Reinforcing GEMBA Efforts in Asia

Reinforcing GEMBA Efforts in Asia
Semirara mine in the Philippines

We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers’ indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations.

“Building on the relationship of trust with the customer through teamwork”

Ahmad Fauzi Sucipto
Technical Advisor
Manila Service Support Center
Service Division,
Construction & Mining Equipment Marketing Division
Komatsu Ltd.

Accumulating experiences in mining jobsites

Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. He worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining Corporation in the Philippines.

“Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts whenever needed,” says Fauzi.

Getting deeply involved with the customer

Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and maximizing their utilization rate. His specific duties are extensive, including support for maintenance of machines, training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the operating conditions of machines based on KOMTRAX Plus data, and supporting Maxima's planning of parts replacement and inspection.

There are several meetings every Saturday for excavators and twice a month for support machines, where the customer, Maxima and Komatsu discuss all issues related to mining operations. He explains, “In the meetings, everything is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.”

Getting deeply involved with the customer

“Strengthening Reman operation qualitatively and quantitatively”

Rudi Kurnianto
President Director
PT Komatsu Reman Indonesia (KRI)

Expanding Reman operation

“I am convinced that Komatsu's strength lies in KAIZEN based on quality control with implementation of the PDCA Cycle,” says Kurnianto. He joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Director in 2013.

Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, through a variety of processes to the level of quality comparable to new components. Reman components are used for periodic replacement. While their quality and performance are guaranteed on par with those of new components, their prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. KRI supplies Reman components worldwide within the Komatsu Group.

Introducing quality control activities

“KRI was established in 2007, the youngest of Komatsu Group companies in Indonesia. When he was transferred to KRI, he found an urgent need to anchor quality control methods in the company,” recalls Kurnianto. He and Hiroki Nakamura, a Japanese expat from KRI's Mother Plant (Oyama Plant), embarked on company-wide QC training to ensure all employees thoroughly understand the basics of QC activities for improvement. They formed QC circles and held conventions twice a year. After the basics were anchored in the company in 2014, they launched the “Aggressive and Proactive” campaign to step up their efforts in supporting distributors and their end-customers, by directly finding their needs and promoting KAIZEN.

In the last few years, mining companies, which are Reman customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. “For mining customers to sustain their productivity, the importance of Reman should further grow,” confirms Kurnianto.

KRI is working to supply high-quality Reman products flexibly, according to customer needs, in order for the Komatsu Group to enhance its position worldwide. KRI stands fully ready to accomplish its goal.

Introducing quality control activities

“Getting ready to step up production for expanding demand in India”

Hari Krishnan J.,
Senior Manager,
Planning & Coordination Department,
Komatsu India Pvt. Ltd. (KIPL)
Hari Krishnan J.

New manufacturing plant and production transfer

With over 17 years of experience in the automobile industry in the area of production planning control, Krishnan joined KIPL in 2006 as the first national employee in the Planning & Coordination Department. Since then he has been responsible for HANSEI (sales and production planning) as well as cost and inventory controls. He was also involved in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic excavators from LTCEL, a subsidiary of Larsen & Tourbro Limited (L&T), to KIPL's new plant which began operation in Chennai in May 2015.

This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the partnership with L&T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L&T for sales and service, in order to ensure further growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes.

In the course of the transfer, he recalls, “It was a challenging task to meet market demand and achieve monthly sales and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.” In the same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local market needs, and has begun installation of KOMTRAX in all excavator models.

Growing Indian economy

In response to the 20% increase of demand for hydraulic excavators in India, Nepal and Bhutan since the second half of 2015, they worked to double their production volume within the short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. He says, “We are very excited about the projected expansion of demand in India and we should be able to complete the transfer before schedule. Our current top priority is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange fluctuations.”

KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators.
KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators.

“Well prepared to capitalize on the market recovery in India”

Krishna Kumar,
Manager of Marketing Department,
Krishna Kumar

Promoting sales in the premium market sector

With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Manager of the Marketing Department.

KIPL is focused on the premium market sector of high-quality, high-performance and high-efficiency hydraulic excavators in India. Together with L&T, they have been making a variety of sales promotion efforts. “Caravan demo” is one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits.

Seeding activities

Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRAX (Komatsu Machine Tracking System)-related activities, ranging from promotion and training to data analysis.

Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while periodically reviewing the results of each activity and adjusting the level of priority. He reassuringly states, “We engaged in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.”