Episode 14: Facility Expansion
Lee Chang-jin’s prediction was spot on. Rumors that they were supplying goods to the large corporation, Cheongwoo, had spread, and order volumes surged from various places, leading to a sharp increase in orders.
Despite the domestic raw material prices soaring by more than 50% on average and the domestic wholesale price index rising by over 38% after the oil crisis, Lee Chang-jin’s business recorded sales exceeding 10 million won just in the first month from the production of gears and shafts, continuing its growth.
In the third month, Goo Chang-dong checked the sales and spoke excitedly.
“Boss, look at this. This quarter’s sales are 45 million won. The net profit is a whopping 20%, which is 9 million won.”
As sales increased by over 50% every month, a beaming Goo Chang-dong laughed and said,
“What an incredible growth rate. At this rate, we might become a large corporation soon.”
“Now, now, don’t get too excited. Decline any orders with tight deadlines politely. Just accepting orders won’t do. If we rush to meet delivery dates, accidents will happen.”
“Yes, sir, I will remember that!”
As the order volume increased, more hands were needed. Lee Chang-jin hired two new team leaders to assist Goo Chang-dong. Seo Yohan and Lee Yong-sik, Goo Chang-dong’s juniors from Seowon Technical High School, each had over 5 years of experience in lathe and welding, respectively. Additionally, they hired one more accountant.
Ye Jin-joo, recommended by Kim Cheol-ho, was an outstanding talent who had consistently been the top student at a commercial high school. Out of curiosity, when asked why she applied to the company, she replied,
“If I’m going to get a job anyway, it’s better to be the head of a snake than the tail of a dragon. Even an Imoogi becomes a dragon if it ascends, right?”
Seeing her potential, Lee Chang-jin immediately hired Ye Jin-joo as his secretary. In fact, in a past life, Lee Chang-jin and she were not strangers. In her past life, she was a rare woman who rose to the position of an executive in a top 10 corporate group after serving as a secretary to a large corporation’s chairman.
As expected, Ye Jin-joo quickly took control of the workplace atmosphere.
She was not only capable but also sociable, contributing significantly to improving the company’s atmosphere.
In the early stages of the business, Lee Chang-jin was so busy he had to work through the night, but after a few months, he found some breathing room. Instead, he made it a routine to inspect the completed goods every day to check for defects.
Today, while inspecting the factory meticulously, Lee Chang-jin found another defect in the goods and immediately called the team leader in charge, Seo Yohan.
“Team Leader Seo, the finish on this gear is wrong.”
“What? Where do you mean?”
“Look here, at this line. The center line of the inner diameter is shaky.”
“Well, just by looking, I can’t tell… what’s the problem exactly?”
“Then let’s compare it like this. Doesn’t it differ by more than 0.4mm from this sample?”
When Lee Chang-jin gave him a magnifying glass and had him compare it with the sample, the difference was clear.
“Ah, this shouldn’t be… How did this happen…”
From Seo Yohan’s perspective, it was baffling. Things that escaped the eyes of the team leader, who worked like a squirrel in a cage, were spotted immediately by Lee Chang-jin. However, despite Seo Yohan’s flustered reaction, Lee Chang-jin did not get angry.
Instead, he calmly verified whether the procedures were followed.
“Did you start the machine this time without preheating it?”
“No, that’s not it. But the inner diameter keeps getting larger and smaller, even when I adjust it. It keeps reverting to its original state. I don’t know the reason myself…”
“Hmm… Did you check the bolt tightening separately?”
“Yes. I checked it before starting the operation. I checked for changes in the clamp pressure, but that wasn’t the issue.”
After inspecting the machine a bit longer, Lee Chang-jin found the problem and nodded.
“Fortunately, the part isn’t broken. It seems the tool holder is too big, causing excessive vibration. Let’s change it to a smaller one. Also, let’s replace the cutting fluid with one that’s one grade higher in viscosity. Ah, and one more thing. Earlier, I noticed the clearance angle between the workpiece and the tool was too small. If we’re not careful, the cutting edge of the bite might break, so pay extra attention to safety.”
