This link is an interesting examination of the current economic
situation in China and how this reality compares and contrasts with Japan’s
golden decade of the 1980s. An interesting read that I’d recommend for
anyone thinking about or already outsourcing electronics manufacturing to
China (particularly relative to the comments related to the probable
appreciation of the Yuan.)

EMS Outsourcing Strategy 2010: U.S. or China?

Interesting article by one of CBA’s sponsor EMS companies. Check it out!

http://www.industryweek.com/articles/new_study_projects_creation_of_11_million_jobs_if_u-s-_policies_change_20929.aspx

http://seekingalpha.com/article/180963-the-trouble-with-china?source=email

Google and Secretary of State Clinton  is demanding the Chinese government explain a cyber attack on Google aimed at human rights activists.

http://seekingalpha.com/article/182275-what-google-s-threat-to-pull-out-of-china-really-means?source=email_most_popular

Charlie Barnhart & Associates LLC invites EMS companies to participate in a unique program to help communicate your message to potential OEM customers. Our new EMS Listing Service is a verified, frequently updated searchable database  to enable  OEMs to find supply solutions that are aligned with their requirements. CBA’s Leading Indicators research confirms that the most successful EMS/ODM-OEM relationships are those where the OEM program requirements are well- matched to the EMS/ODM’s capabilities. Our searchable database allows OEMs to quickly search for companies by market segment, facility location, and size. To add your company’s information with a credit card, please use this secure form: https:/charliebarnhart.com/join/index.php

This listing is fee-based ($500) for the EMS company. Why do we charge for listing, when other providers offer this for free? Because we investigate  the companies we list and that assures the OEM that these are companies they can trust. While we do not guarantee or warranty their work, we believe that our relationships with these companies offer the OEM substantial value. 

Once the EMS client submits the information, we will verify the listing, and then push this information to our OEM consituency. Our subscribers come to us for regular Leading Indicators updates, recordings of analyst commentary, and the latest news and articles. We conduct custom workshops, collect case study information, and perform consulting projects. 

Charlie has taught his methodologies to over 1000 outsourcing professionals representing 200+ OEM and 75+ EMS companies through his Global Pricing and Outsourcing Navigator Series Workshops. These managers adhere to Charlie’s GAAP-based methodologies for calculating their total costs. Many have become convinced of the importance of controlling their internal costs when outsourcing globally. They are well-prepared to form mutually profitable, successful EMS relationships. And we will continue to help the industry find its way through this maze by offering our data to OEMs at no charge. This valuable offer has resulted in a dramatic increase in website traffic – and this loyal following means the EMS message will be seen by a unique and focused audience of potential customers.
 
This listing service is scheduled to go live at the end of August. Don’t delay! Make sure your company’s listing is included in the first wave of promotions as we get the word out about this valuable new service to the industry

To add your company’s information with a credit card, please use this secure form: https:/charliebarnhart.com/join/index.php

To request an invoice, please contact Jennifer Read at 623-293-6985; jennifer@charliebarnhart.com

Interesting analysis on selling to Chinese market in a variety of product categories, including electronics. The comments are also worth a look.

http://www.economist.com/businessfinance/displaystory.cfm?story_id=14660438

Where will the innovation come from that fuels the job growth engine? Adrian Slywotsky recommends jump-starting public-private basic research partnerships in this BusinessWeek article. He says legendary research labs that drive innovation, like Bell Labs, DARPA, and RCA Labs did in past decades, don’t exist now. This is what we need to generate the high value jobs that will get us out of the recession. ‘The pipeline for great discoveries is dry and as a result the US business model is broken. Fortunately, he says we can reverse this in a fairly short time if we focus on basic research.

As every NASCAR enthusiasts knows, the speed of the pit crew can be the winning difference in a sport where lap times are measured in milliseconds and the distance between the first and second place finisher can be less than a car length. A situation that probably sounds all too familiar to many OEMs who are dependent on their suppliers to compete in tough global markets that have suddenly gotten even tougher via the ongoing economic meltdown.

And while Charlie Barnhart & Associates LLC isn’t in the business of writing testimonials, we think it’s important to let our OEM clients know that we’ve finally found an EMS case-study that has actually risen to the challenge of lower volume/higher mix manufacturing by application of the NASCAR philosophy of not wasting time sitting in the pit!

On the eastside of the Silicon Valley, in a place called Fremont, California, is a little known contract manufacturer named Victron (www.victron.com) who not only does a pretty decent job building electronics but also has figured out how to do it quickly and on short-notice. Unlike so many of their competitors, Victron’s focus is not just on manufacturing but rather on manufacturing quickly and doing so on-demand. How quickly? How does a one-day manufacturing cycle sound (and remember we’re talking lower volume/higher mix!)?  How do they do it? You guessed it – LEAN!

To start off with, just like the NASCAR pit crews, Victron choose to focus on those activities that were within their span of control rather than obsess on issues they couldn’t change (i.e. forecasts are often wrong and most orders are received at the last minute). Their goal was to provide their race-car driver (the OEM) with the best turnaround time possible, thereby becoming part of the winning solution versus remaining part of the reason for losing. A refreshing idea!

In our review, they admitted that the first (and probably most important) step in the entire process was to accept the fact that batch manufacturing was not the answer and instead of trying to schedule the orders to accommodate the factory they would need to arrange the factory to meet the orders. Secondly, they decided to make the objective of a one-day turnaround their business as usual process – not an exception. Next they systemically evaluated and re-engineered every step in their operation (soup to nuts) to eliminate redundancy, bottlenecks and delays. Finally they implemented a process of fine-tuning each remaining activity to reduce wasted time and/or motion, sometimes via application of a technological tool, sometimes just by common sense. A process which they admit – took time, money and management commitment but clearly has yielded significant returns.

In their words, “By creating a business model around reality, and developing a time-based core competency, we have improved financial performance for both our shareholders and our customers”.

Victron isn’t about to provide me with a detailed list of how they managed to accomplish their one-day manufacturing cycle (so I can tell you and the rest of the world) but I can assure you they have done it. I’ve been through the facility and inspected their records, and what I’ve taken away from this case-study is something I’ve always believed and tried to teach in our Workshops and Symposiums… that it’s more about hard-work, common-sense and the application of the core principles of Lean Manufacturing than anything else.

Bottom-line, the customers of Victron have one of the best pit crews I ever seen, and after 20+ years in the EMS industry I’ve seen quite a few.