1. 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

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

3. General Information of the company Khon Kaen Ceramic Company LTD. Was established in 1991. Khon Kaen Ceramic Company LTD. Was established in 1991. It is sole proprietor concern. It is sole proprietor concern. It is a medium Enterprise. The capacity of the project is 1,000 pieces produced per day. 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%. 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 105 Employees which is 60% male Working hours 8am to 4pm (1hour lunch and two tea breaks) Working hours 8am to 4pm (1hour lunch and two tea breaks)

4. FACTORY

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

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

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

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

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

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

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

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

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

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

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

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

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

21. Important lessons learned Friendly environment help to motivate the staff in order to enhance the productivity 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) 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. Family members can help in the business in order to develop it. Government support is necessary to develop SMEs in the country. 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 Loans from the Banks at low interest rates can help for the development & expansion of SMEs in the country