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.


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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