3M Meeting_WW41_Production

[Audio] Good afternoon, For Production Update Highlight the strong performance of BESB production this week, with zero quality issues, high yields meeting above targets, and 100% delivery for Audio and Air Cond Controller to customer Perodua. Team has started the assembly build for P01A parts and D66B new SUV infotainment small volume for the delivery in end Nov2025. Design for Manufacturing tool is being used daily for all the process steps enhancement from the R&D stage to actual production eliminating mistakes, using po ka yo ke approach and kaizen approach systematically. Quality first mind set is part of production zero defect initiatives. Team also has successfully conduct trial for night shift with small crew of 8 person running SMT without any issues. Perodua has visited on the new line for D66B and has given the greenlight that the line is ready and passed the audit. On another note, Perodua PVM, glad that we continue to work on cost down for the power socket..

[Audio] Note the impressive new customer win for Sanshin, with 8,700 units shipped for Soundmax in the month of Sept, another shipment of 5292 successfully complete on 3rd Oct. For Oktober PO, qty to build is 11K units to ship by end of October. Sanshin focus to drive cost down by shutting down SMT line due to lost of opportunity on Speed Tech PO whereby PO was about to be given but due to agreement legal terms concern, project was on hold while that PO goes to some one else. Acknowledge the financial challenge of estimated further losses of below RM300K for October. Really need to expedite new customer, new business to break even hopefully by December. Overall Sanshin maintains the good yield, zero quality and 100% delivery performance for existing good customers such as JASM, JP Lintec and SoundMax..

[Audio] Quick update on Questwood, we ran through the product breakdown. Here in this slide, there is a PCBA and LED assembly where we can propose if these can be done in Sanshin to meet the 30% local content for the CO requirement. We shall wait for their feedback in 2 weeks time..

[Audio] This slide is on the Flexi Line Low Volume High Mixed, plan to have multi skill operators to manage several product type. Thus, will keep our cost low..

[Audio] Update on the clean room class 10K, propose vendor is VC whom has built BESB clean room before. Cost is RM996K..

[Audio] Outline the key strategic focus areas for the next two weeks: Driving business growth through the Potential Yibang EVCC pilot line and Potential new Business on the Optic PCBA Qual Plan For Questwood New Opportunity, proposal for Sanshin to setup the empty phase 2 floor space, however based on Procurement team discussion with Questwood that Questwood has to work on 30% local contents or let Sanshin to propose on local material which may be higher cost and perhaps Sanshin can do more than Plastic Molding and the Lamp Assy, such as the LED opto assembly as value add whereby Sanshin can do the chip or wafer preparation, die bond, wire bond, lens or phosphor assembly until testing. Other focus area is on the module assembly automation development projects to boost productivity and cost efficiency (higher thru put and lower headcount). Another is the Upgrading Sanshin infrastructure on the class 10K clean room, board paper is ready for approval. This is align to get ready for Medical product as well as the potential Optic PCBA requirement for mass production. For the flexi lines , high mix low volume – PSS area and Shikino area have been cleared to enable for the flexi line setup. Continuing people development initiatives like DOE training 2nd class for BESB and Sanshin completed last week. After the DOE or Design of Experiment class complete in Week 44, I will do the next training class on Analytical Statistics, Anova and MPCPS, machine process capability study for the young engineers in both BESB and Sanshin . Retention programs activity for this week, to have 3rd comittee meeting to go through areas of concern: Salary, Medical Benefits, Career Growth, Work Culture, Appraisal System Transparency, Job Security. Will share more from the coming brainstorming with the team on proposal moving forward..

Improvement on Aging Process – manual to Auto. Automated controls and auto data logging Maximize use of rack space (increase qty of unit per rack from 50 to 60 units) AI Vision system to detect intermittent failures (main root cause of escapee) Headcount saving (6 hc to 2 hc).