FIELD VISIT FIELD VISIT GROUP 1&2GROUP 1&2

totoKHON KAEN CERAMIC KHON KAEN CERAMIC

(KKC) Co.Ltd(KKC) Co.LtdON ON

3030THTH July 2009 July 2009

bybyHalima, Mangali, Lin, Sanda, Indrani, Halima, Mangali, Lin, Sanda, Indrani, Hnin, Dona, MZ, Saroj,Elephant, AJ, Hnin, Dona, MZ, Saroj,Elephant, AJ,

Shaikh Shaikh

CONTENTCONTENT IntroductionIntroduction StrengthsStrengths WeaknessesWeaknesses Areas to improve & how?Areas to improve & how? Strategies to enhance product competitivenessStrategies to enhance product competitiveness Human Resource ManagementHuman Resource Management Business sustainabilityBusiness sustainability Business competitiveness enhancementBusiness competitiveness enhancement Support from the governmentSupport from the government Required support from the governmentRequired support from the government

General Information of the General Information of the companycompany

Khon KaenKhon Kaen Ceramic Company LTD. Was Ceramic Company LTD. Was established in 1991.established in 1991.

It is sole proprietor concern.It is sole proprietor concern. It is a medium Enterprise. The capacity of the It is a medium Enterprise. The capacity of the

project is 1,000 pieces produced per day.project is 1,000 pieces produced per day. High production period from Jan. to June is more High production period from Jan. to June is more

than 100%, and July to December the than 100%, and July to December the production falls to 30%.production falls to 30%.

105 Employees which is 60% male 105 Employees which is 60% male Working hours 8am to 4pm (1hour lunch and two Working hours 8am to 4pm (1hour lunch and two

tea breaks)tea breaks)

FACTORYFACTORY

Organization ChartOrganization Chart

Office Mnager

Managing Director

Factory Manager

Slip prepare

casting

glazing

decorate

firing glazer

Mold prepareHR

transport

financial

Ware house

admin

R&D, Production Planning, maintenance

Production processProduction processPrepare raw material

Kaolin, ball clay, silica, feldspar

Clay slip

Prepare mouldcasting

Decorate I

oven

Decorate II

glazing

firing QC packing

Strengths of KKCStrengths of KKC Owners experience of the ceramic sectorOwners experience of the ceramic sector Location of the factoryLocation of the factory Product for the mass marketProduct for the mass market 70% of the local market share for lower hand70% of the local market share for lower hand Raw material (Kaolin, bull Clay and Silica) are Raw material (Kaolin, bull Clay and Silica) are

easily availableeasily available Segment of market: Domestic and ExportSegment of market: Domestic and Export Skillful and wealth of experience of they laborSkillful and wealth of experience of they labor Well established for 18 yearsWell established for 18 years Number of staff and employees loyaltyNumber of staff and employees loyalty

Weakness of KKCWeakness of KKCNo proper safety measures like fire No proper safety measures like fire

extinguisherextinguisherNo health coverage for the staffNo health coverage for the staffPoor working environmentPoor working environmentSome of the raw materials like felspar are Some of the raw materials like felspar are

imported from china; the exportation of the imported from china; the exportation of the latter is restrictedlatter is restricted

Limited product diversificationLimited product diversificationCompany has not attained ISO Company has not attained ISO

CertificationCertification

Weaknesses contd.Weaknesses contd.

High labor turn overHigh labor turn over

Unavailability of new technology in the production Unavailability of new technology in the production processprocess

Difficulty of skilled laborDifficulty of skilled labor

LL

Areas to Improve and howAreas to Improve and howEnhancing product diversificationEnhancing product diversification Improving working environmentImproving working environment Improving healthcare for the staffImproving healthcare for the staffPositively influencing employee attitudePositively influencing employee attitude Introducing new, more advanced Introducing new, more advanced

technologytechnology Improving safety measures in the factoryImproving safety measures in the factory

Other areas to improveOther areas to improveExploring more international marketsExploring more international markets Improving on new technical formula for Improving on new technical formula for

colourcolour

Strategies to enhance products Strategies to enhance products competitivenesscompetitiveness

Invest in research and developmentInvest in research and development Improve quality of the productsImprove quality of the products Increase channels of distributionIncrease channels of distribution

HR Management to work effectivelyHR Management to work effectively

Good communication between employer Good communication between employer and employeeand employee

Provide welfare facilities for staffProvide welfare facilities for staffAnnual rewards for the best employeesAnnual rewards for the best employeesFriendly environmentFriendly environment Incentives for employeesIncentives for employeesConfessional loans for employeesConfessional loans for employeesFree medical treatment for employeesFree medical treatment for employees

Best practices for business Best practices for business sustainabilitysustainability

Improve product rangeImprove product range Good financial availability (timely payment)Good financial availability (timely payment) Honesty and Efficient serviceHonesty and Efficient service Financial LiabilityFinancial Liability Guarantee for the productGuarantee for the product Quality checking of each and every step of Quality checking of each and every step of

product lineproduct line Meeting customer specificationMeeting customer specification Employees loyaltyEmployees loyalty

Best practices for business Best practices for business competitiveness enhancement competitiveness enhancement

More concentration on Research & More concentration on Research & Development (5 Engineers)Development (5 Engineers)

Concentration on quality of the productConcentration on quality of the productConstant price of quality productsConstant price of quality products

Business services would they Business services would they require from the Governmentrequire from the Government

Reduce cost of ElectricityReduce cost of ElectricityReduce cost of transportationReduce cost of transportationSubsidize the cost of Energy & Subsidize the cost of Energy &

TransportationTransportationEnter to Thailand Capital marketEnter to Thailand Capital marketLoan at low interest rate from the Bank Loan at low interest rate from the Bank

Business services & support from Business services & support from the Government the Government

Loan at low interest rate from the SME Loan at low interest rate from the SME BankBank

Provision of Government guarantee for Provision of Government guarantee for loansloans

Important lessons learnedImportant lessons learned Friendly environment help to motivate the staff in order Friendly environment help to motivate the staff in order

to enhance the productivity to enhance the productivity One person can manage many functions at the same One person can manage many functions at the same

time. (marketing, purchasing, supplying, customer care) time. (marketing, purchasing, supplying, customer care) Family members can help in the business in order to Family members can help in the business in order to

develop it.develop it. Government support is necessary to develop SMEs in Government support is necessary to develop SMEs in

the country.the country. Loans from the Banks at low interest rates can help for Loans from the Banks at low interest rates can help for

the development & expansion of SMEs in the countrythe development & expansion of SMEs in the country