Pronology in EMS (V)
Author：Gilbert Chen
Direction of an EMS
All of the companies should set their direction and future plan. It’s an important factor to present the ambition of the company. Only the company has further prospects, we can rely on and be the close partner. Also, we can expect the partner will grow up as well as our steps. To be a professional low to middle volume and high mix manufacturing as Pronology, we always discuss and set the future planning by staff meeting at the end of every year. We know we should keep progress faster than our customer, and then we can get 100% confidence from our customer
All of the companies should set their direction and future plan. It’s an important factor to present the ambition of the company. Only the company has further prospects, we can rely on and be the close partner. Also, we can expect the partner will grow up as well as our steps. To be a professional low to middle volume and high mix manufacturing as Pronology, we always discuss and set the future planning by staff meeting at the end of every year. We know we should keep progress faster than our customer, and then we can get 100% confidence from our customer
Future plan of Pronology
This is the first time I explain our future plan by writing. I would like to illustrate what’s the planning that we set for year 2011 even it’s about the end of 2011.
1. Operations
- To expand the space to 9,000 m² in 2011
Before moving, our company scattered on 5 floors. To be a more professional EMS factory, we set the target to move the factory by fewer floors and expand the space from 5600㎡ to 9000 ㎡. We relocated our factory to a one floor area by 9000 ㎡ on 4/1/2011. We got obvious progress by the consistent management ways for different teams and efficiency of the operation. The only shortcoming is it’s a little bit expensive.
- To setup the Digital Signage system at production line in 2011
To use the new technology for management is an important activity in current low volume high mix production. PSI will use the Tablet PC with Wifi system to display the concurrent production & technical information of all of unprocessed working order. All of the production line and check point can study and arrange the production by real time information from the Tablet PC.
- To setup the MES system in 2012
Will use the data terminals collect production information and real time transfer to management status reports. Customer can access the production status through Internet.
To keep the date code record of some important parts that needed to be traced. We can figure out the production history while the products get deviations.
To keep the date code record of some important parts that needed to be traced. We can figure out the production history while the products get deviations.
2. Marketing
- To expand the markets in USA, Japan & Europe for the next 3 years.
To be an international EMS factory is an important mission of PSI. Our 60% revenue is coming from foreign customers now, but revenue and size is still small. Will try to cooperate with more foreign customers and expand PSI’s size faster.
- Still work on the EMS manufacturing portion in the next 10 years.
To be an EMS manufacturer, it’s very important not to do business with customer’s end-customers. PSI will insist on working on the manufacturing field for the next 10 years, rather than provide services of other areas.
- No plan to do the distribution market for the next 10 years.
The company strategy to do EMS business with distribution business is quite different. PSI has no plan to change the strategy for the channel market in the next 10 years.
- Plan to build the design team for ODM business in 2013.
Try to build ODM team in 2013. At the beginning, PSI will try to build the test H/W, F/W, S/W & test fixture for customer’s product in 2012. Then, develop the product design capability and do the ODM services in 2013.
- Setup Auto information transfer system between clients and PSI in 2012
Build up the standard information format in PSI’s system. Try to transfer all of customers’ information to PSI’s database by PSI’s format. PSI will build the transfer program for every individual customer in 2012.
3. Sales
- Change the strategy from passive waiting to active creation.
We always have new business partners by introduction. We’ll change the strategy to not only passive waiting, but active creation as following actions.
- To work with trading company & Rep. to expedite the increasing of customers.
We’ll have more relations with trading companies & some Reps. to expedite the increasing of customers and revenue.
- To plan the press release by quarterly base.
We already have the quarterly press release since Q3’2010. And will use the press release to let more people recognize and familiar with PSI. When PSI has more reputation at the EMS field, our customers will have more confidence in PSI.
4. MIS
- To replace the ERP system for IFRS standard in 2011
To fit the international accounting standard “IFRS”, we decided to change our Team ERP system to NEO system from Lancer Corp. Will do the trial in Dec’11 and start to use in Jan’12.
- To setup the programming team in China in 2011
It’s quite difficult to use the standard ERP system to run through the whole process in EMS business. PSI built a programming team in China to add our own requirements in the ERP system. Will let the team be stronger and help our business to be more efficient.
- To setup the Intranet & paperless approval system in 2012
Computerization is a must as the company becomes a giant. PSI always does the planning before things happen. To make the company organized and shorten the communication issue, we started to establish our Intranet and Paperless system in 2011. Hopefully, we can mutually implement the system in 2012.
- To link all of information and let the information flow promptly in 2012
To do the business of low volume high mix, the tempo should be as fast as customer requirement. We should guarantee the customer’s information to be introduced into production line at the soonest way. To reach the target, PSI will design our own information automation transfer system and have customer’s information flow to our end-team within half a day.
5. Finance
- To increase the capital to US$ 4.7M in 2011.
For the purpose of creating more business and let PSI’s cash flow in plenty. PSI’s increased the working capital to US$ 4.7M.
- To go public in 2013.
Customer’s trust is very important to an EMS company. The healthy financial status is the most important factor for a well-developed EMS company. PSI will go public to let finance opened and monitored by government.
- To increase the capital to US$ 6.3M in 2013
To improve PSI’s finance, PSI will continue to increase the working capital to US$ 6.3M.
- To be a listed company in Taiwan OTC Stock Market in 2014
To be a listed company is not the final goal of PSI, but it’s still an important milestone for the development of PSI. PSI plans to be the listed company in 2014 and plan to be a well-known world class low volume high mix production EMS factory.
