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TQM at Kenwood

PRODUCTION AND OPERATIONS MANAGEMENT

Anas Siddiqui, Syeda Khushbakht Farrukh, Khawaja Taha Abbas, Basim


Najeeb Siddiqui, Usman Farooq
KENWOOD | R&I ELECTRONICS
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Table of Contents
Executive Summary....................................................................................................................................... 2
Company Overview ....................................................................................................................................... 2
Research Methodology ................................................................................................................................. 3
Supply Chain: ................................................................................................................................................ 4
Production: ................................................................................................................................................... 5
Inventory Management: ............................................................................................................................... 6
Total Quality Management: .......................................................................................................................... 7
Pre-Production: ......................................................................................................................................... 8
During Production ..................................................................................................................................... 9
Worker Training .................................................................................................................................. 11
Post Production....................................................................................................................................... 12
Warranty Claims and After Sales Service ............................................................................................ 13
Analysis ....................................................................................................................................................... 14
Summary ..................................................................................................................................................... 16
Looking Ahead............................................................................................................................................ 19
Appendix ..................................................................................................................................................... 21
Bibliography ................................................................................................................................................ 23
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Executive Summary
The topic of our choice for this report is Total Quality Management. To analyze this topic

effectively, we decided to go for a production oriented firm, rather than a service provider. Our

aim is to identify and understand how quality measures are decided and how are they ensured in

a Pakistani production firm. The company we chose is Kenwood which is licensed by R & I

Electrical Appliances pvt ltd in Pakistan. They are currently among the top 3 AC producers in

Pakistan. In order to understand their quality control process, we had an in depth interview with

the quality manager at their factory in SITE, Karachi and a visit of their production line as well.

This report covers what we have learned from this regarding quality control at Kenwood. This

report is more policy focused consisting of qualitative analysis rather than quantitative data. Our

purpose is also to identify and compare our lecture knowledge of Production and Operations

Management course to what actually goes on in Pakistan.

Company Overview
Kenwood is a multinational company founded by Mr. Kenneth Mainyard Wood in 1947,

in the town of Woking. The original manufacturing was done by him in his garage. At that time,

the only product Kenwood produced was Kitchen Appliances. They expanded with time and in

1962, they made their head office in the town of Havant, United Kingdom where it still exists. In

1997, Kenneth Wood died and in 2001, the company and its plant in China was bought by a rival

appliance maker DeLonghi. (White, 2001) He is still the owner of Kenwood Limited globally.

Kenwood has expanded rapidly since it was created and now operates in 44 countries worldwide.

Even though its primary area has been kitchen appliances, it has diversified its portfolio in different

countries. Kenwood came to Pakistan in 2005 by giving R & I Electrical Appliances Pvt. Ltd a

distribution, importing, and manufacturing license. (Pak Biz., n.d.) In Pakistan, R & I is the sole
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producer of Kenwood Air Conditioners and washing machines, and the sole importer of kitchen

appliances and refrigerators. As they only manufacture two products in Pakistan, they have two

factories located in Karachi, both in the SITE area. Their national head office is located in Madina

City Mall, Saddar, Karachi. Kenwood UK often visits these sites annually to monitor the

conditions and further extend the license to produce to R & I. Currently, R & I have their own

local brand Homage in their portfolio as well. It is their registered trademark. They produce UPS

Invertors, batteries, solar invertors, water dispenser, generators, and microwaves under the

Homage brand. The key point to note here is that Kenwood and Homage are two separate brands

but are managed by the same company i.e. R & I electrical appliances Pvt. Ltd. (Homage, n.d.)

Since they came to Pakistan, Kenwood has taken tremendous share in Split AC category

which is their most selling product. They give local warranty for their products and complete

customer services. They have innovated recently introducing a full line of DC Inverter ACs. As

this was their top product, we chose AC production in Kenwood as our area of focus.

Research Methodology
The topic we chose is Total Quality Management. We aimed to identify and explain all

quality management techniques used by Kenwood to manufacture and assemble their prime

product in Pakistan i.e. Air Conditioners. Research regarding our core topic area consists entirely

of primary research. Secondary research was only conducted for non-core parts such as company

overview, and product portfolio. We had strong contacts in the company and we reached the

Quality Manager at AC factory directly. The following table explains our research methods.
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Method Aim Used in section

Information regarding
Secondary: Websites, press Company overview,
company history, and their
release Production
product portfolio

Gaining first hand knowledge

Primary: Interview regarding our core topic i.e. In TQM, and policies

Total quality management

Visually seeing policies in

practice and understanding

Primary: Factory visit the production flow, for TQM

taking pictures of the process

to be included in the report.

