Ex.

No : 5
Date : 10.5.10

Forefront Manufacturing
Production Process & Change Management In Mainland China

History

• Established at 1992 in shenzhen.

• Forefront holdings having subsidies of Forefront contracting & Forefront
Manufacturing
• Michael Li, Operations manager to quickly turn things around.

Forefront’s Background

• Turnover of RMB 80 million at 2005 has been increased to RMB of 97 million

• Started exporting to Europe, Middle East and decorative paneling were exported
to North America

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Departments

• Engineering
• Cutting
o Careful lumber selection & cutting at the earliest stage is the most
important way of avoiding defects
• Carpentry
o Cutting was done with the help of programmable CNC
• Forming
o Moldings & frames were produced
• Assembly & packing
o Doors were combined matching door frames to make complete door-sets
• Finishing
o Most complex manufacturing process
• Maintenance

Work Force Turnover

• Workforce declining
• 40 factory workers leaving and being replaced each month
• Good machines were not sufficient
• Labor shortage
• Housing units old, small and overcrowded
• Unskilled workers paid RMB 900 to 1
• Skilled workers received RMB 1400 to 1600 per month
• Company needed its work to produce door-sets

Challenges

• Improve manufacturing’s profitability

• Establish management systems
• Responsible local society
• Leading wood manufacturer in china

Findings
• Efficiency makes a company to grow.
• Adopting new management systems.
• Social responsibility will leads to success.

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