Mr. Piippo received the Honorary Doctor title (D.Sc. (Tech) h.c.) in a ceremony that was held in the University of Pécs, Hungary, in March 11, 2010.

Read more about the event from University of Pécs website.

Elcoteq Tallinn had a housewarming party of its new factory in Estonia on March 3, 2010. As a part of the general expanding plans of Elcoteq Tallinn and due to announcement of its new client Inmarsat Elcoteq decided to move to bigger facilities with total area of 4,200 m2.

“Elcoteq is an example to other companies in Estonia. Elcoteq is doing exactly what companies should nowadays do – adjust to changing economic environment,” stated Estonian Prime Minister Mr. Andrus Ansip in his opening speech. He also welcomed the fact that Elcoteq is concentrating on high-mix low-volume production in Tallinn.

Chairman of the Board Mr. Antti Piippo, Senior Vice President of Group Operations Mr. Roger Taylor and General Manager of Elcoteq Tallinn plant Mr. Jan Kotka hosted the event with more than 60 guests from Estonian government and parliament, Tallinn City Government and partner companies.

The fact that Elcoteq Tallinn who recently sold majority of its production in Tallinn to Ericsson has managed to restructure its activities and to find new customers created relatively big media interest. The event received several mentioning in Estonian press including Estonian national television and radio.

(right to left) Mr. Patrik Ahgren shared his opinions with Mr. Debasish Choudhury of Global SMT & Packaging India at Elcoteq stand.

The availability of a high quality and secure domestic supplier base is the key for successful electronics manufacturing in India. Another speaker of Elcoteq seminar, Mr. Yogesh Sarin, Supply Chain Manager of Elcoteq Electronics India Pvt. Ltd. shared Elcoteq’s practical experiences in developing its supply chain and gave an outlook about the future challenges in localization in India.

Mr. Sukhvinder Kumar, General Manager of Elcoteq Electronics India Pvt. Ltd. participated in the panel discussion themed “Vision for the future: Opportunities for India in the Global Electronics Industry”.  According to Mr. Kumar, there are ample growth opportunities in electronics manufacturing market in India though there are many challenges at the same time. The electronics manufacturing services provider should gear up for this immense opportunity ahead.

Mr. Sukhvinder Kumar noted the opportunities of EMS in India at the panel discussion themed ‘Vision for the future : Opportunities for India in the Global Electronics Industry’.
  
Elcoteq would like to thank all those who came to our booth and seminars at Electronics Next India 2010!

ELECTRONICS NEXT INDIA is recognized as a significant event for professionals of electronics manufacturers to catch up with the latest technology trends, which gained support of many major trade associations and trade bodies, e.g. ELCINA, MAIT, etc.
 

Elcoteq is currently exhibiting in Expo Manufactura 2010. The exhibition takes place in Cintermex, Monterrey in Mexico 0n March 2-4, 2010. Expo Manufactura is an international business forum that brings the manufacturing industry together every year and it has established itself as the leading exhibition for the manufacturing industry in Mexico.

Expo Manufactura 2010 brings together a wide range of national and international exhibitors - over 350 companies representing more than 600 national and international brands. The northern region of the Republic of Mexico is where more than 80% of manufacturing in Mexico takes place.

Elcoteq will participate in the Scandinavian Electronics Event S.E.E. in Stockholm, Sweden on April 13-15, 2010.The Swedish IM Association has taken an initiative in creating a completely new arena for the electronics industry. Together with Stockholm International Fairs and the Swedish Association of Electronics Industries (EIF), IM will launch a new event called S.E.E. at Stockholm International Fairs. 13 of the world’s largest semiconductor manufacturers will exhibit at S.E.E. Come and meet us at the Elcoteq Booth, C18:21.

Elcoteq representatives visited the GSMA Mobile World Congress in Barcelona, Spain on February 15-18, 2010. This year’s theme was Vision in Action.  After last year’s decline in visitors a new record was broken with around 49,000 participants from 200 countries and over 1,300 exhibitors showcased their products and services.

