QMS). The project was planned into 3 phases per Production concepts, includes Flexible cell, Flow line, and Functional cell. The 3 phases were planned and executed per below: Phase 1: Flexible cell (delivered in 2016) Phase 2: Flow line and refinery process (delivered in 2016) Phase 3: Flow line enhancement and return from market process (delivered in 2017)

60 l Manufacturing Capacity Expansion : Annual Report 2017


Mission To define control points over operational processed, considering various production concepts (Flex C ell and Flow Line)

To define required control data for effective managerial reporting

To secure BOI compliance – process and system

Key Features Operational control point for: Production processes (Front-end, Finishing both Flexible Cell and Flow Line) Material and Production Planning Processes Inventory Handling process Managerial control point Costing and inventory valuation Fixed asset and related BOI control Performance measurements Data Book for managerial report

Manufacturing Capacity Expansion : Annual Report 2017 l 61


Project Organization Project Manager Deloitte Natthavadee Manage daily progress Facilitate overall project communicatons and issue resolutions

Control Validation & Governance Michael Z.

System Support Validation Overall : Michael S. AX FDD : CGI LACs AX Production : Kulachat T. Other System : Beau

Comment and validate proposed control point, ensure control governance

Ensure that required control data is captured in the appropriate systems

Project Coordinator Deloitte Chananat Organize project meeting and workshop Conduct preliminary review and cinsolidate project documentation

Operational Process

Managerial Reporting

Production

Planning

Inventory Handling

Flexible cell,Front End

Production Planning and Material Planning

Receive,Issue, Transfer Dispose ( of Material, Semi FG, Defect, scrap ) Lead : Pawitra / Jumnong Phisak ( iQC) Return from Market Lead : Nut Kanoporn

Lead : Sakarin Tanapat/Nut

Lead : Adam

Identify control objective of each proposed control attribute Provide information regarding What, Where, Why, How for the proposed control point Secure that required control points are support with business rationale Review pre-defined control points in AX FDDs from each work stream and revise as necessary For process lead, identify required participants of workshop which each lead take accountability * Deloitte will liaise with each lead to prepare info for workshop and be workshop facilitator

62 l Manufacturing Capacity Expansion : Annual Report 2017

Costing Lead : Michael Z. Financial Reporting Lead : Sirapun BOI Control for process, material and machine Lead : Jumnong Performance Measurement and Managerial Report lead : Sudarat Master Data validation and Ensure Data Field Lead : Mick Secure tat the required data for costing control, BOI compliance, performance measurement and other managerial report are identified Secure BOI Control over process, machine and material Secure that required control data are support with business rationale


Key Milestones

Q3 2016

Q4 2016

Q1 2017

Q3 2017

Phase 1: Flexible cell production, planning, and inventory handling processes, and managerial reporting control points

Phase 2: Flow line production and planning process

Phase 3: Flow line and material planning enhancement

Phase 3: Return from market

Overall Project Plan Phase 1

Tasks

2016

2017

Identified and confirmed control objective and control point for Flexible Cell Production and Planning Identified and confirmed control objective and control point for Inventory Handling

Phase 2

Identified and confirmed control objective and control point for Managerial Reports

Identified and confirmed control objective and control point for Flow Line Production and Planning Identified and confirmed control objective and control point for Refinery process

Phase 3

Enhanced Flow Line Production control point

Enhanced Material Planning control point Identified and confirmed control objective and control point for Return from Market process

Manufacturing Capacity Expansion : Annual Report 2017 l 63


2017 Key Achievements Last phase of control point has been delivered for flow line enhancement, material planning, and return from market. All control points have been aligned with related stakeholders of each process. The final control point was reviewed by IT Application team and confirmed to be able to support by current system, no additional interim process required.

Overall Summary Control point project has completed all deliverable per scope and has been aligned to related stakeholders. Then, the project can consider to be closed.

64 l Manufacturing Capacity Expansion : Annual Report 2017


Planning Template Manufacturing Capacity Expansion : Annual Report 2017 l 67


Planning Template Overview Scheduling logics and tools are required to support new production concepts, flexible cells in PPT2 and flow line in AAA, and the implementation of AX 2012 in both factories. Finishing tool was developed in 2016 for PPT2 flexible cells and made adjustment for the use in AAA flow line in early 2017. Front End scheduling tool has been developed later in 2017 to support new Front end concept in AAA. The Scheduling logics & tools are developed for temporary use before implementation of APS in 2018-2019.

Mission To develop scheduling logic and tool for weekly production scheduling process that align Front end and Finishing production plan to meet required delivery date in flow line set up. The target is to support lean operations & shop floor execution, minimize production lead-time, maximize service level, increase resource utilization, in the same time, keep the planning efforts to a minimum. The scheduling logic will be foundation for APS implementation and the tool will be the intermediate solution before APS is in place.

Key Features Finishing Scheduling logics & tool (Line configuration, Line allocation, Line sequence) Front End scheduling logics & tool (Outsource planning, Front end sequencing) Rubber mould scheduling logic & tool

68 l Manufacturing Capacity Expansion : Annual Report 2017


Project Organization Steering committee Peter Torperholt Nils Halander Per Bertelsen Preecha Powanusorn Srun Seelasorn

Project management

Consultant

Khanitha Arayapan Sirichai Sirikienathong Nutcha Nakvichet

Jens Erik Hansen Erik Videsson

Rungnapa T. ( PPT2 Planning Director )

Pantakarn T. ( Mex AAA )

Kulachart T. Chanathit S. Thanabavorn P. ( Prod )

Jarotsawan L. ( AAA Planning Director )

Pornpisak F. ( MEx )

Sara S. Jan P. Andrew S. ( PEx,APS ) ( PEx,AX BL ) ( AX Architecture )

Vajirapan P. ( IT )

Sivarin N. ( Mex PPT2 flow line )

Pawitra K. ( Store )

Key Milestones Q1 2017

Q2 2017

1. Have workshops with related functions to review requirement

1. Finished Finishing tool modification and had UAT and training. User

& logics of finishing and Front End scheduling.

manual is provided.

2. Review current Finishing scheduling tool, identify gaps for

2. Finalized requirement and finished development of Front end scheduling

AAA, and modify the tool to support

tool according to gaps, option, and integration platform agreed in the workshops.

3. Have Front end scheduling workshops with related functions

3. Evaluated first draft of Front end scheduling tool and adjusted functionality

to identify requirement for Front End scheduling tool development

and logic according to feedback from production.

Q3 2017

Q4 2017

1. AX finished integration and resources structure CR (Change Request)

1. AX finished integration and resources structure CR (Change Request)

2. Test and adjust Front end Scheduling tool according to changes in AX

2. Test and adjust Front end Scheduling tool according to changes in AX

and CR.

and CR.

3. Evaluated modified Front End scheduling tool, had user training and

3. Evaluated modified Front end scheduling tool, had user training and

documented workflow and user manual

documented workflow and user manual

4. Set up security, access and back up for the tool in the safe folder

4. Set up security, access and back up for the tool in the safe folder

Manufacturing Capacity Expansion : Annual Report 2017 l 69


Financial Summary 7000000 5,682,000

6000000 5,032,000

4,682,000

5000000

3,411,662

3000000

3,989,313

2,800,633

2000000

4,984,388

4,350,978

3,411,662

4000000

1000000

4,742,828

3,989,313

1,551,732 758,449

0

Budget

Actual THB

Actual accum

Overall Project Plan Area Modify Finishing Scheduling logics & tool 1. Review requirement & logics 2. Define gaps, option, integration 3. Modify tool

Finishing 4. Training, UAT & evaluate tool (& integration)

A13 A13

PPT2 PPT2

5. Document workflow and manual 6. PoC with Production & Mex 7. Training users Develop Front End Scheduling logics & tool 1. Review requirement & logics 2. Define gaps, options, integration 3. Develop tool Front End

4. Evaluate & adjust the tool 5. Test integration with AX

CR 6614, 20611

6. Document workflow and manual 7. Training super user ( Scheduling team ) 8. UAT 9. Training useres Implement Scheduling tool AAA AAA Go live support

1.Set up security, access and back up for the tool 2. Support for master data availability & accuracy 3. Support Go live & Hyper care 5. Handover to operational planning team

