JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 THE DEVELOPMENT OF LOGISTICS MANAGEMENT SYSTEM FOR CLAY BRICK MANUFACTURING INDUSTRY

Pimon Juntarakham Department of Ceramic Technology, Faculty of Industrial Technology, Phranakhon Rajabhat University, . Received: 14 March 2020 Revised and Accepted: 8 July 2020

ABSTRACT: This article explores the logistics management of the clay brick manufacturing industry. It was using the case study area of Pak Kred District, Province, Thailand. The objective is to study the logistics management of the clay brick manufacturing industry and to develop the logistics management system of the clay brick manufacturing industry for District. Nonthaburi, Thailand. The researcher used integrated research between qualitative research and quantitative research by empirical research using questionnaires from 99 samples and group meetings. The statistics used for data analysis were frequency, percentage, mean and standard deviation. The results showed that the logistic management system of the clay brick production process in Pak Kred District, in Thailand has customer service activities. And also product distribution channels management for logistics management regarding warehouses, high level of transportation, low demand forecasting, and planning. The development of the logistic management system of the clay brick production process found that the establishment was highly efficient, time-saving, and cost- effective in terms of quality that was more efficient than competitors. Also, the research results can be used and beneficial to the database creation system for strategic planning and development shortly, including the analysis of logistics management for establishments.

KEYWORDS: Logistics management system, Logistics, and Supply Chain, Clay brick manufacturing industry.

I. INTRODUCTION Nowadays, business is fiercely competitive due to changes in economic, social, technology, and education. Also, the world economy still faces an ever-changing environment, including natural disasters. As a result, businesses need to enhance their ability to conduct business in every way possible, whether reducing business costs and creating added value for the products to offer to customers. An important goal that entrepreneurs can use as a source of competitive advantage at both the business and national levels. It’s the management of the process of delivering goods and services from manufacturers to consumers, as well as the supply chain or logistics management. Entrepreneurs must find new ways to do business. In order to be able to survive and grow steadily for a long time. Essential strategies that companies use, such as marketing, financial, accounting, production, and operations strategies. Besides, techniques, methods, and technology products are used to aim at reducing costs and creating competitiveness—for example, procedures, just in time, total quality management and logistics management, etc. Household appliances in Thailand, both in the past and in the present, are pottery as well as the products that are currently in demand. It has been associated with human life since prehistoric times because humans have used it as everyday tools, packed food and articles, and therefore have invented and improved technology all the time [1]. Figure 1 shows the clay brick industry in Thailand.

3262

JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020

Fig. 1: The clay brick industry in Thailand [1].

Logistics can increase efficiency and reduce costs, which can be developed and improved in the future by yourself. The researcher, therefore, realizes the importance of the development of logistics management. The analysis of the efficiency of logistics management and the development of the logistics management system in the clay brick production area Pak Kret District Nonthaburi in Thailand is a new source of growth. This logistics management system will create more value in the economy and create jobs for the public [2].

II. LITERATURE REVIEW Logistics management is an operational planning process to control the efficiency of product and service flow, from raw material procurement, warehouse management, transportation cost management, and value chain to the point of use or the consumers. Logistics is a part of the transportation management process which can help planning, supporting and controlling the flow of activities efficiently and effectively, including the storage of products from the beginning to the end for the needs of customers is essential. Logistics management is a control operation that involves the cost of goods from source to destination. By managing the logistics efficiently, it is necessary to link every business process related to each other into chains or networks for continuous coordination. This is to increase the efficiency of producing products and services for every department in the system. Enable agencies to work efficiently, with efficient logistics management able to meet customer needs at the lowest costs. At present, the production of clay bricks for construction throughout the country has about 900 factories, with a total production capacity of approximately 2,100,000,000 pieces per year or approximately 175,000,000 pieces per month. Brick production factories are scattered all over the country, and there are some concentration or industrial density in some areas. For example, it is found that the most construction bricks are produced in Nakhon Si Thammarat Province, 80 factories, the second is 66 factories in Angthong Province in Thailand. 3263

JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 Also, it is distributed in the central lowland areas such as Sing Buri Province, Ratchaburi Province, Phra Nakhon Si Ayutthaya, Pathum Thani, Nonthaburi and Suphan Buri, etc. The manufacturers will form a group; each group has 50 entrepreneurs to 500 people, which is considered a distribution of income to an excellent local community. The clay brick making industry is a construction material that has been done for a long time, most of which are made as a family industry, both small and large. Following the ability of entrepreneurs, which can generate income for the community, both for living or make a good income depending on many factors. The first production was using simple equipment. Later, a factory was set up and machinery was used to help increase production. Raw materials used in the production are clay and sand, most of which can be obtained from nearby sources using firewood and rice husk as fuel. The general production process is to ferment the clay and mix until, and forming the desired size, then exposed to wind or sunlight. When dry, then burn it in a brick kiln, then a cold kiln then unloaded the bricks for further use. Production of clay bricks and construction materials from terracotta of the producer commun ity in Pak Kret district Nonthaburi Province has a business about the production of clay bricks in each of the 11 sub-districts of Pak Kret District Nonthaburi Province, except Kret Island. Which is the operator of 58 clay bricks manufacturing businesses, 23 transportation operators and 18 clay brick, distributors. In Pak Kret district, Nonthaburi will encounter production and transportation problems. The use of clay bricks has become less popular because of the replacement of other materials. It is also fo und that the production of clay bricks causes problems of dust and smoke from the combustion of rice husk used as fuel, which has the danger or consequence is the smoke from the burning and affecting global warming. Workers and nearby villagers inhaled the smell of smoke caused by incomplete combustion. Including poor visibility, an annoyance to neighboring communities, which is the result of research that recommends building closed kiln systems with training or publicity for safe production [ 2]. Although the government has supported the logistic management of the pottery industry, there have not been any guidelines for the management of clay bricks in any part of Thailand. Therefore, it is interesting that industrial establishments What is the type of clay brick in Nonthaburi Province, and how are the logistics management and the current management of the existing establishments active and potential? This research project is in line with Thailand's 2nd Strategic Logistics Development Plan, which is Strategy 1, to increase supply chain management capabilities. Strategy 2 Promote trade and service businesses in border town areas. Strategy 3 Develop transport services and logistics networks along the route and Strategy 5 Promote the development of services and expand the network of logistics service providers. It is also in line with the 12th National Economic and Social Development Plan, which is Strategy 5, creating links with countries in the region for economic and social security. And ASEAN strategy, which is Article 1, strengthening the competitiveness of products, services, and investments, Article 6—increasing the country's economic potential. Also, from the above question, if the search for the logistics management of the clay brick industry, Nonthaburi Province, leads to the efficiency analysis and evaluation of the logistics management potential of the clay brick industry. Which has driven among entrepreneurs to improve the efficiency of the logistics system in the manufacturing sector (business logistics improvement) in line with the Thailand Logistics Development Strategy 2017-2036 and the policy of the Ministry of Industry to increase the ability to compete with concrete in the long term. As well as obtaining guidelines for capacity development and knowledge building for entrepreneurs, which will develop personnel in the clay brick industry to be able to manage [3].

III. RESEARCH METHODOLOGY 3.1 Types of research Research on the Logistics Management of the Clay Brick Industry Pak Kret District Nonthaburi has a method of researching response to research objectives using a mixed research model between Quantitative research and Qualitative research. By using the interview method which will give you more insights that are more useful and effective than using the questionnaire. Therefore, using a mixed research model will enable data to be collected in a wide variety of quantities and in-depth, and can be checked for consistency, which will indicate whether the data is reliable or not. 3.2 Population and sample Specify the sample of the research population in each of the 11 sub-districts of Pak Kret District Nonthaburi Province, consisting of 3 groups: 1) Kiln-fired bricks were manufacturing business, consisting of 58 locations. 2) Transport operators amount to 23 sites. 3) Clay brick distributors stand to 18 sites

