TECHNOLOGY ENTREPRENEURSHIP

(ENT600)
CASE STUDY

COMPANY ANALYSIS
WENZHOU KINGSUN OPTICAL CO., LTD.

NAME : MUHAMMAD SYAHAM BIN

MOHAMAD BAKRE
FACULTY : MECHANICAL ENGINEERING
PROGRAMME CODE AND GROUP : EM2417F2
SEMESTER :9
PROJECT TITLE : CASE STUDY
LECTURER : DR. MOHD SUBRI BIN TAHIR

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 ACKNOWLEDGEMENT

Bismillahirrahmanirrahim,

In the name of Allah s.w.t, the most gracious and merciful, praise to Allah the lord of
universe and my blessing and peace of Allah be upon his messenger Muhammad s.a.w. First
and foremost thank to Allah for giving me wellness and opportunity to carry out this case
study.

I would like to express my appreciation to my lecturer, Dr. Mohd Subri Bin Tahir that
help and guide by giving brilliant advices and guidance to me as well as provision of the
valuable time management, encouragement and patience during the time period to
completing this case study assignment. I have finally managed to complete my case study
assignment.

Last but not least, the deeply grateful to all my family members for supporting me
from the beginning until now. I also like to express my gratitude to the Faculty of Mechanical
Engineering for giving me a great opportunity to carry out this assignment which I had gain a
lot of knowledge, experience and skills.

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 TABLE OF CONTENT

PAGE
TITLE PAGE i
ACKNOWLEDGEMENT ii
TABLE OF CONTENT iii
LIST OF FIGURES v
LIST OF TABLE vi
EXECUTIVE SUMMARY vii

1. INTRODUCTION 1

1.1 Background Of The Study 1

1.2 Problem Statement 1
1.3 Purpose Of The Study 2

2. COMPANY INFORMATION 3

2.1 Background 3
2.2 Organizational Structure 4
2.3 Products/Services 5
2.4 Technology 5
2.5 Business, marketing, operational strategy 6
2.6 Financial achievements 7

3. COMPANY ANALYSIS 8

3.1 SWOT 8
3.2 SWOT analysis for Wenzhou Kingsun Optical 8

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4. FINDINGS AND DISCUSSION 10

4.1 Findings 10
4.2 Discussion 10

5. CONCLUSION 12

6. RECOMMENDATION AND IMPROVEMENT 12

7. REFERENCES 13

8. APPENDICES 14

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 LIST OF FIGURES

PAGE
2.2.1 Organizational chart 4

8.0.1 Wenzhou Kingsun Optical building 14

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 LIST OF TABLE

PAGE
1.2.1 Summary of the problem faced by company 1

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 EXECUTIVE SUMMARY

For this subject, I was given task by Dr. Mohd Subri Bin Tahir to do case
study regarding a company’s problem and issues. I decided to choose Wenzhou
Kingsun Optical Co., Ltd., a company that produce eye wear product. I have done a
lot of readings and collect information about background and problem of company.
The major problem faced by this company is breakdown of machines. The problem
that related to breakdown is machine too old, the capabilities material and the worker
that handle the machine lack of experience. From all these findings, I came out with
few solutions to help the company to solve the problem with minimum cost and
easiest way possible. I try to help this company to minimize the breakdown so that
they can compete with bigger and financial stronger competitor in this industry.

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1.0 Introduction
This section will discuss about the introduction of this assignment. The first section
will talked about the background of the study. The next section will presented the
problem statement of this study and the last section is on the purpose of the study.
 
1.1 Background of the study
Glasses, also known as spectacles are a device typically used for vision correction.
This study is to analyses problems face by Wenzhou Kingsun Optical Co. Ltd. that
produce glasses or eye wear product. It is also to analyses the major problem that
cause the delay in production line.

1.2 Problem statement

This case study is conducted to analyses the real situation tecnopreneurship. In this
case study, we have chosen Wenzhou Kingsun Optical Co. Ltd. as our subject
investigation. The company has faced the problem in term of breakdown. Due to this
problem, there is effect in production rate of company. The breakdown down of
machines means the machine cannot produce product and will give negative impact
on the company’s good name to customer as the company cannot meet demands by
customers. In long term prospect, the company will lost the customer because trust
that build between these two sides getting weaker. Usually in industry, machine
related to one another and for example in the process of making glasses, there are a
few specific machine in producing it like cutting, drilling and chamfering. A
breakdown to one of the machine will cause other machine to stop as well because
they are related to one another. Then, the cost of will rise due to delay time of
production.