One highlight of the show was the announcement of several wireless operators from around the world. They had formed an alliance for a new open platform for distributing applications for users of all mobile operating systems. In addition, Samsung revealed its bada operating system as well as Microsoft its Windows Phone 7 Series. Besides the introduction of several new operating systems, new smartphones were introduced. HTC unveiled two Android OS models, the Legend and Desire with its Sense user interface, as well as the HD mini with the Windows Mobile 6.5 operating system. Motorola demonstrated its MotoBlur on the Quench, a new smartphone with Google’s operating system. Sony Ericsson introduced the Xperia X10 mini and X10 mini pro models designed to work with Google’s OS on small screens. Also Samsung Wave drew attention to its new smartphone equipped with Super AM-OLED technology and high-fidelity colors.  The accompanying conference featured opening keynotes given by CEOs of several major mobile companies such as Research in Motion, Alcatel-lucent and Vodafone. They painted a rather bright picture of the soon to be over recession, claiming the start of a new decade for the mobile industry.  

 

CeBIT is the world’s largest trade fair showcasing digital IT and telecommunications solutions for home and work environments. The key target groups are users from industry, the wholesale/retail sector, skilled trades, banks, the services sector, government agencies, science and all users passionate about technology.

Elcoteq’s experts are present at the CeBIT show. Learn how Elcoteq can help your company as global Product Life Cycle Partner through Manufacturing Services, Engineering Services, Fulfillment Services or After Market Services. If you wish to arrange a meeting, please contact coordinator Karen Falenius at Elcoteq.

Elcoteq SE has been selected as the global manufacturing and Life Cycle Services partner for Inmarsat, the leading provider of global mobile satellite communications services. Elcoteq will start manufacturing IsatPhone Pro, Inmarsat’s first global handheld satellite phone, in its facility in Tallinn, Estonia during the second quarter of 2010. The launch of the new product is planned for June 2010. 

The agreement with Elcoteq covers the Life Cycle Services that include engineering services, component sourcing, NPI and prototyping, box-build, manufacturing and repair services for the products. Elcoteq has been Inmarsat’s design partner in the product’s finalization and industrialization of the IsatPhone Pro.

The 2010 Mobile World Congress will be held 15-18 February, in Barcelona Spain. In 2009, Mobile World Congress hosted approximately 47,000 mobile professionals from 182 countries. The event’s theme for 2010 is Vision in Action.

 Learn how Elcoteq can help ODMs as a global Product Life Cycle Partner through Manufacturing Services, Engineering Services, Fulfillment Services or After Market Services. Elcoteq’s MWC coordinator Karen Falenius is waiting for your booking. 

More about MWC 2010.

See you in Barcelona!

C-TPAT (Customs-Trade Partnership Against Terrorism) is the leading security certification in North America. It is an initiative developed to promote the voluntary relationship between government and industry to improve the international supply chains and homeland security.

C-TPAT recognizes that United States Customs and Border Protection (CBP) can provide the highest level of security cargo through close cooperation with the handlers of supply chains, i.e. importers, carriers, brokers, custom brokers and manufacturers. It offers trade-oriented businesses the opportunity to actively participate in the war against terrorism and its focus on strengthening supply chain security.  C-TPAT Certification was awarded to Elcoteq Monterrey plant in Mexico. All requirements were complied, thanks to great teamwork and dedication lead by Mike Walsh, Senior Manager Logistics Americas, Salvador Morales, Security Manager and Maria Ibarra, Forwarding Coordinator of Elcoteq Monterrey. As a company Elcoteq Monterrey guarantees a secure and efficient supply chain of products backed up by the solid security systems and leading integrity.  

Responsibility of a true global supply chain

To maintain a low procurement cost, acceptable component quality, sufficient inventory levels and on-time logistics arrangements become substantial parts of supply chain management.  In a true global supply chain, the company should manage its suppliers from regional sites so interactions take into account and accommodate each region’s cultural background, standards, and agreements. At the same time the company needs to coordinate the supply chain globally. Especially when doing business in countries where environmental protection and social responsibility are of particular concern, it must be ensured that suppliers in those regions comply with local legislation for those aspects. To secure new materials and handle obsolete material properly, the company also needs to keep track of and implement regulations as they are instituted.

