Lean Management in Action: Deepening Reform, Unlocking Internal Momentum — Phase 2 of Lean Management Enhancement Successfully Completed

Twelve project teams deliver measurable gains in standardization, logistics, visual management, and employee-driven innovation.

Following the progress made in Phase 1, our company recently held the Phase 2 Results Review Meeting for the Lean Management Program — a platform to examine the effectiveness of improvements delivered so far, draw on practical experience, and continue driving the iterative upgrade of our management capabilities. The meeting was attended by Vice Party Secretary & General Manager, Mr. Gao Gangyao, along with heads of relevant departments and the full team of our company.

In his remarks, Mr. Gao fully recognized the results of Phase 2. He emphasized that lean improvement is by no means a one-off task or a short-term campaign — it is a long-term project built on continuous improvement. With two phases of dedicated effort, he noted, our standardized systems have gradually taken shape and a culture of employee-driven improvement is beginning to flourish. Looking ahead, the focus must remain on the production floor, anchored in the core goals of improving quality and efficiency and saving energy, while fully unlocking the innovative energy of frontline employees to turn improvement ideas into real, on-the-ground results — continuously converting the advantages of lean management into the internal momentum that powers high-quality development.

During this phase, our company assembled 12 lean project teams, advancing improvements across multiple fronts in parallel and producing a number of standout results.

SOP Project Team

Completed standardized work instructions for 4 processes. The new documentation uses a graphics-plus-text format — far more aligned with actual production scenarios than the previous text-only versions — making it easier for frontline employees to learn quickly and operate correctly, effectively reducing process deviations and stabilizing product quality.

Logistics Optimization Project Team

Focused on the long-standing challenge of material and work-in-progress storage and transfer on production lines and in warehouses. Previously, materials were moved manually using turnover boxes and trays, with hand carts available only for certain processes — resulting in underutilized floor space, high labor intensity, and low transfer efficiency. The team developed three solution options with five cart specifications, purchasing 42 carts in total. This significantly improved how materials are stored, held, and moved on site, substantially boosting effective floor-space utilization, reducing the physical workload on frontline employees, and supporting steady gains in production efficiency.

Three-Code Integration Project Team

Carried out a synchronized visual management upgrade across warehouses, production workshops, and offices in line with Phase 2 requirements. The team established a unified coding standard, completed standard coding for racks, pallets, storage locations, and storage facilities, and opened up a unified management standard across the entire company. This has improved on-site order and discipline, strengthened process traceability, and provided solid support for refined, digital on-site management.

Employee Proposal Project Team

To keep unlocking innovation across the whole team and broaden the reach of Phase 2 improvements, the team actively encouraged all employees to offer suggestions based on their work at the production floor. During this phase, a total of 49 improvement proposals were collected, of which 31 were approved for development and 14 were implemented on site. Among the most notable results in improving quality and efficiency:

• RX24, RX27, and RX28 flexible lead measurement fixture improvements — boosted operation efficiency by 30%
• RXG1 packaging fixture improvement — boosted operation efficiency by 300%
• High-temperature tin furnace insulation and energy-saving project — achieved 40% energy savings

Going forward, our company will continue to consolidate the results of the Phase 2 improvements, actively promote benchmark improvement cases, and keep unlocking the innovative energy of the entire team as we seek new opportunities for optimization across production and operations — building momentum for the company’s long-term, stable growth.