“Customer satisfaction in “four RIGHTS” are key success factors” --An interview with a vice director of an Indonesian manufacturer of metal stamping parts and the like
Mr. Yogie Ariowibowo (Vice Director)
Many business people from abroad including the emerging countries have participated in HIDA training programs. Positions of the targeted audience vary with the programs, and there are some programs aimed for top executives.
This time, we interviewed with a person who runs a company manufacturing metal stamping parts and the like in Indonesia.
--Please explain your company profile first.
PT. Sinar Terang Logamjaya, located in Bandung, about 130 km southeast of Jakarta, is a manufacturer of metal stamping parts, dies and jigs for both automobiles and motorcycles but we mainly focus on the motorcycle market. Since the establishment of the company in 1998, we have operated our business only in the Indonesian market with 336 employees.
--What aspects of corporate management do you put much value on? Please share with us your management philosophy or policy, or something considered important.
Customer satisfaction by human resources is the core of our company, and it is integrated with management and technology with the spirit of Kaizen, never ending improvement.
--Do you think of any challenges that hinder your company business to grow and develop further? What kind of actions do you think need to be taken to address the above-mentioned “challenges”?
Yes, we have challenges in the external and internal aspect as follows:
We have tight business competition and the market has nearly reached maturation where motorcycle demand is concerned.
Human resources are definitely the one. The existing employees in the company must meet the standard qualifications of the company.
As for the external challenge, we try to increase our product quality to meet our customers’ satisfaction. As for the internal challenge, we always try to adopt changes, according to market changes and customer demand. Also, we try to increase coordination and team work between related departments to make decisions so that the company can solve their problems.
--How do you view the current status of your business in the global market?
Having a good business opportunity, especially with AHM (PT. Astra Motor Honda), so many things must be improved and learned such as HRD including capable managerial skills and facilities which have the latest technology like automation, etc. There are some other Japanese companies based in Indonesia, but AHM is our main customer. So, while we have a business transaction with Japanese companies, we do not export directly to abroad as of now.
--Are you planning to expand your business overseas? What does your company consider important and wish to focus on to lead your business overseas to a success?
Yes, if possible, we would like to expand the business overseas in the future but we need much more time to do research or study to make this possible.
Customer satisfaction in “four RIGHTS”: Right time, Right price, Right quality, and Right quantity. These are key success factors not only for a global business but also for a domestic business. We have currently reached to a certain level in terms of these four rights, but still need to improve more in order to move forward to the next step. A fair relationship based on trust and stability of quantity, and the like, will also be important.
--Please tell us about the current market environment of your business in your country.
The market business of two wheelers has nearly reached maturation and economic growth in 2015 – 2016 is not good, and consumer buying power is getting weaker. But we hope it will start getting better in 2017. For our company, the competition between AHM’s suppliers is really tight. Out of our total sales turnover, about 70-75% of our sales comes from AHM. AHM dominates the market, with about a 78% market share of the two wheel motorcycle industry, and there are about 80 supplier companies to AHM. Thus, we need to increase our “4 RIGHTS” aspects in order to win the competition.
--Business customs of your country may differ from those of other countries including Japan. Please use a few episodes to explain your distinctive differences from them in terms of the mindset for working, business culture, and national characters.
We still have problems in mindset and business culture in general, especially about the following points:
- Low productivity
- Low concern about quality
- Not committed to the time schedule
We always try to improve our employees’ ability and knowledge, including giving them fair wages and welfare. To increase our productivity, we’ve also started to use an automation system which produces in our internal company.
--What are the points that you have kept in mind to develop human resources in your company? In other words, how do you wish to improve your engagement with the matter in the future?
The main point is that we don’t see our employees as tools of production, but as our partners. We will give them technical and managerial training, so that they can improve their capability and implement things through discipline and commitment in an efficient and effective way. Also we are guiding them to follow our company culture according to the company vision.
But the problem is our company still needs to learn more about how to develop a program for our employees, and that’s why I’m participating in the HIDA management training program this time.
--What is your impression about Japan and Japanese companies? Please share with us an episode or experience that surprised or touched you.
My impression of Japan is very delightful. Japanese people are very kind and respectful. I can see them from a different perspective from what I had heard, that Japanese people are stigmatized as being cold, but what I’ve actually experienced here is very different. Your country is very warm and heartwarming.
What really impressed me about Japanese companies is their very clear vision. What they want to build their company into is very related to the vision of the company. Punctuality is part of your culture and daily routine, and we could see this when we were having a lecture or going on company visits. Japanese companies have a very good system, such as TPS (Toyota Production System).
In conclusion, I love Japan, and if I get a good opportunity to do business in Japan, I will work hard and do my best.
Thank you very much for your cooperation.
The Overseas Human Resources and Industry Development Association has established “Alumni Network” in 71 regions in 43 countries through training program for over 50 years.
The total number of persons who have participated in HIDA training program from over 190 countries and regions is approximately 380,000. “Alumni” is the NGO that is voluntarily organized overseas by trainees who finished their training in Japan and went back to their countries. This NGO is a network of human resources in industry including top managers and executive managers.
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