Elcoteq’s proactive approach for a responsible supply chain

Elcoteq’s main business is to provide electronics manufacturing services to enterprises involved in communications technology and to manage their supply chains. Elcoteq fully understands the needs of those businesses and has a proactive approach to ensure a responsible supply chain for its customers - all over the world. In its manufacturing services, Elcoteq only uses components and subcontractors that have been approved by its customers and provides service of supplier and component qualification, Early Supplier Involvement in new product program and full quality assurance of components used in production. Elcoteq both manufactures and tests the products in accordance with the agreed specifications and standards. Performing inspection for incoming materials, it is ensured that components delivered by suppliers meet conformance to requirements, such as reliability, quality and environmental requirements.

Component and supplier related information are registered, stored and managed for global visibility by a Global Supplier Database, that gives  a clear view on supply performance, when it comes to component delivery and quality.  The information in this database is used for optimizing quality assurance in the supply chain and identifying product quality and liability risks related to components and materials. There is also a system to help reporting the product recyclability, which is an important element in meeting requirements such as the WEEE Directive, which require certain recyclability levels for electronic products. Elcoteq has a dedicated approval process for ensuring that products and production measure up to requirements. Procedures agreed on with the customer are used in product testing and inspections as well as product database management. Elcoteq is responsible for the confidentiality, correctness, and availability of its information on individual products and customers. Elcoteq ensures that Supplier meet the Environmental laws and regulation (ISO1401, SA8000), Quality System Requirement (ISO 9001, TL 9000 or ISO/TS 16949), Regulatory Agency compliance/Product safety by Supplier Audits for new suppliers.
Elcoteq has incorporated corporate responsibility issues into supplier management processes, requirements, and audits as well as created a separate operating model for the corporate responsibility audits to be applied for identified high-risk suppliers. All of its suppliers are required to have an environmental system in line with ISO14001 and to comply with the principles of SA8000.

Mr. Stephan E. Willigens

“The development of traditional value chain into a network will most definitely accompany us throughout the next five years,” said Mr. Stephan E. Willigens at the second Elcoteq Forum in September in the Millennium Hotel in Stuttgart, Germany.

Mr. Willigens from the Supply Chain Management Institute of the European Business School, Schloss Reichartshausen in Oestrich-Winkel, spoke in front of numerous interested listeners about Quality and flexibility without stock. “As provocative as this topic may be”, Mr. Willigens smiled.

According to Mr. Willigen’s theory companies are able to react flexibly and with consistent standard of quality to changing market situations, if they are in multilateral relationships with their customers, suppliers and partners. “At the moment 80% of all companies are still using traditional methods”, he assumed.

“Every single one is operating isolated in its own bipolar and straight forward nutshell. Target has to be to identify local and global networks and to define consistent structures. This way the extra costs and lead time can be saved through the mentioned reduction of stock and the risk of being hit by surprise by changing market situations, shrinks significantly,” Willigens says.

Most crucial for this development and the alignment of networks are the customers’ requirements.
“I first have to fully understand what the customer wants from me,” Willigens says. “This information has to then be communicated to every single component of the supply networks on a regular basis, because transparency is one key factor of a well working network,” he stresses. Furthermore it has to be considered that in a global network different cultures come together. “Human beings as additional key factor have to be considered. It is also indispensable to analyze already existing structures on the partner side in order to reorganize in a simple and practical way in order to work together. It is important that the common processes are being lived,” Mr. Willigens concluded.

How Elcoteq is living these kinds of networks already today was shown by Hannu Hautala, Vice President Elcoteq System Solutions, in his presentation. Concepts for cost and complexity reductions have been implemented together with big Chinese and European customers, by moving production to other continents close to the customers and to qualified, first class suppliers. Benefits were that stock was cut in half, several weeks of lead time was saved and flexibility was increased.

The Elcoteq Forum is a platform for decision makers in related industries. The event offered participants a good possibility to learn and discuss about the current topics in the industry and to network with other industry leaders.

Mr. Hannu Hautala, Vice President, Elcoteq System Solutions

Elcoteq’s Plant in Bangalore, India has received the prestigious 2008-2009 ELCINA –DUN & BRADSTREET first place award for Excellence in Quality.

The Awards were presented by the Chief Guest Shri R Chandrashekhar, Secretary Department of IT and the Guest Honour Shri Rakesh Singh who is the Additional Secretary, at a ceremony in New Delhi, India on September 18, 2009.