3264

JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 The sampling group used in this research is multi-stage random sampling because the population is involved and to make it clear that the sample selection is suitable enough, follow the steps below. Step 1 Determine the population, which is a clay brick manufacturing business (1) a clay brick manufacturing business (2) a transportation business operator, and (3) a clay brick supplier Step 2: Selecting a representative of the group that uses the Stratified random sampling method so that the population is equally likely to be chosen [4]. 3.3 Tools for collecting quantitative and qualitative data 1) Quantitative data collection (questionnaire) from the group of clay brick entrepreneurs. By distributing questionnaires for the business owner of clay brick manufacturing, transportation operators, and clay brick distributors in Pak Kret district, Nonthaburi province, 1 set each, a total of 99 sets. 2) Qualitative data collection (Interview form) from executives operating clay bricks In Pak Kret district Nonthaburi province, all 11 sub-districts, 1 person per each, a total of 11 people. 3.4 Data collection Collect data from real sources from the performance reports of companies in the clay brick industry in the past, together with interviews with executives, employees, and people involved in the industry. Collect information from both inside and outside the related companies by using the data to create research questionnaires and interview forms that are consistent with the research framework for measuring the logistics management of the clay brick manufacturing industry by Check tools and reliability as follows: 1) Build research tools, including questionnaires and interview forms. 2) Test the quality of the equipment to ensure the accuracy of the measurements. The evaluation using 5 experts, 3 technical experts, and 2 experts in clay brick manufacturing and transportation business. 3) Data were collected by using 99 questionnaires and 11 interview forms by using the following methods: - Interview with executives of the clay brick industry Pak Kret District Nonthaburi province and requests cooperation from all establishments in providing information for research. - Inquire about management or staff related to 15 aspects of logistics activities with observing work to record data. By asking staff or executives in specific establishments to cooperate in providing information for research only. - Analyze the logistics management efficiency of the clay brick industry Pak Kret District Nonthaburi Province, consisting of 3 aspects, which are quality, time, and cost. By using the information from the logistic management query to find the efficiency of the logistics management. 3.5 Data analysis Data analysis by analyzing the logistics management efficiency of the clay brick industry in Pak Kred district from the questionnaires and interviews formed in 3 aspects which are quality, time, and cost together. Which the statistics used for data analysis such as frequency, percentage, mean, standard deviation, and the researcher analyzed the data from the interview. Which conducts the examination of data completeness according to the research objectives and studies from related documents in order to summarize the research findings and suggest the development of the logistics management system of the clay brick industry in Pak Kred District Nonthaburi Province. IV. RESULTS The results of the logistic management of clay production industry in Pak Kret District, Nonthaburi, according to 15 logistic activities from clay brick production operators, transportation operators, and clay brick distributors found that Operators pay more attention to customer service, providing customers with the right to choose their products according to their needs, which establishments focus on traveling, reserving distribution locations more conveniently than considering the production location according to Satisfying customers, the establishment is able to deliver the products on time. Therefore, forecasting and planning are essential for future customers' choices, including the formulation or activities related to inventory management caused by the production. Shipping There is a product display, a sample of the product so that it can be seen at the store to be a prototype and to distribute.

Concerning increasing distribution channels, establishments have introduced a variety of orders, including accepting orders from the internet, via the website, via electronic mail, telephone orders, including travel to 3265

JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 contact in person at the establishment. The operation will make a purchase order according to the order queue and carry out the delivery. Currently, the distribution of goods has been modified, in addition to the car delivery of the establishment, which has increased the form of Delivery is the product pick-up and the distribution system is adapted for the distribution channels of the establishment by displaying product details on the website. Local and international freight forwarding, reverse logistics management of clay brick manufacturing products in Pak Kred District found that most products do not return products and no product defects from transportation, which will have a warranty with the exchange of goods. Analysis of logistics management efficiency of clay brick manufacturing industry Pak Kret District Nonthaburi province found that the efficiency of the logistics management system of the product manufacturing industry of Pak Kret district, Nonthaburi province has a high level of efficiency in the overall level, as follows: 1) In terms of quality, it was found that the clay brick manufacturing enterprises Pak Kret District Nonthaburi is at a level of efficiency that is comparable to competitors. Which can deliver products and accurately predict the needs of customers? 2) In terms of time, it was found that the efficiency measurement of the logistic management of the terracotta production industry Pak Kret District Nonthaburi province, which has the time of purchase and the average product delivery time is 1 day. 3) In terms of costs, it was found that the logistic management of the clay production industry in Pak Kred District, Nonthaburi Province, had a competitive advantage. Wherein the proportion of the cost of customer service according to the wholesale value, the cost of procurement, sales, and the portion of the cost of service Warehouse per sales. V. DISCUSSION The results of the logistic management of clay production industry in Pak Kret District, Nonthaburi, according to 15 logistic activities from clay brick production operators, transportation operators, and clay brick distributors found that the operators pay more attention to customer service. Delivery of products according to the specified time. Forecasting and planning or activities related to inventory management caused by the production. There is a display of products and samples of the products that can be clearly seen at the store for prototype products and distribution. As for the increase of distribution channels, establishments have applied a variety of orders for the distribution channels of the establishment by displaying product details via the website domestic and international freight forwarding lists. From the analytical study of the efficiency of the logistics management system of the clay brick production process Pak Kret District, Nonthaburi province found that most establishments have high production efficiency, save production time, and effective in reducing production cost in managing quality production logistics, also product delivery capabilities in a fast time. Which the accuracy of forecasting customer needs is consistent with the research of Wichitra Srisorn [5]. In terms of marketing strategies, product demand factors in the market, there is strategic planning and the ability to develop new product value additions. From the analysis of the marketing strategy of the clay brick business of entrepreneurs by using SWOT Analysis to analyze weaknesses, strengths in time. Which has the purchasing time, and the average product delivery time is 1 day following the research of Rudee Niyomrat [6]. Regarding the efficiency analysis and evaluation of the potential of the logistics management of product delivery, the operators need the time to store the products in order to meet the needs of the customers. Costs are the proportion of the cost of customer service according to the value per sales, the cost of purchasing per sales, which is consistent with the research of Watchareeya Chum-in thong and Noppadol Suwansap [7]. In terms of increasing the efficiency of the production of concrete block bricks, it is improve by solving the problems in the production process by themselves, increasing the efficiency, which can help reduce the production cost and the proportion of the cost of services, this is consistent with the research of Pornvarong Saiphongpanya [5]. Regarding the factors that influence the marketing guidelines for increasing sales, the environment and economic competition must be studied in order to improve the confidence of the customers.

