Welcome to Borg Group of Companies

Sean Hughes

Manufacturing Manager

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In the beginning….

• During the late 1980’s brothers John & Michael Borg developed a

successful kitchen manufacturing business.• In 1990 they incorporated a new business to manufacture and distribute

thermoformed doors, marketed under the brand of ‘Polytech’.• The door manufacturing plant is located here at Charmhaven, which now

produces in excess of 5000 doors per day. • In 2000 the company accelerated its expansion by investing in the

manufacture and distribution of a range of co-ordinating decorative

melamine board products, with the commissioning of a 3000 x 1200

melamine press at a new factory, located in Somersby. • In 2003 further expansion was completed at Somersby to create one of the

largest melamine laminating facilities in Australia. The site is dominated by a

new 7200 x 1800 melamine press, which is one of the fastest and most

advanced short cycle presses in the world.

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• As well as our central coast distribution centres servicing Sydney and

Newcastle, the company also has branches in Melbourne, Brisbane, Perth,

Adelaide, Canberra, Coffs Harbour, Tamworth, Bathurst & Albury.• In 2004 Borg’s continued its commitment to manufacturing in Australia with

the addition of a melamine profiling plant that produces edged and profiled

melamine doors, further complimenting the existing Polytech range of doors

and panels. • This expansion is being housed in a purpose built extension here at the

Charmhaven site that houses Australia’s first fully robotic door

manufacturing facility. Here we also have an Aluminium Frame door plant

that produces contemporary aluminium framed doors with a variety of

translucent glass inserts.

In the beginning….

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Current Management Structure

BorgLogistics P/L

Managing DirectorJohn Borg

Managing DirectorMichael Borg

Borg ConstructionsP/L

Borg ManufacturingP/L

Polytec P/LBorg Manufacturing

P/LBorg

Fleet P/L

M&J Borg t/a BorgCorporate Services

DistributionCentres

Bulk Transport

Engineering Sales

Marketing

ProductDevelopment

CharmhavenDoor Plant

SomersbyBoard Plant

CustomerService

Finance

HumanResources

IT(Software

& Systems)

Purchasing

Admin

Projects /Design

Earthworks

Workshop

Coating &Components

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• Our Marketing channels include:

Sales Representatives

Merchandise such as Display Boards, Colour Range Swatches &

Product Folders, Door Samples, Colour Sample Chips

Product Brochures

Website

Print Advertising

Brand Awareness acheived through Truck Curtains, Polytech Flags at

Branches as well as all of the above.

How do we Market our products?

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• Wholesale to Trade ie. Kitchen Cabinet Makers/ Joiners, Builders,

Manufacturers etc.

• Retail (limited)

How are our products sold?

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• Polytech strives to constantly develop and grow new opportunities in the

manufacturing market as well as build on the existing traditional markets.

• Polytech works very closely with business partners to create products that

open new possibilities within these markets.

Plans for expansion or developing new markets?

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• Quality is measured and analysed at various points through the product flow• “Quality” product

• Defined a fully documented Quality Standard.• Manufactured by following fully documented Standard Operating

Procedures (SOP’s)

• Staff are trained to the Quality Standard & SOP’s • Quality Control

• Operators inspect the product at specified points in the manufacturing

process.

• Quality Assurance• Machine Operators make regular process checks on their machines to

ensure production of a quality product.• Random Audits are conducted on finished product to ensure the product

complies to the Quality Standard.

How do we monitor Quality Control?

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• External Reject rate • Individual complaints are reviewed daily prior to release to production by

Production Co-ordinator for the factory.• summary data for last month is reviewed by Production Manager each

month.• 18 month trend data is reviewed by Senior Executive each month.

• Internal Reject rate • Operators & Line Leaders review daily rejects in “real time”.• Line Performance KPI packs are reviewed

• Daily by Shift Supervisors & Line leaders• Weekly with Production Manager• Monthly with Manufacturing Manager

• Statistical Process Control (SPC) techniques are used to identify process

changes and trends.

How do we monitor Quality Control?

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• How do we measure efficiency? Boards or Doors per Shift

Weekly, monthly and quarterly moving average % Reject rate - Internal

Weekly, monthly and quarterly moving average Labour $ per Door or Board

Reported monthly• Are there any incentives for our workers?

Bonus system that rewards employees for production volume but

penalises for both Internal & External rejects. Total Bonus money is divided equally between all staff prior to

Xmas each year Every manufacturing role is assigned a Grade, within that Grade there

are 5 levels. Operators are paid at 1 of those 5 levels dependent on the

operators individual performance and skills.

Efficiency

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• The majority of our machinery is purchased in Europe.• Coating & Spraying lines from Italy• Press Lines from Germany• Wood machines (Edgebanders & Postformers) from Germany• Routers from Japan

• The software for plant automation was designed and written in-house• Mechanical and Electrical Automation systems were designed and built in-

house.

Tools & Equipment used

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• What products do we use? Raw Medium Density Fibreboard (MDF) Particleboard (PB) Melamine Impregnated paper (Leaf) Low Pressure Melamine Board (Melamine Board) – manufactured @

Somersby. Thermo-laminating PVC foil (foil) Glue (water based PVC, PUR) Melamine & PVC Edgetape

• Minimizing Waste We use a recycling programme as much as possible, this enables us to

partly keep our landfill costs to a minimum, but more importantly

enables us to keep the environmental effects to a minimum. We are working to reduce our Carbon Emmissions, which will in effect

reduce the pollution.

Resources

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• We currently employ 400 staff Australia wide.

• Qualifications vary greatly based on the job role. For the majority of roles we

provide "on the job training", however formal qualifications are required for

the following roles• Trades – Fitter, Electrician, Wood Machinist, Cabinet maker, Plumbers• Engineers – Mechanical, Electrical, Software• Industrial Chemists• Accountants etc

• No unions involved on site, however staff are able to join if they wish.

• We have no EBA or AWA, we still work under various Awards.

Staffing

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OH&S requirements are adhered to by:-• The company is aware of it's requirements under the Occupational Health &

Safety Act 2000 and the Occupational Health & Safety Regulation 2001. • The company regularly audits compliance of these pieces of legislation and

makes improvements if it finds any gaps between what it should be doing,

and what it is doing. • Staff are currently undergoing OHS training so that they are also aware of

their obligations and the company's obligations legislatively. • Any non-compliance with legislation is documented by completing an

incident report form, and corrective actions are decided on by line

management and employee representatives. • Where necessary, the company will also consult WorkCover for guidance.

Occupational Health & Safety