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Nov 13th 2005

Nov 13th 2005. The Map of GuangZhou & SGJ. The City of ZengCheng. SOLA Ltd. GuangZhou City Jiufo Town. The City of CongHua. HuaDu Area. BaiYun area. Garden Hotel. 45Km. TianHe. LiWan. YueXiu. Dong Shan. HuangPu. HaiZhu. FangChun. PanYu. The Culture of GuangZhou. Pearl River.

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Nov 13th 2005

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  1. Nov 13th 2005

  2. The Map of GuangZhou & SGJ The City of ZengCheng SOLA Ltd. GuangZhou City Jiufo Town The City of CongHua HuaDu Area BaiYun area Garden Hotel 45Km TianHe LiWan YueXiu Dong Shan HuangPu HaiZhu FangChun PanYu

  3. The Culture of GuangZhou Pearl River Tomb of Nanyue King Baiyun Mountain The visage of development area

  4. SGJBirdview

  5. SGJ Briefing • SOLA G. J. Lens Manufacturing Ltd was put into operation on April 20, 1998. • Covering Area: 58,000 sq. meter (624,401 sq.ft.) Building Area:14,600 sq. meter (157,177 sq.ft.) • 512 Emplyoees • Employee’s Canteen • Employee’s Recreation Center (Kara OK hall, Reading room, Table tennis room, Snooker room, TV room and Basketball ground)

  6. SGJ Organization Chart

  7. SGJ Milestones • -- On June 27th, 1997 Started building construction of SGJ factory. • -- On April 20th, 1998 SGJ got into operation. • -- On August 6th,1998 The first batch of hard- coated lenses were made. • -- On October, 1998 SGJ topped 10,000 in its shift production volume. • -- On March, 2000 The first expansion project was finished, and SGJ capacity expanded to 24000 pieces per day. • -- From July to October, 2000 SGJ capacity was expanded to 55000 pieces per day. • --On October, 2000 SGJ was entitled as the Advanced Technology Enterprise of Guangzhou. • -- From November, 2000 to April 2001 SGJ capacity continued to be expanded, and topped 70000 pieces per day. • -- On April 15, 2002. AR-Coating line was installed including two AR coating machine. • -- From 2002 Lean Operation Implementation. • -- April, 2003 Received the certificates of ISO 9001, 14001 and OHSAS 18001. • -- From Sep. 2004 New product transfer, MC . • --April 2005 Zeiss merged Sola. • Aug 12.2005 SGJ passed the auditing of SOLA 4 Star system . • --Sep. 2005 Start to supply to CZG and CZH. • --Sep. 2005 High index and Mid index (1.67 and 1.56) product.

  8. SGJ Manufacture Situation (Up to Oct. 2005)

  9. Monomer mixing Filling Cure Gasket molding Assemble Open HC Customer Warehouse Pack Gasket recycle AR 1.499 Products Process Flow

  10. 1.56 Products Process Flow

  11. 1.67 ProductsProcessFlow

  12. SGJ Quality Achievements Update by Mao on Tue • SGJ’s SHMC lens passed the US COLTS Evaluation in August 2003. • SGJ’s SHMC lens passed the AO France’s evaluation and started supplying SHMC to AO Europe in December 2003. • SGJ was the first manufacturing site fully achieving SOLA global specifications in 2002. • SGJ’s ISO 9001 Quality Management System, ISO 14001 Environmental Management System and OHSAS 18001Occupation (Health and safety management system) succeeded in achieving BSI’s Assessment and obtaining the BSI’s Accreditation certificate in June 2003. (ISO9000, ISO14000, OHSAS18000, BSI Certificate QEHS) • According to AO France Fiscal Suppliers Review Report, SGJ lens quality and service level was ranked the best supplier among the SOLA lens plants in past two years. • SGJ passed the auditing of SOLA Four Star on Aug 12,2005. • Implement SIQ1.5 standard and supply lenses to CZG and CZH on Sep. 2005

  13. SGJ Planning Control System (compliance) SGJ is running a compliance system to ensure production plan completed on time and to match our customer demand by measuring M1,M2 and M3.

  14. M1:Measures the Compliance of Moulds Formula:(actual moulds – planned moulds)/planned moulds, Calculated by SKU, Based on rules, • If planned >=1000,you are allowed to miss 2%; • If planned >=20 and <1000,you are allowed to miss 10%; • If planned <20,you are allowed to only miss by one; • If planned 0,and you got 0 or 1,this SKU will not be counted,if you got 2,you hit 0; • If planned 1,and you got 0 this SKU also not to be counted;

  15. M1 Chart 2005

  16. M2: measures the compliance of yield Formula: (actual lenses – planned moulds * y1%)/planned moulds*y1% Calculated by SKU,Same rules as M1. • If planned >=1000,you are allowed to miss 2%; • If planned >=20 and <1000,you are allowed to miss 10%; • If planned <20,you are allowed to only miss by one; • If planned 0,and you got 0 or 1,this SKU will not be counted,if you got 2,you hit 0; • If planned 1,and you got 0 this SKU also not to be counted;

  17. M2 Chart 2005

  18. M3: measures the lenses go into store “on time” as planned Formula: (actual lenses – planned moulds * y1%*y2%…)/planned moulds*y1%*y2%… Calculated by SKU, Same rules as M1. • If planned >=1000,you are allowed to miss 2%; • If planned >=20 and <1000,you are allowed to miss 10%; • If planned <20,you are allowed to only miss by one; • If planned 0,and you got 0 or 1,this SKU will not be counted,if you got 2,you hit 0; • If planned 1,and you got 0 this SKU also not to be counted;

  19. M3 Chart 2005

  20. Customer Service Level In SGJ,we also to measure our customer service level based on a set of metrics report. We review the data by monthly and communicate with our customers to see if any improvement we can do on next order.

