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Are we done in China yet?

Are we done in China yet?. Presented by Richard Jia Ex 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

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Are we done in China yet?

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  1. Are we done in China yet? Presented by Richard Jia Ex Zarpac Inc. Executive

  2. Pain ≥ Gain • Low cost = low quality • Consistence • Surprises • Total cost of ownership • Overheads up • Gap in cultures

  3. 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

  4. 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.

  5. 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

  6. 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

  7. 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

  8. Case study - 3 • Complex automated system for secondary packaginginvolved 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

  9. Continued • More investment in cash from both sides • Longer delivery • OEE failure • So much indirect expenses, expats, FAT staff • Mentally suffered

  10. 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

  11. What can we do • Bridge, toll and shortcut • Connections with vendor, government • Direction of approaches • Be 3rd man or contractor • Influences on both sides

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