Table 1.2.1: Summary of the problem faced by company

Problem Description
Machine breakdown -Delay time and cannot meet the due
date
-Wasting time
Minor and major maintenance -Old machines cause many minor and
major problems
-Increase cost

1.3 Purpose of the study

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The purposes of study are to find problems in the company no matter regarding what
aspects and I need to find solution to solve them. I need to help company to
overcome the obstacles faced by them and make sure they will be more successful
in the future with my idea. The company that was chosen to do the research is
Wenzhou Kingsun Optical Co., Ltd.

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2.0 Company information
This section will discussed about the company information such as the company
background, the company’s organizational structure, product or services provided,
the technology, business, marketing and operational strategy, and the company’s
financial achievement.

2.1 Background
Wenzhou Kingsun Optical Co., Ltd was founded in the year 1999, is a leading
manufacturer and exporter of eyewear production in China. The company is
specialized in manufacturing medium-high glasses. The main products line includes,
optical frames, sunglasses, reading glasses, accessories and etcetera. The products
are accepted by the customers from all over the world. The company have
successfully established markets in Europe, America, Middle East. The company has
a strong team of working staffs specializes in development, design, manufacture and
quality control. The company are strictly follow the standard procedures in
management, focus on every details of each processes, all the products are strictly
produced according to the international standard CE and FDA, and try every effort to
satisfy the requirements of various clients. With years of develop experience and
cooperation with foreign clients by actively participate in international exhibition such
as Silmo, Mido, Hongkong Optical Fair, Beijing Optical Fair, the company are proud
of the high quality, competitive price and skillful service process.

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2.2 Organizational structure

Figure 2.2.1: Organizational chart

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2.3 Products and services
Wenzhou Kingsun Optical Co,Ltd choose world or China famous brand components
for producing a lot of designs for spectacle cases and glass frames. The materials for
producing the cases are from aluminum, leather and so on. The company also
provides a wide range of high quality equipment and service for printing and
packaging industry, including post-press equipment such as flatbed automatic die
cutter, hot foil stamping machine, folder gluer, paper guillotine, thermal laminator,
flute laminator, slitter rewinder, paper sheeter, hard cover making machine, and label
making machine such as flexor printing press, label die cutting machine, and flexible
packaging equipment such as rotogravure printing machine, dry laminator, plastic
bag making equipment, packing machine and other paper products machinery. The
company is also have 10-20 years of manufacturing experience. Wenzhou Kingsun
company also focus on researching and designing (R&D), quality control and after
sale service, so they have the ability to provide high quality, reasonable priced
products.

2.4 Technology
The spectacle cases are available in a range of different strengths to offer varying
levels of protection for the glasses. The type of cases have a few categories which
are hard case for maximum protection, a semi-soft one for a smaller, more discreet
storage option, or a soft case that is ideal if keeping the glasses in the pocket. For
hard cases, they are rigid and durable to guard the glasses against knocks, bumps,
and drops. They also include lined interiors that prevent scratches to the lenses while
the glasses are in the cases. Many options incorporate fun designs that let people be
fashionable and show off their personality. Besides, for Semi-hard eyeglass cases,
their features use flexible yet durable materials. These cases or pouches offer a
plenty of strength while being lightweight and portable for everyday use. Semi-hard
cases are ideal if people do not carry the eyeglasses around with them in daily life.
Then, soft cases. Eyeglass cases with soft shells protect eyewear from dust,
scratches, and low-impact bumps. They are ideal for storing eyeglasses at home and
in the car. These cases are made of materials like leather and microfiber cloth and
usually come in the shapes of envelopes, wallets, or purses.

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2.5 Business, marketing and operational strategy
2.5.1 Business
For Wenzhou Kingsun Optical Co., Ltd. we had detected that it uses two kinds of
business model which are ‘Brick and Mortar’ and ‘Sole Proprietorship’:

