March 31, 1997

Suwandi Dhanu, general manager,

that among his employees, a willingness to work

is as important as an ability to work.

Back in the late 1970s, Fuji Photo Film Co. Ltd. was a small company.
In 1979, Otje Honoris (1922-1981) started a small company of his own in
Jakarta, as Fuji's sales agent. Fuji saw a tremendous opportunity for growth
in Indonesia, the Southeast Asian marketplace, and around the world, but
was faced with high import duties for manufacturing its products in Japan
and exporting them overseas. The import duties were in the neighbourhood
of 30 percent in Indonesia alone. Such duties would be only around 5 percent
if Fuji manufactured in Indonesia.

Fortunately, Honoris had experience in injection moulding. He worked
for nine years with a multinational captive moulding operation. No one
else in his company knew moulding. Still, a unique cooperative relationship
was formed. Honoris began moulding film spools for Fuji in a small plant
with 79 employees and four moulding machines.

His company, known today as PT Honoris Industry, became independent
in 1982 and manufactured Fuji's first camera, the M-1. Today, Fuji's market
share is around 85 percent, just in Southeast Asia. Today, Honoris' company
does 100 percent of Fuji's precision custom moulding and contract manufacturing
in two plants in Indonesia totaling 70,000 sq m, with 2,600 employees and
56 moulding machines.

Pt Honoris must hold and maintain
moulds for

its major customer for seven years after the

introduction of a new product. It presently has

540 active moulds.

There are more than 60 plastic components in a single Fuji camera. The
company presently manufactures nine camera models involving 540 active
moulds. Three years ago, PT Honoris Industry branched out into new markets
with new customersÑmaking car stereos for Japan's Pioneer. The company
oversees a very large number of employees, running several very sophisticated
pieces of equipment, yet ships millions of parts, just-in-time, that exceed
customer quality expectations. How? You may be as surprised as Fuji originally
was when you find out. Join us on our tour of the PT Honoris Industry in
Ciawi, West Java.

A One-stop Shop

About two hours north of Jakarta in the Bogor, Jawa Barat area, the
Ciawi factory is found up a winding mountain road behind an impressive
gate with uniformed guards that salute you as you drive through.

All 56 moulding machines at
the Ciawi Factory

are automated and operate in a well-lit,

climate-controlled environment.

The factory grounds look and feel like a small university campus. Before
touring the manufacturing areas, you must exchange your shoes for slippers
and put on cleanroom garments. The manufacturing environment is tightly
controlled for quality's sake and steady-state machine performance, and
production is monitored and controlled by computers.

The first thing that comes to mind when you enter the moulding area
is, "Where is everyone?" Then you notice the parts-removal robots
on every machine, the centralized materials handling system, and the parts
conveyors. PT Honoris Industry is highly automated. Every machine is equipped
with either a Harmo pneumatic parts-removal robot or a Harmo sprue picker.

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