The award ceremony was attended by senior government official, Members of ELCINA, representatives of D&B and captains of industry in large numbers.The award winners were evaluated on 42 criteria and selected on the basis of total score obtained out of 100 encompassing various aspects that make up an elaborate well-structured evaluation system. Elcoteq Bangalore Quality Manager, Mr. Devang Khamar complimented all the team members who had put their efforts for achieving this recognition for Elcoteq Bangalore. “It is really a wonderful achievement, as we had planned this milestone in our master plan 2009 and it’s great to see this achievement as this is a very prestigious award which Elcoteq Bangalore won on a country level competition”, said Mr. Sukhvinder Kumar, General Manager, Elcoteq Bangalore.

ELCINA (Electronic Industries Association of India) was established in 1967 and is India’s oldest and largest electronics association. It serves as an interactive forum for electronics and IT manufacturers. Dun & Bradstreet Corporation (NYSE: DNB), New Jersey, USA, is a leading provider of credit information on businesses and corporations and a consultant for Best Industry Practices. The ELCINA - Dun & Bradstreet Awards for Excellence in Electronics Hardware Manufacturing and Services recognize the achievements of electronics/IT manufacturing companies in India. The selection committee was comprised of senior government officials and industry representatives who selected Elcoteq based on an elaborate, well-structured evaluation system that encompassed 1000 aspects of business in relation to environmental management.

Elcoteq’s plant in Juarez, Mexico celebrated its first anniversary as part of the Elcoteq on September 1, 2009. Elcoteq announced the acquisition of Philips´ flat panel TV (FTV) assembly operations in Juarez in September 2008. The personnel in Juarez plant joined the worldwide Elcoteq family.

The deal includes a long term cooperation agreement with Philips to provide manufacturing services to Philips for its Latin American FTV business and its PBS (Philips Business Services) business in the Americas and a long term cooperation agreement with Funai Electric Co., Ltd to provide manufacturing services to Funai’s FTV business in North America.

•  Design of Supply Chains using global sourcing
•  Can the established supply chain structure be replaced by new process models?
•  Practical examples of successful supply chains 

Mr. Stephan E. Willigens from the Supply Chain Management Institute of the European Business School, Schloss Reichartshausen in Oestrich-Winkel, will speak about “Global sourcing and Supply Chain Management – quality and flexibility without stock material?”. Later on Mr. Hannu Hautala from Elcoteq will show in his presentation how global sourcing and supply chain management is managed in Elcoteq group. The Elcoteq Forum offers a possibility to learn and discuss about the current topics in the industry. Goal of the event is to build business networks and share thoughts about the changes and challenges of global markets, as well as discover the trends and development possibilities. The afternoon event will be held at the Millennium Hotel in Stuttgart, Germany and it is free of charge. Please note that the speeches are being given in German.

The NEPCON trade shows are well-targeted sourcing events for global buyers to seek suppliers of the best products and manufacturing solutions in the electronics industry. These international shows offer business platforms in China, India, and South East Asia, the hottest electronics manufacturing bases in Asia. To respond to the growing needs of online sourcing activities, the organizers of NEPCON have launched an online sourcing platform, eNEPCON. eNEPCON is a unique platform where exhibitors and visitors can extend their relationships by networking via e-booths without geographical or time zone restrictions. Buyers can effectively search for their desired products and services from an e-booth through the aid of each show’s online sourcing guide.

eNEPCON also links to upcoming NEPCON events. Visitors can obtain the program agendas and latest market information in real-time during the show period. Nepcon South China, which features the latest SMT products and technology for electronics manufacturers and sub-contractors, was held 26-28 Aug 2009 at the Shenzhen Convention and Exhibition Center. Concurrent conferences and workshops will focused on the theme of lead-free technology issues and RoHS compliance.

Deep collaboration is a prerequisite for Original Design Manufacturing (ODM) and Joint R&D (JRD) programs to succeed. Especially for mobile industry, mobile handset is a very collaborative product which needs a structural approach of outsourcing the design or product development and manufacturing. There are volumes of complex data and a wide range of services to be managed in the project. As the industry undergoes constant transformation, communication is crucial on all levels to enable an EMS to identify the OEM’s value proposition and build consensus on targets with them. Thus, the EMS is better able to adapt and realign outsourcing business model from conception through end-of-life. By collaboration from the product development stage, two parties can capitalize on complementary strengths, and reuse what they have already invested and optimize that with the services of the EMS provider to achieve the most desirable TCO.

