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INTRODUCTION COMPANY BACKGROUND Asian Composites Manufacturing Sdn. Bhd.

(ACM) is a joint venture Company based in Bukit Kayu Hitam Industrial Park, Kedah, Malaysia owned equally by Sime Darby Berhad, The Boeing Company and Hexcel Corporation. Asian Composites Manufacturing Sdn. Bhd. manufactures composite material components and subassemblies for aircraft applications. Its products are used in civilian, defense, and space applications. The land area is 31.28 acres and factory build-up 270 000 square feet.

Asian Composites Manufacturing Sdn Bhd (ACM) is a joint venture between Boeing, Hexcel, Sime Darby Berhad and Naluri Berhad was established to manufacture composites for secondary structures of commercial aircraft. The primary business of the JV is the manufacture of composites material components and sub-assemblies for aircraft application. The Company was set up in 1998 and started production in 1 June 2001 as a result of the Malaysian National Aerospace Blueprint which was launched at LIMA 1997. The birth of ACM is the result of astute business decisions based on the following advantageous scenario:

Favourable regional economic growth forecast in Asia. Lower operating costs. Business-friendly Government. policies and attractive incentives of the Malaysian

Malaysia as a long term customer of the Boeing Company. Malaysias unwavering vision and efforts to become a high-tech hub in Asia.


MANUFACTURING Asian Composites Manufacturing is becoming a world leader in supplying composites products to the aerospace industry. Composites materials are utilized in all aerospace sectors including civilian, defense, and space applications. The evolution of the aerospace industry has coincided with many developments in composites technology. Honeycomb, engineered fabrics and resin systems, have contributed to aerospace success. Prepregs were first introduced in 1970, and were readily adopted as the material of choice for a range of structural and non-structural components. Applications of composites structures in aircraft have been used since 1974. Composites are a combination of two or more materials, differing in form or composition. The components interact to create a product with specific and superior performance properties. Composites provide many advantages including high strength to weight ratios and resistance to corrosion and fatigue. Other benefits are their built-in design features such as high temperature performance, compliance with fire, smoke and toxicity (FST) regulations, supreme toughness and impact resistance. Composites enable greater design flexibility, reducing the part count in a component and making them a cost-effective alternative to conventional materials. It is due to these characteristics that every new airborne design makes greater use of composites than its predecessor. Composites accounted for about five per cent of the dry weight of the original model of the Boeing 737. This figure has risen to almost 20 per cent of the dry weight of recent commercial aircraft.


The factory is laid out in manufacturing cells based on customer models and manufacturing processes. This allows ACM flexibility in utilizing the required equipment to meet customer needs at the lowest cost. Parts flow in single part orders along moving lines in lay-up cells through autoclave, trim, paint, inspection, test and finally to shipping. Batch processing is done only where absolutely necessary (i.e. autoclave, Non Destructive Testing, paint, ovens), ensuring low levels of StandardWork-In-Process (SWIP). Service cells, core processing and kit cut, support the moving lines in a fishbone structure manner feeding them using kanban methods. Material Requirements Planning (MRP) is used for planning requirements for both customers and suppliers. Production is monitored visually using 'TAKT' time counters as well as production control boards throughout the factory. 'TAKT' time is the rate of production necessary to produce the customers demand without building excess inventory. The production control boards ensure proper load sequencing. Continuous improvement is part of the everyday work expectation. Kaizen workshops are conducted bi-monthly focusing on reducing waste in areas considered high cost drivers. Kaizen activities are ongoing, striving for a continuous improvement environment. Production flow:

Purchase Raw Materials Receiving Inspection Laboratory Testing Production Planning Tool Preparation Core Fabrication

Kit-Cut Part lay-up & Bagging Autoclave or Oven Cure Part Trim on Water Jet Dimensional Inspection Ultrasonic Nondestructive Test Finishing with Paint Final Inspection Packing & Shipping

