Assembly Division Facing Challenges in Quality, Cost and Teamwork

Post Time:2004-12-30
In view of rapid development of electronic technologies, electronic products are popular around the world and electronic enterprises of various sizes are mushrooming. Assembly is an important part of the electronic industry, and it is worthwhile to refine assembly operations in the 21st century when we are confronted with numerous competitors.

The year 2004 was outstanding for the Assembly Division. It matured and improved in the course of innovations in terms of management, quality and cost.

Under the leadership of Plant Manager Mr. Lu Ming Liang, the Assembly Division achieved an estimated operating profit of the year as much as 1.3 times that of 2003. We maintained relatively stable relationship with major customers and the total sales were 2.7 million US dollars/month. Our Product Conformity Rate was over 99%, On-Time Delivery Rate was 100% and Customer Satisfaction was 95%.

We developed several new customers while maintaining the existing ones and developed and manufactured the hi-tech product: vacuum cleaner. The development and manufacture of vacuum cleaner marked a historical change by the Assembly Division in terms of management, quality and cost. The development cycle was only 1 month since it was initiated in mid June, substantially reducing cost. Consistent quality was also an important contribution to cost reduction. We owed the quality performance to managerial staff’s on-site education for employees. Signs like “Check Your Own Work” were placed everywhere along the vacuum cleaner production line.

Production of vacuum cleaners was officially started at the end of July. We were requested to deliver 5,000 sets within 5 days at the first time of production. The management decided to run for day and night shifts to meet the delivery requirement. The managers likewise worked on shifts and were strict with both themselves and employees in resolving any problem in the production process in order to deliver the goods in good quality on time. Now, production of vacuum cleaners is stable, sales amount is up to USD500,000/month and the Defective Rate is below 0.6%.

Assembly Division experienced a great change in terms of quality in 2004. Remote controllers were rejected again and again at the end of May. The management made united efforts to improve after-sales service and consolidated the first-level leadership so that problems were located and addressed quickly, accurately and effectively. The Manager of Marketing Department, Mr. Ge Ming, visited the remote controller workshop and provided guidance for the preparation of a quality program to analyze and examine rejected products in order to prevent recurring of problems. A three-dimensional removable defective sample was made at the end of June for production reference.

An enterprise has 3 major operating objectives: to earn profit, to conquer competitors and to satisfy customers. The 3rd is the prerequisite for the fulfillment of the first two. Cost is the resource that an organization sacrifices or invests for current or expected benefits. Plant Manager Mr. Lu Ming Liang said, “Generally speaking, I have found it is more difficult to maintain wealth than to get rich”, and “Cost and reward are the keys to improvement”. The cost control methodology introduced this year by Mr. Lu Ming Liang is now on trial with remarkable effects on improving earning.

Plant Manager Mr. Lu Ming Liang concerns the living of individual employees while taking charge of general management. He initiated a donation activity to a new employee in need in mid February this year. This event not only provided timely support to the recipient, but also enhanced the affection among employees and the cohesion of our team.

As it moves close to the year 2005, Mr. Lu Ming Liang has already been planning our future. We are fully confident that the assembly plant will take more actions to improve overall quality management and strengthen the management system on the basis of cost control.

In view of the future prospects of the Assembly Division and V.S., we are confident and will make more efforts to become one of the leaders in the electronic industry.