create value with innovation”

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“Create Value with Innovation”

NO.1 THAI LINGERIE BRAND

Sabina Public Company Limited คณวชรวรรณ แยมศร Miss. Vachirawan Yamsri Director of Production & IE Tel. 083-0897271 Line id. vachirawan 111

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คณเรองวทย เชงชยภม Mr. Rueangwite Cherngchaiyapoom Project Manager Tel. 081-2829324

Company Profile

Factory Established 1968 Sabina brand registered in 1971

Listed on the Stock Exchange in 2008

Registered Capital 347.5 M.Baht

Currently 5 factories :

Thapra , Chainart , Putthamonthon 5, Yasothon, Burirum

Manpower 3,922 Men (Dec. 31, 2020)

Sales Revenue 2,914 M. Baht (2020)

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We support 90% for local market and another 10% for export

Head office , Bangkok

Yasothorn factory, Established since 2003

Phutthamonthon Sai5, Established since 1997

Chainat factory, Established since 1995

Thapra factory,Bangkok, Established since 1961

Manufacturing

Burirum factory, Established since 2011

Presentation template by

Wide product offering with ability to capture broad group of customers

The products vary in prices to fit with different

target groups. The lowest price products are

distributed through modern trade, such as BigC

and Tesco Lotus. The middle price products,

which cost about 700-800 Baht, are distributed

throughout the country, including Doomm Series,

Wireless bras, and Modern V. For the top price

products under the brand Madmoiselle, Maggie

mae and Woonsen Collection, which cost over

1,000 Baht, are only distributed in big cities and in Bangkok area only.

Sabina Product

http://www.pptmon.com/

http://www.pptmon.com/

Sabina Product – Mad Moiselle

Sabina Product – Plus Size

Sabina Product - OEM

- OEM Products are exported internationally ( Bravissimo, Panache , Boux Avenue, Lepel, Cannelle ,Rouge Gorge, Gatta, etc. )

Sabina Product – OEM

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

ASIA MIDDLE EAST

ASEAN

SOUTH ASIA

Sabina Product - SBN - Products sold abroad under SBN & Sabinie Brand (105 shops : Vietnam 41, Philippines 29, Myanmar 8, Lao 6 ,Cambodia 6, Bangladesh 10, Pakistan 5)

Distribution Channel

- Store Retailing - Sabina Shops - Department Stores - Discount Stores - Other Stores

312

102

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TV Channel : On line Channels : Catalog:

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Total 578

- Non Store Retailing

Other Stores Sales

Channels

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https://th.wikipedia.org/wiki/%E0%B9%84%E0%B8%9F%E0%B8%A5%E0%B9%8C:Shopee-logo.jpg

Distribution Channel Q1/2021

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Why Lean? OEM Period (2008-2009) • Large amount of Inventory > 178 M.Baht • Excessive WIP > 100 Days • High Air Freight Cost (23 M.Baht/Y) & High Overtime wage OBM1 Period (2012-2013) • High Labor Cost – 40% Minimum Wage Increase ; 300 Baht • Customer Satisfaction Issue OBM2 Period (2017-2018) • Disruption & Digital Society Issue • Cost Management – Cost Center ---> Profit Center (Profit And Loss)

Road Map

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Lean Enhancement, Employee Engagement

Lean Implementation 2008-2009

TP Factory

Thailand Lean Award 2009 (Bronze)

YS Factory

Thailand Lean Award 2010 (Bronze)

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Promulgation of “5S & Kaizen” Policy

On 1st of February, 2010

5s & Kaizen Implementation 2010

1. Sabina Reward Point

Motivate employees to participate in Kaizen policy through collecting reward point for prize redemption.

Reward Book Prizes

Implementation of 5S & Kaizen Strategy

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2. Implement Kaizen through SGA Leader

16 คน

16 คน

16 คน

16 คน

16 คน

16 คน

7 คน 7 คน

1 คน 1 คน

7 คน 7 คน

1 คน 1 คน

Sup.