QUALITY MEASURES AT ACM ACM has implemented an ISO 9000 based Quality Management System. The adopted standard for ACM is ISO 9002, as supplemented by AS 9100. The ACM Quality Manual establishes the ACM Quality Management System (QMS). The procedures and work instructions implementing these processes are identified by each function and are hosted on a Company server. The QMS focuses on quality attributes, measurement, leadership and cross-functional process management. Deployment of Company QMS to suppliers is via 'quality notes' on Company purchase orders. In order to have a Boeing qualified facility, ACM qualified the factory to D6-53993. This means we were approved to:

Fabrication specifications BAC 5317-2, and 5 method 4 Non destructive testing specification BAC 5621 Receiving and final inspection functions per D6-53993


Approved supplier listed in D1-4426

For ACM to have the Hexcel approved QMS, ACM established a method for qualification and carried it out in record time. ACM accomplished this via the ACM QMS, as defined in the ACM Quality Manual. The Quality manual is patterned in ISO9001 & AS-9100 and provides direction to the entire Company in relation to ISO requirements and company policy. ACM assures that stringent requirements are maintained via internal & external audits. ACM is AS9100: REV B/ISO 9001:2000 certified and accredited to Nadcap for Composites process. ACM IS NOW ACCREDITED TO NADCAP Performance Review Institute (PRI) has officially accredited Asian Composites Manufacturing Sdn Bhd (ACM) to NADCAP for Composites Process on September 2nd, 2005. NADCAP which stands for 'National Aerospace and Defense Contractors Accreditation Program' is the leading worldwide cooperative program of major aerospace companies designed to manage a cost effective consensus approach to special process and products and provide continuous improvement within the aerospace industry. These major aerospace companies include Boeing, Airbus, and Rolls Royce, Bombardier, BAE System and many others. This is another step in ACM's journey to become a World Class manufacturing center. NADCAP Accreditation program was initiated on October 13th, 2004 as part of the customer's requirements. With this NADCAP accreditation, ACM is now listed on the eAuditNet website

(www.eauditnet.con) that shows all the composites suppliers that comply to AS 7118. This will bring ACM to higher level of customer confidence besides being


internationally recognized as the premier leader of composites process technology in Asia. AWARDS Top 3 Finalist for National Safety & Health award 2008 Awarded 2008 Frost & Sullivan Asia Pacific Components OEM of the Year Award-2008 Excellent Supplier Award (Gold) from Fischer Advanced Composites Components, Austria 2006

Environmentally Best Kept Industry, Kedah State 2006 Top 4 finalist for National Safety & Health award 2005 Runner up Best Technology Company in Kedah State 2003 Top 3 in Malaysian Human Resource Development (Industrial Sector) 2003 Best Landscaped Premises (Industrial Sector) in Kedah State 2002

What is the improvement activity they have done? There are several way that ACM have done to improve their activity on business processes such as Lean Manufacturing, Kaizen, My Kaizen and value stream Mapping. Lean Manufacturing is a production strategy that eliminates waste and the continuous improvement of operation. Lean is NOT people working harder to produce more. Lean Manufacturing results in greater profit by reduced costs. Lean Production systems mean doing more with less inventory, fewer workers, less space. The term was coined by James Womack and Daniel Jones to describe the Toyota Production System, widely


recognized as the most efficient manufacturing system in the world. Lean productions are integrated management system that emphasizes the elimination of waste and the continuous improvement of operations. Just-in-time, it emphasized minimizing inventory and smoothing the flow of materials so that material arrived just as it was needed or just-in-time. Another lean system

method is Jidoka. Jidoka is authority to stop the production line. It was the idea that worker could identify quality problems at their source and solve them. Jidoka includes high quality, reliable, and efficient processes, separation man and machine, detection and correction and automation. Besides that, ACM also have done 5s to improve their activity. The 5s consists

seiri(sort), seiton(set in order), seiso(shine), seiketsu(standardize) and shisuke(sustain). All of them have their own goal such as seiri to keep only what you need. Seiton means a place for everything and everything in its place. The goal of seiso to cleaning, and looking for ways to keep clean and organized, seiketsu ti maintaining and monitoring the first three categories and shisuke to sticking to the rules.