Deep Collaboration is only possible if there is a relationship of mutual trust, in which involves much sharing of confidential information, such as costing and pricing structure, security and intellectual property (IP), marketing strategy, etc. If there’s no mutual trust, both parties will not share the information the way it is required.  Trust must be earned, and translates in respect for company cultures, respect for IP, and both parties being willing to move beyond traditional buyer – supplier relations.

Having worked for over 20 years with market leaders and innovators in handset design and manufacturing gives Elcoteq valuable insights into the fundamental elements of a long trusted relationship. The primary focus of an EMS provider must be to drive the OEM’s success, which precludes the EMS provider from competing with its own customers. It is about trust, co-development and long-term partnership. Based on deep collaboration and trust, Elcoteq and its customers share a common view of the future and provide agility to evolve with the market demand. Elcoteq is able to anticipate changes in the supply chain for the customers and react to them more quickly. These help minimize the unexpected changes and costs, and both parties can jointly reduce cost of ownership and increase each other’s profits. Elcoteq is pleased to be chosen as the manufacturing partner by market leaders in the telecommunications industry, such as Nokia, RIM, Sony Ericsson.

In June on the occassion of the Word Environmental Day 2009 a drawing contest was held for the employees’ children under the age of 14 in Elcoteq Hungary. The first drawing contest was held 4 years ago and its popularity is growing more and more from year to year.

This year all together 49 enthusiastic children gave in a drawing. The main topic was environmental protection. Most of the drawings call attention to the importance of selective waste collection.

The award party was held on July 30, 2009 at Szilva Plant representative room. According to the decison of the jury the first prize, a bicycle was won by Virág Füzér, the second prize, a 10,000 HUF voucher won by Zsófia Merkl and the third prize a 5,000 HUF voucher was won by Bettina Lajos. All children who participated in the contest got a smaller gift package: girls got a skipping rope, drawing kit and chocolate, the boys got strandball sett, drawing kit and chocolate.

An exhibition was organized on the drawings next to Szilva Plant canteen and they can also be viewed on Intranet Green Company site.

Besides the Elcoteq Blog, you can also find Elcoteq on other social media platforms. Perhaps you are already using Twitter to communicate with your friends, find out about breaking news, and keep up with technology and social media. Now you can also stay current with what’s happening at Elcoteq and connect with other followers and employees through Twitter!  To follow us, go to http://twitter.com/Elcoteq .

Another way to keep in touch with Elcoteq is to join the Elcoteq SE group and connect with us on LinkedIn. Join the more than 1,600 current or former Elcoteqians who are networking on LinkedIn. We would be delighted to see you there!

Along with the rapid advancement of wireless networks, e-commerce has become more popular in the market and has influenced the traditional practice of business-to-business (B2B) and business-to-consumer (B2C) sales. SINOCES unveiled an E-commerce Zone this year which aimed at building a powerful e-commerce platform for the exhibitors with that particular interest. Major e-commerce websites like Made-in-China.com, Alibaba.com, Globalmarket and China Electronic Business Network had exhibits in the Zone. To address the challenging economic conditions, new tools and resources with lower cost and higher efficiency were showcased to further enhance commercial activities in the marketplace. It’s been anticipated that e-commerce in China will develop toward specialization, individuation, internationalization, inosculation, and regionalization in the near future.

 The winning team in the Elcoteq Premier League Cricket Tournament 2009 lifted the trophy high and was cheered by the other teams on the field.  The award was presented by Elcoteq Bangalore plant general manager, Sukhvinder Kumar on June 20, 2009, as the tournament, which began in May, came to a close. The cricket tournament was one of the recreational activities organized by Elcoteq Bangalore for its staff. The game engaged 18 teams in 21 rounds of play. All players demonstrated great team spirit throughout the competition, from recruiting of members, to practices, and formulating tactical strategies. The team members and their captains collaborated in determining all aspects of the game, from batting order, to the placement of fielders, and the rotation of bowlers.