Operation

SGA. Leader

Line Production; 2 Small Groups

To implement Kaizen within the organization, working space is divided into smaller space which is designated to each small group leader (SGA leaders) who is crucial to the success of Kaizen Implementation.


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Missions of SGA Leaders 1. Management Skill & Self Esteem Training 2. Work Area Management 3. Kaizen encouragement in Work Area

งานสงมอบ SGA - Thank You Party SGA # 1

2. Implement Kaizen through SGA Leader


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Implementation of 5S & Kaizen Strategy Management Skill & Self Esteem Training

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Management Skill

5S Kaizen Lean QCC. IE fornon IE

Self Esteem

Leader Ship Work Happiness HR fornon HR

Increase employee participation to step up from general level of Kaizen into development Kaizen and possibly innovative Kaizen

ชอเรอง..................... วนท.........................

ผน ำเสนอ....................... แผนก/ลำยน...............

มลเหตจงใจทตองกำรปรบปรง

กอนปรบปรงท ำอยำงไร

หลงปรบปรงท ำอยำงไร

ผลทได

ลด SAM/ขนตอน/เวลำ ควำมปลอดภย

งำย/สะดวก ประหยดพลงงำน

คณภำพ นวตกรรม

ชอ SMALL GROUP

แบบฟอรมน ำเสนอ KAIZEN


3. Kaizen Development for innovation and betterment of the organization

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งานสงมอบ SGA - Thank You Party SGA # 1


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4 Organization of Internal Kaizen Contest>>>To International-level Competition


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Sabina Kaizen Achievement โรงงาน ชอผลงาน รางวล ป

สาย 5 รถจดสนคาอเนกประสงค Gold 2010

สาย 5 1+1+1+1 = 1 Broze 2010

ชยนาท ของผมกเจง (อปกรณถอด Motor) Gold 2016

สาย 5 เตารดไอน าไซเรน Cer. 2016

ทาพระ ลารกลบสายแขน Gold 2017

สาย 5 ปนเตากระดาษ Cer. 2017

ชยนาท ปองกนสายแขนบด Cer. 2019

5S Enhancement 2012-2014

• YS Factory (Silver) Thailand 5S Award 2012

Thailand Lean Award 2016

• YS Factory (Gold)

• CN Factory (Gold)

• TP Factory (Silver)

Thailand 5S Award 2013

• Sai5 Factory (Gold) Thailand 5S Award 2014

Sabina Lean Implementation

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Sabina Lean Implementation 1. Define Value : Sabina Turnover

– Lower Cost • Inventory & WIP Control • Productivity Improvement >>> High Overtime wage & High Labor Cost

– On Time Delivery >>> High Air Freight Cost – Better Quality >>> Product Innovation – Customer Satisfaction >>> Voice of Customer ( Customer Relationship Management ) – Non Store Retailing Growth - Disruption & Digital Society (E-Commerce) – Cost Management >>> Financial Performance

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Using VSM as a blueprint for the accomplishment of Value Definition to find Pain Point in the process

2. Value Stream Mapping : VSM

2009 =102 days, 2010 = 80 days, 2015 = 65 days, 2016= 47 days, 2020 = 38 days

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3. Create Continuous Flow Sabina Lean Implementation

Materials from Suppliers go through several processes, which Sabina has emphasized on improving to create uninterrupted flow, before becoming Finished Goods for Customer .

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3. Create Continuous Flow

Flat Organization by using Agile organization

concept and decentralize process

and decision making to each agile group in

order to speed up all ideas and

implementation.

Cross functional team

Using Agile Organization/Cross Functional team to create Continuous Flow and reduce Lead Time in Product Development.

Department Collection


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3. Create Continuous Flow การควบรวมหนวยงาน

Combine Costing Department, responsible for calculating the usage of materials, with Purchase Department, responsible for purchasing/providing materials, to decrease work redundancy which is unvalued work that creates unnecessary gaps that interrupts work flow.