Another way that ACM have done to improve their activity is KAIZEN. Kaizen is the Japanese term for continuous improvement, not only in the workplace but also in ones personal life, home life and social life. In the workplace, kaizen means involving everyone in a process of gradual, organized and continuous improvement. Every

employee within an organization should be involved in working together to make improvement. If an improvement is no part of a continuous, ongoing process, it is not considered kaizen. In Japanese KAI is change and ZEN is good in term for change for the good of all or continuous improvements or improve without ending. Employees are most directly involved in Kaizen when they are determining solutions to their own problems. The spirit of Kaizen consists throw all your concrete head, think how it would work not

wont, improvement has no limits, 10 peoples ideas is better than one, dont seek for perfection, dont accept excuses, Kaizen with less cost or no cost, correct the mistake the moment you found, ask why 5 time and problem gives your brain a chance to work. The spirits of Kaizen as shown below.


MY KAIZEN is a short term improvement activity that ACM have done to improve their activity. Its just immediately. The objectives of MY KAIZEN to provide an opportunity for all employee to voice out their innovative and creative ideas for Continuous Improvement, to Promote LEAN Thinking and Culture among the ACM Employee, increased the employee awareness of the KAIZEN Activity and the power of Continuous Improvement at the work place by relentless removal and eliminating of waste, and to improve internal communication loop in between all levels of ACM employees. The scope of MY KAIZEN include any Ideas and suggestions from employee that can lead to Improvement to the current condition and environment of :

Quality improvement of the products or services Delivery Improvement Tack Time Production, Etc Lower Production Cost Customer Services and relationship Work System and Procedures Work Methods , flow and processes Machine, Jigs, Fixtures and Tools life cycle Safety and Health Morale and Motivation Efficiency of office work

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ACM select the improvement base on quality problem for example the top 3 defects that occur to our products, cost Saving for example how to improve on the raw material consumption we used to produce the product, delivery issues - to tackle and improve on time delivery of product to our customers, safety such as to improve safety and morale to improve morale of our employees. Duration of improvement is simple kaizen 1 week; usually 1 month and the more complex kaizen project can go to 3 to 6 months. The benefits of MY KAIZEN: My KAIZEN program is design where all employees can express the present work method condition they have encountered while working and thus they can provide ideas suggestion on how to improve the situation

My KAIZEN program will help ACM to eliminate the 11 + 1 waste "CLOSEDMITTS+ I.

My KAIZEN program will also serves as a link between the management team with the employees in the process of two - way communication of constructive ideas and suggestion

My KAIZEN will bring to Economic and Morale-boosting benefits via positive participation of the employees.

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Value stream mapping process

The product family means choose a product family.

Current state drawing means

understand how the area currently operate, the future state drawing means design a lean flow and work plan and implementation means plan how to get there and execute the plan.

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How they select the Improvement Project? Productivity improvement program includes lean manufacturing, Kaizen, My Kaizen and Value Stream Mapping. Lean manufacturing is a production strategy that eliminates waste. Lean is not people working harder to produce more and results in greater profit by reduced costs. Lean principles have evolved from the Lean Production Philosophy which has its origin in the set of business philosophies developed in post-war Japan known as Toyota Production System. Lean, as its core is a cost reduction philosophy through elimination of waste (muda - Japanese). The concepts outlined in Lean Manufacturing evolved into a series of principles which in turn evolved into a business concept known simply as Lean which can be applied across several disciplines such as Project Management, IT Deployment, etc. One of the core values of Lean Manufacturing is known as the 5S Method.

Sort - Eliminate all unnecessary tools, parts, instructions Simplify - A place for everything and everything in its place Shine - Maintain a tidy and organized work environment Standardize - Document the rules for maintaining the first 3S instructions Sustain - Operations carried out in sequence, eliminating waste

Process improvement is great for business. Excellence in operations is better. Technology decisions would involve a large sum of money and can have a big impact on the costs, speed, quality and flexibility of operations.