Supply Chain:
When the year ends the higher management of R&I sits, and carries out an analysis of how

the production went through the year, what the sales figure were, and how the company fared in

comparison to its competitors.

The planning phase then starts by forecasting demand for the upcoming year on basis of

the sales figure for the current year. When the production figures are decided, the company looks

for suppliers; at present R&I is not doing any major production in the country, and is only

assembling units.

The suppliers are usually from China. Getting supplies from Japan or Thailand is not an

option, as the cost of it wouldnt be viable. The number one supplier, also happening to be the
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most costly, is Gree which provides compressors, fan motors and other related supplies to

manufacture an air-conditioner. Thus cost along with quality is one of the major factors during

the selection of suppliers.

At Kenwood, each model has a different supplier. Suppliers vary depending upon the need

of equipment, with the company operating in liaison with different suppliers, for conventional as

compared to the invertor air-conditioners. The cartons for the ACs and its outer covering are also

imported from China. The remote is also directly imported.

Suppliers are reviewed yearly, based on faults arising in their parts, the after sales service

they provided, and the number of claims they cleared. The suppliers remain anonymous for the

customers; for them the AC is a Kenwood Product assembled by R&I Electronics. R&I is the one

who then has to settle all warranty claims. Thus when higher management order parts from China,

they also order spare parts. They have a general idea that out of all the units sold, complains arise

on average for 10%; thus extra parts are ordered accordingly.

Production:
R&I caters to two brands at the moment: Homage which is a local brand, and Kenwood

which is an international brand. Batteries are produced under the name of Homage, and ACs and

washing machines are produced under the name of Kenwood.

The food processing units and kitchen appliances sold in the market under Kenwoods

name are CBUs (completely built units) imported from suppliers in China. The suppliers of these

CBUs remain constant for each appliance unless quality issues rise up in the products. The quality

of these units are checked at a third party lab when they are being ordered in china. These products
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are also passed under the license of R&I. However since these products are finished goods, they

are transferred from the warehouse to the market without any quality checks here in Pakistan.

The ACs are assembled here in Pakistan using parts imported from China. The production

facility here in Karachi has two assembly lines which operate round half the year to produce the

air conditioners. Each line has a capacity of 500 units per day, thus 1000 units can be produced in

one day at the factory.

Proper layouting of the facility and the factory being purpose built is very important aspect

of efficient production. This helps cut down on time and transport waste. Kenwoods factory

originally however belonged to some other production company.

Dealer Get-Togethers are held to disseminate information about all the products planned

to be manufactured in the upcoming year. This is to ensure that the dealer is able to communicate

the right information to the consumers. The marketing team also organizes meetings to convey the

USPs of all products to the specified dealers.

Inventory Management:
Inventory is a very important factor for the proper working of each production unit. When

we visited the Kenwood factory, they had high inventory levels indicating the presence of a

bottleneck in their supply chain. As it is production season, the company was also producing at

maximum capacity when we visited, another reason for the high inventory levels.

Kenwood has a raw material warehouse located at the factory. Since Kenwood has a lot of

access inventory at the moment, this warehouse also doubled as a finished goods warehouse.

Dawlance has a lean approach to manufacturing; they also balance their production lines. These
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steps help reduce excess inventory. Kenwood, however has not adopted this superior approach as

of yet.

Line capacity is analyzed to maintain line balance and to make the processing capable.

Man power is kept at an optimum level. Defect analysis is done, however there is no benchmark

to adhere to, but still the processes are organized in ways to minimize defects. Moreover, the

supplies ordered from China are also in line with the learnings of the Toyota Inventory

Management systems.

The company enters into the planning phase at the end of the year. Where the management

decides the number of components to be ordered and the amount of quantity be ordered. It also

specifies the time period and the given dates when the delivery is to be made to R&I in Karachi.

Lead time is kept into consideration when fixing the time for subsequent delivery of goods.

The company often faces some problems related to the Customs Department and the FBR.

In the start of this year, the company faced financial problems because it had to channel funds to

a new manufacturing plant situated at Bin Qasim. This delayed the payment and clearance of their

imports at the port. However all of this time wasted is accounted for in the planning period to

ensure smooth functioning of the plant.

The company is currently using Oracle based ERP systems for inventory management, but

has decided to shift towards Microsoft Dynamics.

