HIDAJournal 2012 AUTUMN

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HIDA Journal No. 1 ● AUTUMN 20124HIDA conducts surveys on the results of its programs by visiting participating companies. Below are examples from three companies that took part in HIDA programs.The first example is from DAIKIN COMPRESSOR INDUSTRIES LTD. (DCI) in Thailand. This company develops their employees in Japan by utilizing HIDA training programs. DCI is located about 120 km southeast of Thailand's capital, Bangkok, in the Amata City Industrial Estate. For the past several years, the company has been utilizing AOTS (currently HIDA) training programs each year in cultivating candidates for future executive positions. Furthermore, the company chooses to enroll its participants in a 13-week course in Japan for developing their Japanese skills to an advanced level, instead of choosing the general 6-week course at their introductory training (General Orientation Course). Below is an interview with DCI Director and Factory Manager Naoto Sekida about the company's view on human resource development as well as the results of HIDA training programs seen through an evaluation of participants after their return.[Date of interview: July 13, 2012]Please give us an overview of your company.DCI is a wholly-owned subsidiary of Daikin Industries Ltd. that manufactures compressors for air conditioners. The factory has been in operation for exactly 10 years. Since the start of operations we have seen a steady rise in production volume to two million units in the last fiscal year. About 50% of our customers are in Thailand, more than 25% in Japan, more than 20% in China, and the rest are spread between India, Malaysia, and Australia. We have just under 1,700 employees, including dispatched workers, with eight of loaned Japanese employees.It seems DCI has grown steadily to date.Although there have been a number of negative factors affecting Thailand's economy, including the financial crisis in 2008 and 2009, and last year's floods, we were able to achieve growth through continuous dedicated efforts. As a compressor is only a part in an air conditioner, its profit margin is lower than the finished product. As such, it is essential for us to use our brains to create products at a low cost in order to remain operational with little profit. Since DCI manufactures a wide variety of products in small quantities, it is of paramount importance to eliminate waste and increase efficiency. For this reason, each individual thoroughly strives for improvements, in aiming to increase productivity. As a result, we have increased our production volume by 1.5 times since 2005, while the number of employees remained the same.That is an amazing achievement. Can you share your view on human resource development?At DCI, we view human resource development as a way of reducing costs. We train newly hired university graduate employees to become human resources that truly understand the company's philosophy. In the short term, it may seem more efficient to hire experienced workers who already possess the knowledge. However, from a medium- to long-term perspective, there is more merit to have employees who are properly trained work for the company for a long period of time. In addition, we send employees who are candidates to become company executives to Japan for training.What kind of results do you expect to see from employees training in Japan?We send executive candidates to Japan for training because we believe their thought processes and mindsets will change. Through exposure to Japanese society and constant interaction with Japanese people, trainees develop ideas and attitudes similar to a Japanese national. In addition, they also develop a certain level of proficiency in the Japanese language for conversations and emailing. On the other hand, we do not intend to rely on Japan in terms of technical aspects. Our engineers in Thailand are excellent, serious workers, who can refine their skills through increased work volume in their experience with the limited production of diversified products.Do you choose the 13-week introductory training (General Orientation Course) because of this same belief?Yes. The introductory training at HIDA [DAIKIN COMPRESSOR INDUSTRIES LTD.]Location: Rayong Province, Thailand (Amata City Industrial Estate)Established: February 2001Capital: THB 3.3 billion Employees: 1,698 employees (as of June 2012)Description of business: Manufacturing of compressors for air conditioners Returned trainee Sanya (left) and Director and Factory Manager SekidaExamples of HIDA ProgramsTraining Program (From a Company Dispatching a Trainee)DAIKIN COMPRESSOR INDUSTRIES LTD.

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