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Process innovation is not likes another projects. The manager can be carefully planned and flawlessly executed. The manager allows the team to try something, see if it works, modify it and try again. Principles can be used for redesigning processes. 1) Remove waste, simplify and consolidate similar activities. 2) Link processes to create value. 3) Let the swiftest and most capable enterprise execute the process. 4) Flex the process for anyway, any place and any time. 5) Capture information digitally at the source and propagate it through the process. 6) Provide visibility through fresher and richer information about process status. 7) Add analytic capabilities to the process.
8) Connect, collect and create knowledge around the process through all who touch

it. At Asian Manufacturing Composite SDN.BHD involved the research and development. This includes work in the following areas like Lean Manufacturing, Materials R&D, Manufacturing R&D and Quality R&D. Lean Manufacturing includes training of employees and implementing process improvement via Kaizen Events. Materials R&D include reviewing the possibility of integrating new materials fabrication capabilities to enhance our position for new business opportunities.

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Manufacturing R&D includes reviewing and modifying existing fabrication methods and developing new ones in order to improve our current. Process flow and enhance our position for new business opportunities. Asian Composites Manufacturing Sdn Bhd use Lean Manufacturing for cost reduction. The Lean manufacturing principles introduces flow manufacturing in the factory and reduces lead-time and Work-In Progress (WIP). Production is pulled instead of pushed as in conventional production. There is standardization and increased reliability in process, ensuring quality. Costs are reduced with the reduction of inventory and this impacts cash flow favorably finished goods are accumulated for shipment to the customer at appropriate intervals. Waste is eliminated with Kaizen and continuous improvement being part of the everyday work expectation. Value stream mapping is the tool used to identify Kaizen workshop. Kaizen workshop is conducted bi-monthly focusing on reducing waste in areas considered high cost drivers. Duration of the improvement project Organization has been studied this is one of the organizations which produces ancillary product such as airplane wing to his customer. In course of time adopt for adder improvement or his habit correction this organization. Nevertheless sometimes time adopted also be exceeding one week. This situation became to project more competitive his nature. Es a week to carry adder improvement or correction would be made by organization. In this case organization would give time long a week to a project origin of adder improvement want carried out. After one gone week presentation on project would be

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made. This presentation doing of purpose to upper manager easily more understand objective of the project would be made. Other than the project selection fall into two means namely quality issue and specified. Of project selection like specified improvement and adder construction should be done in every month, for example to process which involves selection like specified is in process part paint which many correction and adder construction carried out. Team members of improvement project In one organization should possess group partner to increase a project in one organization. Group partner in one organization would be vital, this is because was to expedite process and launched a project process which operate so that run smoothly and orderly and safe. This group partner would be vital in one organization, this are because inside group partner ability organization to produce something very important products because a project will can be renewed his quality. In group partner should possess a chief in order to be head in settling a project in one organization. Under chief also need be his assistant to aid chief in settling a project in organization namely facilitator. Under facilitator should possess average worker carrying out works directed by respective chief. For example in organization we carried out namely ASIAN COMPOSITES MANUFACTURING SDN BHD (ACM). This organization carrying out work create components resides in airplane wing. In this ACM's organization have a head which comprises of manager was chosen. A manager's task or chief was to ensure his workers do the job which gave. Chief would greet his subordinates who did offence. This was to improve his employee performance so that

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his employee doing high quality product. These duties should commit by chief assistant called facilitator. Facilitator this is which would provide reprimand, lesson, education and guidance to staff usually. This was to improve a product produce. Ordinary workers this is will conduct; produce something components reside in airplane wing. How they implement the improvement project? ACM Sdn. Bhd implements their improvement project using by Kaizen which is continuous improvement. It is based on Japanese concept adopted by this company. It is included an overview of Kaizen process improvement, 5S, project selection and assignment, team formation and development and the identification and elimination of waste. All aspects are consolidated with practical activities. Participants will be to gain a working understanding of Kaizen concepts, learn how to bring a team together to focus on implementing change within a short period, how to apply Lean tools in a wide range of environments, tackle waste and increase throughput and productivity. The improvement project divided of two situations that is long term improvement and short term improvement project. Basically for long term improvement project this company have two or three project research at a same time for every month such as improvement time for painting process, how to improve water jet trimming process and so on. While for short term improvement project this company should to doing immediately project. The duration of submitted the project less more than 1 week and they should to present the project after finished overall of their assignment. Example of the project is try to search how to improve quality, how to improve morale of their employees and how to improve safety at the workplace. For the more improvement

