At the heart of the market of the electronics industry, the total cost of the supply chain is a crutial issue. Centralizing magnetic production, PCBA and system integration has become a major competitive advantage for both EMS partner and its customers. Thierry Basse, European Sales Director, tells us about AMW’s experience in Thailand.
Since 1999, AMW has been an expert in the development and manufacturing of magnetic components for the electronic market. This know-how allows AMW to get the control of the entire lifespan of the products, thanks to exacting and innovative designs.
A few years ago, this long-term vision gave AMW the keys to develop Printed Circuit Board Assembly and System Integration. Today, the company provides a full turn key supply chain for its customers.
What are the advantages of this diversification? What are the competitive and logistical advantages for AMW and therefore for its customers?
This diversification was implemented step by step through partnership support which began with the assembly of through-hole components on PCBs, inspection and testing. As component technologies evolved, AMW followed this support by adding the assembly of surface mounted technology (SMT) and finally the complete integration of the products.
Many customers have now followed this development and have succeeded in improving their total production costs.
The management of AMW’s Supply Chain
Is the entire production provided on one site?
Yes, our factory in Thaïland has autonomous industrial units able to produce Magnetic components, PCBA, Integrated products.
What was the interest of locating the production lines in Thailand?
Thailand is a stable economical and political country, with local access to electronic & mechanical suppliers. Electronic industry is already present in the country. As part of the Board Of Investment (BOI) of Thailand, AMW get benefits of zero duty cost on imported raw materials.
With your network in Thailand, how far can you offer services for your customers?
We are able to propose a full turn key solution using all our suppliers in place. We have access to the major distributors in Asia and have local ones close to our factory to minimize transportation costs. With a global market today, it’s important to propose such turn key solution to our partners.
How do you adapt the manufacturing processes for your customers on long production lines?
Our manufacturing processes are managed by our own ERP developed through the IBM platform AS400. In order to deliver our customers on time, we buy all the raw material based on the ERP recommendations, it take in consideration suppliers lead time, Freight, and receiving inspection if needed. Every production order manages components or product Bill of Material, and a specific process flow. A charger can start from different magnetic components production orders, followed by different PCBA orders, up to the last integration order.
AMW’s leitmotif is to build trustworthy relationships with its customers. How is your client involved upstream of the project?
Our customer manages the final product specifications (Charger, Power supply…). AMW can support the customer with a Design or Co-design proposal. Our customers usually qualify the first sample by themselves by integrating the product in the real environment.
How do you establish monitoring with the customer?
Every Production Order is followed and traced into our Product Floor tool. We are able to share any information with the customer in real time.
How do you analyze and prevent risks on the production chain?
Before engaging a production of several hundred or thousands products, we produce one unit. It’s done on 100% of the products.
During the series, we monitor our production in real time through our shop floor control tool to mitigate the risks. If a defect is found what ever the control solution, we stop the production in order to solve it.
A win-win strategy with the customers
Product design, integration, stock management, transport, etc. : setting up an efficient production line means drawing inspiration from the best of customers’ industrial sectors.
By involving its partners upstream and a control all along the manufacturing process, AMW gives the opportunity for its customers to get both EMS experience and factory availability.
How is centralization an advantage in regard to product quality?
Having a centralized production is easier for quality monitoring. When a system is integrated in AMW we have the full control of the process, from component to PCBA up to system integration. Root cause of any failure is handled and solved in real time.
What other logistical advantages are there to centralizing the line?
By producing all magnetic components internally, overall Leadtime is reduced, we don’t have to produce more than the need and can avoid excess inventory on the magnetic commodities.
Since magnetic components are usually heavy, overall transportation costs are reduced, it’s a benefit for the customer.
How is it a competitive strengh ?
AMW integrate a full turn key supply chain to support Magnetic components assembly, Printed Circuit Board assembly and System integration services. This integrated solution provides a key differentiator for our customer who wants to reduce the total supply chain cost.
Do you think it’s particulary related to EMS market ?
I don’t think that this is specific to EMS industry. Look how Toyota is settled up. An integrated supply chain to run a one piece flow model to control Cost, Quality, flexibility, responsiveness, logistics. It’s the based of the lean manufacturing, JIT (Just In Time) combine with JIDOKA (Good the first time
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