  21. External Customer Service -----Orders Invoiced 100%

  22. SGJ Ramp Up and Innovation

  23. Volume Ramp Up • April: DGC:85K (6 work day per week) • Oct. DGC:60K • Up to Oct: DGC:84K (6 work day per week) • April. DGC:76.8K • Nov. DGC:64.5K • July. DGC:53.3K • Dec. DGC:39.1K • Apr. DGC:45.6K • August. DGC:35.1K • Nov. DGC:22.6K • May. DGC:24K • July DGC:11.4K • Oct, DGC:6.4K • March DGC:0.3K 1998 1999 2000 2001 2002 2003 2004 2005

  24. 1.499 Products Innovation • Sep PT UV 380 For China Market • Sep. M/C • Sep EMI For China Market • May. S/L 60mm PG &MAR • Dec. S/F PG • Sep Smart and Clarlet For Zeiss • Feb. S/L 70mm High power and 2.2CT PG • Oct. S/L AR-Coat • Dec. S/L PG • Nov. 70mm S/F SV&FT • Dec. S/L 65mm U/C& PT • Nov. 72mm S/F SV&FT • Aug. PT Lens • March. First lens S/L 70mm U/C 1998 1999 2000 2001 2002 2003 2004 2005

  25. 1.67 & 1.56Products Innovation • 1.56 Mid Index Production 1K DGC • 1.56 Mid Index Production 0.2K DGC • 1.67 Mid Index Production 2K DGC • 1.67 Mid Index Production 0.2K DGC • 1.56 Mid Index UC test process • 1.67 High Index UTMC test process AR Yield:90% • 1.67 High Index PT test process DGC:0.2K Casting Yield:80% PT Yield: 80% • 1.56 Project Plan • 1.67 High Index UC test process DGC:0.1K • 1.67 Project Plan Oct.2004 Mar,2005 May,2005 July,2005 Sep,2005 Oct,2005 2006

  26. 2006 6σ Implement Technology & Management Innovation • Dec. U8 6.0 • Dec. FT coating • Nov. 2005 SFCS system • June. 6S implement • June. 2005 FG-warehouse. WMS • Dec. QEHS system. • Feb. SPC implement • April AR coating. • Jan. Lean concept introduction • July Spin coating. • Feb. SU-EVA gasket material. • May TPO material introduction • Feb. Particle control in cast line to ensure SIQ quality • Aug. Beveling technology • May Fast cure process. • June Hard coating. • Oct. First Group technology and manage people went to USA for training. • March First foreign technologist came to SGJ. 1997 1998 1999 2000 2001 2002 2003 2004 2005&2006

  27. Equipment Innovation • Apr. New edge machine made by SGJ • Oct. New AR coater • Apr. Taping Machine • June. Build up package-divert machine • May. New ultrasonic • April AR coating machines • Aug. Spin coating machines. • Sep. Build up new casting lines: 3A/ 3B • Nov. Expansion of monomer mixing equipment • Jan. Gasket shelves: FIFO • Oct. First group maintenance people went to Ireland and USA for training. • Aug. Import auto-beveling machines • May Build up SF packing line • March First foreign maintenance engineers installed in SGJ together with SGJ engineers. • Sep. Imported the equipments from USA, Australia, Ireland Japan.. 1997 1998 1999 2000 2001 2002 2003 2004 2005

  28. Update by Jolly • Sep. CZV standard for supply to Zeiss Training and Calibration Innovation • May Running the advanced system of calibration and AQL , keep the quality match the global standards • Nov. Training supervisor calibrate trainer,QC, shift lead & sup. The trainer calibrate the operator and line auditor. • Dec. Training sup. calibrate trainer,QC, shift leader& line auditor, The trainer calibrate the operator. • Mar. Trial running the multi SIQ std. in casting line • July Test run the calibration system • May Set up procedure to confirm the table SIQ quality of operators. • June Running the calibration system in cast line and H/C (records) • July Running the color calibration system in AR coating • Aug. 4 trainers in training department • March Re-training the auditors of on line every 6 months • June Use AQL system to control the SIQ of lenses • April The training supervisor inspect the sample lenses in cast line and H/C every month • May Running the qualify evaluation procedure for inspectors • Nov. First group operators to SOUSA for basic operation and quality training. • April Enhance training dept., set up two trainers 1997 1998 1999 2000 2001 2002 2003 2004 2005

  29. Casting Yield

  30. Coating Yield

  31. SGJ Culture

  32. Factory School Family Before Oct.2005

  33. Lean Operation SGJ started to implement lean operation in April 2003 to make the Production System more effective at producing at low cost, high quality, and short cycle times. By now, more than 550lean proposals has been collected . At the same time , lean projects including 6S、 SPC、 TPM 、IE etc have been implemented. We will continue to improves profitability, customer satisfaction and employee morale. ExamplesPicture\Lean project.ppt

  34. Build Strong Culture for 6S Improvement(Sort, Set, Shine, Standardize, Sustain, Safety) • 6S is very important foundation for lean manufacturing system. • better quality and faster lead times • Increase morality of company • Increase efficiency and organization • Enhance the consciousness of improvement 6S action plan Picture\6S.ppt

  35. Happy Life in SGJ Staff Aactivities -- Tug of war Picture\Tug Winner.pdf -- Brainstorming Picture\Brainstorming.jpg -- Lean Project award party Pictures\精益颁奖.pdf -- Fan Dancing Picture\Fan.pdf -- QEHS Satff Meeting Picture\QEHS.pdf -- Team Building Picture\Team Building.JPG -- Buffet Dinner Picture\Buffet dinner .jpg -- The 7 Years Evening Picture\Anniversary act.jpg

  36. Thankyou

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