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Are we done in China yet?

Richard Jia of Zarpac Inc. presents case studies highlighting the challenges faced in projects from China and provides valuable insights and solutions to navigate cultural gaps and operational hurdles.

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Are we done in China yet?

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Presentation Transcript

  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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