In machining with long overhangs, the key is to set up the tool bar to fit perfectly and maintain sufficient clamping contact. Seo Yohan repeatedly exclaimed in admiration at Lee Chang-jin’s kind explanation.
“I understand, boss. I will immediately correct the points you mentioned.”
“Alright, then let’s resume work. Discard the faulty products and keep up the good work.”
“Yes, yes!”
After the detailed explanation and advice on how to use the lathe and milling equipment, Seo Yohan resumed work with a sharp focus, his eyes different from before.
Despite the meticulous attention paid every day, the use of second-hand machines occasionally resulted in products not meeting the specifications. Moreover, since human work is not perfect, defects were practically inevitable.
Cheongwoo Motors, which outsourced to them, also had a mountain of work, so it was rare for them to check each and every order. However, Lee Chang-jin never delivered products with even the slightest defect.
Even though the defects were at a level that was hard to distinguish with the naked eye and could easily be mixed in with the good products for delivery, Lee Chang-jin refused to do so.
Using defective parts directly affects the quality and lifespan of the product. Even if it cost more to produce and reduced profits, Lee Chang-jin believed that business must be viewed with a long-term perspective. He was convinced that the reputation and trust in superior products were invaluable intangible assets.
To be the best, one must act like the best. Only working hard when being watched is not the attitude of a first-class entity. Lee Chang-jin’s obsession with excellence was also deeply related to his professional mindset, honed while working at the world-renowned engineering company, Mannheim.
Such fine differences distinguish world-class companies from the rest.
Thus, Lee Chang-jin wanted to instill such craftsmanship in his employees as well.
Only those who take pride in their work can become true professionals.
‘Still, that Chang-dong fellow never makes mistakes as the senior.’
Lee Chang-jin felt content as he looked at Goo Chang-dong. Despite his appearance, Goo Chang-dong was meticulous and rarely made minor mistakes. Although there were concerns due to his young age for a manager, he was fulfilling his senior role appropriately, which was quite reassuring.
His rough appearance was a slight flaw, but it was also a strength. In the past life and this one, Lee Chang-jin, with his gentle-looking face, often found himself underestimated when visiting clients.
However, bringing Goo Chang-dong along to client meetings significantly reduced such issues.
When Goo Chang-dong frowned, the troublesome clients would shrink away as if by magic.
With the quality gaining a good reputation, Lee Chang-jin’s company continued to grow smoothly.
But Lee Chang-jin remained vigilant.
‘The volume of orders is reaching its limit. It’s time to bring in new equipment.’
The machinery industry is ultimately a capital-intensive industry. The core of a capital-intensive industry is that the output is proportional to the investment. Especially in the 1970s, considered a boom period for the machinery industry, many new products were launched annually. To stay competitive in the market, one needed to respond sensitively to such trends.
Having made up his mind, Lee Chang-jin called Manager Goo and asked,
“How much volume do we have to deliver next week?”
“2,000 each of shafts and pinions, and 500 each of bevel and worm gears.”
“What is the current progress?”
“About 80% is completed. It should be almost done by this Friday.”
“Let’s aim to prepare enough to deliver by the day after tomorrow. And you, take a day off and come on a business trip with me.”
Goo Chang-dong looked puzzled.
“In this busy time, where are we going?”
“It seems we need to expand our facilities as the order volume has exceeded our capacity. Let’s start by visiting Guro.”
Three days later, they revisited the Guro machinery market, which was bustling with people coming and going. As the off-season for textiles in the summer ended, textile operations began to pick up. Small and medium-sized factory owners who had taken a summer break resumed their machines, bringing life to the entire industrial complex.
Consequently, orders poured into the workshops near the Guro industrial complex daily.
Lee Chang-jin headed towards the Guro machinery market, passing through the bustling tteokbokki alley in the market.
As the bell rang, the employee at the counter greeted them.
“Hello, how can I help you?”
“Is President Kim Cheol-ho here?”
“Oh, yes, just a moment.”
The employee went inside to call Kim Cheol-ho.
Soon, President Kim Cheol-ho appeared.
“Hey, Chang-jin, you’re here again?”