 ‘Brick and mortar’ are a traditional street-side business that deals with its
customers face-to-face in an office or store that the business owns or rents.
The local grocery store and the corner bank are examples of brick and mortal
companies. Brick and mortar businesses can find it difficult to compete with
web-based businesses like Amazon.com, Inc. because the latter usually have
lower operating costs and greater flexibility.
Brick and mortar businesses have several distinct advantages over their
online counterparts. Many consumers still prefer to communicate with people
directly as they believe questions about the product or service can be deal
with in a more comprehensive an immediate manner at a face-to-face level.
Brick and mortar businesses allow consumers to hold, try and touch items
before they buy. Consumers associate legitimacy with a bricks and mortal
business as a physical presence often gives a perception of trust.
Bricks and mortar businesses provide consumers with instant gratification
when a purchase is made. As a result, consumers typically spend more time
than they intend to at brick and mortar stores. However, there are several key
disadvantages to operating a traditional brick and mortar business. A physical
presence requires the need for employees to conduct transactions, renting or
easing expenses and utility charges such as electricity, gas and water.
 Sole proprietorship is a business that legally has no separate existence from
its owner. Income and losses are taxed on the individual’s personal income
tax return. The sole proprietorship is the simplest business form under which
one can operate a business. The sole proprietorship is not a legal entity. It
simply refers to a person who owns the business and is personally
responsible for its debts. A sole proprietorship can operate under a fictitious
name, such as Mahathir’s Automotive company. It is simply a trade name and
it does not create a legal entity separate from the sole proprietor owner.
The sole proprietorship is a popular business form due to its simplicity, ease
of setup, and nominal cost. A sole proprietor need only register his or her
name and secure local license, and sole proprietor is ready for business. A
distinct disadvantage, however, is that the owner of a sole proprietor

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 business runs into financial trouble, creditors can bring lawsuits against the
business debts with his or her own money.

2.5.1 Marketing
Wenzhou Kingsun Optical Co., Ltd. products have successfully established markets
in Europe, America, Middle East, and so on. There is marketing strategy that
Wenzhou Kingsun Optical Co., Ltd. is still adapting till now, which Seasonal
Marketing.
 Seasonal Marketing offers a great way to meet new consumers. Sometimes
this strategy can be actual changes depends on trends, lifestyles or customer
needs. For a business like Wenzhou Kingsun Optical Co., Ltd., it depends on
individual needs in random time. By turning into the various seasons that are
important to the customers, their products have become more relevant in
customers lives.

2.5.3 Operation strategy

To keep its pace of growth, Wenzhou Kingsun Optical Co., Ltd. has three long-term
strategies. First: the introduction of one new product every six months by each of its
four business units. Second: to push for 20% growth in customer base annually via
expansion to new territories. Third: training up the talents it needs.

2.6 Financial achievement

Wenzhou Kingsun Optical Co., Ltd., which has just achieved a year of record
revenue and net profit, is bullish on an even better year ahead in 2018, in which it
expects double-digit growth for both its top and bottom line, driven by new products,
and continued customer-base expansion into new territories. It recorded a near 47%
year-on-year jump in net profit for its financial year ended Dec 31, 2017 at RM64.95
million, while revenue climbed near in tandem with RM234.03 million from RM160.29
million.

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3.0 Company analysis
A company usually use SWOT analysis to identify its internal strengths and
weaknesses, as well as its external opportunities and threat.

3.1 SWOT
SWOT analysis is a technique to plan the strategy to organize the company. SWOT
is acronym for Strength, Weakness, Opportunities and Threats. It can be used to
specify the objective of the company by identify the internal and external that are
favorable to achieve the objective. It also can be generating meaningful information
to identify their competitive advantage. Strength and weakness are internally related
while opportunity and threat usual focus on environment or situation.

The use of SWOT analysis is important to planning and predicts in the future
to achieve the objective. The decision maker should consider the objective or else
must choose different objective and repeat the process. The users of SWOT must
ask question and answer for each category (Strength, Weakness, Opportunity and
Threats) to make the analysis information useful to know the competitor advantage.

3.2 SWOT analysis for Wenzhou Kingsun Optical

Strength
 Have a compact design.
 Long lasting material.
 Strong relationship between vendors.
 Good serving.
 High quality product.

Weakness
 Limited of raw material.
 Environment.
 Small facility.
 Not enough workers.

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Opportunity
 Strategic location.
 Big marketing.
 Produce all kind of optical product.

Threat
 Power of buyer.
 Incoming new company.

