Sunday, April 8, 2007

INTERVIEW / PAIROJ SANYADECHAKUL

Compliance with standards

TISI implements automotive standards based on European benchmarks to spur development and competition in the auto industry

ALFRED THA HLA

The automotive industry complies by 181 out of the more than 2,600 industrial standards currently overseen by the Thai Industrial Standards Institute (TISI).

These standards based on the Economic Commission for Europe (ECE) benchmarks cover just about every aspect of the automobile and motorcycle components - from batteries to leaf springs and exhaust emissions.

What then is the importance of automotive standards, one might ask?

TISI secretary general Pairoj Sanyadechakul summed it up perfectly: "Initially we used the standards as a tool to protect the consumer and develop the automotive industry. Now the standards are also used to protect the industry against low quality competition."

TISI, which is under the Ministry of Industry, was incorporated in the second National Economic Social and Development plan in 1966 and upgraded to a department in 1979.

In the field of automobiles, TISI's overall vision is to develop the industry, make it competitive by taking care of the consumer, quality of life, environment, and ensure fair trade.

"TISI establishes standards for automotive parts and components and makes sure that they are accepted globally. Take emission standards in Thailand which are of four types (passenger cars, pickups, heavy trucks, motorcycles) - but we still lag behind Europe by about two years.

"I know we're better than most of our Asean neighbours because the hydrocarbon, sulphur, nitrogen monoxide (NOx) and particle emissions are much lower. Right now it's not even 1% of the amount of emissions when compared to decades ago when standardisation was first implemented," said Pairoj.

Recalling being frequently engulfed by clouds of black smoke spewing out of public buses while snaking through the traffic on a motorcycle taxi, the writer felt tempted to ask whether TISI has succeeded in serving the purpose for which it was created.

"The emission standards for the auto industry is pretty good with regards to timing. We are not too advanced so the costs won't get passed on to the consumer, while we aren't too slow which means the environment is not adversely affected. We are actually a leader in this field in the region.

"The two major tasks facing us is the maintenance of new and old cars. TISI has everything to do with new automobiles, while the Land Transport Department handles used cars. It's a tough situation and you can't just immobilise them (old dilapidated buses and trucks) even though they produce a lot of black smoke," he explained.

Pairoj, 58, pointed out that TISI plays a vital part by providing important rules and regulations (standards) that allow the automobile industry to compete effectively in the global market.

"Global trade is a reflection of strength of domestic industries and exports of each country. Thailand has developed its automotive industry in a similar fashion where we have achieved global competitiveness and low cost of production thanks to a strong base of support industries.

"We are ready to trade globally and this is where the issue of standards play an important role. Every country has its own standards on quality, safety, environment, labour and hygiene for instance. TISI monitors production process and product quality through the twin industrial benchmarks of ISO-9000 and ISO-14000 certificates, he said, adding that Thailand currently has 6,995 companies with ISO-9000 and 1,369 with ISO-14000, ranking it among the top in the Asean region.

For consumers, the twin certificates are a kind of guarantee for quality. Products or companies qualifying for such ratings can be classified into those that make the cut automatically (voluntary), and those needing to get there - then it becomes a necessity - or compulsory certification.

"If you are a household name, the consumer will trust you. But if you are a small player, TISI can play the middleman to create confidence in your products," he explained.

Compulsory certification also applies to products that can be hazardous or those that can affect the national economy. There are 88 products under this category, such as the four types of emissions mentioned earlier, motorcycle exhaust, safety belt and automobile glass.

Given that Thai automotive products are gaining international recognition as we speak, there is still room for improvement, said Pairoj. "Thailand's automotive industry exports about 40% of its production. This figure will grow to 50% in about two years. The key is that quality standards must match those applied overseas."

That said, TISI's stance on the automotive industry is one of confidence in its ability to compete its future.

"Quality-wise we can do it because of our world-class standards. In terms of quantity we have the resources and personnel with experience. Labour costs are also low which allows us to compete effectively. The auto industry will definitely expand in the future".

10 questions for PAIROJ

You are in charge of Thailand's automotive policy for one day. What do you do?
Implement policies that will sustain long-term competitiveness of the industry.

Greatest achievement?
My work at TISI and family.

Greatest extravagance?
Self sufficiency is the key, depending on one's economic status.

Favourite car all-time?
Changes all the time.

Favourite destination?
Northeastern part of Thailand.

Favourite industrial standard?
Grass roots standards for community products.

Favourite human being (s)?
Chaiwai Saengruji, the founder of TISI.

Favourite electronic gadget?
Mobile phone.

Favourite sportsperson?
Pele.

Historical figure you identify with?
Hard to say...(laughs).

Bangkok Post

Last Updated : Sunday April 08, 2007

No comments: