At 15 years old, a child becomes an adult. The mentality changed from compliant stage , through rebellious stage and then mature stage. A company changes faster than human beings. How does PSI go through the past 15 years? What’s the change of PSI and what remains constant?

An American company, communication product manufacturer, tried to stop the manufacturing site in Taiwan in 1999. A group of people worked in the company did some investigation and made plans. Then, they started the new career and founded a new company named Pronology Services Inc. on Oct, 1st, 1999. The object is to be the low to middle volume high mix contract manufacturer.

Before a new company starts, we always have a perfect plan for the future development. We tried to invest little capital, and increase the capital by yearly gain gradually. When PSI started the company, we have the same perfect plan. But, the reality was always the opposite. It was a bad year in 2000. PSI ran out all of the investments in about only 8 months. It was a new firm who can’t get any help from banks. Therefore, I took all of my savings (about US$ 350K) as the turn-over cash for the company. It was quite terrible and big burden for the cash shortage every month about US$ 70K. When God closes a door, he will open another window for us. At the point when I ran out all of my savings, the cash flow turned positive in next month. The company income statement changed from loss to gain after one and half of a year.

The demand of Wi-Fi and home communication products grew fast in 2001. PSI got some customers who worked for those kinds of products. It made PSI gain stable profit. The market always changed rapidly. The production for most of middle volume products was moved to China because of the selling price drop from 2004 to 2006. When PSI started the company, we set the goal of becoming a low volume high mix manufacturer and try to be the leader in that field. Therefore, PSI didn’t get big impact because of the production moving. PSI transferred the business model to low volume high mix production smoothly.

God takes care of PSI a lot for these 15 years. When we lost an important customer, we got some more new customers to fill the revenue shortage. We started partial turn-key business in 2002. PSI entered the stable grown-up stage. Then, PSI relocated to Wu-Chuan Rd, Wu-Ku, in New Taipei City in 2003. The floor space increased to 3800 m2. More than that, our business changed to full turn-key model in 2005. The revenue increased from US$ 2.5M in 2002 to US$ 14M in 2005.

Head of a company always has a dream to expend the company. As soon as PSI grew up stable, there was a chance to expand the plant to Shenzhen China. After many times of discussion between core team members, PSI decided to take over the factory and change the name to Pronology Services (China) Inc. The factory started the business with production of MP3, and then diversified to different field products.

Crisis management is a must for a people or a company. PSI faced a bad debts for US$ 1M in 2007. It’s about half of PSI’s capital. The company almost went bankrupt. Through the learning of financial risk, PSI knew how to face threaten. In financial planning, we also have better balance of risk reserve fund then. Though it’s a big test for PSI, we got the important experience of financial management. Thanks God for the burden, PSI stood up stronger.

How to connect all of the information for customers, internal company and vendors rapidly and accurately is a major direction of PSI these years. We started to plan automatic management since 2012. We started with automatic scheduling system, and then production management system, and finally the whole information management system in 2014 (MIS system- I introduced the system in detail in the past 2 quarterly presses.). We also replaced our ERP system by DSC Tiptop in 2013. It can let ERP system and MIS system share the same data and join together closely. Our purpose is to use computer to do all of the data calculations and automatically create the communication information, reduce the overhead of human resource.

Clear information with customers and vendors is the next object for PSI. We have MIS system internally. The information transfer during different teams in PSI is almost fast and complete now. We need to review the system to let all of the information easier to use, more efficient and more accurate in 2015 internally. Customer remote access system is another important object for PSI in 2015. Hopefully, we can have 100% trust from our customers through opening information.