Productivity

By: 
March 31, 1997


Suwandi Dhanu, general manager,
believes

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.
Materials handling systems and dryers are from TEW and Matsui. Also, the
company has designed and built its own automation peripherals. Standardization
is a company policy. Resins primarily are from Japanese suppliers, such
as Toray, Mitsubishi, and Teijin.

The area in which camera bodies, camera components, and other parts
are moulded is well-lit, air-conditioned, and immaculate. Thirty Nissei
machines are arranged perpendicular to the wall with injection units facing
the aisle. Robots remove the parts and place them on inclined conveyors
feeding QC inspection and packaging stations. Typically, production can
involve some six mould changes per day.


Optical inspection of moulded
lenses takes place

right on the factory floor. All parts in the plant

receive a daily visual inspection, random daily

check for photoresolution, and monthly

reliability tests.

This room with its larger machines is impressive, but PT Honoris Industry's
lens moulding room is state of the art. Here, top-of-the-line Sumi-tomo
presses are used. Machine utilities and materials handling tubes are overhead.
Though the machines are arranged in the same orientation as in the other
rooms, there are differences.On some lines, the company has installed intravenous-like
bags, the sort you might find in an operating room, to ensure that even
the surfaces of the conveyors are kept clean with regular drops of water.Optical
inspection systems with visual aids are on the floor of the moulding area
to make absolutely certain all lenses moulded are to within specification.

So, where are all the people? Injection moulding is only one of four
divisions at the Ciawi factory. Its optical division is equipped with curve
generating, polishing, measuring, coating, and assembling stations for
glass lens manufacturing. Its electronics division for cameras and car
stereos is equipped with the latest chip mounting, wave soldering, and
calibration systems, and has solder paste printing, inspection, and manual
assembly teams. However, the majority of its work force is in its camera
assembly division.

QCDSM

Credit for success has to go to the company's management style, described
with an acronym: QCDSM. This stands for quality, cost, delivery, safety,
and morale.

PMMA camera lenses (above) with
.5 to .3 pitch

are moulded at reject rates well under 1 percent.

These camera bodies below are moulded to

within ±30 µm.

Regarding quality, the company says, "We are strict to customer
specifications." Yet customers often are surprised to get more than
what they were expecting. Lenses with pitches ranging from .5 to .3 mm
are moulded, perfectly. In general, part tolerances throughout the factory
are maintained to within ±30 mm. "Fuji asked for a standard
reject passing rate of 98 percent. We achieved 99.2 percent," the
company says.

Indonesia enjoys an attractive economic profile as a low-cost area
of the global marketplace. Labour costs are relatively low ? minimum
wage is about 165 rupiahs/month (US$ 3.00/day). But PT Honoris Industry
puts more faith in continuous productivity improvement as a more reliable
means of controlling cost. The company lives by this phrase: Good is no
good, if better is expected. "We have formal programs in place that
we've put together with our ISO and Kaizen teams to control our costs."

Production control and low-reject moulding help PT Honoris Industry
meet its customers' just-in-time delivery schedules. "We maintain
zero inventory of finished product. Our inventory is only in parts,"
the company maintains. And regarding safety: "We care. We have a very
low accident rate." It also cares about the morale of its most precious
resource, and the real key to its success ? its workers. The results
are impressive. With 2,600 employees, employee turnover is less than 1
percent.

"In 1989, we realized that the company would be experiencing very
rapid growth," says Suwandi Dhanu. "Our technically trained engineers
were well prepared, but the assembly line workers, that was different.
If you have 300 operators, you have 300 different characters. You have
to standardize, you have to minimize differences to make a production line
work," he explains. PT Honoris Industry sees to it that new employees
learn more than the technical aspects of their jobs. Employees are taught
good work habits and good work ethics through incentives, and through an
enlightened management style. He believes that a willingness to work is
as important as an ability to work.


Most PT Honoris employees work
in assembly.

With 2,600 employees, turnover is less than

1 percent.

"We always say, as managers, an employee is not the inferior ?
an employee is like a younger brother or sister. We all are very close
to our operation. We work very hard to instill positive thinking among
all the employees, and to eliminate blaming." It works. "Their
mothers and fathers have come in and have asked, 'How did you do this?'
They bring the good work habits they learn here back home, and everyone
sees the results."

PT Honoris Industry has plans for expansion in Indonesia. It also plans
to work hard to maintain its unique working relationship with Fuji, while
striking new partnerships with new customers. Through partnerships with
its employees, the company feels it can continuously improve productivity
while continuing to surprise everyone with its success.

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