India has a passion for cricket. This was the second year that Elcoteq Bangalore held the tournament, thanks to the employees’ overwhelming response to the same event last year. The Elcoteq management team encourages all employees to have well-balanced lives and stay healthy by participating in sports. All employees were encouraged to take part and to form interdepartmental teams for the contest. The camaraderie built during these team-building activities, like the tournament, enables employees to communicate more with cross-functional units on the job.

The activity for the tournament is planned a month before it is unveiled. The Elcoteq Premier League Cricket Tournament 2009 was scheduled to coincide with the Indian Premiere League season. Most of Elcoteq’s teams even used names similar to those of the Indian Premiere League. There is no doubt that the employees at the Bangalore plant enjoyed the chance to be completely engaged in the atmosphere of one of their favorite sports.

By Sonia Thimmaiah, Bangalore

Det Norske Veritas (DNV) has recommended Elcoteq Bangalore for certification for OHSAS 18001:2007 (OHS) management system. OHSAS was a great addition to the Elcoteq Bangalore’s certificate portfolio. The DNV team has given positive feedback on the understanding and implementation of all three systems.
Certified OHSAS 18001 shows Elcoteq Bangalore’s commitment to health and safety issues, as well as provides assurance to customers that legal compliance is effectively managed. Passing the audit, on the first shot, was good evidence of the level of commitment of the Elcoteq Bangalore employees as well as the Group Corporate Responsibility. It is all about winning as a team, as the philosophy of the company goes.
The whole effort by the team was to make our work place safer for all of us, therefore it is our responsibility to maintain this safety standard and further improve the level of safety everyday. Each one of us shall be responsible for our own and others safety.
Elcoteq Bangalore Quality Manager Mr. Devang Khamar states that “we will not only improve the points identified during the audit exercise, but we would also like to improve the audit points further on an ongoing basis and excel in our work area by making our plant a safe working place for all”.
Mr. Sukhvinder Kumar, General Manager Elcoteq Bangalore, congratulates the teams who have been instrumental in developing the systems and all the employees who have implemented and maintained the systems very well in their daily operations. He also emphasizes that the audit teams from DNV can do a sample audit of Bangalore Plant, however, we will all be having bigger responsibility to keep these systems maintained and even improved everyday.  Elcoteq Bangalore, without any customer requirements or any other obligations, has gone forward and has chosen the OHSAS 18001 certification.
At the moment three Elcoteq factories have been certified three (ISO 9001:2008 (QMS), ISO14001:2004 (EMS) and OHSAS 18001:2007(OHS)) certificates: Pecs, Tallinn and now Bangalore.

Environmental management is still an important issue for the telecommunications industry, and most practitioners try every effort to be environmentally responsible. Operators, vendors, and systems integrators have been trying to minimize their environmental impact by revising their business models, integrating green strategies across product categories, or developing energy efficient solutions. ”Green Telecoms” will be one of the key features in the forum to help evaluate ways to control energy consumption and minimize carbon footprint, as well as to examine the ethical and commercial benefits of going green.

As an EMS company that specializes in the communications technology industry, Elcoteq has been instituting green strategies and practices for several years and working with its customers and stakeholders to help them with their green initiatives. Elcoteq’s helps customer being successful by providing eco friendly manufacturing methods to comply with today and future regulations and to improve its environmental performance throughout the whole supply chain. Let us know how we can work with you to achieve a greener environment.

Lean Sigma, an approach that has been in practice for several years, mixes the Lean Manufacturing concept and problem solving approach with Six Sigma for a more efficient manufacturing process.  Lean Sigma is combined with a company’s strategic objectives to make sure every project and activity benefits these strategic objectives and always has a positive affect on net profit.  By implementing Lean Sigma, Elcoteq has shortened cycle time, reduced costs, and improved quality for its entire supply chain.

A Lean Manufacturing Case History

Because Lean Sigma is an adaptation of two well-documented and used concepts, many companies individualize their approach, incorporating the aspects of each concept they find to be successful for their company.  This Lean Sigma program is unique to Elcoteq and these techniques have been applied throughout Elcoteq’s plants globally to gain consistency in manufacturing operations and structure.  To better monitor the project and improve the results, implementation was divided into phases.

