2. 2
{
Introduction
• From Cornell University and KMUTT,
we are a team of students and faculty
from diverse disciplines, including
business, economics, engineering,
textile, and public administration.
• The program is designed to help small
businesses, to bridge the gap between
learning and doing, and to publish
academic case studies.
3. 3
• Community comprised of 7
villages with 3 business lines:
indigo textiles, frog domestication,
and bamboo weaving
• The indigo textiles group of 52
women are from 4 villages
• Uses all natural cotton and indigo
• Employs traditional Ka-Leung
dyeing and weaving techniques to
make unique handmade textiles
• Does not use chemical pesticides
or fertilizers
Kud Haad Indigo Textiles
Community
4. 4
• Interviewed 18 households in the
Kud-Haad community to
understand their management and
production processes
• Visited plots of cotton and indigo
plants
• Met with the vice provincial
governor of Sakon Nakhon
• Met with executive of Bank of
Agriculture and Agricultural Co-
operatives
• Visited 3 sales and distribution
centers of indigo dyed cotton
• Visited 4 competitors
Our Approach
5. 5
How do we increase value of indigo textiles of Kud-Haad community
internally and externally?
• Improve Business Operations
• Increase Marketing Exposure
• Improve Quality & Efficiencies
Our Objectives
6. 6
• 100% natural cotton
• Grow their own indigo and
their own cotton (supplement
with outside raw materials)—
potential for strong oversight
• Have some dyeing and weaving
experts within community
• Pooled resources
• Interested in learning how to
improve the product
Strengths
7. 7
Weaknesses
• Management and organization structure does not support
community needs
• Lack of communication
• Inconsistent quality
• Limited marketing
• Limited design offerings
• Inefficiencies in agricultural & textile production methods
• Unknown output capacity for the community
• Younger generations do not want to work in business
• Weak governmental relations
8. 8
Purchased Yarn External Dyeing
service
Include Labor Wage Profit per m2
100% 100% Not include 10 Baht
100% 0% Not include 160 Baht
100% 0% Include as 300 Baht
per day
10 Baht
Scenario I : Factory yarn cost calculation
Based on following assumptions
•Produce the plain cloth width 1m. with sale price @ 250 Baht per sq.
meter
•Purchased handmade factory yarn cost 180 baht per kg.
•Production process need 2 kg. of Factory yarn for 4 m2 of plain cloth
•Production capacity is 2 sq. meter per day
Cost Analysis
9. 9
Purchased Yarn External Dyeing
service
Include Labor Wage Profit per m2
100% 100% Not include -250 Baht
75% 100% Not include -175 Baht
50% 100% Not include -100 Baht
25% 100% Not include -25 Baht
0% 100% Not include 50 Baht
0% 0% Not include 350 Baht
0% 0% Include as 300 Baht
per day
200 Baht
Scenario II : Handmade yarn cost calculation
• Based on following assumptions
• Produce the plain cloth width 1m. with sale price @ 350 Baht per sq.m.
• Purchased Handmade Natural yarn cost 300 baht per kg.
• Production process need 2 kg. of Factory yarn for 2 m2 of plain cloth.
• Production capacity is 2m2 per day
10. 10
• Certifications from reputable organizations
• National and International Festivals
• Distribution in domestic and international
markets
• Training to improve product quality
• Training to improve agricultural methods
• Training in management
• Diversify product lines
• Outsource marketing
• KU and SNRU research capabilities
• Waste water management
• Financial Support
Opportunities
11. 11
• Environmental degradation
• Price volatility of raw materials
• Competition from other communities
in Sakon Nakhon and international
producers
• Uncertain demand
• Weather risk
• Higher incomes in urban areas
Threats
13. 13
Short-Term Solutions (0 – 1 year)
Solutions Potential Partners
Improve
Business
Operations
Increase
Marketing
Exposure
• Record and analyze raw material usage
•Organize training programs for members
by partnering with external organizations
• Create a guide to production process
•Set up loom more efficiently to reduce
labor hours required for production
•Develop a brand logo and labels
•Create packaging design and an
informational pamphlet
• Identify buyers in Sakhon Nakon
• BEDO
• Thai Weaving Industry
• Department of Cultural
Promotion
• KUCSC, Faculty of Liberal
Arts and Management
Science
Improve
Quality
• Establish quality standards for finished
products
• Improve quality and get OTOP 3-star
rating
• Obtain Thai Industry Standard Institute
(TISI) certification
• Develop new patterns
• Thai Industrial Standards
Institute
• Department of Environmental
Quality
• The Office of Community
Development, Sakon Nakhon
Province
14. 14
Medium-Term Solutions (2 – 5 years)
Solutions Potential Partners
Improve
Business
Operations
Increase
Marketing
Exposure
Improve
Quality
• Research methods to treat waste water
• Transfer production knowledge to the new
generation
• Utilize standard accounting in their
transactions
• Change the legal status from community
enterprise to cooperative
• Pursue business partnerships
• Create a website
• Showcase products at festivals
• Earn 5-star rating from OTOP
• Improve raw material management
• Instate a quality control system for raw
materials to maintain consistency
• KUCSC
•Sakon Nakhon Rajaphat
University
•Thai Industrial Standards
Institute
•Department of
Agricultural Extension
•KUCSC, Faculty of Liberal
Arts and Management
Science
•Department of Local
Administration, OTOP
15. 15
Long-Term Solutions (6 + years)
Solutions Potential Partners
Improve
Business
Operations
Increase
Marketing
Exposure
Improve
Quality
• Community center should pay members for
products up-front to encourage members to
sell their high-quality products to the
community center
• Identify a partner to help source raw materials
• Operate business self-sufficiently
• Find a distributor to sell the product
internationally
• Achieve green production certification
• Diversify product line (e.g. bags)
• Identify a partner to help source raw materials
• Bring in an expert to teach production to
increase quality.
•KUCSC
•Sakon Nakhon Rajaphat
University
•Thai Industrial Standards
Institute
•Department of Agricultural
Extension
•KUCSC
•Faculty of Liberal Arts and
Management Science
•Department of Local
Administration, OTOP
16. 16
• SMART team to incorporate feedback from the community
and provide comprehensive implementation plan
• Community to begin implementing short term initiatives
• BEDO to begin facilitating short term initiatives
Next steps