GHP stamps its mark

By Glenn Chee

IF THE founders of..." /> GHP stamps its mark

By Glenn Chee

IF THE founders of...">
From The Business Times

GHP stamps its mark

By Glenn Chee

IF THE founders of Global Harvest Precision (GHP) had their way, the word 'no' would be removed from the dictionary. The company aims to be the industry's best metal stamping contractor, while continuing to manufacture high-quality parts at low prices. And it uses its flexibility as an SME to provide any and every kind of equipment a customer may need.

The company was founded in December 2002 by former machinists Tony Cheng and Lim Bee Hua. The two had prior experience in the industry with Ee Cheng Metal- Works, which began in 1972 but collapsed in 2000 after it continued to suffer from the 1997 economic crisis. Learning from this setback, the duo made a comeback with GHP; taking with them the team, experience, contacts and partners from their previous company.

In its first year, GHP made a loss on turnover of less than $1 million. However, revenue grew slowly but steadily to $8 million by 2008. The company sailed comfortably through last year's financial crisis with revenue of more than $8 million and a profit above $600,000, as others in the industry suffered huge losses.

GHP gets most of its business from local electronics manufacturers. About 60 per cent of sales can be attributed to Philips Electronics Singapore, a company the founders worked with when they ran Ee Cheng Metal-Works. GHP became one of the three preferred vendors for Philips Electronics Singapore, winning the Philips Domestic Appliances and Personal Care Bronze Supplier Award in 2003, Silver in 2004 and Gold since 2005.

The awards were given as a recognition of GHP's performance in zero-defect components, just-in- time delivery, flexibility and responsiveness.

The company expanded in July 2007 by setting up a subsidiary, PT Global Harvest Precision Engineering, in Batam. As many of the company's customers had production lines in Indonesia, this allowed GHP to reduce costs and make delivery more efficient.

GHP's founders take pride in the company's efficiency. Mr Cheng says it took about three days after receiving orders to deliver components in GHP's formative years, but now, components are delivered the next day.

Another characteristic that separates GHP from competitors is its in-house quality checks. Components leaving and entering the factory are thoroughly examined by staff - and only items of the highest quality get the green light.

Customers like Philips Singapore only trust manufacturers like GHP because they have shown their quality checks are competent and complete, and the components they manufacture are reliable. GHP prides itself on such service, which obviates the need for customers to spend on their own quality checks. This cuts customer's costs and makes GHP's components more competitive.

While larger companies in the industry may baulk at designing and creating prototype components without charging customers, GHP has the freedom as an SME to undertake these requests.

Mr Cheng says that because GHP is an SME, it does not cost a great deal to design prototypes for customers free-of-charge - a flexibility that bigger companies with more manpower do not have. He says GHP benefits from this practice because although only eight out of 10 prototype components may end up on the production line, GHP will be the sole company producing these new components.

Also, the SME can handle smaller orders for components and still have a larger margin profit than bigger rivals. Mr Cheng puts it simply: 'Our policy is that everything is a yes, nothing is a no.'

The key difference between GHP and rival SMEs is the expertise and experience the two founders have gained from decades of being in the industry.

Mr Lim, who is GHP's marketing and technical manager, has almost 40 years' experience, both on the shopfloor as a machinist and in the office as a founder of Ee Cheng Metal-Works.

While other factories were hit by the economic crisis in 2009 and saw orders drop so much that staff were cut back to just two or three working days a week, GHP continued production and staff worked five days - and sometimes on Saturdays. Workers were even given the usual annual bonus.

The staff at GHP have a personal relationship with the founders. Having a small workforce of about 50 - 32 in Singapore and about 20 in Batam - means the founders know each and every worker.

Mr Cheng gives plenty of credit to his employees, attributing the company's profits to their hard work: 'When we make money, the workers get their bonuses. If we don't make money, no bonus. But they are lucky, all these years, they've had their bonuses. Touch wood.'

GHP has entered the Emerging Enterprise competition this year because it feels their time is right. It hopes to use any prize money to develop other electronic components.

Already underway is the development of pipes for cooling devices such as air-conditioners and refrigerators. The market for these components is dominated by China manufacturers, but GHP is confident that its reliability, high quality and quick delivery will give it a competitive edge.

The company also aims to expand into Vietnam and expand further into Indonesia by 2012 if the economic climate is ripe. The founders are optimistic that GHP can achieve a turnover of $18 million by 2015.

Mr Cheng says: 'GHP is looking forward to increasing its footprint in Asia, adding new production capacity and markets.'