Total Quality Management:


In order to remain competitive and to maintain strict quality standards R&I upholds TQM

during their production process. The International Kenwood brand comes to visit every other year

to do a technical audit to preserve the reputation of their brand. They have their own checklist
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involving process-related and product-related requirements on basis of which they judge R&Is

performance.

Kenwood still doesnt have any hard and fast requisite of the insurance of six-sigma across

their production cycle. The main emphasis is on the quality of the product rather than process

efficiency. A COC audit is also done to ensure that code of conduct related to workers and the

perks and benefits they are offered, including, but not limited to, medical benefits, safety checks

etc. It is legally binding for R&I to meet the guidelines of the international Kenwood Brand unless

they want their license to get revoked.

The production facility of Kenwood in Pakistan is also ISO 9001 certified, which

necessitates that all their measuring instruments be monitored and maintained in perfect condition.

To insure optimum performance of the testing equipment, yearly calibration of the all monitoring

equipment is done throughout the assembly plant to minimize errors. The accuracy of these

instruments is crucial to maintaining the quality of the products.

Pre-Production:
When higher management goes to China to select vendors, they begin by inviting tender

offers from a number of suppliers. They then shortlist three to four companies, and take sample

units from them. They have third party testing lab facilities where they test the quality of the units

of the shortlisted suppliers. On the basis of the test result they try to select the best possible vendor

on basis of quality, while remaining within the budget constraints provided by the finance

department. So quality isnt the only parameter. Cost and after sales service are also important

parameters on basis of which vendors are selected.

Mr. Asif Iqbal is the Assistant Production Engineer at R&I at the moment. Once the

consignment arrives from China, he assembles two units before the rest of the parts go into mass
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assembly. These two units are tested for long hours and under extreme conditions. Any functional

issue or noise or design errors are identified at this point in time. Once these units are completely

tested and no major faults are identified, Mr. Asif gives an okay to the production manager and

mass assembly begins.

During Production
On the assembly line there are five distinct stations where quality control checks take place

for each unit being assembled. First test is done at the assembly level, then theres the function

test, followed by the safety test and then finally the packaging test.

Units are checked on each step of the assembly and post assembly process to avoid any

huge defects being discovered after the whole product has been assembled. It is the individual

responsibility of each worker to keep a look out for any fault. However the worker could end up

overlooking errors, which is why they have proper quality control inspectors at 5 places at the

assembly line. These inspectors have to check and sign off on each product before it is passed on

for packing.

Poka Yokes are also present ay several stages of the production process to automatically

identify mistakes without the hassle of accounting for human errors. Poke Yokes however can be

costly to implement.

Assembly line inspector checks if each assembled unit has all parts. It is then checked for

whether any accidental gas leak has taken place or not.

One inspector is present at the vacuuming and charging stage. There is a charging panel

to ensure if gas is being completely filled. Weighing is also used to ensure gas has been properly
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filled. After this the unit is shifted back on the line. Second inspector checks for leaks. The least

count of this checker is one gram.

This is followed by functional assessments. The temperature, voltage requirement and

pressure of each unit is checked.

On the packing level the units are checked for scratches and to see if the logos are placed

straight or not. Theres powder coating on the external part of the ACs to avoid rusting and

corrosion as these parts are exposed to adverse weather conditions.

The only difference between the pre-production and production checks is that in the lab the

2 units are checked for more than 8 hours and on the line the units are checked for only 10 minutes.

There could also be a mistake in repacking the product after inspection. So the inspected

products go back on the line to be checked that if they have been repacked properly with all

accessories.

The company keeps models of all competitor brands to maintain a check on what they are

offering. These units are disassembled to compare their parts and quality levels with those of the

units of Kenwood.

Production department and Quality Control Department at R&I is completely separate.

This helps avoid biases when units are being inspected. At R&I the production department is

initially answerable to the higher management if any problem arises in the goods being sold. This

is different from how things work at other organizations like Dawlance where the Quality Control

Department is held accountable.


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The higher management of Kenwood believes in Quality at Source; they believe that the

first person responsible for a defect is the person who manufactured it; the quality inspector is thus

the second person responsible for a fault. Thus every worker knows not to bypass quality measures.

They know if any major problem arises the whole assembly line can be halted to allow for total

reinspection and rework.

Worker Training
R&I has both permanent and contractual worker, the ratio being 30 to 70. The season starts

in January, so all new workers are trained and hired in December. The production of air

conditioners then ends in July. During the rest of the months, production of washing machines and

batteries takes place on the same assembly lines. Kenwood is also about to introduce ACs with

heating units; if they go through with this change then air conditioners will be produced at their

production facility around the year.