His hands were covered in grease, indicating he was working.
Lee Chang-jin handed over a plastic bag he had brought from the market.
“Here, I brought some food for you.”
“Hoho, thanks. I haven’t had lunch yet. I’ll enjoy it.”
Kim Cheol-ho, seemingly hungry, sat down and opened the package.
The sight of delicious-looking tteokbokki and fritters made his mouth water.
“Oh, you got this from Veteran up north. Their tteokbokki is the best.”
He devoured the food as if he hadn’t eaten in days.
Lee Chang-jin handed him fish cake soup and said,
“Uncle, you should at least have your meals. We’re doing this to make a living…”
“Haha, I got it. Got it. But how is Jin-joo doing? Has she adapted well to the work?”
“Of course. She’s so quick and efficient. I’m very satisfied.”
“I knew you’d take good care of her. Please look after her well, nephew. She’s a gem.”
“Don’t mention it. I’m more grateful to you for introducing such a good person. But it seems your life has gotten better. You look much healthier, uncle.”
Maybe because he had been making good money, his face looked brighter than before.
Kim Cheol-ho, munching on fritters, laughed and replied,
“Haha, did you get heatstroke and lose your sight? My wife is furious because I’ve gained weight. So, why have you come this time? To look at equipment?”
“I need more welding machines and drilling machines. I also plan to buy a few more grinding machines. Do you have any good second-hand items? I’ll pay you well.”
“Of course. I set some aside, thinking you might need them. Come, follow me.”
After quickly finishing his meal, Kim Cheol-ho led Lee Chang-jin to a warehouse full of second-hand equipment. There were grinding machines from plywood factories, mechanical presses from metal casting factories, air hammers from junkyards, rebar cutting machines, and various other second-hand equipment scattered around. Kim Cheol-ho picked out each piece and explained,
“This welding machine was used by Seoksan Heavy Industries. It’s a 1968 German model and works like a charm. This cutting machine below it was from Mirae Group’s warehouse. It’s a Japanese Yamazaki product that hasn’t even been used for a year. It has no defects but was put on sale during an equipment replacement process.”
Although second-hand, the items were high-quality and had no functional issues.
Impressed by Kim Cheol-ho’s precise memory of each item’s origin, Lee Chang-jin asked,
“You are indeed amazing. But it’s a bit disappointing that they are all small in size. They all use tools for beds of 4 cheok (1 cheok is 300mm) or less. Do you have anything for beds over 8 cheok?”
“What? Over 8 cheok is medium to large size. Are you aiming for bigger projects already?”
“Well, it’s a bit of a waste to keep taking only small orders.”
“Hmm, so what specs are you looking for?”
“Well, roughly, it should be able to cut a diameter of 340mm and a length of 850mm in one go. It should be capable of processing gears over 300mm without any issues. The spindle motor output should be around 30 horsepower.”
At Lee Chang-jin’s question, Kim Cheol-ho folded his arms and pondered for a moment.
“Let’s see… Sorry, but I don’t have anything large here. We only deal with small and medium-sized items. Even if you go to Yeongdeungpo, it’ll be the same.”
“Then where can I get medium to large-sized products?”
“Haha, that’s my bread and butter. Should I give it away easily?”
“Really?”
At that, Lee Chang-jin pretended to rummage through his wallet.
Kim Cheol-ho chuckled and jotted something down in his notebook before handing it to him.
The note had an address written on it.
“Put that away. It’s a joke. Here, this is the address of a workshop in Paju. The owner there, Go Sang-don, is a well-known second-hand machinery dealer and my close friend. He handles anything that makes money, so you can find everything except explosives.”
Taking the note, Lee Chang-jin bowed repeatedly. He was always grateful for the continuous help.
“Thank you, uncle.”
“No need to thank me… We’re just helping each other. If you find something good, just buy me another meal.”
After loading the second-hand equipment, including the welding machines, into the trunk, Lee Chang-jin drove to Paju. Driving along the country road lined with sparse trees, he saw fields covered in green along the roadside.
Following the signposts straight ahead, he found a lone building in the middle of the road.
- To be continued in Episode 15 -