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project is based on quality problem which is try to defined what the top 3 defect that occur to their product, how to improve their performance, how to tackle and improve on time delivery of product to their customers and many more. This company implemented their improvement project through by the spirit of Kaizen. It was improvement have no limits, 10 s people ideas is better than 1, dont seek for perfection, throw your concrete head, dont accept excuses, correct the mistake the moment you found, think how it would work not wont, ask why 5 times, kaizen with less cost or no cost and lastly problem give your brain a chance to work. Furthermore they make the best decision and choose the best methods for improve their performance, quality, product, process and management. After that, they try to practice about the new methods to change their traditional method either it can adapted or not especially acceptability from employees. Besides that this company also giving additional trainings to their employees for that more competence to handling any process or to show the best performance. About their quality of product they make a questionnaire to send to customers and waiting a feedback from them. After have got a feedback they create a new innovation for their service. What is tangible and intangible benefit that project for the company? Improve productivity ACM Sdn. Bhd improves their productivity based on kaizen principles. Kaizen is a part of lean manufacturing that works to produce goods and services using less material and less time and less human effort all around. Lean manufacturing strives to ensure that less

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time is spent developing products, less effort is spent producing them, and less time is spent fixing defects and those sorts of things. A lot of the time lean manufacturing is combined with six sigma so that variations are reduced in the manufacturing processes and also so that less waste is produced. Kaizen is a part of lean manufacturing that improves the production process and the experiences of the workers so that variation is reduced and so that production flow is improved overall. Kaizen works to continually improve the processes of manufacturing, so that quality of products and services are consistently on the rise and so that the experiences of the workers are constantly improving. Benefit of tangible Increased market share More accurate trading More accurate production tracking Reduced selling cycle Reduced defect Worker more efficiency can reduced electrical and wiring costs Benefit of intangible a. Improved Business Productivity Increased knowledge-sharing amongst workers, customers and partners Improved quality of decision making by informing employees Workers that can tune their level of interaction are apt to work during off hours
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b. Improve Customer Loyalty/Service

Better customer service Higher quality interaction with customer

Improve Cycle Time Cycle time is the time required to complete a given process. The cycle time required to process a customer order might start with the customer phone call and end with the order being shipped. The overall process is made up of many sub-processes such as order entry, assembly, inspection, packaging, and shipping. The cumulative cycle time of all of the sub-processes in ACM company operation determines when they can promise product to their customers. Benefit of tangible One of the most important data in any line balancing project is the cycle time. In a paced line, the cycle time is often meant to be the amount of time it takes before the product leaves a workstation and moves to the next one in the line. By this definition, the cycle time is the same for all workstations in the line. However, this definition is often too restrictive in many real lines. It is desirable to have a certain reserve of time at the workstations at the end of the lines, so that possible perturbations such as equipment downtime can be absorbed easily by those workstations.

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Optimize line therefore defines the cycle time as the work time that should be spent on a workstation. As such, the cycle time is defined for each of the workstations separately, and can differ from one workstation to another. In particular, it can decrease towards the end of the line. Since the cycle time is allowed to vary among workstations, all the workstations and their respective cycle times must be fixed before the optimization can take place. Based on ACM Company, suppose that there are two workstations in the line, and that the first workstations cycle time is the double of the cycle time of the second workstation. In that setup, the optimizing line will seek an assignment of operations such that the work time on the first workstation is as close as possible to the double of the work time on the second workstation. In cases where there are workstations with several operators, the work time on a workstation is taken to be the longest work time among all the operators assigned to the workstation. However, it is usually impossible to find an assignment of operations to workstations that would perfectly match the cycle times. As a consequence, if the cycle times specified for the workstations are too tight and the amount of time necessary to carry out the operations, the cycle time can be exceeded on some or all workstations. In that case, ACM Company may add a workstations or operators and rerun the optimization, in order to find a feasible solution. Conversely, if the work times obtained in a solution are way below the available time, it may be possible to eliminate workstations or operators and increase the efficiency of the line.

