Kim Adams Jeff Boynton Julie Nguyen Henry Wei Prof. Greco Finance 570.
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Transcript of Kim Adams Jeff Boynton Julie Nguyen Henry Wei Prof. Greco Finance 570.
Kim AdamsJeff BoyntonJulie NguyenHenry Wei
Prof. GrecoFinance 570
•Company background
•Quality overview
•Offshore outsoucing
•Conclusion
Company Background
• Mer-Mar is a well established, Southern California contract manufacturing and assembly company
• Servicing the Southwest with high quality manufacturing for over 30 years
• Located in Hesperia, California
• Maintained customers for over 20 years
Company Background
• Mer-Mar is a quality supplier– ISO-9001 certified in 1999
• Employs 50 devoted workers– All employees receive full benefits– Many team members have been with Mer-Mar for
20+ years
Company Background
Company Background
• Mer-Mar principals are “second Generation owners”– John Merell, President
• 25 years at Mer-Mar in operations
– Jeff Menkes, VP• 20+ years in electronic design of IC’s and PCB
Mer-Mar Markets
• Mer-Mar has been profitable every year for over 30 years specializing in the following markets:
– Medical Electronics– Aerospace– Automotive– Entertainment and Leisure– Homeland Security
Mer-Mar’s*Products
* Competitors*Quality Overview
Mer-Mar Product Overview
• Mer-Mar products include:
– Electronics Assembly– SMT through-hole, BGA, Flip Chip– Mechanical Assembly– “Box Build”
Competitors
• Direct– Golden West Technologies– Probe Manufacturing
• Regional
• National– Flextronics– Sanmina
Core Competencies
• Core competencies– Flexibility
– Quality
– Reliability
• Competitive Advantage– High desert location
Mer Mar’s Capabilities
• 22,000 sq. ft Facility– 3 shift capability
• Extensive Test capabilities– Mer-Mar equipment
– Customer provided equipment
• Capable of turning boards within weeks from complete material receipt
Review of Customer Requirements
• Assurance that customer requirements are met by:
– Contract Review at receipt of purchase order
– Customer Purchase Order Planning– Purchase Order Compliance Inspection
– Receiving Inspection
– Board Level Inspection
– Testing
Process Control
• Process Control is accomplished by– Assembly aids– Review of machine settings before each job– Inspection at numerous steps in the process
– Equipment Calibration
– Quality Improvement Team Review• Process Review
– QITCAR (Quality Improvement Team Corrective Action Report)
– Internal Audits
Mer-Mar&
Offshore Outsourcing
MerMar & Outsourcing
Mer Mar currently does NOT
offshore outsource
Why Mer-Mar chooses not to outsource
• Product offering characteristics– Low to medium volume
– High mix
– High “touch” assembly
– Requires automation and skilled labor
Why Mer-Mar chooses not to outsource
• Quality– Eliminates potential for increased failure rates
– Critical nature of products
Why Mer-Mar chooses not to outsource
• Customer service– Personalized
– Quick turnaround orders
– Prompt response to service calls
Why Mer-Mar chooses not to outsource
• Proximity– Eliminates potential long lead time
– Spares readily available
– Eliminates customs barriers
Why Mer-Mar chooses not to outsource
• Workforce concerns– Training
– Language Barriers
– Loyalty to many long-term employees
MerMar & Outsourcing
Dedication to producing American-made products using American workers
Why Mer-Mar chooses not to outsource
• Threat to U.S. economy– American pride
– Unemployment rates
– No regulation
Mer-Mar’s views on Outsourcing
• Offshore outsourcing is not for every company
• Outsourcing “makes sense” for high volume consumer goods
• Companies often rush to follow outsourcing trends
• Outsourcing companies often do not consider soft costs
Conclusion
Conclusion
• Mer-Mar does not consider offshore outsourcing a viable option
• Mer-Mar feels threatened by outsourcing trends but believes customers will continue to rely upon them based on their core competencies
Conclusion
This concludes our presentation.
Questions ????