Site:

WKK Industries, Ltd.
WKK Bldg., 9/F, 418A Kwun Tong Road, Kowloon, Hong Kong
Tel: (852) 2357-8888; Fax: (852) 2343-5283; e-mail: lh_choi@wkk.com.hk

Participants:

L. H. Choi, Senior Manager, Sales and Marketing
Patrick K. K. Lee, Assistant General Manger, Engineering
Shu Tim Liu, General Manager, Shajin Factory, China

Mission and Strategy

• WKK provides both OEM and ODM services. WKK is the manufacturing arm for customers and produces a wide variety of high-quality products, in both large and small volumes, sourcing all components and subassemblies plus packaging and shipping.
• About 20% of current sales are ODM. The customer provides conceptual design and sketch or mockup; WKK designs the cosmetics and shape and produces the mechanical and PCBA. Depending on the product, a firm quote takes two to six weeks.
• WKK has 8 years' experience with Japanese customers: it produces Sega color LCD games, Universal remote controllers, Casio calculators, NEC color printer boards and 486 motherboards, Yamaha mini hi-fis, Scientific Atlanta's cable TV decoder, and cordless telephones for Seiko and Kenwood (including pilot runs).
• WKK will make Sharp's PDA, using 0.3 mm parts, Internet, and CD ROM cards. WKK produces the 16-bit Sega Genesis and will produce the new 32-bit game machine using a CD ROM player and PCMCIA cards.
• WKK was ISO 9001 certified in 1994.

Key Elements of Presentation

• The WKK group is headed by Wong's Kong King International (Holdings), Ltd. Total revenues for 1995 were over $122 million, an increase of 41% over 1994.
• WKK has operations in China, Singapore, Malaysia, Thailand, Japan, and California. The China factory will be moved to a new site in 1997 with Nissin precision parts joint venture.
• China has five operating groups (digital/game, audio and SMT manufacturing, personnel/administration, and engineering). Hong Kong handles R&D, QA, and marketing.
• China has 17 managers, 11 engineers, and 3 supervisors from Hong Kong; 6 managers, 58 engineers, and 49 staff from China, plus 1,679 direct laborers, including 135 quality inspectors. Assembly operations run one shift. SMT runs 24 hours per day.
• The average monthly salary for engineers in China is $275, compared to $2,055 in Hong Kong. Factory workers take home $65 per month. Benefits run $65 for administration fees and local taxes. HK factory workers cost HK$825 per month. The turnover rate is as high as 50% in China.

Key Elements of Tour

• SMT lines include 8 Yamaha lines sold by WKK with assembly time of 0.3-0.4 sec. per component, and 5 KME lines with 0.15 sec. assembly time per component for runs of over 1,500 units per day. 10 stand- alone machines do batch production. The finest pitch currently in mass production at WKK is 0.5 mm pitch. The Yamaha can handle 0.3 mm.
• Genrad, Tescon Point, and Test Research machines are used for ICT as required.
• 900 Casio calculators are produced each hour, 9,000 per day.
• Japanese management methods and innovative assembly practices are pervasive.

Core Competencies

• Two 64-bit lease lines for voice and data keep WKK linked via voice and e-mail between China, Hong Kong, Japan, and the United States.
• WKK has engineering expertise in mechanical, digital electronics, telecommunication, and document control for designs and drawings.
• WKK is the agent for Yamaha and has access/know-how for the latest equipment.

Conclusions

• WKK has food computer and communications systems.
• Highly innovative and experienced factory management in China; produces wide variety of products.
• Strong Japanese customers with leading game, phone, and PDA technology products.
• It has strong SMT capabilities, with Yamaha agency and engineering expertise.