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Benefit of intangible Cycle time management has been identified as an approach to improve productivity in manufacturing as well as services industries. Improving on cycle time can lead to achieving business objective such as cost reduction, speed improvement and also make an organization more reliable. Specific models will be used in order to improve the reliability of cycle time management system. This training will definitely increase organizational productivity which is highly needed in a changing environment. It involves process improvements as an approach towards continuous improvement. It has been a proven strategy needed for todays businesses in order to create competitiveness. Cycle time reduction is identifying and implementing more efficient ways to do things. Reducing cycle time requires eliminating or reducing non-value-added activity, which is defined as any activity that does not add value to the product. Examples of non-valueadded activity in which cycle time can be reduced or eliminated include repair due to defects, machine set-up, inspection, tests and schedule delays. Reducing cycle time will have a significant impact on a company's bottom line when implemented. There are the benefits of cycle time reduction. ACM Company can reduced costs, increased throughput, streamlined processes, improved communications, reduced process variability, schedule integrity and improved on-time delivery

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Reduce Reject Rate Benefit of tangible When reject rate is reduced, operation cost can be saved. Production becomes more effective and efficient because not all rejected products can be saved through rework. Raw materials usage can be optimized. Workers time for rework can be used to do other works which are more important if reject rate was reduced. Instead of waste time dealing with same product twice, workers can produce new product with same amount of time. This will increase the productivity of the company. If reject rate is reduced, space to keep rejected products can be reduced. The space saved can be used for more important purpose. Benefit of intangible Morale of the workers increased with the reduction of reject rate. This is because the management will be definitely satisfied with the situation and praise the workers for doing a good job. This will make workers satisfied and become highly motivated workers. Companys image will be improved when the reject rate is reduced. Most companies have vision to achieved productive and efficient production. Efficient production can be

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materialized through low reject rate. This situation can attract investors to invest in the company, and lead to companys expansion.

Reduce manpower Benefit of tangible ACM also do retrenchment. There are several tangible benefits from this action. For example if the process need 2 workers, they do not reduce workforce. When making a project, the administration will see whether that process need 2 people or only one person. Besides that, ACM developed and installed a new generation of automated equipment that can replace workforce. Hence, companies can increased output and costs for machine purchasing just once only whether the machine cost expensive or cheap. Administrative only those may act to reduce workforce. The advantages that achieved of retrenchment was able to save cost to payment to workers. Besides that, it can reduce cost for defrayed training for the workers. The new equipment had obvious advantages. It resulted in increased output and lower labor costs. Manpower could easily replace and trained at low cost. ACM developed and installed a new generation of automated equipment and robotics that enhanced their abilities to achieve higher output and lower cost.

Benefit of intangible The intangible from reduce manpower can increased the satisfaction of employees needs of existing because it easily to them to handle the small group of employees. Hence, the company can design of jobs to fit the small group of employees. This new
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equipment also reduced the manual labor necessary to perform jobs and improve safety. Computer system provided workers with an expanded array of information that increased their ability to identify and locate problems in the production process and monitor product quality. New job designs and redesigns of existing jobs were required that reflected these new technology.

Reduce operation cost Benefit of tangible and intangible Result of increased selling Following the use of raw materials prices lower, then the company can increase the sale for product. Company can increase profit margins Low prices also can attract users to buy in quantities that many.

Increase company profit Company can increase profits as a whole. Maybe the company can increase the use of more high technology The company can acquire a high net hit.

Workers will get benefits

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To reduce operating cost, the company can may be able to provide a high elauns to workers during this take pains to the company.

Company can use it to good work or purchase equipment that more sophisticated technology.

Not a lot of inventory Reduce the stock with the earnings, the company also can reduce money this because there is a some company produce much inventory but not in use. Company also do not need to rent warehouse to store a lot of inventory.

Workers need to work more overtime Cost also reduce the meaningful use of technology hence. Company can run operations manually, then this will impose workers. Workers need to work more quickly and the period in order to achieve the desired phase by the some company

Not working increasing Following the some company to reduce their cost, the effect can happen when many people who do not have workers and unemployed.

Employer acted with the whole castes the first choice of workers to reduce operating the company cost.

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