The accelerated implementation of Thailand government’s policy was benefiting the domestic motorcycle. Unfortunately, ‘Tom Yum Kung’ crisis knocked the economy off the rails, and it has never fully recovered. The company then turned this crisis into a good opportunity to reengineer its internal operation processes to enter the global competition.

In 1981, the company once again relocated and moved to the present site. In the meantime, production facilities were enhanced with advanced manufacturing technology know-how to support increasing demand and to keep up with advancement in Thailand’s motorcycle industry.

The government’s policies to build a domestic motorcycle industry were continuously implemented. The local content requirements were raised to a minimum of 70% by value, and producers were required to use Thai-made exhausts and engines and imports of motorcycles were banned. With more than sufficient factory space, the company could manage to expand its production facilities to cover all related processes such as tooling, stamping, machining, welding and painting.

As well as the enhancement of production facilities, the work system was decentralized. The company put the stress on the importance and value of human resources by developing efficiency and quality among employees through numbers of onsite trainings and sending technicians abroad on study tours.

The company’s sales growth were consequently double digit every year for over ten years.

The company’s successful stories were shown in the below awards:

• 1990 Thailand’s Quality Product Award – Automotive parts
• 1991 Factory Award
• 1991 Outstanding Performance Award by Sharp Appliance (Thailand) Co.,Ltd.
• 1996 R&D Prize by Asian Honda Motor Co.,Ltd.

Between June 1997 and January 1998 a financial crisis engulfed Thailand. This, though, had had the effect of making annual sales somewhat volatile as the motorcycle industry influenced by the state of the national economy. This was amplified by the fact that the main buyers in the domestic market are manual laborers and agricultural workers, and these groups had softer purchasing power.

The company’s sales were dramatically decreased by nearly 50% within two years.

However, the company turned this crisis into a good opportunity to reengineer its internal operation processes. As an OEM player, not only technology and know-how but quality, cost and delivery (QCD) were also key success factors. Japanese quality improvement systems such as 5S, Kaizen, and TQM were applied. The company had also introduced computer technology (ERP) for implement and improve production, production planning, material requirement planning and operation process so as to offer better services, on-time delivery and achieve lower costs. With more effective and efficient manufacturing, the company was then readily prepared to enter the global competition.