Post on 01-Jan-2016
description
Are we done in China yet?Presented byRichard JiaEx Zarpac Inc. Executive
Pain ≥ Gain Low cost = low quality Consistence Surprises Total cost of ownership Overheads up Gap in cultures
Case study-1 Client in NA required bulky standard
conveyors hundred of meters For any standard section, NA local
vendor is cheaper than from China after including shipping cost and timing on delivery, plus risks on final quality and after sales service
No chance to win in such game
Continued Meanwhile the client had some customized
project going on though still part of conveyors
Our Canadian headquarters was auditing and supervising all drawings and production and FAT in China including crating.
Brain labor and overtime is still competitive Plus this sort of low end projects do not
need much on services and parts.
Case study-2 High end soup filler, build to print Imperial to metric Understand NA style drawings and
documentations Risk started from raw material, such SST,
food grade plastic or rubber There was almost no manufacturing
practice You have to be on site to watch
Continued Rework due to ill preparation, under
estimate from both sizes and mindset It took 2 years to deliver the filler on site Not worth it One time right from the very beginning
Where is the opportunity Industrial base and tradition Hundreds of graduates on mechanical
and automation from schools Seek and train up local partner, or
establish your own team We have learned enough from past,
know short cut
Case study - 3 Complex automated system for secondary
packaging involved robotics up to 6 axis We suggested the 1st prototype to be
provided in Canada, roll out in China. Rejected
Nightmare started at this point Local R&D, electrical programming
capability, supply chain, education, mix up lead to mess up
Continued More investment in cash from both sides Longer delivery OEE failure So much indirect expenses, expats, FAT
staff Mentally suffered
Best value model Fully understand what is the best from West and
China How to pick up and combine Quality, flexibility, safety and cost effective Well prepared home work is a must Communication is not easy at all Supply chain management Focus on valued added areas Professional 3rd party service Localized team with international thinking
What can we do Bridge, toll and shortcut Connections with vendor, government Direction of approaches Be 3rd man or contractor Influences on both sides