When a quality control manager is hired, he needs to have at least a technical diploma.

Workers hired on the other hand can be matric pass as well. This is the pre hiring criteria. Workers

are then given on job training regarding the function they have to perform on the assembly line.

This training is usually done before production season is about to start.

The management and workers are trained in a way that every person is a part of the quality

control process. Since there are only 4 people in the quality control department at the factory

against 70 people who are in the production department, all of the workers are trained to ensure

quality and are held responsible for it if there is a defect.

The company also ensures that it is meeting the working and health requirements of its

workers to ensure human rights.


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Post Production
Because the Quality Control Inspectors checking the products during production can make

mistakes, there is a post-production checking mechanism in place as well. This is that every day

workers of Mr. Asif Iqbal randomly select 4 units from the previous days production. These units

are then taken to the quality indexing room and tested for any and all functional and cosmetic

flaws. The remote is also checked for proper functioning.

Once the AC is unpacked for testing, first it is checked to verify it has all its accessories,

then it is checked for any cosmetic flaws, then finally the functional aspects. To check for

functional issues the AC is run for a minimum of 2 hours. The product is then repacked.

If theres any defect in all the 4 units, be it cosmetic or functional, then at least 15 more

units produced during the previous day are pulled out. If these units do not have the same defect,

then the case can be overlooked. However if all of them have the same error, then it means that all

the units from the previous day have the same default, and they have to be recalled and the workers

need to be interrogated regarding this situation.

Rework being generated is a waste, and so is the time spent at correcting it. Kenwood

collects data to keep a check on how much waste is generated through defects and how much cost

is spent on accounting for it. The straight pass ratio is calculated every month to keep track of

number of reworks and defects.

Production Department and Quality Control Department together also make a monthly data

report of the units that have been scrapped. This report is then provided to the suppliers. Sometimes

the supplier simply provides a replacement for the defective part. Other times if the defect in a

particular part is persistent, they recall the part to check for the issues.
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Out of all the defected products there is a small number which simply have to be scrapped

and cannot even be salvaged via rework and repair. Whole units being scrapped is a rare

occurrence. Usually this scrapping is with parts though. That a compressor or blower motor or

some other part of the unit has to be scrapped. Often it happens that the malfunctioning of one part

causes negative impact on several other parts. For example if there is a gas leakage, it could also

damage the compressor.

Efforts are made to minimize the number of reworks because if this number of identified

defects is high, the number of defects that may have gone undetected would probably be even

higher.

Since Kenwood is assembling their products, the defects are relatively low in the first place.

Defects are higher when manufacturing is taking place. So as long as the final product is of the

best quality, R&I is not highly inclined to go through complete revamp.

Warranty Claims and After Sales Service


Warranty claims are usually around 10%. The analysis by Kenwood shows that most of

the complaints, around 50% of them, arise due to the fault of the installer. Kenwood provides on

spot repair services. Technicians at the service center do visits on a three day notice. 10% of the

time the unit has to be recalled to the factory for repair, if there is an issue with the compressor or

something, the other 90% of times on spot repair can be provided.

The party at fault for the defective product is not necessarily the supplier. There can be

three different sources of defect. Firstly, the supplier might have provided a faulty product to

Kenwood. Secondly, Kenwood might be at fault at its assembling facility. Thirdly, the consumer

might be at fault. Consumers at times, use substandard installation procedures, leading to gas
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leakages, to get the unit installed resulting in malfunctioning of the air-conditioner. In which case

the person at fault is the particular installer.

As most faults in the warranty claims are due to mistakes of the installers, it would be cost

saving for the company to have its own set of reliable installers. However, it is difficult for the

company to do this. Once the unit is sold, it is the property of the dealer, and it is up to him, whom

he recommends to the customer as an installer. There is no guarantee that the dealer will utilize

the installer Kenwood provides to them, or if the customer would even want to hire him on not

someone of their own personal preference. Gree tried this out and the results were not substantial.

Analysis
It is evident from our visit and the interviews conducted, that Kenwood (produced at R&I

Electrical Appliances in Karachi) believes in extensive quality control and employs the required

measures to produce all-round quality-assured appliances.

Firstly when receiving components from the supplier, they ensure that they receive the

best-value-for money supplies which are of good quality and are suitably priced. Secondly

setting up multiple quality checks at their own facility helps to remove any errors which might

have been overlooked at other stages. The products are tested in extreme condition environments

and at multiple stages to identify any existing defects before the product reaches the final

consumer.