VI. CONCLUSIONS The results of the logistic management of clay production industry in Pak Kret District, Nonthaburi Province, based on 15 aspects of logistic activities, the logistic management system of clay brick production process in Pak Kred District, Nonthaburi Province, found that The establishment of customer service activities, managing distribution channels for logistics management regarding warehousing, high-volume transportation, and low demand forecasting and planning.

3266

JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 The results of the study of the efficiency of the logistics management system of the clay brick manufacturing industry Pak Kret District Nonthaburi province found that the efficiency of the logistics management system has the efficiency of a high level. In the overall picture of 3 aspects, which are 1) Production quality is the ability to deliver products and accuracy in forecasting customer demand. 2) Time is the time of purchase and the average delivery time of 1 day. And 3) Cost is the ratio of customer service costs based on wholesale sales. The establishments have proposed guidelines for the development of the logistics management system of the clay brick industry in Pak Kred District, Nonthaburi, focusing on the application of information technology for the logistics system, such as increasing distribution channels. The establishment of the order has brought a variety of ways, such as accepting orders from the internet via website, via electronic mail, telephone orders, including travel to contact in person at the establishment. VII. SUGGESTION Suggestions for using research findings - The establishment should pay attention to forecasting the needs of customers in order to plan and plan the logistics management strategy. There should be a systematic data collection of establishments, and there should be more knowledge about logistics management for establishments. Suggestions for further research - The development of logistic management of clay brick production in Pak Kret district Nonthaburi in terms of reducing production costs, product transportation management, product distribution, and warehouse management, etc. by using the participatory research process from the establishment and related agencies.

Acknowledgments Thank you to Phranakhon Rajabhat University for supporting this research. VIII. REFERENCES

[1]. Pottery history. (n.d.). Retrieved July 26, 2020, from http://5601389ple.blogspot.com/p/blog- page_2.html. [2]. Provincial Industry, “Strategic Plan for Industrial Development in Nonthaburi Province 2017-2021”, Provincial Industry, . Page 1-55, (2017). [3]. Natapong Janpech, “Improvement the Quality of Bricks without Burn with Straw Fiber in Central Region for Sustainable Commercial use,” Research report Rajamangala University of Technology Suvarnabhumi, Bangkok, 2019. [4]. Luksanee Boonkao, “Occupational Health and Safety Risk Assessment of a Red Clay Brick Factory in Warinchamrap District,” Ubon Ratchathani Province.Science and Technology Journal Ubon Ratchathani University, Volume 18, Issue 1 (2016), Page 39-46, January-April, 2016. [5]. Pornwarong Saipanya, “Marketing Planning for Increasing Interlocking Block Sales Volume of "Rukpongitprasan Shop" in Phukhieo, Chaiyaphum Province,” in The National and International Conference on Business Management and Innovation 2015 (NICBMI 2015), Khon Kaen University, Khon Kaen, 2015, page 1293-1298. [6]. Wichittra Srisorn, “Strategic Marketing of Brick-clay Brick Business to Enhance the Competitiveness,” Suan Dusit Graduate School Academic Journal. Volume 14, Issue 1, Page 19-29, January-April, 2019. [7]. Watchariya Choominthong and Noppadol Suwansrub, “INCREASING EFFICIENCY OF PRODUCTION PROCESS USING TOTAL QUALITY MANAGEMENT: A CASE STUDY OF CONCRETE BLOCK,” The 12th graduate research conference, the academic year 2017, Rangsit University, Thailand, (2017) August 17. Page 71-86.

AUTHORS PROFILE

Pimon Juntarakham was born on 15 September 1966. He graduated with a B.Sc. (Ceramics Technology), Phranakhon Rajabhat University in 1996, B.Ed. (Educational Administration, Phranakhon Rajabhat University in 1998, and Suan Sunandha Rajabhat University in 2012. Currently an assistant professor at the Department of Ceramic Technology, Faculty of Industrial Technology, Phranakhon Rajabhat University. The research interest is logistic management.

3267