FIELD VISIT GROUP 1 2 to KHON KAEN CERAMIC

FIELD VISIT GROUP 1&2 to KHON KAEN CERAMIC (KKC) Co. Ltd ON 30 TH July 2009 by Halima, Mangali, Lin, Sanda, Indrani, Hnin, Dona, MZ, Saroj, Elephant, AJ, Shaikh

CONTENT l l l l l Introduction Strengths Weaknesses Areas to improve & how? Strategies to enhance product competitiveness Human Resource Management Business sustainability Business competitiveness enhancement Support from the government Required support from the government

General Information of the company l l l Khon Kaen Ceramic Company LTD. Was established in 1991. It is sole proprietor concern. It is a medium Enterprise. The capacity of the project is 1, 000 pieces produced per day. High production period from Jan. to June is more than 100%, and July to December the production falls to 30%. 105 Employees which is 60% male Working hours 8 am to 4 pm (1 hour lunch and two tea breaks)

FACTORY

Organization Chart Managing Director Office Mnager Factory Manager Slip prepare glazing firing glazer HR Mold prepare casting decorate transport financial Ware house R&D, Production Planning, maintenance admin

Production process Prepare raw material Kaolin, ball clay, silica, feldspar Prepare mould casting Clay slip Decorate I oven Decorate II glazing firing QC packing

Strengths of KKC l l l l l Owners experience of the ceramic sector Location of the factory Product for the mass market 70% of the local market share for lower hand Raw material (Kaolin, bull Clay and Silica) are easily available Segment of market: Domestic and Export Skillful and wealth of experience of they labor Well established for 18 years Number of staff and employees loyalty

Weakness of KKC No proper safety measures like fire extinguisher l No health coverage for the staff l Poor working environment l Some of the raw materials like felspar are imported from china; the exportation of the latter is restricted l Limited product diversification l Company has not attained ISO Certification l

Weaknesses contd. l High labor turn over l Unavailability of new technology in the production process l Difficulty of skilled labor L

Areas to Improve and how Enhancing product diversification l Improving working environment l Improving healthcare for the staff l Positively influencing employee attitude l Introducing new, more advanced technology l Improving safety measures in the factory l

Other areas to improve Exploring more international markets l Improving on new technical formula for colour l

Strategies to enhance products competitiveness Invest in research and development l Improve quality of the products l Increase channels of distribution l

HR Management to work effectively Good communication between employer and employee l Provide welfare facilities for staff l Annual rewards for the best employees l Friendly environment l Incentives for employees l Confessional loans for employees l Free medical treatment for employees l

Best practices for business sustainability l l l l Improve product range Good financial availability (timely payment) Honesty and Efficient service Financial Liability Guarantee for the product Quality checking of each and every step of product line Meeting customer specification Employees loyalty

Best practices for business competitiveness enhancement More concentration on Research & Development (5 Engineers( l Concentration on quality of the product l Constant price of quality products l

Business services would they require from the Government Reduce cost of Electricity l Reduce cost of transportation l Subsidize the cost of Energy & Transportation l Enter to Thailand Capital market l Loan at low interest rate from the Bank l

Business services & support from the Government Loan at low interest rate from the SME Bank l Provision of Government guarantee for loans l

Important lessons learned l l l Friendly environment help to motivate the staff in order to enhance the productivity One person can manage many functions at the same time. (marketing, purchasing, supplying, customer care) Family members can help in the business in order to develop it. Government support is necessary to develop SMEs in the country. Loans from the Banks at low interest rates can help for the development & expansion of SMEs in the country