Selling substandard appliances will affect the image of Kenwood only, regardless if the

fault is at the suppliers end. Kenwood has to make sure that not only their production-process is

foolproof, but the supplies received are also of determined specifications. These quality control

procedures place R&Is production facility as a premium-quality-appliance assembly unit. Some


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additional advantages of defect-free production are that it saves cost of replacements and curtails

the bad-will generated as a result of malfunctioning, for the company.

Employee empowerment, responsibility-checks and good communication are the other

vital components of quality management at Kenwood. The workers at the production facility are

themselves micro-managers of quality control and are held accountable if theres any defective

product assembled under their watch. Internal communication as well as external communication

has helped Kenwood achieve a smooth flow in their work. The internal communication helps to

keep the production process unbroken and keeps everyone aware of their tasks. For external

communication, the strategy is to keep in touch with the retailers ensuring that all of them are at

a common understanding and the customer receives the value he has been promised.

As a recommendation, R&I needs to work on its inventory management systems since it

has been maintaining high levels of inventory which leads to stock-holding costs such as damage

to the inventory or the obsolesce of inventory. The capacity of the bottlenecked plant and

warehouse should be increased to avoid inventory pile ups. The factory can switch towards lean

production methods to increase its efficiency and ensure better cost effectiveness.

To decrease the number of complaints and warranty-claims by customers, Kenwood

should increase their direct coordination with the customers and the installers of their appliances.

The customers should be recommended to choose well trained installers to avoid damage on

installation of the product. Moreover the retailers should also make sure that they insist the

customers on using their professional installers. This will help to reduce the number of

complaints and hence enhance companys image as well.


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Overall Kenwood has been doing a marvelous job to maintain their quality standards.

They have trained their workers to ensure that quality is their top priority. The production

process has also been designed in a way that each stage minimizes the chances of error and every

worker is aware of his duty.

Summary
The case of Kenwood involved finding out and analyzing various aspects of how Total

Quality Management is kept in check throughout the Assembly Line. The process employed at

R&Is assembling facility is categorized in the following steps:

As the year ends, the higher management analyzes the production figures, sales figures,

market complaints, competitors advantages or disadvantages and many other particulars.

The planning phase begins in August/September according to the demand in the market

of the brands products and the competitors products. For example, D.C. invertors.

Since they are not the manufacturers, they then have to search for suppliers in China who

are supplying D.C. invertors, which is viable for them in terms of cost as compared to

other countries.

Three to four companies are identified as potential suppliers and they are then shortlisted.

Their units are bought and go through a phase of lab testing. This is the first check for

quality. Ideally the top one should be selected after testing all units but quality is not the

only parameter for selection at Kenwood. Cost, services, responses and facilities are also

criteria for selection.

A supplier is selected and hence supplier selection is the first step towards quality at

source and they are reviewed yearly.


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Kenwood is responsible for all problems related to a product sold. There is a 10% ratio

set approximately for complaints or defects. There are three factors that contribute to customer

complaints etc. One factor is that the supplier gave faulty parts. Another factor can be the

mistake of the assembly line of Kenwood. Lastly, it can be the customers fault in terms of

installation or fixation of product.

Once a consignment is ordered before the mass production begins, two units are

assembled and taken out. Those units are monitored and functional and design issues are taken

care of. Detailed testing of these units is done in long hours and extreme conditions. The

assurance is then given that these units are fine in terms of functionality and design from the

sample size of two units. Then the production manager is given the report and the assembling of

further units begins. There are five stations at the assembly line where quality is checked.

ISO9001 Quality Management System is used to ensure quality at Kenwood. That is their

official certification and the company has to meet all clauses for that certification. There are

quality control inspectors at five point and they check the functionality and design as all units are

produced along the assembly line.

There is a third and final check. Once the mass production is done in one day, the next

day the workers of the production manager check four units randomly from the previous days

batch and ensure the quality. This process is called Quality Indexing. These units are checked

again. Throughput time is analyzed monthly to check how many units were packed in the first go

without any rework or defects. The quality control department and production department makes

a report of all the consignments sent out monthly and the scraps from the production of those

consignments. This report is sent to the supplier so that they can ensure the quality of the

supplies and replace some of the faulty components, which is of a small quantity. Kenwood also
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provides on-spot installation to ensure safety and quality of the products that are being purchased

and installed by the end consumer. All other products such as Kenwoods kitchen appliances are

outsourced as finished products and sold directly.