+

Consumption Controller

Purchase Costing


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3. Create Continuous Flow Continuous Flow Line

Before :Machines grouped and placed according to

their functions for the ease of maintenance, but disrupts

work process flow.

After: Machines grouped and placed for the ease of

continuing the work process flow in a U-shape to create the continuous flow line.


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3. Create Continuous Flow Multi Skill

Induce Multi Skill in the workforce to help solve unexpected problem and create continuous flow.


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4. Establish Pull

Improve on the production that used the rushed process of Receiving materials-Cutting-Sewing-Packing which created excessive WIP. Instead implementing the pulling system that utilizes Kanban Electronic, using the customer’s delivery deadline to determine the receiving materials, the start of work for Cutting-Sewing-Packing to lower WIP. (Pull-yellow Arrows)


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4. Establish Pull Cutting

Sewing

Each task pulls

the workload of

the preceding task.


Eliminate waste to get rid of Non Value Added activity, leaving only value added activity

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5. Seek Perfection – Sabina Best Practice


Lower Inventory 178 66 M.Bath ( Dec.31, 2020 ) – Push >>> Pull System (MM. 60-75 Days , Acc. 30-45 Days )

– Max / Min ( Inventory Control < 2.5 M.)

– Inventory Value (Baht) >>> Inventory Lead Time (Day)

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Sabina Best Practice

4,320 Square meters 1,920 Square meters

Sabina Best Practice Lower WIP 102 Days 38 Days

– Push >>> Pull System : Electronic Kanban (Fast React) – Cutting Department : Output KPI >>> Efficiency & On Time KPI – Sewing Department : Individual Incentive >>> Group Incentive

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Cutting

Lower High Overtime wage - Productivity Improvement – Standing Sewing ( 2012 – 2015) : Motion, Continuous Flow, Waiting & WIP

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Lower High Overtime wage - Productivity Improvement – Visualization & SIM ( Short Interval Management )

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Lower High Overtime wage - Productivity Improvement – Quick Change Over KPI

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Lower High Overtime wage - Productivity Improvement – Defect Management

• Pre-Production Meeting : Critical Operation & Q-Point • Andon

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ผเขารวมประชม 1. ผจก.ผลต/IE 2. AQA 3. Senior ผลต 4. Supervisor 5. EC Packing 6. ชางจกร

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To improve multi skill sewing, evaluating sewing skill of employee is necessary for employee multi skill improvement plan. There are two aspects to this evaluation;

Work Passport

ชนดจกร

SN DN ZZ OL IL TK

เขมเดยว เขมค แซก โพง ลาร แทก

Aspect 1: Evaluation of skill with the six types of machine

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Sabina Best Practice Lower High Overtime wage - Productivity Improvement

– Multi Skill Sewing Improvement

Full Score 6 (Machines) x 4 = 24

Aspect 2:Evaluation of skill level with each type of machine

Work Passport Skill Matrix

Skill Level Point

Gold – Very High Skill 4

Orange – High Skill 3

Green – Possess Skill 2

Yellow – Low Skill 1

White – No Skill 0

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N D O Z L T

N:เขมเดยว D:เขมค O:จกรโพง Z:จกรแซก L:จกร

ลาร T:จกรแทก

: ทกษะการดแลรกษาจกรเบองตน

N D O Z L T

การวดระดบ Multi Skill ของ พนกงาน และ ไลนผลต

Gold - Very High Skill 4

Orange - High Skill 3

Green - Possess Skill 2

Yellow - Low Skill 1

White - No Skill 0

Work Passport Skill Matrix

Skill Level Pointคะแนน รวมคะแนน คะแนนเตม %

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170 288 59% 51

80

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คะแนนเตม = 12 คน x 24 คะแนน = 288

Multi Skill Evaluation of Sai5 Factory; 156 sewing staffs

Full Score = 156 staff X 24 scores = 3,744 scores %Multi Skill = (2,235/3,744) x 100 = 60%