70 l Manufacturing Capacity Expansion : Annual Report 2017

CR 16379

CR 6613 CR 16492, 16495


2017 Key Achievements Modified Finishing scheduling tool for AAA Developed new Front End and Rubber mold scheduling logics & tool for AAA Integrated the scheduling tools with AX 2012

2018 Targets Handover Finishing & Front End scheduling tool to AAA Planning team Revisit issues in PPT2 & AAA for improvement and prepare requirement for APS implementation Review gaps for implementation of Carolina product and AX implementation in PPT1

Overall Summary The development of scheduling tools integrated with AX2012 for Front End and Finishing are finished and implemented for use in AAA in 2017. The revisit for better efficiency and utilization both in PPT2 & AAA and preparation for new process like plating line will be set for 2018.

Manufacturing Capacity Expansion : Annual Report 2017 l 71


Reference Honored Thanks Khun Thomas Touborg Senior Vice President Group Operations

Khun Jon-Paul Daniel Vice President, Procurement

Khun Jesper Bernhard Sabroe Vice President, Group Finance, Business Finance

Khun Per Bertelsen Vice President, Planning

Khun Nils Helander Senior Vice President, Manufacturing and Managing Director

Khun Patrick Bennett Vice President, Technical Development & Research

Khun Lars R. Nielsen Vice President, General Manager, PPT2

Khun Srun Seelasorn Vice President, Production

Khun Carsten Olsen Director,Executive Officer

Khun Sakrin Sawaichaisri Vice President, Production, PPT2

Khun K Preecha Powanusorn Vice President, Manufacturing Excellence

Khun Ditthawat Sopitarpapong Director, PMO and Protocol, Manufacturing Excellence

Khun Howard Bruno Vice President, Manufacturing Quality

Khun Exkawit Srimahapreechawong Director, Process Excellence, Manufacturing Excellence

Khun Chamroon Thongon Vice President, HROD

Khun Gideon Otto Moolenburgh Director, Business Finance, Finance

Khun Prawit Taworn Director, PE, CI & Project Management, Production


Special Thanks Khun Pantakarn Tamrongthanakigakarn Senior Manager, Project Management Officer

Khun Ampornphan Janyapong Supervisor, Business Maturity PMO

-- And all AAA project members – Khun Torpong Intiyanaravut Manager, Business Maturity PMO

Khun Phannita Sridhammadhouch Supervisor, Business Maturity PMO

-- And all GEMO Redesign project members – Khun Sivarin Nilankala Manager, Lean MFG Finishing

Khun Jakkree Sonpibool Manager, Lean MFG Front-End

-- And all FE and FN Flow line project members – Khun Pornpisak Fuangkasem

Manager, Lean System & Data Transparency -- And all Data Capturing project members –

Khun Marisa Aunhavichai External consultant Khun Vuthichai Chalokepunrat External consultant

Khun Nalin Lekapojpanich External consultant Khun Natthavadee Asavanapakas External consultant

--And all external consultants on Shared Support, Control Point, and PPT2 Projects-Khun Michael Savage Director, Head of Manufacturing Applications &Acting IT Director, Information Technology

Khun Lise Oline Larsen Senior Manager, OCP Template, Global IT Khun Ekarat Laokulruch Manager, Project Information Technology

-- And all AX system integration project members – Khun Peter Torpenholt Director, Production Planning Excellence, Planning Khun Sirichai Sirikienthong Supervisor, Production Planning Excellence

Khun Khanittha Arayapan Senior Manager, Production Planning Excellence (Planning Development)

-And all Planning project membersKhun Dejphol Roongnapaporn Director, Manufacturing Excellence

Khun Kamonchanok Wannawijit Specialist, Process Optimization Engineer -And all PPT2 project members-

Khun Issara Mekrugsavanich Supervisor, Business Controlling

Khun Vitida Thienwitit Supervisor, Business Controlling

-All Business Controlling , financial team memberKhun Jirayut Wisaikla

Manager, MCE Program Management Manufacturing Excellence --And all MCE members –

Khun Ketsarin Koetkrung

Executive Assistant, Executive Management -- And all Executive Assistant --


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PMO Annual report 2017  

PMO Annual report 2017

PMO Annual report 2017  

PMO Annual report 2017

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