Khong Gai Case Study

Great Essays
Executive Summary
The production processes of the contemporary organizations follows strategic options and planning involving technological applications. Through the integration of the planning processes, process strategy, production processes, innovations, and creativity, companies become competitively involved in the production of quality products and services. The Khong Guan is one of the biggest biscuit manufacturers in Singapore, a historic beacon in this sector in the country. It offers a variety of products such as biscuits, chocolates, noodles among other products. Using the theories of operations management, this paper takes a significant analysis into the processes, strategies, and the planning integrations making the company to be
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It was started in 1947 by ChewChoo Kheng. It was located at Paya Lebar in Singapore employing 200 workers. Initially, the Biscuits were manufactured manually. The founder, Chew experimented with taking a different direction from the manual operations that were less efficient and productive. For instance, he used bicycle chains to convey plates of biscuits to the ovens.
Chew then expanded the business and by 1959, he had two factories in Singapore and Malaya. The Singapore factories had a daily output of 10000 tins of biscuits with 200 workers while the factories in Malay had a total of 1000 workers and produced 40000 tins on a daily basis. During this period of time, most of the biscuits were sold to Malaysia and Singapore. The rest were exported to international markets such as Africa, The Middle East and Hong Kong.
Khong Guan Flour Milling Private Limited was incorporated with an authorized capital of $5 million in 1960. In the following year, they were granted pioneer Industrial Status by the Singapore government. To supply the factory and other factories with the necessary flour, a factory was built at Tanjong Rhu in 1964. It had a daily output of 140 tons of
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Chew was interested in industry than in trading. He understood that trade played a great role of influencing the development of remote and backward areas. However, he preferred manufacturing because he could have a greater influence in his community through manufacturing rather than through trading. He saw trading as a means to benefit the individual while manufacturing was a means of benefitting the collective (Lew, 2011).
Chew had cordial relationships with his employees. For instance, during the 30s and the 40s, when union leaders could not compromise their stand against the big firms, they instigated people to strikes. However due to the cordial relationship that Chew had with his workers, they did not participate in the strike which affected other factories.
Chew was an inspirational and motivational leader. He believed in his workforce and believed in motivating his employees in order to attain optimal results. For instance, when he faced the threats of strikes from the trade unions, Chew pleaded with his employees promising a better future if they opted to work than to

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