The launch of the ASEAN Economic Community at the end of 2015 is expected to boost economic development in Southeast Asia. Cambodia has an abundant young workforce that is even cheaper than Thailand’s, so some of Sumitronics Thailand’s operations were transferred over to SMC. This allows the Thailand factory to focus its efforts on high value-added products. The manufacture of existing products has thus been moved to Cambodia, while the Thailand factory has shifted to high-end production. This compartmentalization between the two countries is intended to achieve the most efficient manufacturing by product lineup. SMC is hoping over the long term to begin manufacturing automotive products currently being manufactured in the Thailand factory.
SMC currently has 25 factory workers, and I heard that 60 applicants showed up in one evening when 20 positions were to be filled. Quite a few employees say that they wanted to work for a Japanese company because they like Japan. There are many Chinese and Thai companies operating in the area, too, but Japanese companies have made an especially good impression on the locals. The employees who managed to make it through the narrow hiring criteria are all serious, none of them showing up late for work in the mornings. Having been posted before in Southeast Asia myself, I was greatly surprised that worker tardiness was not a problem. The fact that the employees are good with their hands has helped establish a reliable production regime.
Inside the factory hung large signs touting 5S (sort, set in order, shine, standardize and sustain) slogans used to improve workplace environments in the manufacturing industry. Employees commented on the fact that the workplace environment is clean and that they are guaranteed sufficient holidays, and SMC’s business enjoys a very good reputation locally from the perspective of job creation opportunities. To expand its business, SMC is planning to set up its own factory in the Poipet-Phnom Penh Special Economic Zone now under construction. By establishing cross-national manufacturing operations and by creating jobs, SMC is helping support ASEAN’s economic development.
Source link : https://www.sumitomocorp.com/en/easia/business/case/group/cc-30450
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Publish date : 2019-04-09 00:36:29
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