The team members were shown the assembly lines and all checkpoints for quality

assurance. All specifications were shown and quality assurances such as lead checks and on-line

checks were presented. We were shown all the technicalities and their quality checks at various

points. For example, using the remote, all air conditioners assembled are checked in terms of all

their functions. All checks are kept on all workers by the supervisors, and the supervisors are

looked after by the assembly manager who is checked by the production manager. There is a

proper hierarchy to check for quality. The Production department has a separate hierarchy while

the Quality Control department is separate and has its own hierarchy. The top management

believes in Quality at Source and so if there is any complaint, they are called directly and they

are held responsible. It is then up to them to handle any mishaps and then ensure quality. The

first person at fault is the worker who makes it, then the one who handles the quality assurance.

This is how both departments are integrated.

There are a total of four quality tests. The first one involves the checks at Assembling.

The second one is the function test. Then there is a safety test and lastly quality is assured when

packing of products is being done. This ensures Quality at all points and Quality check

inspectors hold a large responsibility. Ideally the factory is their Raw Material warehouse, but it

is also their warehouse for finished goods and that is where the inventory is kept as all

consignments are produced. Due to large inventory issues bottlenecks are also created at times.
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To summarize the entire plan, there is no one technique fully implemented to ensure

quality. However, Quality at Source is an aspect which is heavily focused on by the top

management at Kenwood to certify Total Quality Management.

Looking Ahead
To start with, as the production manager informed us, at R&I they are looking forward to

keeping another final check on the units that are checked after the mass production of a

consignment is done. The workers who check the previous days production might accidentally

make an error while repacking the units that they have checked for quality assurance. Therefore,

another assurance check is also required at that stage since it is a Pakistani environment.

The issues of large inventories and bottlenecks created in the factory is also something

that Kenwood is going after. In order to eliminate those issues and ensure that the whole chain

runs smoothly, they might expand their warehouse. On one assembly line, in one day, 500 units

are produced. Since there are two assembly lines that means that 1000 units are produced daily

and there are 26 working days. This leads to a total of 26000 units produced monthly at full

capacity (with a cushion for error since it is Kenwood management themselves calculating that

capacity) for which a large warehousing plan is required in order to ensure the safety and quality

of all units that are produced.

Kaizen management system, Just in Time, and taking care of Muda can only be done

once the top leadership and management takes interest. This is something that is evident at

Kenwood where the top managers are fully involved at all stages. This is something that they

look forward to keeping and ensuring that it stays the same throughout all levels.
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Kenwood Auditing authorities make annual visits to the factory that was visited. They

conducted a technical audit using their checklist which had process-related and product-related

specifications. They dont have hard and fast requirements in terms of having techniques such as

Six Sigma completely implemented. They are more inclined towards the product not the process

at this point in time. Looking ahead, if the technical audit is more inclined towards the process

then a further check will be ensured on the assembling process. Otherwise, a CoC audit (Code of

Conduct audit) is also conducted in order to ensure that the workers are being treated properly

and are motivated to work. This also confirms that if the workers are motivated then they will

make sure that the units produced are up to the quality required, since they are the ones directly

interacting with the units assembled. Looking ahead in this aspect, Kenwood aims to make

certain that all its employees are satisfied and do not leave work.

Even though there is no set benchmark for the defects or faults that are produced in

Kenwood that have to be reduced, they still look ahead to not having any such issues. At this

point in time, they aim to have as less faults or complaints as possible.

The factory visited by our team is the Sole distributor and Assembler of Kenwood in

Pakistan. Their distribution is nationwide but the factory is set in Karachi. They use the Oregon

ERP software currently to ensure proper inventory systems and distribution, but are looking

ahead to using the Microsoft Dynamics ERP software system. Lastly, at the Bin-Qasim Port,

Kenwood is also looking ahead to have its own manufacturing factory for refrigerators.

Currently, their refrigerators are sent here completely built, however, they are now looking

forwards to manufacturing the products at their own manufacturing factory.


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Appendix
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Bibliography
Homage. (n.d.). Products | HOMAGE. Retrieved from Homage: http://homage.pk/

Pak Biz. (n.d.). Kenwood Pakistan. Retrieved from Pak Biz.

White, D. (2001, February 17). Kenwood cooks up a 45.9m deal with Italy's De'Longhi. Retrieved from
The Telegraph: http://www.telegraph.co.uk/finance/4482351/Kenwood-cooks-up-a-45.9m-
deal-with-Italys-DeLonghi.html