This article was first published in The Business Times.
From The Business Times<br /> <br /> <span style="font-size: 14pt"><span style="font-weight: bold">GHP stamps its mark</span></span><br /> <br /> By Glenn Chee<br /> <br /> IF THE founders of Global Harvest Precision (GHP) had their way, the word 'no' would be removed from the dictionary. The company aims to be the industry's best metal stamping contractor, while continuing to manufacture high-quality parts at low prices. And it uses its flexibility as an SME to provide any and every kind of equipment a customer may need.<br /> <br /> The company was founded in December 2002 by former machinists Tony Cheng and Lim Bee Hua. The two had prior experience in the industry with Ee Cheng Metal- Works, which began in 1972 but collapsed in 2000 after it continued to suffer from the 1997 economic crisis. Learning from this setback, the duo made a comeback with GHP; taking with them the team, experience, contacts and partners from their previous company.<br /> <br /> In its first year, GHP made a loss on turnover of less than $1 million. However, revenue grew slowly but steadily to $8 million by 2008. The company sailed comfortably through last year's financial crisis with revenue of more than $8 million and a profit above $600,000, as others in the industry suffered huge losses.<br /> <br /> GHP gets most of its business from local electronics manufacturers. About 60 per cent of sales can be attributed to Philips Electronics Singapore, a company the founders worked with when they ran Ee Cheng Metal-Works. GHP became one of the three preferred vendors for Philips Electronics Singapore, winning the Philips Domestic Appliances and Personal Care Bronze Supplier Award in 2003, Silver in 2004 and Gold since 2005.<br /> <br /> The awards were given as a recognition of GHP's performance in zero-defect components, just-in- time delivery, flexibility and responsiveness.<br /> <br /> The company expanded in July 2007 by setting up a subsidiary, PT Global Harvest Precision Engineering, in Batam. As many of the company's customers had production lines in Indonesia, this allowed GHP to reduce costs and make delivery more efficient.<br /> <br /> GHP's founders take pride in the company's efficiency. Mr Cheng says it took about three days after receiving orders to deliver components in GHP's formative years, but now, components are delivered the next day.<br /> <br /> Another characteristic that separates GHP from competitors is its in-house quality checks. Components leaving and entering the factory are thoroughly examined by staff - and only items of the highest quality get the green light.<br /> <br /> Customers like Philips Singapore only trust manufacturers like GHP because they have shown their quality checks are competent and complete, and the components they manufacture are reliable. GHP prides itself on such service, which obviates the need for customers to spend on their own quality checks. This cuts customer's costs and makes GHP's components more competitive.<br /> <br /> While larger companies in the industry may baulk at designing and creating prototype components without charging customers, GHP has the freedom as an SME to undertake these requests.<br /> <br /> Mr Cheng says that because GHP is an SME, it does not cost a great deal to design prototypes for customers free-of-charge - a flexibility that bigger companies with more manpower do not have. He says GHP benefits from this practice because although only eight out of 10 prototype components may end up on the production line, GHP will be the sole company producing these new components.<br /> <br /> Also, the SME can handle smaller orders for components and still have a larger margin profit than bigger rivals. Mr Cheng puts it simply: 'Our policy is that everything is a yes, nothing is a no.'<br /> <br /> The key difference between GHP and rival SMEs is the expertise and experience the two founders have gained from decades of being in the industry.<br /> <br /> Mr Lim, who is GHP's marketing and technical manager, has almost 40 years' experience, both on the shopfloor as a machinist and in the office as a founder of Ee Cheng Metal-Works.<br /> <br /> While other factories were hit by the economic crisis in 2009 and saw orders drop so much that staff were cut back to just two or three working days a week, GHP continued production and staff worked five days - and sometimes on Saturdays. Workers were even given the usual annual bonus.<br /> <br /> The staff at GHP have a personal relationship with the founders. Having a small workforce of about 50 - 32 in Singapore and about 20 in Batam - means the founders know each and every worker.<br /> <br /> Mr Cheng gives plenty of credit to his employees, attributing the company's profits to their hard work: 'When we make money, the workers get their bonuses. If we don't make money, no bonus. But they are lucky, all these years, they've had their bonuses. Touch wood.'<br /> <br /> GHP has entered the Emerging Enterprise competition this year because it feels their time is right. It hopes to use any prize money to develop other electronic components.<br /> <br /> Already underway is the development of pipes for cooling devices such as air-conditioners and refrigerators. The market for these components is dominated by China manufacturers, but GHP is confident that its reliability, high quality and quick delivery will give it a competitive edge.<br /> <br /> The company also aims to expand into Vietnam and expand further into Indonesia by 2012 if the economic climate is ripe. The founders are optimistic that GHP can achieve a turnover of $18 million by 2015.<br /> <br /> Mr Cheng says: 'GHP is looking forward to increasing its footprint in Asia, adding new production capacity and markets.'<br /> <br /> <span style="font-style: italic">This article was first published in The Business Times.</span>
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