Page 58 - KRA Annual Report 2020

KRA ANNUAL REPORT Company
2020 Improvement
Activities

2. INCREASE IN-HOUSE MACHINING

Starting from 2016, KRA has consistently developed its repair parts capabilities by utilizing KRA’s
machining facilities. This can be seen in the In-House (I/H) Machining ratio chart, which gradually
increased from 46% in FY2016 to 75% in FY2020.
This activity is not only moved from the Out-House to
the I/H, but also some benefit :
a. shortening lead-time of repair, by reduce
ordering & transportation time
b. improvement quality, by repair with more
accurate machine, the dimension target will be
keep as standard
c. cost improvement, by shorten lead-time will get
process cost reduction
d. part of the salvaging method protection –from
potential to be copied by local repair company-,
especially for the critical parts to ensure the
continuity of the remanufacturing business

In FY2020, with a situation of decreased production and limited investment in new facilities, an increase in
I/H Ratio was carried out by optimizing existing facilities, especially for CNC Machine such as Double
Coulomb Machine, Vertical Turning Lathe (VTL), Vertical Machining Center (VMC) and CNC Lathe.

Significant investment in FY2020 is only for the Large Manual Lathe which is intended for large parts
machining processes that previously could only be done at the vendor

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