SN DN ZZ OL IL TK Total

4 48 48 64 40 96 48

2,235

3 204 138 135 156 66 126

2 140 186 176 178 206 138

1 4 2 4 4 2 26

0 0 0 0 0 0 0


Multi Skill Level of The Organization Dec.2020 Fac. % Multi skill S5 60% TP 57% CN 50% BR 48% YS 62%

Total 57% 48

Indirect Staff 2012 = 1,152 864 Decrease 288 workers, equal to 43 M.Baht/year

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Sabina Best Practice Lower High labor cost

– Reduce Indirect Labor (production) 32% 24% • Eliminate redundant work/process/document • Combine works/activities together, if possible • Set standardization/ work instruction for staffs • Determine KPI for each work

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Sabina Best Practice Lower High labor cost

– Structural Change in Material QC and Stock Material Department • Analysis material QC defect data to determine the level of random checking • 5S Implement to set material location and create Work Management Program ( Working time

reduction/ Job 3 Mandays >>> 3 Manhours ) • Determine KPI and educate staffs to be able to manage job • Determine Group Incentive to manage work hours; especially OT

Material QC and Stock Material staff 2012 = 110 43

Decrease 67 workers, equal to 10 M.Baht/year

Product Innovation : Seamless Revolution

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Traditional bra (Comfort 1.0)

Evolution wire-free bras (Comfort 2.0)

Seamless designs add to the no-show effect, along with delicate elastic finishes or laser-cut edges

Seamless Fit (Comfort 3.0)

wire-free bras to create natural shape. A high-apex cut offers additional support and lift for barely

there styles. Non-wired bras is no longer just for teenage bras or for smaller breasts. Fabric innovation makes these styles work across all sizes and ages.


Cross functional team

Design Thinking

Reason To Believe

Testing & Fitting

Seamless Fit

Start of Production


52 RTB : Comfort-Smooth- Beautiful Shape- Closer breast



“SABINA Seamless Fit Innovation - Non Slip Tech Bra Seamless Fit” Won Outstanding Innovative Company Awards in SET AWARD 2020


Sabina Best Practice Sabina@Home

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Limited Space - Impossible to have all SKU Products

Lacking desired colour/cup/size

Insufficient number of desired colour/cup/size

Delivery Service all over the country

Sabina Best Practice Non Store Retailing growth

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-Visualization -48-hour Delivery -No question Ask Policy


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- Create Automation Program For NSR 48 Hr. Delivery • Generate Automatically Order Customer to sale master, Sale Order, Sale Order Detail • FIFO Automatical Queue • Mobile Handheld

-Upskill & Reskill workers -Sale Forecast & Cap. Planning -Visualization in process


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Growth 2410% (2016 : 2020)

220%

165%

101%

48%

Thailand 5.5 Campaign Shopee No.1- Lingery Lazada No.1- Lingery Lazada No.1- Fashion Brand South East Asia

Vietnam 5.5 Campaign

Shopee No.1- Lingery Lazada No.1- Lingery

Cost Management : Production P/L 2020 Jan-Dec. Sai 5 TP CN BR YS Total

รายได 41,391,358 53,165,556 63,164,870 46,608,044 134,364,988 338,694,816

คาแรง รายวน+OT 28,385,745 31,540,910 38,866,729 25,503,696 91,662,780 215,959,861

คาแรง Sub 394,366 613,200 1,007,566

เงนเดอน+วชาชพ+OT 7,031,940 11,376,295 11,340,339 5,503,676 22,571,330 57,823,579

ประกนสงคม+สวสดการตางๆ 3,181,217 4,360,123 5,952,288 2,461,129 10,088,261 26,043,018

