A 1978 survey shows that 99 percent of the factories in Thailand may be regarded as small to medium-size industry. The development of these factories is therefore vital to the country. However, previous studies find that management of the typical small to medium-size factory unfortunately lacks the training and expertise to improve its operation and would welcome outside help from government agencies, educational institutions and others. This study is part of the efforts to fulfill such needs. It focuses on the tractor industry since most of the 100 or so factories in this industry are typical of the family-owned small to medium-size factories in Thailand, and the industry is currently plagued with a myriad of problems and needs immediate attention from all concerned. The aim is to study the problems and set the guidelines for the improvement of the tractor factories in the areas of productively improvement, energy saving, marketing and finance. The study is divided into two parts. The first part is conducted through the use of a six-page questionnaire, while the second part consists of field visits to a number of selected factories to iron out the most appropriate suggestions for improvement. Among the numerous recommendations, the most important one is the suggestion that the housing for gears be standardized and manufactured centrally for use by all tractor assemblers throughout the country. Other suggestions for improvement are listed covering production, energy conservation, marketing and financial problems that are encountered by the entrepreneurs. Last, but not least, are the guidelines for the public sector to follow in its attempt to assist and promote this type of industry.
