Author:Victor Wang

The year of 2015 is a very stagnant year for the whole manufacturing industry. The order is less but the labor cost is raised up. And we need to undertake other heavy taxes. The industrial environment for the manufacturing industry has become worse. So PSI have to do some effective control to reduce the production cost and promote the production efficiency in response to the future development.

First of all, improve the space utilization to reduce fixed cost.

PSI have three buildings before, and now we adjust the production line and storage space to 2 buildings. The rate of space utilization has rose from 66% to 97%, so the rent for one building has been saved(illustration listed as below).

Secondly, arrange the space effectively to reduce the turnaround time of the products.

In the past, production testing, assembly and packaging workshop were on two floors. The system workshop and the whole PCBA workshop were separated in two different plants. The office building was in the middle of them before. Currently, test group, package are on the same floor. The system and PCBA are in the adjacent two buildings. So it will shorten the turnaround time of the entire product in the process. (Picture as above)

Because the development route of PSI is Low to Middle volume and High mix production, each process will face the problem of transferring the production line frequently. In view of this, PSI start to put forward an idea to reduce the time for transferring the production line and the cycle time. It shortens the process to improve production efficiency.

First, after finishing the tin inspection, parts of products can be brought to the test or packaging station for the DIP process directly. So it can save the cycle time and the times that products undergo the system testing and packaging.

Second, some parts of products’ testing, assembly, and packaging are in one-stop production. So it can reduce the cycle time and time for transferring line in different period to promote the production efficiency.

In conclusion, we hope PSI can reduce the production cost effectively, improve production efficiency, and develop steadily and continuously by doing the process adjustment in the following days.