คาเครองมอ+อปกรณ 427,989 239,457 403,551 452,056 1,099,209 2,622,262

วสดโรงงาน/ส านกงาน 233,171 55,638 27,220 76,905 634,884 1,027,818

หบหอ 931,440 939,743 1,493,908 321,020 1,420,383 5,106,494

อนๆ 18,554 57,894 206,399 1,981,032 543,268 2,807,147

คาเสอม 1,797,817 898,656 1,052,325 1,786,213 1,344,791 6,879,803

รวมคาใชจายในการผลต 42,007,873 49,468,716 59,737,125 38,085,728 129,978,106 319,277,548

ก ำไร / ขำดทน 616,515- 3,696,841 3,427,746 8,522,316 4,386,882 19,417,269

% -1.5% 7.0% 5.4% 18.3% 3.3% 5.7%

S5 Increased expenses derived from the depreciation value after the implementation of AC system

Cost Management : Stock RM : P/L (Jan.- May 2021)

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มกรำคม กมภำพนธ มนำคม เมษำยน พฤษภำคม รวม (สะสม)

(Stock RM) (Stock RM) (Stock RM) (Stock RM) (Stock RM) (Stock RM)

รายได 298,956 251,189 428,331 375,083 449,400 1,802,958

คาแรง รายวน+OT 93,669 80,438 85,715 86,607 93,669 440,099

คาแรง Sub -

เงนเดอน+วชาชพ+OT 154,830 154,189 151,982 153,667 154,830 769,498

ประกนสงคม+สวสดการตางๆ 15,920 21,177 15,282 17,460 15,920 85,759

คาเครองมอ+อปกรณ -

วสดโรงงาน/ส านกงาน 18,465 - 15,725 11,397 18,465 64,052

หบหอ 55,000 - 16,500 23,833 55,000 150,333

อนๆ - - 13 4 - 17

คาเสอม 7,284 6,355 5,862 6,500 7,284 33,285

รวมคาใชจายในการผลต 345,168 262,158 291,080 299,469 345,168 1,543,043

ก าไร / ขาดทน 46,213- 10,969- 137,251 75,614 104,232 259,915

% -15% -4% 32% 20% 23% 14%

Income Statement 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales 2,208 2,094 1,984 1,675 1,893 1,927 2,032 2,189 2,165 2,308 2,397

COGS 1,600 1,523 1,237 1,032 1,215 1,073 1,013 1,061 1,012 1,099 1,125

COGS (Ratio) 72% 73% 62% 62% 64% 56% 50% 48% 47% 48% 47%

Gross Profit 597 545 717 619 653 828 1,002 1,116 1,141 1,198 1,258

Expense 394 427 534 533 569 735 846 964 967 1,005 1,054

Taxes 30 21 34 14 19 56 82 47 39 38 42

Net Profit 171 123 150 61 52 63 92 117 147 166 176

SABINA: SABINA PUBLIC COMPANY LIMITED

Financial Performance

2020 COVID-19 Situation - Mask Production 7,479,897 Pcs. ( Mask Donation 271,433 Pcs. ) ; 23% Cap. 2020 Pricing Strategy

Income Statement 2009 2012 2014 2016 2017 2018 2019 2020

รวมรายได 1,675 2,032 2,165 2,397 2,679 3,103 3,295 2,914

COGS 1,032 1,013 1,012 1,125 1,307 1,495 1,494 1,525

%COGS 62% 50% 47% 47% 49% 48% 45% 52%

Sell & Adminstator 552 823 953 1,051 1,067 1,155 1,277 1,034

EBIT 91 196 200 221 305 453 524 355

Interest & Tax 30 104 52 46 62 91 111 78

Net Profit 61 92 148 176 243 362 413 277

% Netprofit 4% 5% 7% 7% 9% 12% 13% 10%

Total Income

Sabina Lean Key Success

1. Educating workers on required management tools 2. Finding optimistic workers & providing support the opportunity to achieve the target 3. Emphasizing the importance of Communication 4. Setting KPI and monitoring the progress 5. Encouraging employees to improve and offering them challenge

- การประชมสอสารโดยตรงถง พนกงาน CEO site visit

Q&A

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

create value with innovation”

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