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4.0 Findings and discussion
4.1 Findings
The major problem that we have found in the company is breakdown. Machine
breakdown mean that the machine cannot work properly and need to be fixed in
order for it to be normally function. In this case, part of the machine that often break
or damage its die tool. The function of cutter is a specialized tool that used in
manufacturing industries to cut or shape material. The root of this damage is
because the machine is already too old, the capabilities material and the worker that
handle the machine lack of experience.
Firstly, the machine is too old to normally function. It means that the part
inside the machine is also old. Therefore, the machine cannot work like it used to be
at its maximum level. The company needs to make sure that they do not push the old
machines to run at maximum level. The old machine need to run under intended
maximum performance level to avoid overused. The old machine also needs a
proper maintenance because there are many parts of it that have the potential to be
replaced or required maintenance.
Furthermore, the worker that handles the machine is lack of experience. Most
of them have never even opened the manual book. The manuals cover everything
from maintenance checklists to calibration instructions. All the potential problems
have the solution inside the manual. Therefore, all the problems can be solved by the
company’s technician or workers without need to call outsider to fix it.

4.2 Discussion
The breakdown can happen when the machine cannot function normally as usual.
This will affect the production rate, the costing and delay time. Production rate will
become less efficiency to produce the product according to the schedule. So, it will
have delay time and affect the production rate highly in a not good way. The delay
time happen when the production has to stop from operate because the machine is
breakdown. This will result the customer’s needs cannot be fulfilled on time and give
bad reputation to the company. The customer will have lost confidence and trust to
the company in the future as they are not reliable to meet their demands. It will relate
to the costing. The cost to produce the product slightly higher than usual because
have to push the production line to achieve the target outcome. This is wanted to
achieve the target to send the product to the client on time.

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 The solution to the major problem is creating a new department that call
predictive department. In this department, the worker will undertake vibration
analysis competency. They have to buy the tool that cost around four thousand
ringgit. The function of this tool is to check the vibration on the machine. It can be
done by put the sensor on the body of the machine. It must be check for its
horizontal, vertical and axial position of the machine. This is due to the machine
sometimes having looseness in only one part of its base. The tool will produce the
graph based on the vibration. The graph reading will be recorded. The caution part is
we need to make sure that running frequency and natural frequency cannot coincide.
It will produce peak vibration that is not good for the machine. Due to the coincide of
the two frequencies, the maximum frequency will be produced. By using the vibration
analysis, if the two frequencies were to coincide, the running frequency should be
change thus leading to the lowest vibration. This could prevent the machine from
breakdown easily.
For this solution, there are pros and cons that we able to figure out. The
advantages of our solution are it will cut the long term cost. When can address the
issue regarding breakdown, this company will have no problem with machine’s major
breakdown in the future and thus the company do not have to face the problem later.
Then, with the idea of overcoming the issue, the production will run smoothly and do
not have to stop due to breakdown. The continuous flow of production means that
the company able to meet demands and follow the schedule. This will benefit
company in terms of trust and confidence of customers to the company in the next
project.
The main disadvantages of our solution are the price for training competency
is quite high. For one person, they need to spend around RM1000 to RM1500 to join
the training. Another disadvantage is the equipment use as predictive maintenance is
expensive as well. It cost around RM4000 for one tool. Furthermore, the tool needs
to be maintenance once in a year where the tool needs to be calibrated. Therefore,
we can see that the short term cost for our idea to overcome the breakdown is high.

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5.0 Conclusion
In a conclusion, there are several aspects that can be improved to make the
business competitive in industry. This case study shows that the company can
resolve the problem to develop new idea that can make them move forward in their
business. From SWOT analysis, the company can learn from it and plan their
strategy to be better company in future because there are some aspects that they
able to improve. The most important part is they can solve their main problem in
dealing with breakdown of machine so that, the production will run smoothly.

6.0 Recommendation and improvement

 Train the worker to address any situation good or bad that arise.
 Send the worker to training competency program.
 Emphasis on safety issue of worker.
 Find another product that related to industry 4.0 to sustain in industry because
these current products might not be relevant in the future.
 The cleanliness on the work place to ensure the safety for everyone.

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7.0 References

1. Aman Shah, S. H. & Soon Teik Lan, C. (2013). Entrepreneurship. Selangor,

MY: Oxford Fajar Sdn. Bhd.

2. Ismail Ab. Wahab, Zanariah Zainal Abidin . & Hardy Lah Rahim (2016)
Fundamentals of Technology Entrepreneurship. Sealngor,MY: Global
Mediastreet Sdn. Bhd.

3. Lucy. (2010, September 13). Wenzhou Kingsun Optical Co., Ltd. Retrieved
November 15, 2020 from https://kingsun2016.en.made-in-
china.com/company-Wenzhou-Kingsun-Optical-Co-Ltd-.html

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8.0 Appendices

Figure 8.0.1: Wenzhou Kingsun Optical building

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