Phase 1: To improve demand flow in the manufacture of semiconductor products in the surface mount (SMT) line, the inventory level for the SMT and final assembly (FA) lines were defined based on a process map to maintain an optimal buffer level to improve cash flow and reduce warehouse space.

Phase 2: To transform the final assembly to a demand-driven flow assembly. To share use of the general and common parts of the test and assembly operations in individual production lines to increase total production line capacity.

Phase 3: To align material and capacity available with flexibility targets set towards fluctuations in the customer’s demand. To apply a computerized software system to closely monitor the daily requirements of materials from the customer and execute quick changeover.

Benchmarking and sharing best practices were conducted after the project was completed.  The result was that line capacity increased about 40% and the plant’s operation could respond daily to the changes in the customer’s demand more efficiently.

This approach incorporates Lean Sigma using a kanban pull production model implementation between SMT and final assembly. Operation is based on a daily production plan.  There is visualization planning, so there is actual on-site data of what is being used and what needs replenishing. Inventory is reduced because you pull just what is needed, when it’s needed, speeding response time in planning and reducing the wait for materials. Materials are delivered directly into the manufacturing process so some of the component buffer can be removed and manufacturing is done to production instead of stock, resulting in just-in-time delivery with single piece flow.  On demand material acquisition minimizes obsolescence and helps to ensure that purchased materials meet the most up-to-date environmental compliance requirements. The cost of capital is reduced. Things happen simultaneously. An MRP system is used for inventory planning and to get materials from the warehouse to the assembly line quickly and as needed. 

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Walldorf, Germany, May 2009.
The Technology Forecasters Inc. (TFI) quarterly forum was hosted by SAP in their headquarters close to Heidelberg. A major focus of this forum was the importance and key success criteria of Supply Chain Management (SCM). Participants from all over the world, representing OEMs, EMS and logistic companies, shared best practices and discussed key issues of today’s SCM activities.

SCM Optimization
Supply Chain Optimization strategies consist of several key areas to be taken into consideration. Lively discussions and examples were kicked around at the event.

As inventory management is facing demand volatility or supply chain disruptions, a negative impact on cash flow is a real risk to business. Inventory optimization is part of the inventory right-sizing strategies of companies; this should be formalized in inventory policy. The connection between target inventory days and product life cycle is a vital factor to be considered. Aspects of the inventory policy are demand, lead times, number of products, objectives (like service levels or minimizing costs) and the general cost structure.

The inventory strategy should be set by the business strategy and can be mapped out in a simple format, as Douglas Kent, President of eKNOWtion, showed in his presentation. It could be composed of competitive requirements, like reliability, responsiveness and flexibility, and also cost requirements and asset management efficiency goals. Each supply chain needs to prioritize these requirements and consider their hierarchy with each specific product life cycle.
As a summary, one could say that each product needs ITS OWN inventory and supply chain strategy.

As a key factor it became clear that not one supply chain strategy fits all organizations. The future can be seen in the concept of supply chain design and optimization, where an optimal business result will be generated from the combination of supply network optimization and inventory optimization.

SC Visibility
What is Supply Chain Visibility? The availability and visibility of the right information to enable the right product, at the right time, at the right place to ensure cost-effective decision-making for efficient product or service delivery, says Hitesh Attri, Supply Chain Consultant at eKNOWtion.  To achieve improved customer performance and reduce internal costs, Supply Chain Visibility is needed. A clear SC Visibility roadmap is critical for implementation.  Some aspects to consider are: identify the right metrics and define targets, identify root causes for missing information, set up a cross-functional team and involve all stakeholders in the process. A clear process with responsibilities, automation of data acquisition wherever possible and continuous improvement is vital for success. Clear SC Visibility can create value for shareholders and a competitive advantage for the business.

As quoted during the discussions, within the top 25 rated SCM companies, you can find 9 who are rated as top innovative companies as well. During difficult economic times, optimized and visible SCM can help companies to stay flexible, innovative and successful in the market.

Elcoteq has two plants in Mexico, located in Monterrey and Juarez. These plants are employing approximately 4,000 people.

At the moment, no cases of influenza A(H1N1) infection have been reported on Elcoteq’s plants in Monterrey and Juarez, Mexico. The manufacturing has continued normally in both plants. Elcoteq has taken several precautions to secure its employees health and safety in Mexico to minimize the risk of infection with disease.